Document:

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                                                                     EXHIBIT 4.2

                               THE BOEING COMPANY

                                       TO

                               JPMORGAN CHASE BANK
                                                TRUSTEE

                                  SUBORDINATED
                                    INDENTURE

                         DATED AS OF [      ], [     ]

                  PROVIDING FOR THE ISSUANCE OF DEBT SECURITIES

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<Table>
<Caption>
Trust Indenture
Act Section                                                                                 Indenture Section
<S>                                                                                            <C>
310(a)(1)...................................................................                              609
   (a)(2)...................................................................                              609
   (a)(3) ..................................................................                   Not Applicable
   (a)(4) ..................................................................                   Not Applicable
   (a)(5)...................................................................                              609
   (b)......................................................................                         609, 610
311(a)......................................................................                              613
   (b)......................................................................                              613
312(a)......................................................................                      701, 702(a)
   (b)......................................................................                           702(b)
   (c)......................................................................                              702
313(a)......................................................................                              703
   (b)......................................................................                              703
   (c)......................................................................                              703
   (d)......................................................................                              703
314(a)......................................................................                        704, 1010
   (b)......................................................................                   Not Applicable
   (c)(1)...................................................................                              102
   (c)(2)...................................................................                              102
   (c)(3)...................................................................                   Not Applicable
   (d)......................................................................                   Not Applicable
   (e)......................................................................                   Not Applicable
315(a)......................................................................                              102
   (b)......................................................................                              602
   (c)......................................................................                           601(b)
   (d)......................................................................                           601(c)
   (d)(1)...................................................................                        601(a)(1)
   (d)(2)...................................................................                        601(c)(2)
   (d)(3)...................................................................                        601(c)(3)
   (e)......................................................................                              514
316(a)(1)(A)................................................................                         502, 512
   (a)(1)(B)................................................................                              513
   (a)(2)...................................................................                   Not Applicable
   (b)......................................................................                              508
   (c)......................................................................                             1301
317(a)(1)...................................................................                              503
   (a)(2)...................................................................                              504
   (b)......................................................................                             1003
318(a)......................................................................                              108
</Table>

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

                                        i
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                                      ARTICLE ONE

                  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
<Table>
      <S>                                                                                                <C>
      SECTION 101.  DEFINITIONS...........................................................................1
             ACT..........................................................................................2
             ADDITIONAL AMOUNTS...........................................................................2
             AFFILIATE....................................................................................2
             ATTRIBUTABLE DEBT............................................................................2
             AUTHENTICATING AGENT.........................................................................2
             AUTHORIZED NEWSPAPER.........................................................................2
             BEARER SECURITY..............................................................................3
             BOARD OF DIRECTORS...........................................................................3
             BOARD RESOLUTION.............................................................................3
             BUSINESS DAY.................................................................................3
             CAPITAL STOCK................................................................................3
             COMMISSION...................................................................................3
             COMPANY......................................................................................3
             COMPANY REQUEST..............................................................................3
             CONSOLIDATED NET TANGIBLE ASSETS.............................................................3
             CONTROL.....................................................................................10
             CORPORATE TRUST OFFICE.......................................................................4
             CORPORATION..................................................................................4
             COUPON.......................................................................................4
             DEBT.........................................................................................4
             DEFAULTED INTEREST...........................................................................4
             DOLLAR.......................................................................................4
             EVENT OF DEFAULT.............................................................................4
             EXCHANGE DATE................................................................................4
             EXTENSION NOTICE.............................................................................4
             EXTENSION PERIOD.............................................................................4
             EXTENSION PERIOD.............................................................................4
             HOLDER.......................................................................................4
             INDENTURE....................................................................................4
             INTEREST.....................................................................................5
             INTEREST PAYMENT DATE........................................................................5
             LIEN.........................................................................................5
             MATURITY.....................................................................................5
             OFFICERS'CERTIFICATE.........................................................................5
             OPINION OF COUNSEL...........................................................................5
             OPTIONAL RESET DATE..........................................................................5
             ORIGINAL ISSUE DISCOUNT SECURITY.............................................................5
             ORIGINAL STATED MATURITY.....................................................................5
             OUTSTANDING..................................................................................5
             PAYING AGENT.................................................................................7
             PERSON.......................................................................................7
             PLACE OF PAYMENT.............................................................................7
             PREDECESSOR SECURITY.........................................................................7
             PRINCIPAL PROPERTY...........................................................................7
             REDEMPTION DATE..............................................................................7
             REDEMPTION PRICE.............................................................................7
             REGISTERED SECURITY..........................................................................7
             REGULAR RECORD DATE..........................................................................8
             RESET NOTICE.................................................................................8
             RESPONSIBLE OFFICER..........................................................................8
             SALE AND LEASE-BACK TRANSACTION..............................................................8
             SECURITY.....................................................................................8
             SECURITY REGISTER............................................................................8
             SENIOR INDEBTEDNESS..........................................................................8
             SPECIAL RECORD DATE..........................................................................8
             STATED MATURITY..............................................................................8
</Table>

                                       ii
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<Table>
      <S>                                                                                                <C>
             SUBORDINATED INDEBTEDNESS....................................................................9
             SUBSEQUENT INTEREST PERIOD...................................................................9
             SUBSIDIARY...................................................................................9
             TRUSTEE......................................................................................9
             TRUST INDENTURE ACT..........................................................................9
             UNITED STATES................................................................................9
             UNITED STATES ALIEN..........................................................................9
             U.S. DEPOSITARY..............................................................................9
             U.S. GOVERNMENT OBLIGATIONS.................................................................10
             VICE PRESIDENT..............................................................................10
             VOTING STOCK................................................................................10
      SECTION 102.  COMPLIANCE CERTIFICATES AND OPINIONS.................................................10
      SECTION 103.  FORM OF DOCUMENTS DELIVERED TO TRUSTEE...............................................11
      SECTION 104.  ACTS OF HOLDERS......................................................................12
      SECTION 105.  NOTICES, ETC., TO TRUSTEE AND COMPANY................................................13
      SECTION 106.  NOTICE TO HOLDERS OF SECURITIES; WAIVER..............................................14
      SECTION 107.  LANGUAGE OF NOTICES, ETC.............................................................15
      SECTION 108.  CONFLICT WITH TRUST INDENTURE ACT....................................................15
      SECTION 109.  EFFECT OF HEADINGS AND TABLE OF CONTENTS.............................................15
      SECTION 110.  SUCCESSORS AND ASSIGNS...............................................................15
      SECTION 111.  SEPARABILITY CLAUSE..................................................................15
      SECTION 112.  BENEFITS OF INDENTURE................................................................15
      SECTION 113.  GOVERNING LAW........................................................................15
      SECTION 114.  LEGAL HOLIDAYS.......................................................................16
      SECTION 115.  APPOINTMENT FOR SERVICE..............................................................16

                                   ARTICLE TWO

                                 SECURITY FORMS

      SECTION 201.  FORMS GENERALLY......................................................................17
      SECTION 202.  FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION......................................17
      SECTION 203.  SECURITIES IN GLOBAL FORM............................................................18

                                  ARTICLE THREE

                                 THE SECURITIES

      SECTION 301.  AMOUNT UNLIMITED; ISSUABLE IN SERIES.................................................19
      SECTION 302.  DENOMINATIONS........................................................................23
      SECTION 303.  EXECUTION, AUTHENTICATION, DELIVERY AND DATING.......................................23
      SECTION 304.  TEMPORARY SECURITIES AND EXCHANGE OF SECURITIES......................................26
      SECTION 305.  REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE..................................28
      SECTION 306.  MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES.....................................31
      SECTION 307.  PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED; OPTIONAL INTEREST RESET..............32
      SECTION 308.  PERSONS DEEMED OWNERS................................................................35
      SECTION 309.  CANCELLATION.........................................................................36
      SECTION 310.  COMPUTATION OF INTEREST..............................................................36
      SECTION 311.  FORM OF CERTIFICATION BY A PERSON ENTITLED TO RECEIVE A BEARER SECURITY..............36
      SECTION 312.  OPTIONAL EXTENSION OF MATURITY.......................................................37

                                  ARTICLE FOUR

                           SATISFACTION AND DISCHARGE

      SECTION 401.  SATISFACTION AND DISCHARGE OF INDENTURE..............................................38
      SECTION 402.  APPLICATION OF TRUST MONEY...........................................................40
      SECTION 403.  SATISFACTION, DISCHARGE AND DEFEASANCE OF SECURITIES OF ANY SERIES...................40

                                  ARTICLE FIVE

                                    REMEDIES

      SECTION 501.  EVENTS OF DEFAULT....................................................................43
      SECTION 502.  ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT...................................44
</Table>

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<Table>
      <S>                                                                                                <C>
      SECTION 503.  COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE......................45
      SECTION 504.  TRUSTEE MAY FILE PROOFS OF CLAIM.....................................................46
      SECTION 505.  TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES OR COUPONS...............47
      SECTION 506.  APPLICATION OF MONEY COLLECTED.......................................................47
      SECTION 507.  LIMITATION ON SUITS..................................................................48
      SECTION 508.  UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM AND INTEREST............48
      SECTION 509.  RESTORATION OF RIGHTS AND REMEDIES...................................................49
      SECTION 510.  RIGHTS AND REMEDIES CUMULATIVE.......................................................49
      SECTION 511.  DELAY OR OMISSION NOT WAIVER.........................................................49
      SECTION 512.  CONTROL BY HOLDERS OF SECURITIES.....................................................49
      SECTION 513.  WAIVER OF PAST DEFAULTS..............................................................50
      SECTION 514.  UNDERTAKING FOR COSTS................................................................50
      SECTION 515.  WAIVER OF STAY OR EXTENSION LAWS.....................................................51

                                   ARTICLE SIX

                                   THE TRUSTEE

      SECTION 601.  CERTAIN DUTIES AND RESPONSIBILITIES..................................................51
      SECTION 602.  NOTICE OF DEFAULTS...................................................................52
      SECTION 603.  CERTAIN RIGHTS OF TRUSTEE............................................................53
      SECTION 604.  NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES...............................54
      SECTION 605.  MAY HOLD SECURITIES..................................................................54
      SECTION 606.  MONEY HELD IN TRUST..................................................................54
      SECTION 607.  COMPENSATION AND REIMBURSEMENT.......................................................54
      SECTION 608.  TRUSTEE'S LIEN.......................................................................55
      SECTION 609.  CORPORATE TRUSTEE REQUIRED; ELIGIBILITY; CONFLICTING INTERESTS.......................55
      SECTION 610.  RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR....................................56
      SECTION 611.  ACCEPTANCE OF APPOINTMENT BY SUCCESSOR...............................................57
      SECTION 612.  MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS..........................58
      SECTION 613.  PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY....................................59
      SECTION 614.  APPOINTMENT OF AUTHENTICATING AGENT..................................................59

                                  ARTICLE SEVEN

                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

      SECTION 701.  HOLDERS' LISTS.......................................................................61
      SECTION 702.  PRESERVATION OF INFORMATION; COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS............61
      SECTION 703.  REPORTS BY TRUSTEE TO HOLDERS........................................................61
      SECTION 704.  REPORTS BY COMPANY...................................................................62

                                  ARTICLE EIGHT

              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

      SECTION 801.  COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS.................................63
      SECTION 802.  SUCCESSOR CORPORATION SUBSTITUTED....................................................63

                                  ARTICLE NINE

                             SUPPLEMENTAL INDENTURES

      SECTION 901.  SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS...................................64
      SECTION 902.  SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS......................................65
      SECTION 903.  EXECUTION OF SUPPLEMENTAL INDENTURES.................................................67
      SECTION 904.  EFFECT OF SUPPLEMENTAL INDENTURES....................................................67
      SECTION 905.  CONFORMITY WITH TRUST INDENTURE ACT..................................................67
      SECTION 906.  REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES...................................67

                                   ARTICLE TEN

                                    COVENANTS

      SECTION 1001.  PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST..........................................67
      SECTION 1002.  MAINTENANCE OF OFFICE OR AGENCY.....................................................68
</Table>

                                       iv
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<Table>
      <S>                                                                                                <C>
      SECTION 1003.  MONEY FOR SECURITIES PAYMENTS TO BE HELD IN TRUST...................................69
      SECTION 1004.  ADDITIONAL AMOUNTS..................................................................70
      SECTION 1005.  CORPORATE EXISTENCE.................................................................71
      SECTION 1006.  MAINTENANCE OF PROPERTIES...........................................................71
      SECTION 1007.  PAYMENT OF TAXES AND OTHER CLAIMS...................................................72
      SECTION 1008.  LIMITATION UPON LIENS...............................................................72
      SECTION 1009.  LIMITATIONS ON SALE AND LEASE-BACK TRANSACTIONS.....................................75
      SECTION 1010.  STATEMENT AS TO COMPLIANCE..........................................................76
      SECTION 1011.  WAIVER OF CERTAIN COVENANTS.........................................................76

                                 ARTICLE ELEVEN

                            REDEMPTION OF SECURITIES

      SECTION 1101.  APPLICABILITY OF ARTICLE............................................................76
      SECTION 1102.  ELECTION TO REDEEM; NOTICE TO TRUSTEE...............................................77
      SECTION 1103.  SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED...................................77
      SECTION 1104.  NOTICE OF REDEMPTION................................................................77
      SECTION 1105.  DEPOSIT OF REDEMPTION PRICE.........................................................79
      SECTION 1106.  SECURITIES PAYABLE ON REDEMPTION DATE...............................................79
      SECTION 1107.  SECURITIES REDEEMED IN PART.........................................................80

                                 ARTICLE TWELVE

                                  SINKING FUNDS

      SECTION 1201.  APPLICABILITY OF ARTICLE............................................................80
      SECTION 1202.  SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES...............................81
      SECTION 1203.  REDEMPTION OF SECURITIES FOR SINKING FUND...........................................81

                                ARTICLE THIRTEEN

                        MEETINGS OF HOLDERS OF SECURITIES

      SECTION 1301.  PURPOSES FOR WHICH MEETINGS MAY BE CALLED...........................................82
      SECTION 1302.  CALL, NOTICE AND PLACE OF MEETINGS..................................................82
      SECTION 1303.  PERSONS ENTITLED TO VOTE AT MEETINGS................................................83
      SECTION 1304.  QUORUM; ACTION......................................................................83
      SECTION 1305.  DETERMINATION OF VOTING RIGHTS; CONDUCT AND ADJOURNMENT OF MEETINGS.................84
      SECTION 1306.  COUNTING VOTES AND RECORDING ACTION OF MEETINGS.....................................85

                                ARTICLE FOURTEEN

                                  SUBORDINATION

      SECTION 1401.  SECURITIES SUBORDINATED TO SENIOR INDEBTEDNESS......................................86
      SECTION 1402.  EFFECTUATION OF SUBORDINATION BY TRUSTEE............................................89
      SECTION 1403.  KNOWLEDGE OF TRUSTEE................................................................89
      SECTION 1404.  TRUSTEE'S RELATION TO SENIOR INDEBTEDNESS...........................................90
      SECTION 1405.  RIGHTS OF HOLDERS OF SENIOR INDEBTEDNESS NOT IMPAIRED...............................90

                                 ARTICLE FIFTEEN

                            MISCELLANEOUS PROVISIONS

      SECTION 1501.  SECURITIES IN FOREIGN CURRENCIES....................................................90
      SECTION 1502.  IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS, DIRECTORS AND EMPLOYEES..........91

                                 ARTICLE SIXTEEN

                       REPAYMENT AT THE OPTION OF HOLDERS

      SECTION 1601.  APPLICABILITY OF ARTICLE............................................................91
</Table>

                                        v
<Page>

     SUBORDINATED INDENTURE, dated as of [      ], [      ], between The
Boeing Company, a corporation duly organized and existing under the laws of the
State of Delaware (herein called the "Company"), having a principal office at
100 North Riverside, Chicago, Illinois 60606-1596, and JPMorgan Chase Bank, a
banking corporation duly organized and existing under the laws of the State of
New York, as Trustee (herein called the "Trustee").

                             RECITALS OF THE COMPANY

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

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

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

                                   ARTICLE ONE

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

SECTION 101.  DEFINITIONS.

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

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

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

     (3)      all accounting terms not otherwise defined herein have the
     meanings assigned to them in accordance with generally accepted accounting
     principles in the United States of America, and, except as otherwise herein
     expressly provided, the term "generally accepted accounting principles"
     with respect to any computation

<Page>

     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; and

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

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

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

     "Additional Amounts means any additional amounts which are required by a
Security or by or pursuant to a Board Resolution, under circumstances specified
therein, to be paid by the Company in respect of certain taxes imposed on
certain Holders and which are owing to such Holders.

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

     "Attributable Debt" in respect of any Sale and Lease-Back Transaction
means, as of any time of determination, the lesser of (i) the sale price of the
Principal Property so leased multiplied by a fraction the numerator of which is
the remaining portion of the base term of the lease included in such transaction
and the denominator of which is the base term of such lease and (ii) the total
obligation (discounted to present value at the implicit interest factor,
determined in accordance with generally accepted financial practice, included in
the rental payments of, if such interest factor cannot be readily determined, at
a rate of interest of 10% per annum, compounded semiannually) of the lessee for
rental payments (other than amounts required to be paid on account of property
taxes as well as maintenance, repairs, insurance, water rates and other items
which do not constitute payments for property rights) during the remaining
portion of the base term of the lease included in such transaction.

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

     "Authorized Newspaper" means a newspaper, in an official language of the
country of publication or in the English language, customarily published on each
Business Day, whether or not published on Saturdays, Sundays or holidays, and of
general circulation in

                                        2
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the place in connection with which the term is used or in the financial
community of such place. Where successive publications are required to be made
in Authorized Newspapers, the successive publications may be made in the same or
in different newspapers in the same city meeting the foregoing requirements and
in each case on any Business Day.

     "Bearer Security" means any Security established pursuant to Section 201
which is payable to bearer.

     "Board of Directors" means either the board of directors of the Company or
any duly authorized committee of the officers and/or directors of the Company
appointed by that board.

     "Board Resolution" means a copy of a resolution certified by the Secretary
or an Assistant Secretary of the Company to have been duly adopted by the Board
of Directors, or, to the extent permitted by applicable law and the Company's
by-laws, the Executive Committee of the Board of Directors, and to be in full
force and effect on the date of such certification, and delivered to the
Trustee.

     "Business Day", when used with respect to a particular location specified
in the Securities or this Indenture, means any day which is not a Saturday or a
Sunday or a day on which banking institutions in such location are authorized or
obligated by law or regulation to close, except as may otherwise be provided in
the form of securities of any particular series pursuant to the provisions of
this Indenture.

     "Capital Stock" means any and all shares, interest, participations or other
equivalents (however designated) evidencing equity ownership.

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

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

     "Company Request" or "Company Order" means a written request or order
signed in the name of the Company by its Chairman of the Board of Directors, its
Chief Executive Officer or a Vice President, and by its Treasurer, an Assistant
Treasurer, its Controller, an Assistant Controller, its Secretary or an
Assistant Secretary, and delivered to the Trustee.

     "Consolidated Net Tangible Assets" means the total amount of assets (less
applicable reserves and other properly deductible items) after, deducting
therefrom (i) all

                                        3
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current liabilities (excluding any thereof which are by their terms extendible
or renewable at the option of the obligor thereon to a time more than 12 months
after the time as of which the amount thereof is being computed), and (ii) all
good will, trade names, trademarks, patents, unamortized debt discount and
expenses and other like intangibles, all as set forth on the most recent balance
sheet of the Company and its consolidated Subsidiaries and computed in
accordance with generally accepted accounting principles.

     "Corporate Trust Office" means the principal office of the Trustee in the
Borough of Manhattan, The City of New York, at which at any particular time its
corporate trust business shall be administered, which office at the date of
execution of this Indenture is located at 450 W. 33rd Street, New York, NY
10001, Attention: Institutional Trust Services.

     "corporation" includes corporations, associations, companies and business
trusts.

     "coupon" means any interest coupon appertaining to a Bearer Security.

     "Debt" has the meaning specified in Section 1008.

     "Defaulted Interest" has the meaning specified in Section 307.

     "Dollar" or "$" or any similar reference shall mean the currency of the
United States, except as may otherwise be provided in the form of Securities of
any particular series pursuant to the provisions of this Indenture.

     "Event of Default" has the meaning specified in Section 501.

     "Exchange Date" has the meaning specified in Section 304.

     "Extension Notice" has the meaning specified in Section 312.

     "Extension Period" has the meaning specified in Section 312.

     "Final Maturity" has the meaning specified in Section 312.

     "Holder", when used with respect to any Security, means in the case of a
Registered Security the Person in whose name the Security is registered in the
Security Register and in the case of a Bearer Security the bearer thereof and,
when used with respect to any coupon, means the bearer thereof.

     "Indenture" means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more indentures supplemental
hereto entered into pursuant to the applicable provisions hereof and shall
include the terms of particular series of Securities established as contemplated
by Section 301; PROVIDED, HOWEVER, that if at any time more than one Person is
acting as Trustee under this instrument, "Indenture"

                                        4
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shall mean with respect to any one or more series of Securities for which such
Person is Trustee, this instrument as originally executed or as it may from time
to time be supplemented or amended by one or more indentures supplemental hereto
entered into pursuant to the applicable provisions hereof and shall include the
terms of particular Securities for which such Person is Trustee established as
contemplated by Section 301, exclusive, however, of any provisions or terms
which relate solely to other series of Securities for which such Person is not
Trustee, regardless of when such terms or provisions were adopted, and exclusive
of any provisions or terms adopted by means of one or more indentures
supplemental hereto and delivered after such Person had become such Trustee but
to which such Person, as such Trustee, was not a party.

     "interest", when used with respect to an Original Issue Discount Security
which by its terms bears interest only after Maturity, means interest payable
after Maturity, and, when used with respect to a security which provides for the
payment of Additional Amounts, shall include such Additional Amounts as provided
in Section 1004.

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

     "Lien" has the meaning specified in Section 1008.

     "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 therein or herein provided, whether at the Stated Maturity or by
declaration of acceleration, notice of redemption, request for redemption or
otherwise.

     "Officers' Certificate" means a certificate signed by the Chairman of the
Board of Directors, the Chief Executive Officer or a Vice President, and by the
Treasurer, an Assistant Treasurer, the Controller, an Assistant Controller, the
Secretary or an Assistant Secretary, of the Company, and delivered to the
Trustee.

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

     "Optional Reset Date" has the meaning specified in Section 307.

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

     "Original Stated Maturity" has the meaning specified in Section 312.

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

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

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

              (iii) Securities, except to the extent provided in Section 403,
     with respect to which the Company has effected defeasance and/or covenant
     defeasance as provided in such Section; and

              (iv) 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 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 the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or are present at
a meeting of Holders of Securities for quorum purposes, the principal amount of
an Original Issue Discount Security that may be counted in making such
determination and that shall be deemed to be Outstanding for such purposes shall
be equal to the amount of the principal thereof that could be declared to be due
and payable pursuant to the terms of such Original Issue Discount Security at
the time the taking of such action by the Holders of such requisite principal
amount is evidenced to the Trustee as provided in Section 104(a), and, PROVIDED
FURTHER, that Securities owned beneficially by the Company or any other obligor
upon the Securities or any Affiliate of the Company or such other obligor shall
be disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Securities which the
Trustee knows to be so owned shall be so disregarded. Securities so owned which
have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee's right so to act
with respect to such Securities and that the pledgee is not the Company or any
other obligor upon the Securities or any Affiliate of the Company or such other
obligor.

                                        6
<Page>

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

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

     "Place of Payment", when used with respect to the Securities of any series,
means the place or places where the principal of (and premium, if any) and
interest on the Securities of that series are payable as specified as
contemplated by Sections 301 and 1002.

     "Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 306 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen security or a Security to which a
mutilated, destroyed, lost or stolen coupon appertains shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security or
the Security to which the mutilated, destroyed, lost or stolen coupon
appertains, as the case may be.

     "Principal Property" shall mean all real property and tangible personal
property constituting a manufacturing plant located within the United States
owned by the Company or a Subsidiary, exclusive of (i) motor vehicles, mobile
materials-handling equipment and other rolling stock, (ii) office furnishings
and equipment, information and electronic data processing equipment, (iii) any
property financed through obligations issued by a state, territory or possession
of the United States, or any political subdivision or instrumentality of the
foregoing, the interest on which is, in the opinion of tax counsel of recognized
standing or in accordance with a ruling issued by the Internal Revenue Service,
excludible from gross income of the holders thereof pursuant to Section 103(a)
of the Internal Revenue Code of 1986 (or any successor to such provision), as in
effect at the time of the issuance of such obligations, (iv) any real property
held for development or sale, or (v) any property the gross book value of which
(including related land and improvements thereon and all machinery and equipment
included therein without deduction of any depreciation reserves) is less than
15% of Consolidated Net Tangible Assets or which the Board of Directors
determines is not material to the operation of the business of the Company and
its Subsidiaries taken as a whole.

     "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.

     "Registered Security" means any Security established pursuant to
Section 201 which is registered in the Security Register.

                                        7
<Page>

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

     "Reset Notice" has the meaning specified in Section 307.

     "Responsible Officer", when used with respect to the Trustee, means any
officer within the Corporate Trust Office (or any successor group of the
Trustee) including any managing director, any vice president, any assistant
treasurer, any assistant vice president, any assistant secretary, any other
officer or assistant officer of the Trustee customarily performing functions
similar to those performed by the persons who at the time shall be such
officers, respectively, or to whom any corporate trust matter is referred at the
Trustee's Corporate Trust Office because of his knowledge of and familiarity
with the particular subject.

     "Sale and Lease-Back Transaction" shall mean any arrangement whereby (i)
property has been or is to be sold or transferred by the Company or a Subsidiary
to any Person with the intention on the part of the Company or a Subsidiary of
taking back a lease of such property pursuant to which the rental payments are
calculated to amortize the purchase price of such property substantially over
the useful life of such property and (ii) such property is in fact so leased by
the Company or a Subsidiary.

     "Security" or "Securities" means any Security or Securities authenticated
and delivered under this Indenture.

     "Security Register", "Security Registrar" and "Co-Security Registrar" have
the respective meanings specified in Section 305.

     "Senior Indebtedness" means all of the indebtedness of, or indebtedness
guaranteed by, the Company for borrowed money (including the principal of,
premium, if any, or interest on any such borrowed money and any commitment fees
for unborrowed amounts which, if borrowed, would constitute Senior
Indebtedness), whether currently outstanding or hereafter incurred, unless,
under the instrument evidencing the same or under which the same is outstanding,
it is expressly provided that such indebtedness is subordinate to other
indebtedness and obligations of the Company.

     "Special Record Date" for the payment of any Defaulted Interest on the
Registered Securities of any series means a date fixed by the Trustee pursuant
to Section 307.

     "Stated Maturity", when used with respect to any Security or any
installment of principal thereof or interest thereon, means the date specified
in such Security or a coupon representing such installment of interest as the
fixed date on which the principal of such Security or such installment of
principal or interest is due and payable.

                                        8
<Page>

     "Subordinated Indebtedness" shall mean the Securities and all other
indebtedness of, or guaranteed by, the Company whether or not outstanding as of
the date of this Indenture, which is by its terms made subordinate and junior in
right of payment to all Senior Indebtedness.

     "Subsequent Interest Period" has the meaning specified in Section 307.

     "Subsidiary" means a corporation more than 50% of the outstanding Voting
Stock of which is owned, directly or indirectly, by the Company or by one or
more other Subsidiaries, or by the Company and one or more other Subsidiaries;
PROVIDED, HOWEVER, that Boeing Capital Corporation and its Subsidiaries shall be
excluded from the term "Subsidiary" as used solely in Sections 1008 and 1009 and
from any calculations performed pursuant thereto.

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

     "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended,
and any reference herein to the Trust Indenture Act or a particular provision
thereof shall mean such Act or provision, as the case may be, as amended or
replaced from time to time or as supplemented from time to time by rules or
regulations adopted by the Commission under or in furtherance of the purposes of
such Act or provision, as the case may be.

     "United States" means the United States of America (including the States
and the District of Columbia), its territories and possessions and other areas
subject to its jurisdiction.

     "United States Alien" means any Person who, for United States Federal
income tax purposes, is a foreign corporation, a non-resident alien individual,
a non-resident alien fiduciary of a foreign estate or trust, or a foreign
partnership one or more of the members of which is, for United States Federal
income tax purposes, a foreign corporation, a non-resident alien individual or a
non-resident alien fiduciary of a foreign estate or trust.

     "U.S. Depositary" or "Depositary" means, with respect to any Security
issuable or issued in the form of one or more global Securities, the Person
designated as U.S. Depository or Depositary by the Company in or pursuant to
this Indenture, which Person must be, to the extent required by applicable law
or regulation, a clearing agency registered under the Securities Exchange Act of
1934, as amended, and, if so provided with respect to any Security, any
successor to such Person. If at any time there is more than one such Person,
"U.S. Depositary" or "Depositary" shall mean, with respect to any Securities,
the qualifying entity which has been appointed with respect to such Securities.

                                        9
<Page>

     "U.S. Government Obligations" means direct obligations of the United States
for the payment of which its full faith and credit is pledged, or obligations of
a person controlled or supervised by and acting as an agency or instrumentality
of the United States and the payment of which is unconditionally guaranteed as a
full faith and credit obligation by the United States which, in either case, are
not callable or redeemable at the option of the issuer thereof, and shall also
include a depository receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act of 1933, as amended) as custodian with respect to any such
U.S. Government Obligations or a specific payment of or interest on any such
U.S. Government Obligations held by such custodian for the account of the holder
of such depository receipt, provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the
holder of such depository receipt from any amount received by the custodian in
respect of the U.S. Government Obligations or the specific payment of principal
of or interest on the U.S. Government Obligations evidenced by such depository
receipt.

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

     "Voting Stock" means stock or the class or classes having general voting
power under ordinary circumstances to elect a majority of the board of
directors, managers or trustees of a corporation (irrespective of whether at the
time stock of any other class or classes shall have or might have voting power
by reason of any contingency.

SECTION 102.  COMPLIANCE CERTIFICATES AND OPINIONS.

     Upon any application or request by the Company to the Trustee to take any
action under any provision of this Indenture, the Company shall furnish to the
Trustee an Officers' 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

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

                                       10
<Page>

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

              (3)    a statement that, in the opinion of each 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

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

The Trustee may request that the Company deliver an Officers' Certificate
setting forth the names of individuals and/or titles of officers authorized at
such time to take specified actions pursuant to this Indenture, which Officers'
Certificate may be signed by any one person authorized to sign an Officers'
Certificate, including any person specified as so authorized in any such
certificate previously delivered and not superseded.

SECTION 103.  FORM OF DOCUMENTS DELIVERED TO TRUSTEE.

     In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it 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.

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

     Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.

                                       11
<Page>

SECTION 104.  ACTS OF HOLDERS.

     (a)      Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders of the Outstanding Securities of all series or by one or more series, as
the case may be, may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing. If Securities of a series are issuable as Bearer
Securities, any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders may, alternatively, be embodied in and evidenced by the record of
Holders of Securities voting in favor thereof, either in person or by proxies
duly appointed in writing, at any meeting of Holders of Securities 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 601) 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 of
Securities 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 in any reasonable manner which the Trustee
deems sufficient.

     (c)      The ownership of Registered Securities and the principal amount
and serial numbers of Registered Securities held by any Person, and the date of
holding the same, shall be proved by the Security Register.

     (d)      The principal amount and serial numbers of Bearer Securities held
by any Person, and the date of holding the same, may be proved by the production
of such Bearer Securities or by a certificate executed, as depositary, by any
trust company, bank, banker or other depositary, wherever situated, if such
certificate shall be deemed by the Trustee to be satisfactory, showing that at
the date therein mentioned such Person had on deposit with such depositary, or
exhibited to it, the Bearer Securities therein described; or such facts may be
proved by the certificate or affidavit of the Person holding such Bearer
Securities, if such certificate or affidavit is deemed by the Trustee to be
satisfactory. The Trustee and the Company may assume that such ownership of any
Bearer Security continues until (1) another certificate or affidavit bearing a
later date issued in respect of the same Bearer Security is produced, or (2)
such Bearer Security is produced to the Trustee by some other Person, or (3)
such Bearer Security is surrendered in exchange for a Registered Security, or
(4) such Bearer Security is no longer Outstanding.

                                       12
<Page>

     (e)      The fact and date of execution of any such instrument or writing,
the authority of the Person executing the same and the principal amount and
serial numbers of Bearer Securities held by the Person so executing such
instrument or writing and the date of holding the same may also be proved in any
other manner which the Trustee deems sufficient; and the Trustee may (but shall
not be required to) in any instance require further proof with respect to any of
the matters referred to in this Section.

     (f)      If the Company shall solicit from the Holders of any Registered
Securities any request, demand, authorization, direction, notice, consent,
waiver or other Act, the Company may, at its option, by Board Resolution, fix in
advance a record date for the determination of Holders of Registered Securities
entitled to give such request, demand, authorization, direction, notice,
consent, waiver or other Act, but the Company shall have no obligation to do so.
If such a record date is fixed, such request, demand, authorization, direction,
notice, consent, waiver or other Act may be given before or after such record
date, but only the Holders of Registered Securities of record at the close of
business on such record date shall be deemed to be Holders for the purposes of
determining whether Holders of the requisite percentage of Outstanding
Securities have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other Act, and for that
purpose the Outstanding Securities shall be computed as of such record date;
provided that no such authorization, agreement or consent by the Holders of
Registered Securities on such record date shall be deemed effective unless it
shall become effective pursuant to the provisions of this Indenture not later
than six months after the record date.

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

SECTION 105.  NOTICES, ETC., TO TRUSTEE AND 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,

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

              (2)    the Company by the Trustee or by any Holder shall be
     sufficient for every purpose hereunder (unless otherwise herein expressly
     provided) if in writing

                                       13
<Page>

     and mailed, first-class postage prepaid, to the Company addressed to it at
     the address of its principal office specified in the first paragraph of
     this instrument or at any other address previously furnished in writing to
     the Trustee by the Company.

SECTION 106.  NOTICE TO HOLDERS OF SECURITIES; WAIVER.

     Except as otherwise expressly provided herein or in the form of Securities
of any particular series pursuant to the provisions of this Indenture, where
this Indenture provides for notice to Holders of Securities of any event,

              (1)    such notice shall be sufficiently given to Holders of
     Registered Securities if in writing and mailed, first-class postage
     prepaid, to each Holder of a Registered Security affected by such event, at
     his address as it appears in the Security Register, not later than the
     latest date, and not earlier than the earliest date, prescribed for the
     giving of such Notice; and

              (2)    such notice shall be sufficiently given to Holders of
     Bearer Securities if published in an Authorized Newspaper in The City of
     New York, in any other city or cities as may be specified in such
     Securities, and, if the Securities of such series are then listed on a
     stock exchange of any stock exchange outside the United States, in an
     Authorized Newspaper in such city as the Company shall advise the Trustee
     in writing that such exchange so requires, on a Business Day at least
     twice, the first such publication to be not earlier than the earliest date
     and not later than the latest 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 by mail, then such
notification as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder. In any case where notice
to Holders of Registered Securities is given by mail, neither the failure to
mail such notice, nor any defect in any notice so mailed, to any particular
Holder of a Registered Security shall affect the sufficiency of such notice with
respect to other Holders of Registered Securities or the sufficiency of any
notice by publication to Holders of Bearer Securities given as provided above.

     In case by reason of the suspension of publication of any Authorized
Newspaper or Authorized Newspapers or by reason of any other cause it shall be
impracticable to publish any notice to Holders of Bearer Securities as provided
above, then such notification to Holders of Bearer Securities as shall be given
with the approval of the Trustee shall constitute sufficient notice to such
Holders for every purpose hereunder. Neither failure to give notice by
publication to Holders of Bearer Securities as provided above, nor any defect in
any notice so published, shall affect the sufficiency of any notice mailed to
Holders of Registered Securities as provided above.

     Where this Indenture provides for notice in any manner, such notice may be
waived in writing by the Person entitled to receive such notice, either before
or after the event, and

                                       14
<Page>

such waiver shall be the equivalent of such notice. Waivers of notice by Holders
of Securities 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.  LANGUAGE OF NOTICES, ETC.

     Any request, demand, authorization, direction, notice, consent, election or
waiver required or permitted under this Indenture shall be in the English
language, except that any published notice may be in an official language of the
country of publication.

SECTION 108.  CONFLICT WITH TRUST INDENTURE ACT.

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

SECTION 109.  EFFECT OF HEADINGS AND TABLE OF CONTENTS.

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

SECTION 110.  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 111.  SEPARABILITY CLAUSE.

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

SECTION 112.  BENEFITS OF INDENTURE.

     Nothing in this Indenture or the Securities or coupons, express or implied,
shall give to any Person, other than the parties hereto, their successors
hereunder and the Holders of Securities and coupons, any benefit or any legal or
equitable right, remedy or claim under this Indenture.

SECTION 113.  GOVERNING LAW.

     This Indenture and the Securities and coupons shall be governed by and
construed in accordance with the laws of the State of New York. The parties
hereto hereby irrevocably submit to the venue and jurisdiction of any New York
State or federal court sitting in the Borough of Manhattan in New York City in
any action or proceeding arising

                                       15
<Page>

out of or relating to this Indenture, the Securities or the coupons and the
parties hereby irrevocably agree that all claims in respect of such action or
proceeding arising out of or relating to this Indenture, the Securities or the
coupons, shall be heard and determined in such a New York State or federal
court.

SECTION 114.  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
or coupons) 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 next
succeeding Business Day at such Place of Payment with the same force and effect
as if made on the Interest Payment Date or Redemption Date, or at the Stated
Maturity, PROVIDED that no interest shall accrue 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.

SECTION 115.  APPOINTMENT FOR SERVICE.

     By the execution and delivery of this Indenture, the Company hereby
appoints the Trustee as its agent upon which process may be served in any legal
action or proceeding which may be instituted in any Federal or State court in
the Borough of Manhattan, The City of New York, arising out of or relating to
the Securities, the coupons or this Indenture. Service of process upon such
agent at the office of such agent at 450 W. 33rd Street, New York, NY 10001,
Attention: Institutional Trust Services, and written notice of said service to
the Company by the Person serving the same addressed as provided in Section 105
shall be deemed in every respect effective service of process upon the Company
in any such legal action or proceeding, and the Company hereby submits to the
jurisdiction of any such court in which any such legal action or proceeding is
so instituted. Such appointment shall be irrevocable so long as the Holders of
Securities or coupons shall have any rights pursuant to the terms thereof or of
this Indenture until the appointment of a successor by the Company with the
consent of the Trustee and such successor's acceptance of such appointment. The
Company further agrees to take any and all action, including the execution and
filing of any and all such documents and instruments, as may be necessary to
continue such designation and appointment of such agent or successor.

     By the execution and delivery of this Indenture, the Trustee hereby agrees
to act as such agent and undertakes promptly to notify the Company of receipt by
it of service of process in accordance with this Section.

                                       16
<Page>

                                   ARTICLE TWO
                                 SECURITY FORMS

SECTION 201.  FORMS GENERALLY.

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

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

     Unless otherwise provided as contemplated by Section 301 with respect to
any series of Securities, the Securities of each series shall be issuable in
registered form without coupons. If so provided as contemplated by Section 301,
the Securities of a series also shall be issuable in bearer form, with or
without interest coupons attached.

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

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

     The Trustee's certificate of authentication shall be in substantially the
following form:

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

                                       17
<Page>

--------------------------------          OR      ------------------------------
           AS TRUSTEE                                       AS TRUSTEE

By:
   -----------------------------
      AS AUTHENTICATING AGENT

By:                                               By:
   -----------------------------                     ---------------------------
        AUTHORIZED OFFICER                                AUTHORIZED OFFICER

SECTION 203.  SECURITIES IN GLOBAL FORM.

     If Securities of a series are issuable in global form, any such Security
may provide that it or any number of such Securities shall represent the
aggregate amount of all Outstanding Securities of such series (or such lesser
amount as is permitted by the terms thereof) from time to time endorsed thereon
and may also provide that the aggregate amount of Outstanding Securities
represented thereby may from time to time be increased or reduced to reflect
exchanges. Any endorsement of any Security in global form to reflect the amount,
or any increase or decrease in the amount, or changes in the rights of Holders,
of Outstanding Securities represented thereby shall be made in such manner and
by such Person or Persons as shall be specified therein or in the Company Order
to be delivered pursuant to Section 303 or 304 with respect thereto. Subject to
the provisions of Section 303 and, if applicable, Section 304, the Trustee shall
deliver and redeliver any Security in permanent global form in the manner and
upon instructions given by the Person or Persons specified therein or in the
applicable Company Order. If a Company Order pursuant to Section 304 has been,
or simultaneously is, delivered, any instructions by the Company with respect to
a Security in global form shall be in writing but need not be accompanied by or
contained in an Officers' Certificate and need not be accompanied by an Opinion
of Counsel.

     The provisions of the last sentence of Section 303 shall apply to any
Security represented by a Security in global form if such Security was never
issued and sold by the Company and the Company delivers to the Trustee the
Security in global form together with written instructions (which need not
comply with Section 102 and need not be accompanied by an Opinion of Counsel)
with regard to the reduction in the principal amount of the Securities
represented thereby, together with the written statement contemplated by the
last sentence of Section 303.

     Notwithstanding the provisions of Section 307, unless otherwise specified
as contemplated by Section 301, payment of principal of and any premium and
interest on any Security in permanent global form shall be made to the Person or
Persons specified therein.

     Notwithstanding the provisions of Section 308 and except as provided in the
preceding paragraph, the Company, the Trustee and any agent of the Company and
the Trustee shall treat as the Holder of such principal amount of Outstanding
Securities

                                       18
<Page>

represented by a permanent global Security (i) in the case of a permanent global
Security in registered form, the Holder of such permanent global Security in
registered form, or (ii) in the case of a permanent global Security in bearer
form, the Person or Persons specified pursuant to Section 301.

                                  ARTICLE THREE
                                 THE SECURITIES

SECTION 301.  AMOUNT UNLIMITED; ISSUABLE IN SERIES.

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

     The Securities may be issued in one or more series. There shall be
established in or pursuant to a Board Resolution, and set forth in an Officers'
Certificate, or established in one or more indentures supplemental hereto, prior
to the issuance of Securities of any series, any or all of the following, as
applicable (each of which (except for the matters set forth in clauses (1), (2)
and (14) below), if so provided, may be determined from time to time by the
Company with respect to unissued Securities of the series and set forth in such
Securities of the series when issued from time to time):

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

              (2)    any limit upon the aggregate principal amount of the
     Securities of the series which may be authenticated and delivered under
     this Indenture (except for Securities authenticated and delivered upon
     registration of transfer of, or in exchange for, or in lieu of, other
     Securities of the series pursuant to Section 304, 305, 306, 906 or 1107 and
     except for any Securities which, pursuant to Section 303, are deemed never
     to have been authenticated and delivered hereunder);

              (3)    whether such Securities are to be issuable as Registered
     Securities, as Bearer Securities or alternatively as Bearer Securities and
     Registered Securities, and whether the Bearer Securities are to be issuable
     with coupons, without coupons or both, and any restrictions applicable to
     the offer, sale or delivery of the Bearer Securities and the terms, if any,
     upon which Bearer Securities may be exchanged for Registered Securities and
     vice versa;

              (4)    the Person to whom any interest on any Registered Security
     of the series shall be payable if other than the Person in whose name that
     Registered Security (or one or more Predecessor Securities) is registered
     at the close of business on the Regular Record Date for such interest and
     the manner in which, or the Person to whom, any interest on any Bearer
     Security of the series shall be

                                       19
<Page>

     payable if otherwise than upon presentation and surrender of the coupons
     appertaining thereto as they severally mature;

              (5)    the date or dates, or the method or methods, if any, by
     which such date or dates shall be determined, on which the principal of
     such Securities is payable or the manner in which such dates are determined
     or extended;

              (6)    the rate or rates at which such Securities shall bear
     interest, if any or the method or methods, if any, by which such rate or
     rates are to be determined, the date or dates, if any, from which such
     interest shall accrue or the method or methods, if any, by which such date
     or dates are to be determined, the Interest Payment Dates, if any, on which
     such interest shall be payable and the Regular Record Date, if any, for the
     interest payable on Registered Securities on any Interest Payment Date,
     whether and under what circumstances Additional Amounts on such Securities
     or any of them shall be payable, the notice, if any, to Holders regarding
     the determination of interest on a floating rate Security and the manner of
     giving such notice, and the basis upon which interest shall be calculated
     if other than that of a 360-day year of twelve 30-day months;

              (7)    the place or places where the principal of (and premium, if
     any) and interest on or Additional Amounts, if any, on Securities of the
     series shall be payable, any of such Securities that are Registered
     Securities may be surrendered for registration of transfer, any of such
     Securities may be surrendered for exchange and notices or demands to or
     upon the Company in respect of such Securities and this Indenture may be
     served; the extent to which, or the manner in which, any interest payment
     on a global Security on an Interest Payment Date, will be paid and the
     manner in which any principal of or premium, if any, on any global Security
     will be paid;

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

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

              (10)   if Bearer Securities of the series are to be issuable,
     whether interest in respect of any portion of a temporary Bearer Security
     in global form (representing all of the Outstanding Bearer Securities of
     the series) payable in respect of an Interest Payment Date prior to the
     exchange of such temporary Bearer

                                       20
<Page>

     Security for definitive Securities of the series shall be paid to any
     clearing organization with respect to the portion of such temporary Bearer
     Security held for its account and, in such event, the terms and conditions
     (including any certification requirements) upon which any such interest
     payment received by a clearing organization will be credited to the Persons
     entitled to interest payable on such Interest Payment Date;

              (11)   the denominations in which Registered Securities of the
     series, if any, shall be issuable if other than denominations of $1,000 and
     any integral multiple thereof, and the denominations in which Bearer
     Securities of the series, if any, shall be issuable if other than the
     denomination of $5,000;

              (12)   the date as of which any Bearer Securities of the series
     and any temporary global Security representing Outstanding Securities of
     the series shall be dated if other than the date of original issuance of
     the first Security of the series to be issued;

              (13)   the currency or currencies, including composite currencies,
     in which payment of the principal of (and premium, if any) and interest on,
     and Additional Amounts in respect of, the Securities of the series shall be
     payable (if other than the currency of the United States of America), and
     the particular provisions applicable thereto and, if applicable, the amount
     of Securities of the series which entitles the Holder of a Security of the
     series or proxy to one vote for purposes of Section 1305(c);

              (14)   any addition to, or modification or deletion of, any Event
     of Default or any covenant of the Company specified herein with respect to
     the Securities of the series;

              (15)   the terms, if any, upon which Securities of the series may
     be convertible into or exchanged for the common stock, preferred stock or
     other securities of the Company and the terms and conditions upon which the
     conversion or exchange shall be effected, including the initial conversion
     or exchange price or rate, the conversion or exchange period, and any other
     additional provisions;

              (16)   if the principal of (and premium, if any) or interest, and
     Additional Amounts in respect of, if any, on such Securities are to be
     payable, at the election of the Company or a Holder thereof, in a coin or
     currency, including composite currencies, 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
     time and manner of determining the exchange rate between the currency in
     which such Securities are denominated or stated to be payable and the
     currency in which such Securities or any of them are to be so payable;

                                       21
<Page>

              (17)   whether the amount of payments of principal of, any premium
     or interest on or any Additional Amounts with respect to, such Securities
     may be determined with reference to an index, formula, or other method or
     methods (which index, formula or method or methods may be based, without
     limitation, on one or more currencies, commodities, equity indices or other
     indices), and, if so, the terms and conditions upon which and the manner in
     which such shall be determined and paid or payable;

              (18)   if any such Securities are to be issuable in global form
     and are to be issuable in definitive form (whether upon original issue or
     upon exchange of a temporary Security) only upon receipt of certain
     certificates or other documents or satisfaction of other conditions, then
     the form and terms of such certificates, documents or conditions;

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

              (20)   the application, if any, of Section 403 to the Securities
     of the series;

              (21)   if any such Securities are to be issuable in global form,
     when any of such Securities are to be issuable in global form and (i)
     whether beneficial owners of interests in any such global Security may
     exchange such interests for Securities of the same series and of like tenor
     and of any authorized form and denomination and the circumstances under
     which any such exchanges may occur, if other than in the manner specified
     in Section 305, and (ii) the name of the Depositary or U.S. Depositary, as
     the case may be, to any global Security;

              (22)   if there is more than one Trustee, the identity of the
     Trustee, and if not the Trustee, the identity of each Security Registrar,
     Paying Agent or Authenticating Agent with respect to such Securities;

              (23)   any additional or different subordination terms applicable
     to Securities of the series; and

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

     All Securities of any one series and all coupons, if any, appertaining to
Bearer Securities of such series shall be substantially identical except as to
currency of payments due thereunder, denomination and the rate or rates of
interest, or method of determining the rate of interest, if any, Maturity, and
the date from which interest, if any, shall accrue and except as may otherwise
be provided by the Company in or pursuant to the Board Resolution and set forth
in the Officers' Certificate or in any indenture or indentures supplemental
hereto pertaining to such series of Securities. The terms of the Securities of

                                       22
<Page>

any series may provide, without limitation, that the Securities shall be
authenticated and delivered by the Trustee upon receipt of a Company Order by
the Trustee pursuant to Section 303 on original issue from time to time upon
written order of persons designated in the Officers' Certificate or supplemental
indenture and that such persons are authorized to determine, consistent with
such Officers' Certificate or any applicable supplemental indenture, such terms
and conditions of the Securities of such series as are specified in such
Officers' Certificate or supplemental indenture. All securities of any one
series need not be issued at the same time, and unless otherwise so provided by
the Company, a series may be reopened for issuance of additional Securities of
such series or to establish additional terms of such series of Securities.

     If any of the terms of the series are established by action taken pursuant
to a Board Resolution, a copy of an appropriate record of such action shall be
certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Officers'
Certificate setting forth the terms of the series.

SECTION 302.  DENOMINATIONS.

     All Securities shall be issuable in such denominations as shall be
specified as contemplated by Section 301. With respect to any Securities
denominated in Dollars, in the absence of any such provisions, the Registered
Securities, other than Registered Securities issued in global form (which may be
of any denomination) shall be issuable in denominations of $1,000 and any
integral multiple thereof and the Bearer Securities, other than the Bearer
Securities issued in global form (which may be of any denomination) shall be
issuable in denominations of $5,000.

SECTION 303.  EXECUTION, AUTHENTICATION, DELIVERY AND DATING.

     The Securities shall be executed on behalf of the Company by its Chairman
of the Board of Directors, its Chief Executive Officer or one of its Vice
Presidents, under its corporate seal reproduced thereon, attested by its
Secretary or one of its Assistant Secretaries. The signature of any of these
officers on the Securities or coupons may be manual or facsimile signatures.
Coupons shall bear the facsimile signature of the Treasurer or any Assistant
Treasurer of the Company.

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

     At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series, together with any
coupons appertaining thereto, executed by the Company to the Trustee or its
designated agent for authentication by the Trustee, together with a Company
Order for the authentication and delivery of such

                                       23
<Page>

Securities, and the Trustee in accordance with the Company Order shall
authenticate and deliver such Securities; PROVIDED, HOWEVER, that, unless
otherwise specified with respect to any series of Securities pursuant to Section
301, a Bearer Security may be delivered in connection with its original issuance
only outside the United States and only if the Trustee shall have received from
the person entitled to receive such Bearer Security a certificate in the form
required by Section 311, dated no earlier than 15 days prior to the earlier of
the date on which such Bearer Security is delivered and the date on which any
temporary Security or permanent global Security first becomes exchangeable for
such Bearer Security in accordance with the terms of such temporary Security or
permanent global Security and this Indenture. If any Security shall be
represented by a permanent global Security, then, for purposes of this Section
and Section 304, the notation of a beneficial owner's interest therein upon
original issuance of such Security or upon exchange of a portion of a temporary
global Security shall be deemed to be delivery in connection with its original
issuance of such beneficial owner's interest in such permanent global Security.
Except as permitted by Section 306, the Trustee shall not authenticate and
deliver any Bearer Security unless all appurtenant coupons for interest then
matured have been detached and cancelled. If not all the Securities of any
series are to be issued at one time and if the Board Resolution or supplemental
indenture establishing such series shall so permit, such Company Order may set
forth procedures acceptable to the Trustee for the issuance of such Securities
and determining terms of particular Securities of such series such as interest
rate, maturity date, date of issuance and date from which interest shall accrue.

     In authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall be entitled to receive, and (subject to Section 601) shall be
fully protected in relying upon, an Opinion of Counsel stating,

              (a)    that the form or forms of such Securities and any coupons
     have been established in conformity with the provisions of this Indenture;

              (b)    that the terms of such Securities and any coupons have been
     established in conformity with the provisions of this Indenture;

              (c)    that such Securities, together with any coupons
     appertaining thereto, when completed by appropriate insertions and executed
     and delivered by the Company to the Trustee for authentication in
     accordance with this Indenture, authenticated and delivered by the Trustee
     and issued by the Company in the manner and subject to any conditions
     specified in such Opinion of Counsel, will constitute legal, valid and
     binding obligations of the Company, enforceable in accordance with their
     terms, subject to applicable bankruptcy, insolvency, reorganization and
     other similar laws of general applicability relating to or affecting the
     enforcement of creditors' rights, to general equitable principles and to
     such other qualifications as such counsel shall conclude do not materially
     affect the rights of Holders of such Securities and any coupons;

                                       24
<Page>

              (d)    that all laws and requirements in respect of the execution
     and delivery by the Company of such Securities, any coupons, and of any
     supplemental indentures, if any, have been complied with and that
     authentication and delivery of the Securities and any coupons and the
     execution and delivery of the supplemental indenture, if any, by the
     Trustee will not violate the terms of the Indenture;

              (e)    that the Company has the corporate power to issue such
     Securities and any coupons, and has taken all necessary corporate action
     with respect to such issuance; and

              (f)    that the issuance of such Securities and any coupons will
     not contravene the articles of incorporation or by-laws of the Company or
     result in any violation of any of the terms or provisions of any law or
     regulation or of any indenture, mortgage or other agreement known to such
     counsel by which the Company is bound.

     Notwithstanding the provisions of Section 301 and of the preceding two
paragraphs, if not all the Securities of any series are to be issued at one
time, it shall not be necessary to deliver the Officers' Certificate otherwise
required to be delivered pursuant to Section 301 or the Company Order and
Opinion of Counsel otherwise required pursuant to the preceding two paragraphs
prior to or at the time of issuance of each Security, but such documents shall
be delivered prior to or at the time of issuance of the first Security of such
series.

     The Trustee shall not be required to authenticate such Securities if the
issuance of such Securities pursuant to this Indenture will affect the Trustee's
own rights, duties or immunities under the Securities and this Indenture or
otherwise in a manner which is not reasonably acceptable to the Trustee.

     Each Registered Security shall be dated the date of its authentication.
Each Bearer Security shall be dated as of the date specified as contemplated by
Section 301.

     In authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities and any
coupons appertaining thereto, the Trustee shall also be entitled to receive
annually, and shall be fully protected in relying upon, an Officers' Certificate
stating that, to the best knowledge of the Persons executing such certificate,
no event which is, or after notice or lapse of time would become, an Event of
Default with respect to any of the Securities shall have occurred and be
continuing.

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

                                       25
<Page>

Except as permitted by Section 306 or 307, the Trustee shall not authenticate
and deliver any Bearer Security unless all appurtenant coupons for interest then
matured have been detached and cancelled. Notwithstanding the foregoing, if any
Security shall have been authenticated and delivered hereunder but never 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 of this Indenture.

SECTION 304.  TEMPORARY SECURITIES AND EXCHANGE OF SECURITIES.

     Pending the preparation of definitive Securities of any series, the Company
may execute, and upon Company Order the Trustee shall authenticate and deliver,
temporary Securities which are printed, lithographed, typewritten, mimeographed
or otherwise produced, in any authorized denomination, substantially of the
tenor of the definitive Securities in lieu of which they are issued, in
registered form or, if authorized, in bearer form with one or more coupons or
without coupons, and with such appropriate insertions, omissions, substitutions
and other variations as the officers executing such Securities may determine, as
evidenced by their execution of such Securities. In the case of Securities of
any series, such temporary Securities may be in global form.

     Except in the case of temporary Securities in global form (which shall be
exchanged in accordance with the provisions of the following paragraphs), if
temporary Securities of any series are issued, the Company will cause definitive
Securities of that series to be prepared without unreasonable delay. After the
preparation of definitive Securities of such series, the temporary Securities of
such series shall be exchangeable for definitive Securities of such series upon
surrender of the temporary Securities of such series at the office or agency of
the Company in a Place of Payment for that series, without charge to the Holder.
Upon surrender for cancellation of any one or more temporary Securities of any
series (accompanied by any unmatured coupons appertaining thereto) the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Securities of the same series of
authorized denominations and of like tenor; PROVIDED, HOWEVER, that no
definitive Bearer Security shall be delivered in exchange for a temporary
Registered Security; and PROVIDED, FURTHER, that no definitive Bearer Security
shall be delivered in exchange for a temporary Bearer Security unless the
Trustee shall have received from the person entitled to receive the definitive
Bearer Security a certificate in the form required by Section 311 and upon which
the Trustee may conclusively rely. Until so exchanged the temporary Securities
of any series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of such series.

     If temporary Securities of any series are issued in global form, such
temporary global Security shall, unless otherwise provided therein, be delivered
to the Depositary or

                                       26
<Page>

U.S. Depositary with respect thereto, for credit to the respective accounts of
the beneficial owners of such Securities (or to such other accounts as they may
direct).

     Without unnecessary delay but in any event not later than the date
specified in, or determined pursuant to the terms of, any such temporary global
security (the "Exchange Date"), the Company shall deliver to the Trustee
definitive Securities, in aggregate principal amount equal to the principal
amount of such temporary global Security, executed by the Company. On or after
the Exchange Date such temporary global Security shall be surrendered by the
Depositary or U.S. Depositary to the Trustee, as the Company's agent for such
purpose, to be exchanged, in whole or from time to time in part, for definitive
Securities without charge and the Trustee shall authenticate and deliver, in
exchange for each portion of such temporary global Security, an equal aggregate
principal amount of definitive Securities of the same series of authorized
denominations and of like tenor as the portion of such temporary global Security
to be exchanged. The definitive Securities to be delivered in exchange for any
such temporary global Security shall be in bearer form, registered form,
permanent global bearer form or permanent global registered form, or any
combination thereof, as specified by Section 301, and, if any combination
thereof is specified, as requested by the beneficial owner thereof; PROVIDED,
HOWEVER, that, unless otherwise specified in such temporary global Security,
upon such presentation by the Depositary or U.S. Depositary, such temporary
global Security is accompanied by a written instrument in form satisfactory to
the Company, the Trustee and the Security Registrar dated the Exchange Date or a
subsequent date and signed by the Depositary or U.S. Depositary as to the
portion of such temporary global Security held for its account then to be
exchanged and a written instrument in form satisfactory to the Company, the
Trustee and the Security Registrar dated the Exchange Date or a subsequent date
and signed by the Depositary or U.S. Depositary as to the portion of such
temporary global Security held for its account then to be exchanged; and
PROVIDED, FURTHER, that definitive Bearer Securities shall be delivered in
exchange for a portion of a temporary global Security only in compliance with
the requirements of Section 311.

     Unless otherwise specified in such temporary global Security, the interest
of a beneficial owner of Securities of a series in a temporary global Security
shall be exchanged for definitive Securities of the same series and of like
tenor following the Exchange Date when the account holder instructs the
Depositary or U.S. Depositary, as the case may be, to request such exchange on
his behalf and delivers to such Depositary or U.S. Depositary, as the case may
be, a written instrument in form satisfactory to the Company, the Trustee and
the Security Registrar dated no earlier than 15 days prior to the Exchange Date.
Unless otherwise specified in such temporary global Security, any such exchange
shall be made free of charge to the beneficial owners of such temporary global
Security, except that a Person receiving definitive Securities must bear the
cost of insurance, postage, transportation and the like in the event that such
Person does not take delivery of such definitive Securities in person at the
offices of the Depositary or U.S. Depositary, as the case may be. Definitive
Securities in bearer form to be delivered in exchange for any portion of a
temporary global Security shall be delivered only outside the United States.

                                       27
<Page>

     Until exchanged in full as hereinabove provided, the temporary Securities
of any series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of the same series and of like tenor
authenticated and delivered hereunder, except that, unless otherwise specified
as contemplated by Section 301, interest payable on a temporary global Security
on an Interest Payment Date for Securities occurring prior to the applicable
Exchange Date shall be payable to the Depositary or U.S. Depositary, as the case
may be, on such Interest Payment Date upon delivery by such Depositary or U.S.
Depositary of a written instrument in form satisfactory to the Company, the
Trustee and the Security Registrar, for credit without further interest on or
after such Interest Payment Date to the respective accounts of the Persons who
are the beneficial owners of such temporary global Security on such Interest
Payment Date and who have each delivered to the Depositary or U.S. Depositary,
as the case may be, a written instrument in form satisfactory to the Company,
the Trustee and the Security Registrar. Any interest so received by the
Depositary or U.S. Depositary and not paid as herein provided shall be returned
to the Trustee immediately prior to the expiration of two years after such
Interest Payment Date in order to be repaid to the Company in accordance with
Section 1003.

SECTION 305.  REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE.

     The Company shall cause to be kept at the offices or agencies designated
for such purpose pursuant to this Section 305 or Section 1002 a register or
registers (collectively, including all registers of Co-Security Registrars the
"Security Register") in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Registered
Securities and of transfers of Registered Securities. The register for purposes
of Registering Securities as provided in this Indenture (the "Security
Registrar" and, if more than one shall be appointed, the "Co-Security
Registrars") shall be appointed as authorized by Board Resolution. The Security
Register shall be in written form or any other form capable of being converted
into written form within a reasonable time. At all reasonable times, the
Security Register shall be open to inspection by the Trustee. The Trustee is
hereby initially appointed Security Registrar.

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

     At the option of the Holder, Registered Securities of any series may be
exchanged for Registered Securities of the same series containing identical
terms and provisions of any authorized denominations and of like tenor and
aggregate principal amount, upon surrender of the Registered Securities to be
exchanged at any such office or agency. Whenever any Registered 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.

                                       28
<Page>

     If (but only if) expressly permitted in or pursuant to the applicable Board
Resolution and (subject to Section 303) set forth in the applicable Officers'
Certificate, or in any indenture supplemental hereto, delivered as contemplated
by Section 301, at the option of the Holder, Bearer Securities of any series may
be exchanged for Registered Securities of the same series containing identical
terms and provisions, of any authorized denominations and of like tenor and
aggregate principal amount, upon surrender of the Bearer Securities to be
exchanged at any such office or agency, with all unmatured coupons and all
matured coupons in default thereto appertaining. If the Holder of a Bearer
Security is unable to produce any such unmatured coupon or coupons or matured
coupon or coupons in default, such exchange may be effected if the Bearer
Securities are accompanied by payment in funds acceptable to the Company and the
Trustee in an amount equal to the face amount of such missing coupon or coupons,
or the surrender of such missing coupon or coupons may be waived by the Company
and the Trustee if there be furnished to them such security or indemnity as they
may require to save each of them and any Paying Agent harmless. If the Holder of
such Security shall surrender to any Paying Agent any such missing coupon in
respect of which such a payment shall have been made, such Holder shall be
entitled to receive the amount of such payment; PROVIDED, HOWEVER, that, except
as otherwise provided in Section 1002, interest represented by coupons shall be
payable only upon presentation and surrender of those coupons at an office or
agency located outside the United States. Notwithstanding the foregoing, in case
a Bearer Security of any series is surrendered at any such office or agency in
exchange for a Registered Security of the same series after the close of
business at such office or agency on (i) any Regular Record Date and before the
opening of business at such office or agency on the relevant Interest Payment
Date, or (ii) any Special Record Date and before the opening of business at such
office or agency on the related date for payment of Defaulted Interest, such
Bearer Security shall be surrendered without the coupon relating to such
Interest Payment Date or proposed date of payment, as the case may be (or, if
such coupon is so surrendered with such Bearer Security, such coupon shall be
returned to the person so surrendering the Bearer Security), and interest or
Defaulted Interest, as the case may be, will not be payable on such Interest
Payment Date or proposed date for payment, as the case may be, in respect of the
Registered Security issued in exchange for such Bearer Security, but will be
payable only to the Holder of such coupon when due in accordance with the
provisions of this Indenture.

     If expressly provided with respect to the Securities of any series, at the
option of the Holder, Registered Securities of such series may be exchanged for
Bearer Securities upon such terms and conditions as may be provided with respect
to such series.

     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.

     Notwithstanding the foregoing, except as otherwise specified as
contemplated in Section 301, any permanent global Security shall be exchangeable
only as provided in this paragraph. If any beneficial owner of an interest in a
permanent global Security is entitled

                                       29
<Page>

to exchange such interest for Securities of such series and of like tenor and
principal amount of another authorized form and denomination, as specified as
contemplated by Section 301 and provided that any applicable notice provided in
the permanent global Security shall have been given, then without unnecessary
delay but in any event not later than the earliest date on which such interest
may be so exchanged, the Company shall deliver to the Trustee definitive
Securities in aggregate principal amount equal to the principal amount of such
beneficial owner's interest in such permanent global Security, executed by the
Company. On or after the earliest date on which such interests may be so
exchanged, such permanent global Security shall be surrendered by the Depositary
or U.S. Depositary, as the case may be, as the Company's agent for such purpose,
to be exchanged, in whole or from time to time in part, for definitive
Securities without charge and the Trustee shall authenticate and deliver, in
exchange for each portion of such permanent global Security, an equal aggregate
principal amount of definitive Securities of the same series of authorized
denominations and of like tenor as the portion of such permanent global Security
to be exchanged which, unless the Securities of the series are not issuable both
as Bearer Securities and as Registered Securities, as specified as contemplated
in Section 301, shall be in the form of Bearer Securities or Registered
Securities, or any combination thereof, as shall be specified by the beneficial
owner thereof; PROVIDED, HOWEVER, that no such exchanges may occur during a
period beginning at the opening of business 15 days before any selection of
Securities to be redeemed and ending on the relevant Redemption Date if the
Security for which exchange is requested may be among those selected for
redemption; and PROVIDED, FURTHER, that no Bearer Security delivered in exchange
for a portion of a permanent global Security shall be mailed or otherwise
delivered to any location in the United States. If a Registered Security is
issued in exchange for any portion of a permanent global Security after the
close of business at the office or agency where such exchange occurs on (i) any
Regular Record Date and before the opening of business at such office or agency
on the relevant Interest Payment Date, or (ii) any Special Record Date and the
opening of business at such office or agency on the related proposed date for
payment of Defaulted Interest, interest or Defaulted Interest, as the case may
be, will not be payable on such Interest Payment Date or proposed date for
payment, as the case may be, in respect of such Registered Security, but will be
payable on such Interest Payment Date or proposed date for payment, as the case
may be, only to the Person to whom interest in respect of such portion of such
permanent global Security is payable in accordance with the provisions of this
Indenture.

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

     Every Registered 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 be accompanied by a written instrument of transfer in form
satisfactory to the Company, the Trustee and the Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing.

                                       30
<Page>

     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 Sections 304, 906 or 1107 not involving any transfer.

     The Company shall not be required (i) to issue, register the transfer of or
exchange Securities of any series during a period of 15 days immediately
preceding the date notice is given identifying the serial numbers of the
Securities of that series called for redemption and ending at the close of
business on (A) if Securities of the series are issuable only as Registered
Securities, the day of the mailing of the relevant notice of redemption and (B)
if Securities of the series are issuable as Bearer Securities, the day of the
first publication of the relevant notice of redemption or, if Securities of the
series are also issuable as Registered Securities and there is no publication,
the mailing of the relevant notice of redemption, or (ii) to register the
transfer of or exchange any Registered Security so selected for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed
in part, or (iii) to exchange any Bearer Security so selected for redemption
except that such a Bearer Security may be exchanged for a Registered Security of
that series, PROVIDED that such Registered Security shall be immediately
surrendered for redemption with written instruction for payment consistent with
the provisions of this Indenture, or (iv) to issue, register the transfer of or
exchange any Security which has been surrendered for repayment at the option of
the Holder, except the portion, if any, of such Security not to be so repaid.

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

     If any mutilated Security or a Security with a mutilated coupon
appertaining to it 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 containing identical terms and provisions and of like tenor
and principal amount and bearing a number not contemporaneously outstanding,
with coupons corresponding to the coupons, if any, appertaining to the
surrendered Security.

     If there shall be delivered to the Company and the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Security or coupon
and (ii) such security or indemnity as may be required by them to save each of
them and any agent of either of them harmless, then, in the absence of notice to
the Company or the Trustee that such Security or coupon has been acquired by a
bona fide or protected purchaser, the Company shall execute and upon its request
the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost
or stolen Security or in exchange for the Security to which a destroyed, lost or
stolen coupon appertains (with all appurtenant coupons not destroyed, lost or
stolen), a new Security of the same series containing identical terms and
provisions and of like tenor and principal amount and bearing a number not
contemporaneously outstanding,

                                       31
<Page>

with coupons corresponding to the coupons, if any, appertaining to such
destroyed, lost or stolen Security or to the Security to which such destroyed,
lost or stolen coupon appertains.

     Notwithstanding the foregoing provisions of this Section 306, in case any
mutilated, destroyed, lost or stolen Security or coupon 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 or coupon; PROVIDED, HOWEVER, that payment of
principal of, any premium or interest on or any Additional Amounts with respect
to any Bearer Securities shall, except as otherwise provided in Section 1002, be
payable only at an office or agency for such Securities located outside the
United States and, unless otherwise provided in or pursuant to this Indenture,
any interest on Bearer Securities and any Additional Amounts with respect to
such interest shall be payable only upon presentation and surrender of the
coupons appertaining thereto.

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

     Every new Security of any series, with its coupons, if any, issued pursuant
to this Section in lieu of any destroyed, lost or stolen Security, or in
exchange for a Security to which a destroyed, lost or stolen coupon appertains,
shall constitute an original additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Security and its coupons, if any,
or the destroyed, lost or stolen coupon shall be at any time enforceable by
anyone, and any such new Security and coupons, if any, shall be entitled to all
the benefits of this Indenture equally and proportionately with any and all
other Securities of that series and their coupons, if any, 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 or coupons.

SECTION 307.  PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED; OPTIONAL INTEREST
RESET.

     (a)      Unless otherwise provided as contemplated by Section 301 with
respect to any series of Securities, interest on any Registered 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 at the office or agency of the Company maintained
for such purpose pursuant to Section 1002; PROVIDED, HOWEVER, that each
installment of interest on any Registered Security may at the Company's option
be paid by mailing a check for such interest, payable to or upon the written
order of the Person entitled thereto pursuant to Section 308, to the address of
such Person as it appears on the Security Register. Unless otherwise provided as
contemplated by Section 301 with respect to the Securities in any series,
payment of interest may be made, in the case of a Bearer

                                       32
<Page>

Security, by transfer to an account maintained by the payee with a bank located
outside the United States. In case a Bearer Security of any series is
surrendered in exchange for a Registered Security of such series after the close
of business (at an office or agency in a Place of Payment for such series) on
any Regular Record Date and before the opening of business (at such office or
agency) on the next succeeding Interest Payment Date, such Bearer Security shall
be surrendered without the coupon relating to such Interest Payment Date and
interest will not be payable on such Interest Payment Date in respect of the
Registered Security issued in exchange for such Bearer Security, but will be
payable only to the Holder of such coupon when due in accordance with the
provisions of this Indenture.

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

              (l)    The Company may elect to make payment of any Defaulted
     Interest to the Persons in whose names the Registered Securities of such
     series (or their respective Predecessor Securities) are registered at the
     close of business on a Special Record Date for the payment of such
     Defaulted Interest, which shall be fixed in the following manner. The
     Company shall notify the Trustee in writing at least 25 days prior to the
     date of the proposed payment of the amount of Defaulted Interest proposed
     to be paid on each Registered Security of such series and the date of the
     proposed payment, and at the same time the Company 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 this
     clause provided. Thereupon the Trustee shall fix the 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 15 days after the receipt by the Trustee of the notice of the
     proposed payment. The Trustee shall promptly notify the Company of such
     Special Record Date and, in the name and at the expense of the Company,
     shall cause notice of the proposed payment of such Defaulted Interest and
     the Special Record Date therefor to be mailed, first-class postage prepaid,
     to each Holder of Registered 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 Registered Securities of such series (or their respective Predecessor
     Securities) are registered at the close of business on such Special Record
     Date and shall no longer be payable pursuant to the following clause (2).
     In case a Bearer Security of any series is surrendered at the office or
     agency in a Place

                                       33
<Page>

     of Payment for such series in exchange for a Registered Security of such
     series after the close of business at such office or agency on any Special
     Record Date and before the opening of business at such office or agency on
     the related proposed date for payment of Defaulted Interest, such Bearer
     Security shall be surrendered without the coupon relating to such proposed
     date of payment and Defaulted Interest will not be payable on such proposed
     date of payment in respect of the Registered Security issued in exchange
     for such Bearer Security, but will be payable only to the holder of such
     coupon when due in accordance with the provisions of this Indenture.

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

     (b)      The provisions of this Section 307(b) may be made applicable to
any series of Securities pursuant to Section 301 (with such modifications,
additional or substitutions as may be specified pursuant to such Section 301).
The interest rate on any Security of such series may be reset by the Company on
the date or dates specified on the face of such Security (each an "Optional
Reset Date"). The Company may exercise such option with respect to a Security by
notifying the Trustee of all of the relevant information relating to such
exercise at least 50 but not more than 60 days prior to an Optional Reset Date,
the Trustee shall transmit, in the manner provided for in Section 106, to the
Holder of any such Security a notice (the "Reset Notice") indicating whether the
Company has elected to reset the interest rate, and if so (i) such new interest
rate and (ii) the provisions, if any, for redemption during the period from such
Optional Reset Date to the next Optional Reset Date or if there is no such next
Optional Reset Date, to the Stated Maturity Date of such Security (each such
period a "Subsequent Interest Period"), including the date or dates on which or
the period or periods during which and the price or prices at which such
redemption may occur during the Subsequent Interest Period.

     Notwithstanding the foregoing, not later than 20 days prior to the Optional
Reset Date, the Company may, at its option, revoke the interest rate provided
for in the Reset Notice and establish a higher interest rate for the Subsequent
Interest Period by causing the Trustee to transmit, in the manner provided for
in Section 106, notice of such higher interest rate to the Holder of such
Security. Such notice shall be irrevocable. All Securities with respect to which
the interest rate is reset on an Optional Reset Date will bear such higher
interest rate.

     The Holder of any such Security will have the option to elect repayment by
the Company of the principal of such Security on each Optional Reset Date at a
price equal to the principal amount thereof plus interest accrued to such
Optional Reset Date. In order to obtain repayment on an Optional Reset Date, the
Holder must follow the procedures set

                                       34
<Page>

forth in Article Sixteen for repayment at the option of Holders, as such apply
to such Security, except that the period for delivery or notification to the
Trustee shall be at least 25 but not more than 35 days prior to such Optional
Reset Date and except that, if the holder has tendered any Security for
repayment pursuant to the Reset Notice, the Holder may, by written notice to the
Trustee, revoke such tender or repayment until the close of business on the
tenth day before such Optional Reset Date.

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

     Title to any Bearer Security and any coupons appertaining thereto shall
pass by delivery. The Company, the Trustee and any agent of the Company or the
Trustee may treat the bearer of any Bearer Security and the bearer of any coupon
as the absolute owner of such Security or coupon for the purpose of receiving
payment thereof or on account thereof and for all other purposes whatsoever,
whether or not such Security or coupon be overdue, and neither the Company, the
Trustee nor any agent of the Company or the Trustee shall be affected by notice
to the contrary.

     None of the Company, the Trustee, any Paying Agent or the Security
Registrar will have any responsibility or liability for any aspect of the
records relating to or payments made on account of beneficial ownership
interests in a Security in global form or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests.
Notwithstanding the foregoing, with respect to any global Security, nothing
herein shall prevent the Company, the Trustee, or any agent of the Company or
the Trustee, from giving effect to any written certification, proxy or other
authorization furnished by any Depositary, as a Holder, with respect to such
global Security or impair, as between such Depositary and owners of beneficial
interests in such global Security, the operation of customary practices
governing the exercise of the rights of such Depositary (or its nominee) as
Holder of such global Security.

                                       35
<Page>

SECTION 309.  CANCELLATION.

     All Securities and coupons surrendered for payment, redemption,
registration of transfer or exchange or for credit against any sinking fund
payment shall, if surrendered to any Person other than the Trustee, be delivered
to the Trustee and shall be promptly cancelled by 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, and all Securities so delivered shall be promptly cancelled
by the Trustee. If the Company shall so acquire any of the Securities, however,
such acquisition shall not operate as a redemption or satisfaction of the
indebtedness represented by such Securities unless and until the same are
surrendered to the Trustee for cancellation. No Securities shall be
authenticated in lieu of or in exchange for any Securities cancelled as provided
in this Section, except as expressly permitted by this Indenture. All cancelled
Securities and coupons held by the Trustee shall be destroyed, and the Trustee
shall promptly deliver a certificate of destruction to the Company unless by a
Company Order the Company shall direct that cancelled Securities be returned to
it.

SECTION 310.  COMPUTATION OF INTEREST.

     Except as otherwise specified as contemplated by Section 301 for Securities
of any series, interest on the Securities of each series shall be computed on
the basis of a 360-day year of twelve 30-day months.

SECTION 311.  FORM OF CERTIFICATION BY A PERSON ENTITLED TO RECEIVE A BEARER
SECURITY.

     Whenever any provision of this Indenture or the forms of Security
contemplates that certification be given by a Person entitled to receive a
Bearer Security, such certification shall be provided substantially in the form
of the following certificate, with only such changes as shall be approved by the
Company:

                       [FORM OF CERTIFICATE TO BE GIVEN BY
                   PERSON ENTITLED TO RECEIVE BEARER SECURITY]
                                   CERTIFICATE

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

     This is to certify that the above-captioned Security is not being acquired
by or on behalf of a United States person, or for offer to resell or for resale
to a United States person, or, if a beneficial interest in the Security is being
acquired by a United States person, that such person is a financial institution
or is acquiring through a financial institution and that the Security is held by
a financial institution that has agreed in writing to comply with the
requirements of Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of
1986, as amended, and the regulations thereunder. If this certificate is being
provided by a clearing organization, it is based on statements provided to it by
its member organizations. As used herein, "United States" means the United
States of

                                       36
<Page>

America (including the States and the District of Columbia), its territories and
possessions and other areas subject to its jurisdiction, and "United States
person" means any citizen or resident of the United States, any corporation,
partnership or other entity created or organized in or under the laws of the
United States or any political subdivision thereof and any estate or trust the
income of which is subject to United States Federal income taxation regardless
of its source. If the undersigned is a dealer, the undersigned agrees to obtain
a similar certificate from each person entitled to delivery of any of the
above-captioned Securities in bearer form purchased from it; PROVIDED, HOWEVER,
that, if the undersigned has actual knowledge that the information contained in
such a certificate is false, the undersigned will not deliver a Security in
temporary or definitive bearer form to the person who signed such certificate
notwithstanding the delivery of such certificate to the undersigned.

     We undertake to advise you by telex if the above statement as to beneficial
ownership is not correct on the date of delivery of the above-captioned
Securities in bearer form as to all of such Securities.

     We understand that this certificate is required in connection with certain
tax legislation in the United States. If administrative or legal proceedings are
commenced or threatened in connection with which this certificate is or would be
relevant, we irrevocably authorize you to produce this certificate or a copy
thereof to any interested party in such proceedings.

Dated:____________ , 20_____

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

SECTION 312.  OPTIONAL EXTENSION OF MATURITY.

     The provisions of this Section 312 may be made applicable to any series of
Securities pursuant to Section 301 (with such modifications, additions or
substitutions as may be specified pursuant to such Section 301). The Stated
Maturity of any Security of such series may be extended at the option of the
Company for the period or periods specified on the face of such Security (each
an "Extension Period") up to but not beyond the date (the "Final Maturity") set
forth on the face of such Security. The Company may exercise such option with
respect to any Security by notifying the Trustee of such exercise at least 50
but not more than 60 days prior to the Stated Maturity of such Security in
effect prior to the exercise of such (the "Original Stated Maturity"). If the
Company exercises such option, the Trustee shall transmit, in the manner
provided for in Section 106, to the Holder of such Security not later than 40
days prior to the Original Stated Maturity a notice (the "Extension Notice")
indicating (i) the election of the Company to extend the Maturity, (ii) the new
Stated Maturity Date, (iii) the interest rate applicable to the Extension Period
and (iv) the provisions, if any, for redemption during such Extension Period.
Upon the Trustee's transmittal of the Extension Notice, the Stated Maturity Date
of such Security shall be extended automatically and, except as modified by the
Extension Notice and as

                                       37
<Page>

described in the next paragraph, such Security will have the same terms as prior
to the transmittal of such Notice.

     Notwithstanding the foregoing, not later than 20 days before the Original
Stated Maturity of such Security, the Company may, at its option, revoke the
interest rate provided for in the Extension Notice and establish a higher
interest rate for the Extension Period by causing the Trustee to transmit, in
the manner provided for in Section 106, notice of such higher interest rate to
the Holder of such Security. Such notice shall be irrevocable. All Securities
with respect to which the Stated Maturity is extended will bear such higher
interest rate.

     If the Company extends the Maturity of any Security, the Holder will have
the option to elect repayment of such Security by the Company on the Original
Stated Maturity at a price equal to the outstanding principal amount thereof,
plus interest accrued to such date. In order to obtain repayment on the Original
Stated Maturity once the Company has extended the Maturity thereof, the Holder
of an Outstanding Security must follow the procedures set forth in Article
Sixteen for repayment at the option of Holders, as such applies to the
Securities of such series, except that the period for delivery or notification
to the Trustee shall be at least 25 but not more than 35 days prior to the
Original Stated Maturity and except that, if the Holder has tendered any
Security for repayment pursuant to an Extension Notice, the Holder may by
written notice to the Trustee revoke such tender for repayment until the close
of business on the tenth day before the Original Stated Maturity unless the
Trustee has previously delivered repayment of such Security to such Holder.

                                  ARTICLE FOUR
                           SATISFACTION AND DISCHARGE

SECTION 401.  SATISFACTION AND DISCHARGE OF INDENTURE.

     This Indenture shall upon Company Request cease to be of further effect
(except as to any surviving rights of registration of transfer or exchange of
Securities herein expressly provided for, and any right to receive Additional
Amounts, as provided in Section 1004), and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

              (1)    either

                     (A)      all Securities theretofore authenticated and
              delivered and all coupons appertaining thereto (other than (i)
              coupons appertaining to Bearer Securities surrendered for exchange
              for Registered Securities and maturing after such exchange, whose
              surrender is not required or has been waived as provided in
              Section 305, (ii) Securities and coupons which have been
              destroyed, lost or stolen and which have been replaced or paid as
              provided

                                       38
<Page>

              in Section 306, (iii) coupons appertaining to Securities called
              for redemption and maturing after the relevant Redemption Date,
              whose surrender has been waived as provided in Section 1107, and
              (iv) Securities and coupons for whose payment money has
              theretofore been deposited in trust or segregated and held in
              trust by the Company and thereafter repaid to the Company or
              discharged from such trust, as provided in Section 1003) have been
              delivered to the Trustee for cancellation; or

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

                              (i)   have become due and payable, or

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

                              (iii) are to be called for redemption within one
                     year under arrangements satisfactory to the Trustee for the
                     giving of notice of redemption by the Trustee in the name,
                     and at the expense, of the Company,

              and the Company, in the case of (i), (ii) or (iii) above, has
              deposited or caused to be deposited with the Trustee as trust
              funds in trust for the purpose an amount sufficient to pay and
              discharge the entire indebtedness on such Securities and coupons
              not theretofore delivered to the Trustee for cancellation, for
              principal (and premium, if any) and interest to the date of such
              deposit (in the case of Securities which have become due and
              payable) or to the Stated Maturity or Redemption Date, as the case
              may be;

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

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

     In the event there are Securities of two or more series hereunder, the
Trustee shall be required to execute an instrument acknowledging satisfaction
and discharge of this Indenture only if requested to do so with respect to
Securities of all series as to which it is Trustee and if the other conditions
thereto are met. In the event there are two or more Trustees hereunder, then the
effectiveness of any such instrument shall be conditioned upon receipt of such
instruments from all Trustees hereunder.

                                       39
<Page>

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

SECTION 402.  APPLICATION OF TRUST MONEY.

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

SECTION 403.  SATISFACTION, DISCHARGE AND DEFEASANCE OF SECURITIES OF ANY
SERIES.

     If this Section 403 is specified, as contemplated by Section 301, to be
applicable to Securities of any series, then notwithstanding Section 401, (i)
the Company shall be deemed to have paid and discharged the entire indebtedness
on all the Outstanding Securities of any such series; (ii) the provisions of
this Indenture as it relates to such Outstanding Securities shall no longer be
in effect (except as to the rights of Holders of Securities to receive, from the
trust fund described in subparagraph (1) below, payment of the principal of (and
premium, if any) and any installment of principal of (and premium, if any) or
interest on such Securities on the Stated Maturity of such principal or
installment of principal or interest or any mandatory sinking fund payments or
analogous payments applicable to the Securities of that series on the day on
which such payments are due and payable in accordance with the terms of the
Indenture and of such Securities, the Company's obligations with respect to such
Securities under Sections 304, 305, 306, 1002 and 1004 and the rights, powers,
trusts, duties and immunities of the Trustee hereunder, including those under
Section 607 hereof); and (iii) the Trustee, at the expense of the Company,
shall, upon Company Request, execute proper instruments acknowledging
satisfaction and discharge of such indebtedness, when

              (1)    either

                     (A)      with respect to all Outstanding Securities of such
              series, with reference to this Section 403, the Company has
              deposited or caused to be deposited with the Trustee (or another
              trustee satisfying the requirements of Section 609) irrevocably
              (but subject to the provisions of Section 402 and the last
              paragraph of Section 1004), as trust funds in trust, specifically
              pledged as security for, and dedicated solely to, the benefit of
              the Holders of the Securities of that series, (X) lawful money of
              the United States in an amount, or (Y) U.S. Government Obligations
              which through the payment of

                                       40
<Page>

              interest and principal in respect thereof in accordance with their
              terms will provide not later than the opening of business on the
              due dates of any payment referred to in clause (i) or (ii) of this
              subparagraph (l)(A) lawful money of the United States in an
              amount, or (Z) a combination thereof, sufficient, in the opinion
              of a nationally recognized firm of independent public accountants
              expressed in a written certification thereof delivered to the
              Trustee, to pay and discharge (i) the principal of (and premium,
              if any) and each installment of principal (and premium, if any)
              and interest on the Outstanding Securities of that series on the
              Stated Maturity of such principal or installment of principal or
              interest and (ii) any mandatory sinking fund payments or analogous
              payments applicable to Securities of such series on the day on
              which such payments are due and payable in accordance with the
              terms of this Indenture and of such Securities; PROVIDED, HOWEVER,
              the Company shall not make or cause to be made the deposit
              provided for by this subparagraph (A) unless the Company shall
              have delivered to the Trustee an Opinion of Counsel to the effect
              that either (i), as a result of such deposit and the related
              exercise of the Company's option under this Section 403,
              registration will not be required under the Investment Company Act
              of 1940, as amended, by the Company, the trust funds representing
              such deposit or the Trustee or (ii) all necessary registrations
              under such Investment Company Act of 1940 have been effected; or

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

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

              (3)    such deposit will not result in a breach or violation of,
     or constitute a default under, this Indenture or any other agreement or
     instrument to which the Company is a party or by which it is bound;

              (4)    no Event of Default or event which with the giving of
     notice or lapse of time, or both, would become an Event of Default with
     respect to the Securities of that series shall have occurred and be
     continuing on the date of such deposit and no Event of Default under
     Section 501(5) or Section 501(6) or event which with the giving of notice
     or lapse of time, or both, would become an Event of Default under Section
     501(5) or Section 501(6) shall have occurred and be continuing on the 91st
     day after such date;

              (5)    the Company has delivered to the Trustee an Opinion of
     Counsel to the effect that (a) the Company has received from, or there has
     been published by, the Internal Revenue Service a ruling, or (b) since the
     date of this Indenture there has been a change in applicable Federal income
     tax law, in either case to the effect

                                       41
<Page>

     that, and based thereon such Opinion of Counsel shall confirm that, the
     Holders of Securities of such series will not recognize income, gain or
     loss for Federal income tax purposes as a result of such deposit,
     defeasance and discharge and will be subject to Federal income tax on the
     same amount and in the same manner and at the same times, as would have
     been the case if such deposit, defeasance and discharge had not occurred;

              (6)    if the Securities of that series are then listed on any
     national securities exchange, the Company shall have delivered to the
     Trustee an Opinion of Counsel to the effect that such deposit, defeasance
     and discharge will not cause such Securities to be delisted; and

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

     Any deposits with the Trustee referred to in Section 403(1)(A) above shall
be irrevocable and shall be made under the terms of an escrow trust agreement in
form and substance satisfactory to the Trustee. If any Outstanding Securities of
such series are to be redeemed prior to their Stated Maturity, whether pursuant
to any optional redemption provisions or in accordance with any mandatory
sinking fund requirement, the applicable escrow trust agreement shall provide
therefor and the Company shall make such arrangements as are satisfactory to the
Trustee for the giving of notice of redemption by the Trustee in the name, and
at the expense, of the Company.

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

     Notwithstanding the cessation, termination and discharge of all
obligations, covenants and agreements (except as provided above in this Section
403) of the Company under the Indenture with respect to any series of
Securities, the obligations of the Company to the Trustee under Section 607, the
obligations of the Trustee under Section 402 and the last paragraph of Section
1004 shall survive with respect to such series of Securities.

     Each supplemental indenture with respect to a series of Securities may
contain other provisions with respect to the satisfaction, discharge and
defeasance of such series, which provisions may be additional to, or in
replacement of, the provisions set forth in this Section 403.

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                                  ARTICLE FIVE
                                    REMEDIES

SECTION 501.  EVENTS OF DEFAULT.

     "Event of Default", wherever used herein with respect to Securities of any
series, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

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

              (2)    default in the payment of the principal of (or premium, if
     any, on) any Security of that series when it becomes due and payable at
     Maturity; or

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

              (4)    default in the performance, or breach, of any covenant or
     warranty of the Company in this Indenture (other than a covenant or
     warranty a default in whose performance or whose breach is elsewhere in
     this Section specifically dealt with or which has expressly been included
     in this Indenture solely for the benefit of series of Securities other than
     that series), and continuance of such default of 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 that
     series a written notice specifying such default or breach and requiring it
     to be remedied and stating that such notice is a "Notice of Default"
     hereunder; or

              (5)    the entry by a court having jurisdiction in the premises of
     (A) a decree or order for relief in respect of the Company in an
     involuntary case or proceeding under any applicable Federal or State
     bankruptcy, insolvency, reorganization or other similar law or (B) a decree
     or order appointing a custodian, receiver, liquidator, assignee, trustee,
     sequestrator or other similar official of the Company, or of any
     substantial part of its property, or ordering the winding up or liquidation
     of its affairs, and the continuance of any such decree or order for relief
     or any such other decree or order unstayed and in effect for a period of 60
     consecutive days; or

              (6)    the commencement by the Company of a voluntary case or
     proceeding under any applicable Federal or State bankruptcy, insolvency,

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     reorganization or other similar law or of any other case or proceeding to
     be adjudicated a bankrupt or insolvent, or the consent by either of the
     foregoing to the entry of a decree or order for relief in an involuntary
     case or proceeding under any applicable Federal or State bankruptcy,
     insolvency, reorganization or other similar law or to the commencement of
     any bankruptcy or insolvency case or proceeding, or the filing by either of
     the foregoing of a petition or answer or consent seeking reorganization or
     relief under any applicable Federal or State law, or the consent by either
     of the foregoing 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 the property of either, or the making by either of the foregoing of an
     assignment for the benefit of creditors, or the admission by either of the
     foregoing in writing of its inability to pay its debts generally as they
     become due, or the taking of corporate action by the Company in furtherance
     of any such action; or

              (7)    any other Event of Default provided in a supplemental
     indenture with respect to Securities of that series or in a Board
     Resolution establishing the terms of the Securities of such series in
     accordance with Section 301 of this Indenture.

SECTION 502.  ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.

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

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

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

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

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<Page>

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

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

                     (D)      all sums paid or advanced by the Trustee hereunder
              and the reasonable compensation, expenses, disbursements and
              advances of the Trustee, its agents and counsel and any other
              amounts due the Trustee under Section 607;

     and

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

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

SECTION 503.  COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE.

     The Company covenants that if

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

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

the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities and coupons, the whole amount then due and payable on
such Securities and coupons for principal (and premium, if any) and interest
and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal (and premium, if any) and on any overdue
interest, at the rate or rates borne by or provided for in such Securities, and,
in addition thereto, such further amount as shall be sufficient to cover the
costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel and
any other amounts due the Trustee under Section 607.

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<Page>

     If the Company fails to pay such amounts forthwith upon such demand, the
Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sum 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 adjusted or decreed to be payable in the manner provided by law out of
the property of the Company or any other obligor upon such Securities, wherever
situated.

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

SECTION 504.  TRUSTEE MAY FILE PROOFS OF CLAIM.

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

              (i)    to file and prove a claim for the whole amount of principal
     (or, if the Securities of such series are Original Issue Discount
     Securities, such portion of the principal amount as may be due and payable
     with respect to such series pursuant to a declaration in accordance with
     Section 502) (and premium, if any) and any interest 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 the reasonable compensation, expenses,
     disbursements and advances of the Trustee, its agents and counsel and any
     other amounts due the Trustee under Section 607) and of the Holders of
     Securities and coupons allowed in such judicial proceeding, and

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

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

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<Page>

to pay to the Trustee any amount due it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 607.

     Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder of a Security
or coupon any plan or reorganization, arrangement, adjustment or composition
affecting the Securities or coupons or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder of a
Security or coupon in any such proceeding.

SECTION 505.  TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES OR
COUPONS.

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

SECTION 506.  APPLICATION OF MONEY COLLECTED.

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

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

              SECOND: To the payment of all Senior Indebtedness if and to the
     extent required by Article Fourteen or other subordination provisions
     applicable with respect to a series of Securities; and

              THIRD: To the payment of the amounts then due and unpaid for
     principal of (and premium, if any) and interest on the Securities and
     coupons 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 and coupons for principal
     (and premium, if any) and interest, respectively; and

                                       47
<Page>

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

SECTION 507.  LIMITATION ON SUITS.

     Subject to Section 508, no Holder of any Security of any series or any
related coupons shall have any right to institute any proceeding, judicial or
otherwise, with respect to this Indenture, or for the appointment of a receiver
or trustee, or for any other remedy hereunder, unless:

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

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

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

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

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

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

SECTION 508.  UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM AND
INTEREST.

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

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

SECTION 509.  RESTORATION OF RIGHTS AND REMEDIES.

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

SECTION 510.  RIGHTS AND REMEDIES CUMULATIVE.

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

SECTION 511.  DELAY OR OMISSION NOT WAIVER.

     No delay or omission of the Trustee or of any Holder of any Security or
coupon 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 of Securities or coupons may be
exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders of Securities or coupons as the case may be.

SECTION 512.  CONTROL BY HOLDERS OF SECURITIES.

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

                                       49
<Page>

              (1)    such direction shall not be in conflict with any rule of
     law or with this Indenture, expose the Trustee to personal liability, or be
     unduly prejudicial to Holders not joining therein, and

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

SECTION 513.  WAIVER OF PAST DEFAULTS.

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

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

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

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

SECTION 514.  UNDERTAKING FOR COSTS.

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

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<Page>

SECTION 515.  WAIVER OF STAY OR EXTENSION LAWS.

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

                                   ARTICLE SIX
                                   THE TRUSTEE

SECTION 601.  CERTAIN DUTIES AND RESPONSIBILITIES.

     (a)      Except during the continuance of an Event of Default 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 has occurred and is 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

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

              (2)    the Trustee shall not be liable for any error or 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 series relating to the time, method and place
     of conducting any proceeding for any remedy available to the Trustee, or
     exercising any trust or power conferred upon the Trustee, under this
     Indenture with respect to the Securities of such series; and

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

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

SECTION 602.  NOTICE OF DEFAULTS.

     Within 90 days after the occurrence of any default hereunder with respect
to the Securities of any series, the Trustee shall transmit by mail to all
Holders of Securities of such series entitled to receive reports pursuant to
Section 703, notice of all defaults hereunder known to the Trustee, unless such
default shall have been cured or waived; PROVIDED, HOWEVER, that, except in the
case of a default in the payment of the principal of (or premium, if any) or
interest on any Security of such series or in the payment of any sinking fund
installment with respect to Securities of such series, the Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee, or a trust committee of directors or Responsible
Officers of the Trustee in good faith determine that the withholding of such
notice is in the interests of the Holders of Securities and coupons of such
series; and PROVIDED, FURTHER, that in the case of any default of the character
specified in Section 501(4) with respect to Securities of such series, no such
notice to Holders shall be given until at least 60 days after the occurrence
thereof. For the purpose of this Section, the term "default" means any event
which is, or after notice or lapse of time or both would become, an Event of
Default with respect to Securities of such series.

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SECTION 603.  CERTAIN RIGHTS OF TRUSTEE.

     Subject to the provisions of Section 601:

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

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

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

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

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

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

     (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

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     (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 Trust Office 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, any other obligor on such Securities or by any Holder of such
Securities.

SECTION 604.  NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.

     The recitals contained herein and in the Securities (except the Trustee's
certificates of authentication) and in any coupons shall be taken as the
statements of the Company, and neither the Trustee nor any Authenticating Agent
assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Securities or coupons. The Trustee or any Authenticating Agent shall not be
accountable for the use or application by the Company of Securities or the
proceeds thereof.

SECTION 605.  MAY HOLD SECURITIES.

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

SECTION 606.  MONEY HELD IN TRUST.

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

SECTION 607.  COMPENSATION AND REIMBURSEMENT.

     The Company agrees

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

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

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     agents and counsel), except any such expense, disbursements or advance as
     may be attributable to its negligence or bad faith; and

              (3)    to indemnify the Trustee (which for purposes of this
     Section 607(3) shall include its officers, directors, employees and agents)
     for, and to hold it harmless against, any loss, liability or expense
     incurred without negligence or bad faith on its part, arising out of or in
     connection with the acceptance or administration of the trust or trusts
     hereunder, including the costs and expenses of defending itself against any
     claim or liability in connection with the exercise or performance of any of
     its powers or duties hereunder.

     The provisions of this Section 607 shall survive the termination of this
Indenture or the resignation or removal of the Trustee. The obligations of the
Company under this Section shall not be subordinated to the payment of Senior
Indebtedness.

SECTION 608.  TRUSTEE'S LIEN.

     To secure the Company's payment obligations in this Section, the Trustee
shall have a lien prior to the Securities on all money or property held or
collected by the Trustee, except that held in trust to pay principal and
interest on particular Securities. Such lien shall survive the satisfaction and
discharge of this Indenture.

SECTION 609.  CORPORATE TRUSTEE REQUIRED; ELIGIBILITY; CONFLICTING INTERESTS.

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

     If the Trustee has or shall acquire a conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, Section 310(b) of the Trust Indenture Act and this Indenture.
There shall be excluded from the terms of Section 310(b) of the Trust Indenture
Act the Indenture dated as of the date hereof pursuant to which the Company's
senior securities may be issued, and the Indenture dated as of August 15, 1991
pursuant to which the Company's senior securities have been issued and are
outstanding.

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SECTION 610.  RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

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

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

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

              (d)    If at any time:

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

                     (2)      the Trustee shall become incapable of acting or
              shall be adjudged a bankrupt or insolvent or a receiver of the
              Trustee or of its property shall be appointed or any public
              officer shall take charge or control of the Trustee or of its
              property or affairs for the purpose of rehabilitation,
              conservation or liquidation, then, in any such case, (i) the
              Company by a Board Resolution may remove the Trustee with respect
              to all Securities, or (ii) subject to Section 514, any Holder of a
              Security who has been a bona fide Holder of a Security 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, with
respect to the Securities of one or more series, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect
to the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the securities of one or more
or all of such series and that at any time there shall be only one Trustee with
respect to the Securities of any particular series) and shall comply with the
applicable

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requirements of Section 611. 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 611, 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 of Securities and accepted appointment in the manner required by
Section 611, any Holder of a Security who has been a bona fide Holder of a
security of such series for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the securities of such
series.

     (f)      The Company shall give notice of each 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 by mailing
written notice of such event by first-class mail, postage prepaid, to all
Holders of Registered Securities, if any, of such series as their names and
addresses appear in the security Register and, if Securities of such series are
issuable as Bearer Securities, by publishing notice of such event once in an
Authorized Newspaper in each Place of Payment located outside the United States.
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 611.  ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

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

     (b)      In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Securities of
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,

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powers, trusts and duties of the retiring Trustee with respect to the Securities
or 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
as 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 shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder with respect to the Securities of that or those series to
which the appointment of such successor Trustee relates.

     (c)      Upon request of any such successor Trustee, the Company shall
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Trustee all such rights, powers and trusts referred
to in paragraph (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 Six.

SECTION 612.  MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.

     Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all the corporate trust business
of the Trustee, shall be the successor of the Trustee hereunder, PROVIDED such
corporation shall be otherwise qualified and eligible under this Article Six;
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.

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SECTION 613.  PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

     If and when the Trustee shall be or become a creditor of the Company (or
any other obligor on the Securities), the Trustee shall be subject to the terms
of Section 311 of the Trust Indenture Act. A Trustee who has resigned or been
removed shall be subject to Section 311 of the Trust Indenture Act to the extent
indicated therein.

SECTION 614.  APPOINTMENT OF AUTHENTICATING AGENT.

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

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

     An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and to the Company. The Trustee may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the

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provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall, at the expense of the
Company, (i) mail written notice of such appointment by first-class mail,
postage prepaid, to all Holders of Registered Securities, if any, of the series
with respect to which such Authenticating Agent will serve, as their names and
addresses appear in the Security Register, and (ii) if Securities of the series
are issuable as Bearer Securities, publish notice of such appointment at least
once in an Authorized Newspaper in the place where such successor Authenticating
Agent has its principal office if such office is located outside the United
States. Any successor Authenticating Agent upon acceptance of its appointment
hereunder shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an
Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section.

     The Company agrees to pay to each Authenticating Agent from time to time
reasonable compensation for its services under this Section.

     The provisions of Sections 308, 604 and 605 shall be applicable to each
Authenticating Agent.

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

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

                                             -----------------------------------
                                             AS TRUSTEE

                                             BY
                                               ---------------------------------
                                             AS AUTHENTICATING AGENT

                                             BY
                                               ---------------------------------
                                             AUTHORIZED SIGNATORY

                                             BY
                                               ---------------------------------
                                             AUTHORIZED SIGNATORY

     If all of the Securities of any 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 in writing

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(which writing need not comply with Section 102) by the Company, shall appoint
in accordance with this Section 614 an Authenticating Agent having an office in
a Place of Payment designated by the Company with respect to such series of
Securities.

                                  ARTICLE SEVEN
                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 701.  HOLDERS' LISTS.

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

              (a)    semi-annually, not later than February 15 and August 15 in
     each year, commencing on the first February 15 or April 15 following the
     date of this Indenture, a list, in such form as such Trustee may reasonably
     require, of the names and addresses of the Holders as of a date not more
     than 15 days prior to the time such list is furnished, and

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

provided, however, that so long as the Trustee is Security Registrar, no such
list shall be required to be furnished with respect to Holders for which the
Trustee is the Security Registrar.

SECTION 702.  PRESERVATION OF INFORMATION; COMMUNICATIONS BY HOLDERS WITH OTHER
HOLDERS.

     (a)      The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the Holders of
Securities (1) contained in the most recent list furnished to it as provided in
Section 701, and (2) received by it in the capacity of Paying Agent or Security
Registrar (if so acting) hereunder. The Trustee may destroy any list furnished
to it as provided in Section 701 upon receipt of a new list so furnished.

     (b)      Holders may communicate pursuant to Section 312(b) of the Trust
Indenture Act with other Holders with respect to their rights under this
Indenture. The Company, the Trustee, any Co-Securities Registrar and any other
Person shall have the protection of Section 312(c) of the Trust Indenture Act.

SECTION 703.  REPORTS BY TRUSTEE TO HOLDERS.

     (a)      Within 60 days after May 15 in each year, beginning with the May
15 following the date of this Indenture, the Trustee shall mail to the Holders a
brief report

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dated as of such reporting date in accordance with, and to the extent required
under, Section 313 of the Trust Indenture Act.

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

SECTION 704.  REPORTS BY COMPANY.

     The Company shall:

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

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

              (3)    transmit to all Holders, in the manner and to the extent
provided in Section 313 of the Trust Indenture Act, within 30 days after the
filing thereof with the Trustee, such summaries of any information, documents
and reports required to be filed by the Company pursuant to paragraphs (1) and
(2) of this Section as may be required by rules and regulations prescribed from
time to time by the Commission.

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                                  ARTICLE EIGHT
              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

SECTION 801.  COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS

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

              (l)    the corporation 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 corporation organized and existing
     under the laws of the United States of America, any State thereof or the
     District of Columbia, and if such surviving corporation is not the Company,
     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
     (including all Additional Amounts, if any, payable pursuant to Section
     1004) on all the Securities and the performance of every covenant of this
     Indenture on the part of the Company to be performed or observed;

              (2)    immediately after giving effect to such transaction and
     treating any indebtedness which becomes an obligation of the Company or a
     Subsidiary as a result of such transaction as having been incurred by the
     Company or such Subsidiary at the time of 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 happened and be continuing; and

              (3)    the Company has delivered to the Trustee an Officers'
     Certificate and an Opinion of Counsel, each stating that such consolidation
     (if the corporation formed by such consolidation is not the Company),
     merger, conveyance, transfer or lease and such supplemental indenture
     comply with this Article and that all conditions precedent herein provided
     for relating to such transaction have been complied with.

SECTION 802.  SUCCESSOR CORPORATION SUBSTITUTED.

     Upon any consolidation by the Company with or merger by the Company into
any other corporation or any conveyance, transfer or lease of properties and
assets of the Company substantially as an entirety in accordance with Section
801, the successor corporation formed by such consolidation or into which the
Company is merged or to which such conveyance, 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
corporation had been named as the Company herein, and

                                       63
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thereafter, except in the case of a lease, the predecessor corporation shall be
relieved of all obligations and covenants under this Indenture and the
Securities and coupons.

                                  ARTICLE NINE
                             SUPPLEMENTAL INDENTURES

SECTION 901.  SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS.

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

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

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

              (3)    to add any additional Events of Default for the benefit of
     the Holders of all or any series of Securities (and if such Events of
     Defaults are to be for the benefit of less than all series of Securities,
     stating that such Events of Default are expressly being included solely for
     the benefit of such series); PROVIDED, HOWEVER, that in respect of any such
     additional Events of Default such supplemental indenture may provide for a
     particular period of grace after default (which period may be shorter or
     longer than that allowed in the case of other defaults) or may provide for
     the immediate enforcement upon such default or may limit the remedies
     available to the Trustee upon such default or may limit the right of the
     Holders of a majority in aggregate principal amount of that or those series
     of Securities to which such additional Events of Default apply to waive
     such default; or

              (4)    to add to or change any of the provisions of this Indenture
     to provide that Bearer Securities may be registrable as to principal, to
     change or eliminate any restrictions on the payment of principal (or
     premium, if any) on Registered Securities or of principal (or premium, if
     any) or any interest on Bearer Securities, to permit Registered Securities
     to be exchanged for Bearer Securities or to permit the issuance of
     Securities in uncertificated form, PROVIDED any such action shall not
     adversely affect the interests of the Holders of Securities of any series
     or any related coupons in any material respect; or

                                       64
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              (5)    to change or eliminate any of the provisions of this
     Indenture, PROVIDED that any such change or elimination shall become
     effective only when there is no Security Outstanding of any series created
     prior to the execution of such supplemental indenture which is entitled to
     the benefit of such provision; or

              (6)    to secure the Securities; or

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

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

              (9)    to cure any ambiguity, to correct or supplement any
     provision herein which may be defective or inconsistent with any other
     provision herein, or to make any other provisions with respect to matters
     or questions arising under this Indenture which shall not be inconsistent
     with the provisions of this Indenture, provided such other provisions shall
     not adversely affect the interests of the Holders of Securities of any
     series or any related coupons in any material respect; or

              (10)   to supplement any of the provisions of this Indenture to
     such extent as shall be necessary to permit or facilitate the defeasance
     and discharge of any series of Securities pursuant to Sections 401 and 403;
     PROVIDED that such action shall not adversely affect the interests of the
     Holders of Securities of such series and any related coupons or any other
     series of Securities in any material respect.

     The Trustee is hereby authorized to join with the Company in the execution
of any such supplemental indenture, to make any further appropriate agreements
and stipulations which may be therein contained and to accept the conveyance,
transfer, assignment, mortgage or pledge of any property thereunder.

SECTION 902.  SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS.

     With the consent of the Holders of not less than 66 2/3% in principal
amount of the Outstanding Securities of each series affected by such
supplemental indenture, by Act of said Holders of Securities delivered to the
Company and the Trustee, the Company, when authorized by a Board Resolution, and
the Trustee may enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Indenture or of modifying in any manner the rights
of the Holders of Securities of such series and any related coupons under this
Indenture; PROVIDED, HOWEVER, that no such supplemental indenture shall, without
the consent of the Holder of each Outstanding Security or coupon affected
thereby,

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              (1)    change the Stated Maturity of the principal of, or any
     installment of principal of or interest on, any Security, or reduce the
     principal amount thereof or the rate of interest thereon or any premium
     payable upon the redemption thereof, or change any obligation of the
     Company to pay Additional Amounts (pursuant to Section 1004 (except as
     contemplated by Section 801(1) and permitted by Section 901(1)), or reduce
     the amount of the principal of an Original Issue Discount Security that
     would be due and payable upon a declaration of acceleration of the Maturity
     thereof pursuant to Section 502, or change any Place of Payment, or the
     coin or currency in which, any Security or any premium or the interest
     thereon is payable, or impair the right to institute suit for the
     enforcement of any such payment on or after the Stated Maturity thereof
     (or, in the case of redemption, on or after the Redemption Date), or

              (2)    reduce the percentage in principal amount of the
     Outstanding Securities of any series, the consent of whose Holders is
     required for any such supplemental indenture, or the consent of whose
     Holders is required for any waiver (of compliance with certain provisions
     of this Indenture or certain defaults hereunder and their consequences)
     provided for in this Indenture, or reduce the requirements of Section 1304
     for quorum or voting, or

              (3)    change any obligation of the Company to maintain an office
     or agency in Section 1002, or

              (4)    modify any of the provisions of this Section, Section 513
     or Section 1011, except to increase any such percentage or to provide that
     certain other provisions of this Indenture cannot be modified or waived
     without the consent of the Holder of each Outstanding Security affected
     thereby, PROVIDED, HOWEVER, that this clause shall not be deemed to require
     the consent of any Holder of a Security or coupon with respect to changes
     in the references to "the Trustee" and concomitant changes in this Section
     and Section 1011, or the deletion of this proviso, in accordance with the
     requirements of Sections 611(b) and 901(8).

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

     It shall not be necessary for any Act of Holders of Securities 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.

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SECTION 903.  EXECUTION OF SUPPLEMENTAL INDENTURES.

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

SECTION 904.  EFFECT OF SUPPLEMENTAL INDENTURES.

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

SECTION 905.  CONFORMITY WITH TRUST INDENTURE ACT.

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

SECTION 906.  REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES.

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

                                   ARTICLE TEN
                                    COVENANTS

SECTION 1001. PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.

     The Company covenants and agrees for the benefit of each series of
Securities that it will duly and punctually pay the principal of (and premium,
if any) and interest (including all Additional Amounts, if any, contemplated by
Section 1004) on the Securities of that series in accordance with the terms of
the Securities, any coupons appertaining thereto and this Indenture. Any
interest due on Bearer Securities on or before Maturity, other than Additional
Amounts, if any, payable as provided in Section 1004 in respect of

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principal of (or premium, if any, on) such a Security, shall be payable only
upon presentation and surrender of the several coupons for such interest
installments as are evidenced thereby as they severally mature.

SECTION 1002. MAINTENANCE OF OFFICE OR AGENCY.

     If securities of a series are issuable only as Registered Securities, the
Company will maintain in each Place of Payment for such series an office or
agency where Securities of that series may be presented or surrendered for
payments, where Securities of that series may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be served. If
Securities of a series are issuable as Bearer Securities, the Company will
maintain (A) in the Borough of Manhattan, The City of New York, an office or
agency where any Registered Securities of that series may be presented or
surrendered for payment, where any Registered Securities of that series may be
surrendered for registration of transfer, where Securities of that series may be
surrendered for exchange, where notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be served and
where Bearer Securities of that series and related coupons may be presented or
surrendered for payment in the circumstances described in the following
paragraph (and not otherwise), (B) subject to any laws or regulations applicable
thereto, in a Place of Payment for that series which is located outside the
United States, an office or agency where Securities of that series and related
coupons may be presented and surrendered for payment (including payment of any
Additional Amounts payable on Securities of that series pursuant to Section
1004); PROVIDED, HOWEVER, that if the Securities of that series are listed on
The Stock Exchange of the United Kingdom and the Republic of Ireland, the
Luxembourg Stock Exchange or any other stock exchange located outside the United
States and such stock exchange shall so require, the Company will maintain a
Paying Agent for the Securities of that series in London, Luxembourg or any
other required city located outside the United States, as the case may be, so
long as the Securities of that series are listed on such exchange, and (C)
subject to any laws or regulations applicable thereto, in a Place of Payment for
that series located outside the United States an office or agency where any
Registered Securities of that series may be surrendered for registration of
transfer, where Securities of that series may be surrendered for exchange and
where notices and demands to or upon the Company in respect of the Securities of
that series and this Indenture may be served. The Company will give prompt
written notice to the Trustee of the location, and any change in the location,
of any such office or agency. If at any time the Company shall fail to maintain
any such required office or agency in respect to any series of Securities or
shall fail to furnish the Trustee with the address thereof, such presentations,
and surrenders of Securities of that series may be made and notices and demands
may be made or served at the Corporate Trust Office of the Trustee, or such
other office as the Company shall designate if so required by any such stock
exchange located outside the United States.

     No payment of principal, premium or interest on Bearer Securities shall be
made at any office or agency of the Company in the United States or by check
mailed to any

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address in the United States or by transfer to an account maintained with a bank
located in the United States; PROVIDED, HOWEVER, payment of principal of and any
premium and interest in Dollars (including Additional Amounts payable in respect
thereof) on any Bearer Security may be made at the Corporate Trust Office of the
Trustee in the Borough of Manhattan, The City of New York if (but only if)
payment of the full amount of such principal, premium, interest or Additional
Amounts at all offices outside the United States maintained for the purpose by
the Company in accordance with this Indenture is illegal or effectively
precluded by exchange controls or other similar restrictions.

     The Company may also from time to time designate one or more other offices
or agencies where the Securities of one or more series may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; PROVIDED, HOWEVER, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency
in each Place of Payment in accordance with the requirements set forth above for
Securities of any series for such purposes. The Company will give prompt written
notice to the Trustee of any such designation or rescission and of any change in
the location of any such other office or agency.

SECTION 1003. MONEY FOR SECURITIES PAYMENTS TO BE HELD IN TRUST.

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

     Whenever the Company shall have one or more Paying Agents for any series of
Securities, it will, on or before each due date of the principal of (and
premium, if any) or interest on any Securities of that series, deposit with a
Paying Agent a sum sufficient to pay the principal (and premium, if any) 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 will promptly notify the Trustee of its action
or failure so to act.

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

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

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

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

     The Company may at any time, for the purpose of obtaining the satisfaction
and discharge of this Indenture or for any other purpose, pay, or by Company
Order direct any Paying Agent to pay, to the Trustee all sums held in trust by
the Company or such Paying Agent, such sums to be held by the Trustee upon the
same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such
Paying Agent shall be released from all further liability with respect to such
money.

     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 on any Security of any series 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 or
any coupon appertaining thereto shall thereafter, as an unsecured general
creditor, look only to the Company for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability
of the Company as trustee thereof, shall thereupon cease; PROVIDED, HOWEVER,
that the Trustee or such Paying Agent, before being required to make any such
repayment, shall at the expense of the Company cause to be published once in an
Authorized Newspaper in each Place of Payment or mailed to each such Holder or
both, notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days nor more than 90 days from the
date of such publication or mailing, any unclaimed balance of such money then
remaining will be repaid to the Company.

SECTION 1004. ADDITIONAL AMOUNTS.

     If the Securities of a series provide for the payment of Additional
Amounts, the Company will pay to the Holder of any Security of any series or any
coupon appertaining thereto Additional Amounts as provided therein. Whenever in
this Indenture there is mentioned, in any context, the payment of the principal
of (or premium, if any) or interest on, or in respect of, any Security of any
series of any related coupon of the net proceeds received on the sale or
exchange of any Security of any series, such mention shall be deemed to include
mention of the payment of Additional Amounts provided for in this Section to the
extent that, in such context, Additional Amounts are, were or would be payable
in respect thereof pursuant to the provisions of this Section and express
mention of the payment of Additional Amounts (if applicable) in any provisions
hereof shall not be

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construed as excluding Additional Amounts in those provisions hereof where such
express mention is not made.

     If the Securities of a series provide for the payment of Additional
Amounts, at least 10 days prior to the first Interest Payment Date with respect
to that series of Securities (or if the Securities of that series will not bear
interest prior to Maturity, the first day on which a payment of principal (and
premium, if any) is made), and at least 10 days prior to each date of payment of
principal (and premium, if any) or interest if there has been any change with
respect to the matters set forth in the below-mentioned Officers' Certificate,
the Company will furnish the Trustee and the Company's principal Paying Agent or
Paying Agents, if other than the Trustee, with an Officers' Certificate
instructing the Trustee and such Paying Agent or Paying Agents whether such
payment of principal (and premium, if any) or interest on the Securities of that
series shall be made to Holders of Securities of that series or the related
coupons who are United States Aliens without withholding for or on account of
any tax, assessment or other governmental charge described in the Securities of
that series. If any such withholding shall be required, then such Officers'
Certificate shall specify by country the amount, if any, required to be withheld
on such payments to such Holders of Securities or coupons and the Company will
pay to the Trustee or such Paying Agent the Additional Amounts required by this
Section. The Company covenants to indemnify the Trustee and any Paying Agent
for, and to hold them harmless against, any loss, liability or expense
reasonably incurred without negligence or bad faith on their part arising out of
or in connection with actions taken or omitted by any of them in reliance on any
Officers' Certificate furnished pursuant to this Section.

SECTION 1005. CORPORATE EXISTENCE.

     Subject to Article Eight, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and that of each Subsidiary and the rights (charter and statutory) and
franchises of the Company and its Subsidiaries; PROVIDED, HOWEVER, that the
Company shall not be required to preserve any such right or franchise if the
Company shall determine that the preservation thereof is no longer desirable in
the conduct of the business of the Company and its Subsidiaries considered as a
whole and that the loss thereof is not disadvantageous in any material respect
to the Holders.

SECTION 1006. MAINTENANCE OF PROPERTIES.

     The Company will cause all Principal Properties to be maintained and kept
in good condition, repair and working order and supplied with all necessary
equipment and will cause to be made all necessary repairs, renewals,
replacements, betterments and improvements thereof, all as in the judgment of
the Company may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times; PROVIDED,
HOWEVER, that nothing in this Section shall prevent the Company from
discontinuing the operation or maintenance of any of such properties, or
disposing of them if such discontinuance or disposal is, in the judgment of the
Company or of the

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Subsidiary concerned, desirable in the conduct of its business or the business
of any Subsidiary.

SECTION 1007. PAYMENT OF TAXES AND OTHER CLAIMS.

     The Company will pay or discharge or cause to be paid or discharged, before
the same shall become delinquent, (1) all taxes, assessments and governmental
charges levied or imposed upon the Company or any Subsidiary or upon the income,
profits or property of the Company or any Subsidiary, and (2) all lawful claims
or labor, materials and supplies which, if unpaid, might by law become a lien
upon the property of the Company or any Subsidiary; PROVIDED, HOWEVER, that the
Company shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim whose amount, applicability
or validity is being contested in good faith by appropriate proceedings and the
Company shall have set aside on its books adequate reserves with respect thereto
(segregated to the extent required by generally accepted accounting principles).

SECTION 1008. LIMITATION UPON LIENS.

     (a)      The Company will not, and will not permit any Subsidiary to,
create, incur, issue, assume or guarantee any notes, bonds, debentures or other
similar evidences of indebtedness for money borrowed (notes, bonds, debentures
or other similar evidences of indebtedness for money borrowed being hereinafter
referred to for purposes of this Section 1008 and Section 1009 as "Debt")
secured by any pledge of, or mortgage, lien, encumbrance, or security interest
on (herein referred to for purposes of this Section 1008 and Section 1009 as a
"Lien") any Principal Property and the Company will not, and will not permit any
Subsidiary to, create, incur, issue, assume or guarantee any Debt secured by any
Lien on any Capital Stock or Debt of the Company or any Subsidiary, whether
owned at the date of this Indenture or thereafter acquired, without making
effective provision, and the Company in each case will make or cause to be made
effective provision, whereby the Securities (together with, if the Company shall
so determine, any other Debt of the Company then existing or thereafter created
which is not subordinate to the Securities) shall be secured equally and ratably
with (or prior to) any and all other Debt thereby secured, so long as such Debt
shall be so secured (for the purpose of providing such equal and ratable
security the principal amount of the Securities shall mean and shall not be less
than that principal amount that could be declared to be due and payable pursuant
to Section 502 on the date of the making of such effective provision and the
extent of such equal and ratable security shall be adjusted as and when said
principal amount changes over time pursuant to Section 502 and any other
provision hereof); PROVIDED, HOWEVER, that the foregoing restriction shall not
apply to Debt secured by any of the following:

              (1)    Liens on any property of the Company or any Subsidiary
existing at the time of acquisition thereof or at the date of this Indenture;

              (2)    Liens on property of a corporation existing at the time
such corporation is merged into or consolidated with the Company or a Subsidiary
or a

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Subsidiary is merged into such corporation or at the time of a sale, lease or
other disposition of the properties of such corporation (or a division thereof)
as an entirety or substantially as an entirety to the Company or a Subsidiary,
PROVIDED that such mortgage as a result of such merger, consolidation, sale,
lease or other disposition is not extended to property owned by the Company or
such Subsidiary immediately prior thereto;

              (3)    Liens on property of a corporation existing at the time
such corporation first becomes a Subsidiary;

              (4)    Liens securing Debt of a Subsidiary to the Company or to
another Subsidiary;

              (5)    Liens on property to secure all or part of the cost of
acquiring, substantially repairing or altering, constructing, developing or
substantially improving all or any part of such property, or to secure Debt
incurred to provide funds for any such purpose or for reimbursement of funds
previously expended for any such purpose, PROVIDED the commitment of the
creditor to extend the credit secured by any such Debt shall have been obtained
not later than 120 days after the later of (a) the completion of the
acquisition, substantial repair or alteration, construction, development or
substantial improvement of such property or (b) the placing in operation of such
property or of such property as so substantially repaired or altered,
constructed, developed or substantially improved;

              (6)    Liens arising from the assignment of moneys due and to
become due under contracts between the Company or any Subsidiary and the United
States of America, any state, commonwealth, territory or possession thereof or
any agency, department, instrumentality or political subdivision of any thereof;
or Liens in favor of the United States of America, any state, commonwealth,
territory or possession thereof or any agency, department, instrumentality or
political subdivision of any thereof, pursuant to the provisions or any contract
not directly or indirectly in connection with securing Debt; or Liens in favor
of any governmental body to secure progress, advance or other payments or the
acquisition of real or personal property from such governmental body pursuant to
any contract or provision of any statute;

              (7)    materialmen's, carriers', mechanics', workmen's,
repairmen's and other like liens arising in the ordinary course of business in
respect of obligations which are not overdue or which are being contested in
good faith by appropriate proceedings; any deposit or pledge as security for the
performance of any bid, tender, contract, lease, or undertaking not directly or
indirectly in connection with the securing of Debt; any deposit or pledge with
any governmental agency required or permitted to qualify the Company or any
Subsidiary to conduct business, maintain self-insurance or to obtain the
benefits of any law pertaining to workmen's compensation, unemployment
insurance, old age pensions, social security or similar matters, or to obtain
any stay or discharge in any legal or administrative proceedings; deposits or
pledges to obtain the release of materialmen's, mechanics', workmen's,
repairmen's or other like liens or the release of property in the possession of
a common carrier; any security interest created in connection with the sale,

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discount or guarantee of notes, chattel mortgages, leases, accounts receivable,
trade acceptances or other paper, or contingent repurchase obligations, arising
out of sales of merchandise in the ordinary course of business; Liens permitted
under Section 1007; or other deposits or pledges similar to those referred to in
this clause (7);

              (8)    Liens arising by reason of any judgment, decree or other of
any court, so long as any appropriate legal proceedings which may have been
initiated for the review of such judgment, decree or order shall not have been
finally terminated or so long as the period within which such proceedings may be
initiated shall not have expired; any deposit or pledge with any surety company
or clerk of any court, or in escrow, as collateral in connection with, or in
lieu of, any bond on appeal from any judgment or decree against the Company or
any Subsidiary, or in connection with other proceedings or actions at law or in
equity by or against the Company or any Subsidiary;

              (9)    Liens, charges and encumbrances incidental to construction,
to the conduct of business or the ownership of property of the Company or any
Subsidiary which were not incurred in connection with the borrowing of money or
the obtaining of advance or credits or the acquisition of property and do not in
the aggregate materially impair the use of any Principal Property for the
purposes for which it is held or which are being contested in good faith by the
Company or such Subsidiary;

              (10)   any extension, renewal, substitution or replacement (or
successive extensions, renewals, substitutions or replacements), as a whole or
in part, of any Lien referred to in the foregoing clauses (1) to (9), inclusive,
or the Debt secured thereby; PROVIDED, HOWEVER, that the principal amount of
Debt secured thereby and not otherwise authorized by said clauses (1) to (9),
inclusive, shall not exceed the principal amount of indebtedness, plus any
premium or fee payable in connection with any such extension, renewal,
substitution or replacement, so secured at the time of such extension, renewal,
substitution or replacement.

     (b)      Notwithstanding the provisions of subparagraph (a) of this
Section, the Company or any Subsidiary may create, incur, issue, assume or
guarantee Debt secured by a Lien which would otherwise be subject to the
restrictions of subparagraph (a) of this Section in an aggregate amount which,
together with all Attributable Debt outstanding pursuant to subparagraph (b) of
Section 1009 and all Debt outstanding pursuant to this subparagraph (b) does not
at the time of such creation, incurrence, issuance, assumption or guarantee of
such Debt exceed 15% of Consolidated Net Tangible Assets.

     For purposes of this Section and Section 1009, the giving of a guarantee
which is secured by a Lien on a Principal Property, and the creation of a Lien
on a Principal Property or Capital Stock or Debt to secure Debt which existed
prior to the creation of such Lien, shall be deemed to involve the creation of
Debt in an amount equal to the principal amount guaranteed or secured by such
Lien; but the amount of Debt secured by Liens on Principal Properties and shares
of Capital Stock and Debt shall be computed without cumulating the underlying
Debt with any guarantee thereof or Lien securing the same.

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SECTION 1009. LIMITATIONS ON SALE AND LEASE-BACK TRANSACTIONS.

     (a)      The Company will not, nor will it permit any Subsidiary to, enter
into any Sale and Lease-Back Transaction with respect to any Principal Property
(except for a transaction providing for a lease for a term, including any
renewal thereof, of not more than three years, except for a transaction between
the Company and a Subsidiary or between Subsidiaries and except for any lease of
property acquired after the date of this Indenture if the rent payable by the
Company or such Subsidiary thereunder is to be reimbursed under a contract with
the government of the United States or any instrumentality or agency thereof),
if the commitment by or on behalf of the purchaser is obtained more than 120
days after the later of (i) the completion of the acquisition, substantial
repair or alteration, construction, development or substantial improvement of
such Principal Property or (ii) the placing in operation of such Principal
Property or of such Principal Property as so substantially repaired or altered,
constructed, developed or substantially improved, unless either (x) the Company
or such Subsidiary would be entitled pursuant to subparagraph (a) of Section
1008 to create, incur, issue, assume or guarantee Debt secured by a Lien on such
Principal Property without equally and ratably securing the Securities or (y)
the Company shall apply or cause to be applied, in the case of a sale or
transfer for cash, an amount equal to the net proceeds thereof (but not in
excess of the net book value of such Principal Property at the date of such sale
or transfer) and, in the case of a sale or transfer otherwise than for cash, an
amount equal to the fair value (as determined by the Board of Directors) of the
Principal Property so leased, to the retirement, within 180 days after the
effective date of such Sale and Lease-Back Transaction, of Senior Indebtedness,
or if there is no Senior Indebtedness then outstanding, Securities of any series
or other Debt of the Company or a Subsidiary having a Stated Maturity more than
12 months from the date of such application which is not subordinate to the
Securities; PROVIDED, HOWEVER, that any retirement of Securities shall be in
accordance with Article Eleven and PROVIDED, FURTHER, that, if there is no
Senior Indebtedness then outstanding, the amount to be applied to such
retirement of Securities or other Debt shall be reduced by an amount equal to
the sum of (A) an amount equal to the principal amount of Securities delivered
within 180 days after the effective date of such Sale and Lease-Back Transaction
to the Trustee for retirement and cancellation (for purposes of making such
calculation the principal amount of Original Issue Discount Securities so
retired or cancelled shall mean the portion thereof that could have been
declared due and payable pursuant to Section 502 at the time retired and
cancelled) and (B) the principal amount, plus any premium or fee paid in
connection with any redemption in accordance with the terms, of other
indebtedness voluntarily retired by the Company within such 180-day period,
excluding retirements pursuant to prepayment provisions, sinking fund provisions
and payments at maturity.

     (b)      Notwithstanding the provisions of subparagraph (a) of this
Section, the Company or any Subsidiary may enter into a Sale and Lease-Back
Transaction which would otherwise be subject to the restrictions of subparagraph
(a) of this Section so as to create an aggregate amount of Attributable Debt
which, together with all Debt outstanding pursuant to subparagraph (b) of
Section 1008, and all Attributable Debt outstanding

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pursuant to this subparagraph (b), does not at the time of such Sale and
Lease-Back Transaction exceed 15% of Consolidated Net Tangible Assets.

SECTION 1010. STATEMENT AS TO COMPLIANCE.

     The Company will deliver to the Trustee, within 120 days after the end of
each fiscal year (which on the date hereof ends on December 31), a written
statement, which need not comply with Section 102, signed by the principal
executive officer, the principal financial officer or the principal accounting
officer and by the Treasurer, an Assistant Treasurer, the Controller or an
Assistant Controller of the Company, stating as to each signer thereof, that

              (1)    a review of the activities of the Company during such year
     and of performance under this Indenture has been made under his
     supervision, and

              (2)    to the best of his knowledge, based on such review, (a) the
     Company has fulfilled all its obligations under this Indenture throughout
     such year, or, if there has been a default in the fulfillment of any such
     obligation, specifying each such default known to him and the nature and
     status thereof, and (b) no event has occurred and is continuing which is,
     or after notice or lapse of time or both would become, an Event of Default,
     or, if such an event has occurred and is continuing, specifying each such
     event known to him and the nature and status thereof.

SECTION 1011. WAIVER OF CERTAIN COVENANTS.

     The Company may omit in any particular instance to comply with any term,
provision or condition set forth in Sections 1004 to 1009, inclusive, with
respect to the Securities of any series if before the time for such compliance
the Holders of at least 66 2/3% in principal amount of the Outstanding
Securities of such series shall, by Act of such Holders, either waive such
compliance in such instance or generally waive compliance with such term,
provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Company and the duties of
the Trustee in respect of any such term, provision or condition shall remain in
full force and effect.

                                 ARTICLE ELEVEN
                            REDEMPTION OF SECURITIES

SECTION 1101. APPLICABILITY OF ARTICLE.

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

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SECTION 1102. ELECTION TO REDEEM; NOTICE TO TRUSTEE.

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

SECTION 1103. SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED.

     If less than all the Securities of any series with the same issue date,
interest rate or formula, Stated Maturity and other terms are to be redeemed,
the particular Securities to be redeemed shall be selected pro rata not more
than 60 days prior to the Redemption Date by the Trustee from the Outstanding
Securities of such series not previously called for redemption, or by such other
method as the Trustee shall deem fair and appropriate and which may provide for
the selection for redemption of portions of the principal amount of Registered
Securities of such series not redeemed to be less than the minimum denomination
for a Security of such series established herein or pursuant hereto. Unless
otherwise provided in the Securities of a series, partial redemption must be in
an amount not less than $1,000,000 principal amount of Securities.

     The Trustee shall promptly notify the Company and the Security Registrar
(if other than the Trustee) in writing of the Securities selected for redemption
and, in the case of any Securities selected for partial redemption, the
principal amount thereof to be redeemed.

     For all purposes of this Indenture, unless the contest 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 of such Securities which has been or is to be redeemed.

SECTION 1104. NOTICE OF REDEMPTION.

     Notice of redemption shall be given in the manner provided in Section 106,
not less than 30 nor more than 60 days prior to the Redemption Date, unless a
shorter period is specified in the Securities to be redeemed, to the Holders of
Securities to be redeemed. Failure to give notice by mailing in the manner
herein provided to the Holder of any

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Registered Securities designated for redemption as a whole or in part, or any
defect in the notice of any such Holder, shall not affect the validity of the
proceedings for the redemption of any other Securities or portion thereof.

     Any notice that is mailed to the Holder of any Registered Securities in the
manner herein provided shall be conclusively presumed to have been duly given,
whether or not such Holder receives the notice.

     All notices of redemption shall state:

              (1)    the Redemption Date,

              (2)    the Redemption Price,

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

              (4)    in case any Registered Security is to be redeemed in part
     only, the notice which relates to such Security shall state that on and
     after the Redemption Date, upon surrender of such Security, the Holder of
     such Security will receive, without charge, a new Registered Security or
     Registered Securities of authorized denominations for the principal amount
     thereof remaining unredeemed,

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

              (6)    the place or places where such Securities, together in the
     case of Bearer Securities with all coupons appertaining thereto, if any,
     maturing after the Redemption Date, are to be surrendered for payment of
     the Redemption Price and any accrued interest and Additional Amounts
     pertaining thereto,

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

              (8)    that, unless otherwise specified in such notice, Bearer
     Securities of any series, if any, surrendered for redemption must be
     accompanied by all coupons maturing subsequent to the date fixed for
     redemption or the amount of any such missing coupon or coupons will be
     deducted from the Redemption Price, unless security or indemnity
     satisfactory to the Company, the Trustee and any Paying Agent is furnished,

              (9)    if Bearer Securities of any series are to redeemed and any
     Registered Securities of such series are not to be redeemed, and if such
     Bearer Securities may be exchanged for Registered Securities not subject to
     redemption on the

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     Redemption Date pursuant to Section 305 or otherwise, the last date, as
     determined by the Company, on which such exchanges may be made, and

              (10)   the CUSIP number or the Euroclear or the Cedel reference
     numbers of such Securities, if any (or any other numbers used by a
     Depositary or a U.S. Depositary to identify such Securities).

     A notice of redemption published as contemplated by Section 106 need not
identify particular Registered Securities to be redeemed.

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

SECTION 1105. DEPOSIT OF REDEMPTION PRICE.

     On or prior to any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust as provided in Section 1003) an amount of
money sufficient to pay the Redemption Price of, and (except if the Redemption
Date shall be an Interest Payment Date) any accrued interest on and Additional
Amounts with respect to all the Securities or portions thereof which are to be
redeemed on that date.

SECTION 1106. SECURITIES PAYABLE ON REDEMPTION DATE.

     Notice of redemption having been given as aforesaid, the Securities so to
be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest and the coupons for such
interest appertaining to any Bearer Securities so to be redeemed, except to the
extent provided below, shall be void. Upon surrender of any such Security for
redemption in accordance with said notice, together with all coupons, if any,
appertaining thereto maturing after the Redemption Date, such Security shall be
paid by the Company at the Redemption Price, together with accrued interest and
Additional Amounts to the Redemption Date; PROVIDED, HOWEVER, that installments
of interest on Bearer Securities whose Stated Maturity is on or prior to the
Redemption Date shall be payable only upon presentation and surrender of coupons
for such interest (at an office or agency located outside the United States
except as otherwise provided in Section 1002), and PROVIDED, FURTHER, that
installments of interest on Registered Securities whose Stated Maturity is on or
prior to the Redemption Date shall be payable to the Holders of such Securities,
or one or more Predecessor Securities, registered as such at the close of
business on the relevant Record Dates according to their terms and the
provisions of Section 307.

     If any Bearer Securities surrendered for redemption shall not be
accompanied by all appurtenant coupons maturing after the Redemption Date, such
Security may be paid after

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deducting from the Redemption Price an amount equal to the face amount of all
such missing coupons, or the surrender of such missing coupon or coupons may be
waived by the Company and the Trustee if there be furnished to them such
security or indemnity as they may require to save each of them and any Paying
Agent harmless. If thereafter the Holder of such Security shall surrender to the
Trustee or any Paying Agent any such missing coupon in respect of which a
deduction shall have been made from the Redemption Price, such Holder shall be
entitled to receive the amount so deducted; PROVIDED, HOWEVER, that interest and
Additional Amounts represented by coupons shall be payable only upon
presentation and surrender of those coupons at an office or agency located
outside of the United States except as otherwise provided in Section 1002.

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

SECTION 1107. SECURITIES REDEEMED IN PART.

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

                                 ARTICLE TWELVE
                                  SINKING FUNDS

SECTION 1201. APPLICABILITY OF ARTICLE.

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

     The minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a "mandatory sinking fund
payment", and

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

SECTION 1202. SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES.

     The Company (1) may deliver Outstanding Securities of a series (other than
any previously called for redemption), together in the case of any Bearer
Securities of such series with all unmatured coupons appertaining thereto, and
(2) may apply as a credit Securities of a series which have been redeemed either
at the election of the Company pursuant to the terms of such Securities or
through the application of permitted optional sinking fund payments pursuant to
the terms of such Securities, in each case in satisfaction of all or any part of
any sinking fund payment with respect to the Securities of such series required
to be made pursuant to the terms of such Securities as provided for by the terms
of such series; PROVIDED that such Securities have not been previously so
credited. Such Securities shall be received and credited for such purpose by the
Trustee in accordance with the written instructions of the Company set forth in
the Officers' Certificate referenced below at the Redemption Price specified in
such Securities for redemption through operation of the sinking fund and the
amount of such sinking fund payment shall be reduced accordingly.

SECTION 1203. REDEMPTION OF SECURITIES FOR SINKING FUND.

     Not less than 60 days prior to each sinking fund payment date for any
series of Securities, the Company will deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing sinking fund payment for
that series pursuant to the terms of that series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if any,
which is to be satisfied by delivering and crediting Securities of that series
pursuant to Section 1202 and will also deliver to the Trustee any Securities to
be so delivered and whether the Company intends to exercise its right to make a
permitted optional sinking fund payment with respect to such series of
Securities. Such certificate shall be irrevocable and upon its delivery the
Company shall be obligated to make the cash payment or payments therein referred
to, in any, on or before the next succeeding sinking fund payment date. In the
case of the failure of the Company to deliver such certificate, the sinking fund
payment due on the next succeeding sinking fund payment date for that series
shall be paid entirely in cash and shall be sufficient to redeem the principal
amount of such Securities subject to mandatory sinking fund payment without the
option to deliver or credit Securities as provided in Section 1202 and without
the right to make any optional sinking fund payment, if any, with respect to
such series.

     Not more than 60 days before each sinking fund payment date the Trustee
shall select the Securities to be redeemed upon such sinking fund payment date
in the manner

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specified in Section 1103 and cause notice of the redemption thereof to be given
in the name of and at the expense of the Company in the manner provided in
Section 1104. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Sections
1106 and 1107.

     On or prior to any sinking fund payment date, the Company shall pay to the
Trustee in cash a sum equal to any interest accrued to the date fixed for
redemption of Securities or portions hereof to be redeemed on such sinking fund
payment date pursuant to this Section 1203.

     Notwithstanding the foregoing, with respect to a sinking fund for any
series of Securities, if at any time the amount of cash to be paid into such
sinking fund on the next succeeding sinking fund payment date, together with any
unused balance of any preceding sinking fund payment or payments for such
series, shall not exceed in the aggregate $100,000, the Trustee, unless
requested by the Company, shall not give the next succeeding notice of the
redemption of Securities of such series through the operation of the sinking
fund. Such unused balance of moneys deposited in such sinking fund shall be
added to the sinking fund payment for such series to be made in cash in the next
succeeding year or, at the request of the Company, shall be applied at any time
or from time to time to the purchase of Securities of such series, by public or
private purchase, in the open market or otherwise, at not in excess of
(excluding accrued interest and brokerage commissions, for which the Trustee or
any paying agent will be reimbursed by the Company) the principal amount
thereof.

                                ARTICLE THIRTEEN
                        MEETINGS OF HOLDERS OF SECURITIES

SECTION 1301. PURPOSES FOR WHICH MEETINGS MAY BE CALLED.

     If Securities of a series are issuable as Bearer Securities, a meeting of
Holders of Securities of such series 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.

SECTION 1302. CALL, NOTICE AND PLACE OF MEETINGS.

              (a)    The Trustee may at any time call a meeting of Holders of
     Securities of any series for any purpose specified in Section l301, to be
     held at such time and at such place in the Borough of Manhattan, The City
     of New York, or in London as the Trustee shall determine. Notice of every
     meeting of Holders of Securities of any series, 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.

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              (b)    In case at any time the Company, pursuant to a Board
     Resolution, or the Holders of at least 10% in principal amount of the
     Outstanding Securities of any series shall have requested the Trustee to
     call a meeting of the Holders of Securities of such series 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 made the first publication of the notice of such meeting
     within 2l days after receipt of such request or shall not thereafter
     proceed to cause the meeting to be held as provided herein, then the
     Company or the Holders of Securities of such series 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 London for such meeting
     and may call such meeting for such purposes by giving notice thereof as
     provided in subparagraph (a) of this Section.

SECTION 1303. PERSONS ENTITLED TO VOTE AT MEETINGS.

     To be entitled to vote at any meeting of Holders of Securities of any
series, a Person shall be (l) a Holder of one or more Outstanding Securities of
such series, or (2) a Person appointed by an instrument in writing as proxy for
a Holder or Holders of one or more Outstanding Securities of such series by such
Holder or Holders. The only Persons who shall be entitled to be present or to
speak at any meeting of Holders of Securities of any series shall be the Persons
entitled to vote at such meeting and their counsel, any representative of the
Trustee and its counsel and any representatives of the Company and its counsel.

SECTION 1304. QUORUM; ACTION.

     The Persons entitled to vote a majority in principal amount of the
Outstanding Securities of a series shall constitute a quorum for a meeting of
Holders of Securities of such series; PROVIDED, HOWEVER, that if any action is
to be taken at such meeting with respect to a consent or waiver which this
Indenture expressly provides may be given by the Holders of not less than 66
2/3% in principal amount of the Outstanding Securities of a series, the Persons
entitled to vote 66 2/3% in principal amount of the Outstanding Securities of
such series shall constitute a quorum. In the absence of a quorum within 30
minutes of the time appointed for any such meeting, the meeting shall, if
convened at the request of the Holders of Securities of such series, be
dissolved. In any other case the meeting may be adjourned for a period of not
less than 10 days as 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 a period of not
less than 10 days as determined by the chairman of the meeting prior to the
adjournment of such adjourned meeting. Notice of the reconvening of any
adjourned meeting shall be given as provided in Section 1302(a), except that
such notice need to be given only once not less than five 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

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the percentage, as provided above, of the principal amount of the Outstanding
Securities of such series which shall constitute a quorum.

     Except as limited by the proviso to Section 902, 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 principal amount of the Outstanding Securities of that series;
PROVIDED, HOWEVER, that, except as limited by the proviso to Section 902, any
resolution with respect to any consent or waiver which this Indenture expressly
provides may be given by the Holders of not less than 66 2/3% in principal
amount of the Outstanding Securities of a series may be adopted at a meeting or
an adjourned meeting duly convened and at which a quorum is present as aforesaid
only by the affirmative vote of the Holders of 66 2/3% in principal amount of
the Outstanding Securities of that series; and PROVIDED, FURTHER, that, except
as limited by the proviso to Section 902, any resolution with respect to any
request, demand, authorization, direction, notice, consent, waiver or other
action which this Indenture expressly provides may be made, given or taken by
the Holders of a specified percentage, which is less than a majority, in
principal amount of the Outstanding Securities of a series may be adopted at a
meeting or an adjourned duly reconvened meeting 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 that series.

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

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

     (a)      Notwithstanding any other provisions of this Indenture, the
Trustee may take such reasonable regulations as it may deem advisable for any
meeting of Holders of Securities of such series in regard to proof of the
holding of Securities of such series 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 or by having the signature of the person executing the proxy
witnessed or guaranteed by any trust company, bank or banker authorized by
Section 104 to certify to the holding of Bearer Securities. 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.

     (b)      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

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the Holders of Securities as provided in Section 1302(b), in which case the
Company or the Holders of Securities of the series 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 principal amount of the Outstanding
Securities of such series represented at the meeting.

     (c)      At any meeting each Holder of a Security of such series or proxy
shall be entitled to one vote for each $1,000 principal amount of Securities of
such series 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 of such series or proxy.

     (d)      Any meeting of Holders of Securities of any series 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 principal amount of the
Outstanding Securities of such series represented at the meeting; 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 of
Securities of any series shall be by written ballots on which shall be
subscribed the signatures of the Holders of Securities of such series or of
their representatives by proxy and the principal amounts and serial numbers of
the Outstanding Securities of such series 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 written verified
reports in triplicate of all votes cast at the meeting. A record, at least in
triplicate, of the proceedings of each meeting of Holders of Securities of any
series 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 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.

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                                ARTICLE FOURTEEN
                                  SUBORDINATION

SECTION 1401. SECURITIES SUBORDINATED TO SENIOR INDEBTEDNESS.

     The Company covenants and agrees, and each Holder of Securities by his
acceptance thereof, likewise covenants and agrees, that the indebtedness
evidenced by the Securities and the payment of the principal of (and premium, if
any) and interest on each and all of the Securities is hereby expressly
subordinated, to the extent and in the manner hereinafter set forth, in right of
payment to the prior payment in full of Senior Indebtedness.

     Anything in this Indenture or in the Securities to the contrary
notwithstanding, the indebtedness evidenced by the Securities shall be
subordinate and junior in right of payment, to the extent and in the manner
hereinafter set forth, to all Senior Indebtedness. Senior Indebtedness shall
continue to be Senior Indebtedness and entitled to the benefits of these
subordination provisions irrespective of any amendment, modification or waiver
of any term of Senior Indebtedness or extension or renewal of Senior
Indebtedness.

              (a)(i) In the event the Company shall default in the payment of
     any Senior Indebtedness when the same becomes due and payable, whether at
     maturity or on a date fixed for prepayment or by declaration or otherwise,
     then, unless and until such default shall have been cured or waived or
     shall have ceased to exist, no direct or indirect payment (in cash,
     property or securities or by set-off or otherwise) shall be made or agreed
     to be made on account of the principal of, premium, if any, or interest or
     any Additional Amounts on the Securities, or as a sinking fund for the
     Securities, or in respect of any redemption, retirement, purchase or other
     acquisition of any of the Securities.

              (ii)   Upon the happening of an event of default with respect to
     any Senior Indebtedness, permitting the holders thereof to accelerate the
     maturity thereof (other than under circumstances when the terms of
     subdivision (a)(i) are applicable), then, unless and until such event of
     default shall have been cured or waived or shall have ceased to exist, no
     direct or indirect payment (in cash, property or securities or by set-off
     or otherwise) shall be made or agreed to be made on account of the
     principal of, or premium, if any, or interest or any Additional Amounts on
     the Securities, or as a sinking fund for the Securities, or in respect of
     any redemption, retirement, purchase or other acquisition of any of the
     Securities, during any period:

                     (A)      of 90 days after written notice of such default
              shall have been given to the Company by any holder of Senior
              Indebtedness; or

                     (B)      in which any judicial proceeding shall be pending
              in respect of such default and a notice of acceleration of the
              maturity of such Senior

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              Indebtedness shall have been transmitted to the Company in respect
              of such default.

              (b)    In the event of

              (i)    any insolvency, bankruptcy, receivership, liquidation,
     reorganization, readjustment, composition or other similar proceeding
     relating to the Company, its creditors or its property,

              (ii)   any proceeding for the liquidation, dissolution or other
     winding-up of the Company, voluntary or involuntary, whether or not
     involving insolvency or bankruptcy proceedings,

              (iii)  any assignment by the Company for the benefit of creditors,
     or

              (iv)   any other marshalling of the assets of the Company,

     all Senior Indebtedness (including any interest accruing after the
     commencement of such proceedings) shall first be paid in full before any
     payment or distribution, whether in cash, securities or other property,
     shall be made to any Holder of Securities on account of the Securities. Any
     payment or distribution, whether in cash, securities or other property
     (other than securities of the Company or any other corporation provided for
     by a plan of reorganization or readjustment the payment of which is
     subordinate, at least to the extent provided in this Article Fourteen with
     respect to the Securities, to the payment of all Senior Indebtedness at the
     time outstanding and to any securities issued in respect thereof under any
     such plan of reorganization or readjustment), which would otherwise (but
     for the provisions of this Article Fourteen) be payable or deliverable in
     respect of the Securities shall be paid or delivered directly to the
     holders of Senior Indebtedness in accordance with the priorities then
     existing among such holders until all Senior Indebtedness (including any
     interest thereon accruing after the commencement of any such proceedings)
     shall have been paid in full.

              (c)    In the event that any Security shall be declared due and
     payable as the result of the occurrence of any one or more defaults in
     respect thereof, under circumstances when the terms of subparagraph (b) are
     not applicable, no payment shall be made in respect of any Securities
     unless and until all Senior Indebtedness shall have been paid in full or
     such declaration and its consequences shall have been rescinded and all
     such defaults shall have been remedied or waived.

              (d)    If any payment or distribution of any character or any
     security, whether in cash, securities or other property (other than
     securities of the Company or any other corporation provided for by a plan
     of reorganization or readjustment the payment of which is subordinate, at
     least to the extent provided in the provisions of this Article Fourteen
     with respect to the Securities, to the payment of

                                       87
<Page>

     all Senior Indebtedness at the time outstanding and to any securities
     issued in respect thereof under any such plan or reorganization or
     readjustment), shall be received by any Holder of Securities in
     contravention of any terms hereof and before all the Senior Indebtedness
     shall have been paid in full, such payment or distribution or security
     shall be received in trust for the benefit of, and shall be paid over or
     delivered and transferred to, the holders of the Senior Indebtedness at the
     time outstanding, in accordance with the priorities then existing among
     such holders for application to the payment of all Senior Indebtedness
     remaining unpaid, or, if applicable, to any trustee in bankruptcy,
     receiver, liquidating trustee, custodian, assignee, agent or other Person
     making payment or distribution of assets of the Company, to the extent
     necessary to pay all such Senior Indebtedness in full. In the event of the
     failure of any Holder of Securities to endorse or assign any such payment,
     distribution or security, each holder of Senior Indebtedness is hereby
     irrevocably authorized to endorse or assign the same.

              (e)    Nothing contained herein shall impair, as between the
     Company and the Holder of any Securities, the obligation of the Company to
     pay to the Holder thereof the principal thereof and interest thereon as and
     when the same shall become due and payable in accordance with the terms of
     such Security, or prevent the Holder of any Securities from exercising all
     rights, powers and remedies otherwise permitted by applicable law or
     pursuant to the terms of this Indenture and the Security, upon a default or
     Event of Default under this Indenture, all subject to the rights of the
     holders of the Senior Indebtedness to receive cash, securities or other
     property otherwise payable or deliverable to the Holders of the Securities.

              (f)    Senior Indebtedness shall not be deemed to have been paid
     in full unless the holders thereof shall have received cash equal to the
     amount of such Senior Indebtedness then outstanding. Upon the payment in
     full of all Senior Indebtedness, the Holders of Securities shall be
     subrogated to all rights of any holders of Senior Indebtedness to receive
     any further payments or distributions applicable to the Senior Indebtedness
     until all amounts owing on the Securities shall have been paid in full, and
     such payments or distributions received by the holders of the Securities by
     reason of such subrogation, of cash, securities or other property which
     otherwise would be paid or distributed to the holders of Senior
     Indebtedness, shall, as between the Company and its creditors other than
     the holders of Senior Indebtedness, on the one hand, and the Holders of
     Securities, on the other hand, be deemed to be a payment by the Company on
     account of Senior Indebtedness and not on account of Securities.

     The Company shall give prompt written notice to the Trustee of any
insolvency, bankruptcy, receivership, liquidation, reorganization, readjustment,
composition or other similar proceeding relating to the Company within the
meaning of this Section 1401. Upon any payment or distribution of assets of the
Company referred to in this Article Fourteen, the Trustee, subject to the
provisions of Section 601, and the Holders of Securities shall be entitled to
rely upon a certificate of the trustee in bankruptcy, receiver, assignee for the

                                       88
<Page>

benefit of creditors or other liquidating agent making such payment or
distribution, delivered to the Trustee or to the Holders of Securities, for the
purpose of ascertaining the person entitled to participate in such distribution,
the holders of the Senior Indebtedness 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 Fourteen.

     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 to participate in any payment or distribution pursuant to
this Section 1401, the Trustee may request such person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amount of Senior
Indebtedness held by such person, as to the extent to which such person is
entitled to participate in such payment or distribution, and as to other facts
pertinent to the rights of such person under this Section 1401, and if such
evidence is not furnished, the Trustee may defer any payment to such person
pending judicial determination as to the right of such person to receive such
payment.

SECTION 1402. EFFECTUATION OF SUBORDINATION BY TRUSTEE.

     Each Holder of Securities, by his acceptance thereof, authorizes and
directs the Trustee in his behalf to take such action as may be necessary or
appropriate to effectuate, as between the Holders of the Securities and the
holders of Senior Indebtedness, the subordination provided in this Article and
appoints the Trustee his attorney-in-fact for any and all such purposes.

SECTION 1403. KNOWLEDGE OF TRUSTEE.

     Nothing contained in this Article Fourteen or elsewhere in this Indenture,
shall (a) prevent the Company from setting aside in trust or depositing with the
Trustee or any Paying Agent, at any time, except during the pendency of any of
the proceedings or upon the happening or continuance of any of the events
referred to in Section 1401, moneys for the payment of principal of, or premium,
if any, or interest on, the Securities, or (b) prevent the application by the
Trustee or Paying Agent of any moneys deposited with it hereunder by or on
behalf of the Company to the payment of or on account of the principal of, or
the premium, if any, or interest on the Securities, if the Trustee or the Paying
Agent, as the case may be, did not have written notice of any event prohibiting
such application by the close of business on the Business Day immediately prior
to the date of such application.

     Notwithstanding the provisions of this Article or any other provisions of
this Indenture, the Trustee shall not be charged with knowledge of the existence
of any Senior Indebtedness or of any default or event of default with respect to
any Senior Indebtedness or any fact or facts which would prohibit the making of
any payment of moneys to or by the Trustee, or the taking of any other action by
the Trustee, unless and until the Trustee shall have received written notice
thereof from the Company, any Holder of Securities, any paying or conversion
agent of the Company or the holder or representative of any class of

                                       89
<Page>

Senior Indebtedness who shall have been certified by the Company or otherwise
established to the reasonable satisfaction of the Trustee to be such holder or
representative or by the trustee under any indenture pursuant to which Senior
Indebtedness shall be outstanding.

SECTION 1404. TRUSTEE'S RELATION TO SENIOR INDEBTEDNESS.

     The Trustee shall be entitled to all rights set forth in this Article with
respect to any Senior Indebtedness at the time held by it, to the same extent as
any other holder of Senior Indebtedness, and nothing in Section 613 or elsewhere
in this Indenture shall deprive the Trustee of any of its rights as such holder.
Nothing in this Article Fourteen shall subordinate to Senior Indebtedness the
claims of, or payments to, the Trustee under or pursuant to Section 607.

     With respect to the holders of Senior Indebtedness, the Trustee undertakes
to perform or to observe only such of its covenants and obligations as are
specifically set forth in this Article and no implied covenants or obligations
with respect to the holders of Senior Indebtedness shall be read into this
Indenture against the Trustee and the Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Indebtedness and shall not be liable to
any holder of Senior Indebtedness if it shall pay over or deliver to Holders,
the Company or any other Person monies or assets to which any holder of Senior
Indebtedness shall be entitled by virtue of this Article or otherwise.

SECTION 1405. RIGHTS OF HOLDERS OF SENIOR INDEBTEDNESS NOT IMPAIRED.

     No right of any present or future holder of any Senior Indebtedness 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
non-compliance 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.

                                 ARTICLE FIFTEEN
                            MISCELLANEOUS PROVISIONS

SECTION 1501. SECURITIES IN FOREIGN CURRENCIES.

     Whenever this Indenture provides for (i) any action by, or the
determination of any of the rights of, Holders of Securities of any series in
which not all of such Securities are denominated in the same currency, or (ii)
any distribution to Holders of Securities, in the absence of any provision to
the contrary in the form of Security of any particular series, any amount in
respect of any Security denominated in a currency other than Dollars shall be
treated for any such action or distribution as that amount of Dollars that could
be obtained for such amount on such reasonable basis of exchange and as of the
record date with respect to Registered Securities of such series (if any) for
such action, determination of

                                       90
<Page>

rights or distribution (or, if there shall be no applicable record date, such
other date reasonably proximate to the date of such action, determination of
rights or distribution) as the Company may specify in a written notice to the
Trustee.

SECTION 1502. IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS, DIRECTORS AND
EMPLOYEES.

     No recourse under or upon any obligation, covenant or agreement of this
Indenture, or of any Security, or for any claim based thereon or otherwise in
respect thereof, shall be had against any incorporator, stockholder, officer,
director or employee, as such, past, present or future, of the Company or of any
successor corporation, either directly or through the Company, whether by virtue
of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly understood that this
Indenture and the obligations issued hereunder are solely corporate obligations
of the Company, and that no such personal liability whatever shall attach to, or
is or shall be incurred by, the incorporators, stockholders, officers, directors
or employees, as such, of the Company or of any successor corporation, or any of
them, because of the creation of the indebtedness hereby authorized, or under or
by reason of the obligations, covenants or agreements contained in this
Indenture or in any of the Securities or implied therefrom; and that any and all
such personal liability, either at common law or in equity or by constitution or
statute of, and any and all such rights and claims against, every such
incorporator, stockholder, officer, director or employee, as such, because of
the creation of the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in this Indenture or in any of
the Securities or implied therefrom, are hereby expressly waived and released as
a condition of, and as consideration for, the execution of this Indenture and
the issue of such Securities.

                                 ARTICLE SIXTEEN
                       REPAYMENT AT THE OPTION OF HOLDERS

SECTION 1601. APPLICABILITY OF ARTICLE.

     Securities of any series which are repayable at the option of the Holders
thereof before their Stated Maturity shall be repaid in accordance with the
terms of the Securities of such series. The repayment of any principal amount of
Securities pursuant to such option of the Holder to require repayment of
Securities before their Stated Maturity, for purposes of Section 309, shall not
operate as a payment, redemption or satisfaction of the indebtedness represented
by such Securities unless and until the Company, at its option, shall deliver or
surrender the same to the Trustee with a directive that such Securities be
cancelled. Notwithstanding anything to the contrary contained in this Section
1601, in connection with any repayment of Securities, the Company may arrange
for the purchase of any Securities by an agreement with one or more investment
bankers or other purchasers to purchase such Securities by paying to the Holders
of such Securities on or before the close of business on the repayment date an
amount not less than the repayment price payable by

                                       91
<Page>

the Company on repayment of such Securities, and the obligation of the Company
to pay the repayment price of such Securities shall be satisfied and discharged
to the extent such payment is so paid by such purchasers to the respective
Holders thereof.

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

     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.

                                       92
<Page>

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

                                        THE BOEING COMPANY

                                        By
                                          --------------------------------------
                                                          Title:

ATTEST:

---------------------------------------
                SECRETARY

                                        JPMORGAN CHASE BANK
                                         TRUSTEE

                                        By
                                          --------------------------------------
                                                     Assistant Secretary

ATTEST:

----------------------------------------
                SECRETARY

                                       93Exhibit
10.14

 

 

AESOP FUNDING II L.L.C.,

as Issuer

 

 

and

 

 

THE BANK OF NEW YORK,

as Trustee and Series 2003-3 Agent

 

 

SERIES 2003-3 SUPPLEMENT

dated as of May 6, 2003

 

 

to

 

 

AMENDED AND RESTATED BASE
INDENTURE

dated as of July 30, 1997

 

 

 

Table of Contents

 

	
  ARTICLE
  I  DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  ARTICLE
  II  SERIES 2003-3 ALLOCATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 2.1

  	
  Establishment of Series 2003-3 Collection
  Account, Series 2003-3 Excess Collection Account and Series 2003-3 Accrued
  Interest Account

  	
   

  
	
  Section 2.2

  	
  Allocations with Respect to the Series
  2003-3 Notes

  	
   

  
	
  Section 2.3

  	
  Payments to Noteholders and Series 2003-3
  Interest Rate Swap Counterparty

  	
   

  
	
  Section 2.4

  	
  Payment of Note Interest

  	
   

  
	
  Section 2.5

  	
  Payment of Note Principal

  	
   

  
	
  Section 2.6

  	
  Administrator’s Failure to Instruct the
  Trustee to Make a Deposit or Payment

  	
   

  
	
  Section 2.7

  	
  Series-2003-3 Reserve Account

  	
   

  
	
  Section 2.8

  	
  Series 2003-3 Letters of Credit and Series
  2003-3 Cash Collateral Account

  	
   

  
	
  Section 2.9

  	
   Series 2003-3 Distribution Account

  	
   

  
	
  Section 2.10

  	
  Series 2003-3 Interest Rate Swap

  	
   

  
	
  Section 2.11

  	
  Series 2003-3 Accounts Permitted
  Investments

  	
   

  
	
  Section 2.12

  	
  Series 2003-3 Demand Notes Constitute
  Additional Collateral for Series 2003-3 Notes.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III  AMORTIZATION EVENTS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV  RIGHT TO WAIVE PURCHASE
  RESTRICTIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  V  FORM OF SERIES 2003-3 NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 5.1

  	
  Restricted Global Series 2003-3 Notes

  	
   

  
	
  Section 5.2

  	
  Temporary Global Series 2003-3 Notes;
  Permanent Global Series 2003-3 Notes

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VI  GENERAL

  	
   

  
	
   

  	
   

  	
   

  
	
  Section 6.1

  	
  Optional Repurchase

  	
   

  
	
  Section 6.2

  	
  Information

  	
   

  
	
  Section 6.3

  	
  Exhibits

  	
   

  
	
  Section 6.4

  	
  Ratification of Base Indenture

  	
   

  
	
  Section 6.5

  	
  Counterparts

  	
   

  
	
  Section 6.6

  	
  Governing Law

  	
   

  
	
  Section 6.7

  	
  Amendments

  	
   

  
	
  Section 6.8

  	
  Discharge of Indenture

  	
   

  
	
  Section 6.9

  	
  Notice to Surety Provider and Rating
  Agencies

  	
   

  
	
  Section 6.10

  	
  Certain Rights of Surety Provider

  	
   

  
	
  Section 6.11

  	
  Surety Provider Deemed Noteholder and
  Secured Party

  	
   

  
	
  Section 6.12

  	
  Capitalization of AFC-II

  	
   

  
	
  Section 6.13

  	
  Series 2003-3 Required Non-Program
  Enhancement Percentage

  	
   

  

 

i

 

	
  Section 6.14

  	
  Third Party Beneficiary

  	
   

  
	
  Section 6.15

  	
  Prior Notice by Trustee to Surety Provider

  	
   

  
	
  Section 6.16

  	
  Effect of Payments by the Surety Provider

  	
   

  
	
  Section 6.17

  	
  Series 2003-3 Demand Notes

  	
   

  
	
  Section 6.18

  	
  Subrogation

  	
   

  
	
  Section 6.19

  	
  Termination of Supplement

  	
   

  

 

ii

 

CONFORMED COPY

 

SERIES 2003-3 SUPPLEMENT, dated as of May 6, 2003
(this “Supplement”), among AESOP FUNDING II L.L.C., a special purpose
limited liability company established under the laws of Delaware (“AFC-II”),
THE BANK OF NEW YORK, a New York banking corporation, as successor in interest
to the corporate trust administration of Harris Trust and Savings Bank, as
trustee (together with its successors in trust thereunder as provided in the
Base Indenture referred to below, the “Trustee”), and THE BANK OF
NEW YORK, a New York banking corporation, as agent for the benefit of the
Series 2003-3 Noteholders and the Surety Provider (the “Series 2003-3 Agent”),
to the Amended and Restated Base Indenture, dated as of July 30, 1997, between
AFC-II and the Trustee (as amended, modified or supplemented from time to time,
exclusive of Supplements creating a new Series of Notes, the “Base Indenture”).

 

PRELIMINARY
STATEMENT

 

WHEREAS, Sections 2.2 and 12.1 of the Base Indenture
provide, among other things, that AFC-II and the Trustee may at any time and
from time to time enter into a supplement to the Base Indenture for the purpose
of authorizing the issuance of one or more Series of Notes;

 

NOW, THEREFORE, the parties hereto agree as follows:

 

DESIGNATION

 

There is hereby created a Series of Notes of three
classes to be issued pursuant to the Base Indenture and this Supplement and
such Series of Notes shall be designated generally as Series 2003-3 Rental Car
Asset Backed Notes.

 

The Series 2003-3 Notes will be issued in three
classes:  one of which shall be
designated as the Series 2003-3 2.75% Rental Car Asset Backed Notes, Class A-1,
one of which shall be designated as the Series 2003-3 Floating Rate Rental Car
Asset Backed Notes, Class A-2, and one of which shall be designated as the
Series 2003-3 3.72% Rental Car Asset Backed Notes, Class A-3.

 

The proceeds from the sale of the Series 2003-3 Notes
shall be deposited in the Collection Account and shall be paid to AFC-II and
used to make Loans under the Loan Agreements to the extent that the Borrowers
have requested Loans thereunder and Eligible Vehicles are available for
acquisition or refinancing thereunder on the date hereof.  Any such portion of proceeds not so used to
make Loans shall be deemed to be Principal Collections.

 

The Series 2003-3 Notes are a non-Segregated Series of
Notes (as more fully described in the Base Indenture).  Accordingly, all references in this
Supplement to “all” Series of Notes (and all references in this Supplement to
terms defined in the Base Indenture that contain references to “all” Series of
Notes) shall refer to all Series of Notes other than Segregated Series of
Notes.

 

 

ARTICLE I

 

DEFINITIONS

 

(a)           All
capitalized terms not otherwise defined herein are defined in the Definitions
List attached to the Base Indenture as Schedule I thereto.  All Article, Section or Subsection
references herein shall refer to Articles, Sections or Subsections of this
Supplement, except as otherwise provided herein.  Unless otherwise stated herein, as the context otherwise requires
or if such term is otherwise defined in the Base Indenture, each capitalized
term used or defined herein shall relate only to the Series 2003-3 Notes and not
to any other Series of Notes issued by AFC-II.

 

(b)           The
following words and phrases shall have the following meanings with respect to
the Series 2003-3 Notes and the definitions of such terms are applicable to the
singular as well as the plural form of such terms and to the masculine as well
as the feminine and neuter genders of such terms:

 

“AGH” means Avis Group Holdings, Inc., a
Delaware corporation.

 

“Authorized Newspaper” means the Luxemburger Wort or other daily newspaper
of general circulation in Luxembourg (or if publication is not practical in
Luxembourg, in Europe).

 

“Business Day” means any day other than (a) a
Saturday or a Sunday or (b) a day on which the Surety Provider or banking
institutions in New York City or in the city in which the corporate trust
office of the Trustee is located are authorized or obligated by law or
executive order to close.

 

“Certificate of Lease Deficit Demand” means a
certificate in the form of Annex A to the Series 2003-3 Letters of
Credit.

 

“Certificate of Termination Date Demand” means
a certificate in the form of Annex D to the Series 2003-3 Letters of
Credit.

 

“Certificate of Termination Demand” means a
certificate in the form of Annex C to the Series 2003-3 Letters of
Credit.

 

“Certificate of Unpaid Demand Note Demand”
means a certificate in the form of Annex B to the Series 2003-3 Letters
of Credit.

 

“Class” means a class of the Series 2003-3
Notes, which may be the Class A-1 Notes, the Class A-2 Notes or the Class A-3
Notes.

 

“Class A-1 Carryover Controlled Amortization Amount”
means, with respect to any Related Month during the Three-Year Notes Controlled
Amortization Period, the amount, if any, by which the portion of the Monthly
Total Principal Allocation paid to the Class A-1 Noteholders pursuant to Section
2.5(e) for the previous Related Month was less than the Class A-1 Controlled
Distribution Amount for the previous Related Month; provided, however,
that for

 

2

 

the first Related Month in the Three-Year Notes Controlled Amortization
Period, the Class A-1 Carryover Controlled Amortization Amount shall be zero.

 

“Class A-1 Controlled Amortization Amount”
means (i) with respect to any Related Month during the Three-Year Notes
Controlled Amortization Period, $66,666,666.66 and (ii) with respect to the
last Related Month during the Three-Year Notes Controlled Amortization Period,
$66,666,666.70.

 

“Class A-1 Controlled Distribution Amount”
means, with respect to any Related Month during the Three-Year Notes Controlled
Amortization Period, an amount equal to the sum of the Class A-1 Controlled
Amortization Amount and any Class A-1 Carryover Controlled Amortization Amount
for such Related Month.

 

“Class A-1 Initial Invested Amount” means the
aggregate initial principal amount of the Class A-1 Notes, which is
$400,000,000.

 

“Class A-1 Invested Amount” means, when used
with respect to any date, an amount equal to the Class A-1 Outstanding
Principal Amount plus the sum of (a) the amount of any principal
payments made to the Class A-1 Noteholders on or prior to such date with the
proceeds of a demand on the Surety Bond and (b) the amount of any principal
payments made to Class A-1 Noteholders that have been rescinded or otherwise
returned by the Class A-1 Noteholders for any reason.

 

“Class A-1 Monthly Interest” means, with
respect to (i) the initial Series 2003-3 Interest Period, an amount equal to
$1,344,444.44 and (ii) any other Series 2003-3 Interest Period, an amount equal
to the product of (A) one-twelfth of the Class A-1 Note Rate and (B) the Class
A-1 Invested Amount on the first day of such Series 2003-3 Interest Period,
after giving effect to any principal payments made on such date.

 

“Class A-1 Noteholder” means the Person in
whose name a Class A-1 Note is registered in the Note Register.

 

“Class A-1 Note Rate” means 2.75% per annum.

 

“Class A-1 Notes” means any one of the Series
2003-3 2.75% Rental Car Asset Backed Notes, Class A-1, executed by AFC-II and
authenticated by or on behalf of the Trustee, substantially in the form of Exhibit
A-1-1, Exhibit A-1-2 or Exhibit A-1-3.  Definitive Class A-1 Notes shall have such
insertions and deletions as are necessary to give effect to the provisions of
Section 2.18 of the Base Indenture.

 

“Class A-1 Outstanding Principal Amount” means,
when used with respect to any date, an amount equal to (a) the Class A-1
Initial Invested Amount minus (b) the amount of principal payments made to
Class A-1 Noteholders on or prior to such date.

 

“Class A-2 Carryover Controlled Amortization Amount”
means, with respect to any Related Month during the Three-Year Notes Controlled
Amortization Period, the amount, if any, by which the portion of the Monthly
Total Principal Allocation paid to the Class A-2 Noteholders pursuant to
Section 2.5(e) for the previous Related Month was less than the Class A-2

 

3

 

Controlled Distribution Amount for the previous Related Month; provided,
however, that for the first Related Month in the Three-Year Notes Controlled
Amortization Period, the Class A-2 Carryover Controlled Amortization Amount
shall be zero.

 

“Class A-2 Controlled Amortization Amount”
means (i) with respect to any Related Month other than the last Related Month
during the Three-Year Notes Controlled Amortization Period, $16,666,666.66 and
(ii) with respect to the last Related Month during the Three-Year Notes
Controlled Amortization Period, $16,666,666.70.

 

“Class A-2 Controlled Distribution Amount”
means, with respect to any Related Month during the Three-Year Notes Controlled
Amortization Period, an amount equal to the sum of the Class A-2 Controlled
Amortization Amount and any Class A-2 Carryover Controlled Amortization Amount
for such Related Month.

 

“Class A-2 Initial Invested Amount” means the aggregate
initial principal amount of the Class A-2 Notes, which is $100,000,000.

 

“Class A-2 Invested Amount” means, when used
with respect to any date, an amount equal to the Class A-2 Outstanding
Principal Amount plus the sum of (a) the amount of any principal
payments made to the Class A-2 Noteholders on or prior to such date with the
proceeds of a demand on the Surety Bond and (b) the amount of any principal
payments made to Class A-2 Noteholders that have been rescinded or otherwise
returned by the Class A-2 Noteholders for any reason.

 

“Class A-2 Monthly Interest” means, with
respect to any Series 2003-3 Interest Period, an amount equal to the product of
(A) the Class A-2 Invested Amount on the first day of such Series 2003-3
Interest Period, after giving effect to any principal payments made on such
date, (B) the Class A-2 Note Rate for such Series 2003-3 Interest Period and
(C) the number of days in such Series 2003-3 Interest Period divided by 360.

 

“Class A-2 Noteholder” means the Person in
whose name a Class A-2 Note is registered in the Note Register.

 

“Class A-2 Note Rate” means, for (i) the
initial Series 2003-3 Interest Period, 1.54438% per annum and (ii) any
other Series 2003-3 Interest Period, the sum of 0.23% plus LIBOR for
such Series 2003-3 Interest Period.

 

“Class A-2 Notes” means any one of the Series
2003-3 Floating Rate Rental Car Asset Backed Notes, Class A-2, executed by
AFC-II and authenticated by or on behalf of the Trustee, substantially in the
form of Exhibit A-2-1, Exhibit A-2-2 or Exhibit A-2-3.  Definitive Class A-2 Notes shall have such
insertions and deletions as are necessary to give effect to the provisions of
Section 2.18 of the Base Indenture.

 

“Class A-2 Outstanding Principal Amount” means,
when used with respect to any date, an amount equal to (a) the Class A-2
Initial Invested Amount minus (b) the amount of principal payments made to
Class A-2 Noteholders on or prior to such date.

 

4

 

“Class A-3 Carryover Controlled Amortization Amount”
means, with respect to any Related Month during the Class A-3 Controlled
Amortization Period, the amount, if any, by which the Monthly Total Principal
Allocation for the previous Related Month was less than the Class A-3
Controlled Distribution Amount for the previous Related Month; provided,
however, that for the first Related Month in the Class A-3 Controlled
Amortization Period, the Class A-3 Carryover Controlled Amortization Amount
shall be zero.

 

“Class A-3 Controlled Amortization Amount”
means (i) with respect to any Related Month other than the last Related Month
during the Class A-3 Controlled Amortization Period, $41,666,666.66 and (ii)
with respect to the last Related Month during the Class A-3 Controlled
Amortization Period, $41,666,666.70.

 

“Class A-3 Controlled Amortization Period”
means the period commencing at the opening of business on January 1, 2008 (or,
if such day is not a Business Day, the Business Day immediately preceding such
day) and continuing to the earliest of (i) the commencement of the Series
2003-3 Rapid Amortization Period, (ii) the date on which the Class A-3 Notes
are fully paid and the Surety Provider has been paid all Surety Provider Fees
and all other Surety Provider Reimbursement Amounts then due, (iii) the Series
2003-3 Termination Date and (iv) the termination of the Indenture.

 

“Class A-3 Controlled Distribution Amount”
means, with respect to any Related Month during the Class A-3 Controlled
Amortization Period, an amount equal to the sum of the Class A-3 Controlled
Amortization Amount and any Class A-3 Carryover Controlled Amortization Amount
for such Related Month.

 

“Class A-3 Expected Final Distribution Date”
means the July 2008 Distribution Date.

 

“Class A-3 
Final Distribution Date” means the July 2009 Distribution Date.

 

“Class A-3 Initial Invested Amount” means the
aggregate initial principal amount of the Class A-3 Notes, which is
$250,000,000.

 

“Class A-3 Invested Amount” means, when used
with respect to any date, an amount equal to the Class A-3 Outstanding
Principal Amount plus the sum of (a) the amount of any principal
payments made to the Class A-3 Noteholders on or prior to such date with the
proceeds of a demand on the Surety Bond and (b) the amount of any principal
payments made to Class A-3 Noteholders that have been rescinded or otherwise
returned by the Class A-3 Noteholders for any reason.

 

“Class A-3 Monthly Interest” means, with
respect to (i) the initial Series 2003-3 Interest Period, an amount equal to
$1,136,666.67 and (ii) any other Series 2003-3 Interest Period, an amount equal
to the product of (A) one-twelfth of the Class A-3 Note Rate and (B) the Class
A-3 Invested Amount on the first day of such Series 2003-3 Interest Period,
after giving effect to any principal payments made on such date.

 

“Class A-3 Noteholder” means the Person in
whose name a Class A-3 Note is registered in the Note Register.

 

5

 

“Class A-3 Note Rate” means 3.72% per annum.

 

“Class A-3 Notes” means any one of the Series
2003-3 3.72% Rental Car Asset Backed Notes, Class A-3, executed by AFC-II and
authenticated by or on behalf of the Trustee, substantially in the form of Exhibit
A-3-1, Exhibit A-3-2 or Exhibit A-3-3.  Definitive Class A-3 Notes shall have such
insertions and deletions as are necessary to give effect to the provisions of
Section 2.18 of the Base Indenture.

 

“Class A-3 Outstanding Principal Amount” means,
when used with respect to any date, an amount equal to (a) the Class A-3
Initial Invested Amount minus (b) the amount of principal payments made to
Class A-3 Noteholders on or prior to such date.

 

“Clearstream” is defined in Section 5.2.

 

“Consent” is defined in Article IV.

 

“Consent Period Expiration Date” is defined in
Article IV.

 

“Demand Note Issuer” means each issuer of a
Series 2003-3 Demand Note.

 

“Designated Amounts” is defined in Article IV.

 

“Disbursement” means any Lease Deficit
Disbursement, any Unpaid Demand Note Disbursement, any Termination Date
Disbursement or any Termination Disbursement under a Series 2003-3 Letter of
Credit, or any combination thereof, as the context may require.

 

“Excess Collections” is defined in Section
2.3(f)(i).

 

“Euroclear” is defined in Section 5.2.

 

“Fixed Rate Payment” means, for any
Distribution Date, the amount, if any, payable by AFC-II as the “Fixed Amount”
under the Series 2003-3 Interest Rate Swap after the netting of payments due to
AFC-II as the “Floating Amount” from the Series 2003-3 Interest Rate Swap
Counterparty under the Series 2003-3 Interest Rate Swap on such Distribution
Date.

 

“Insurance Agreement” means the Insurance
Agreement, dated as of May 6, 2003, among the Surety Provider, the Trustee and
AFC-II, which shall constitute an “Enhancement Agreement” with respect to the
Series 2003-3 Notes for all purposes under the Indenture.

 

“Insured Principal Deficit Amount” means, with
respect to any Distribution Date, the excess, if any, of (a) the Series 2003-3
Outstanding Principal Amount on such Distribution Date (after giving effect to
the distribution of the Monthly Total Principal Allocation for the Related
Month) over (b) the sum of the Series 2003-3 Available Reserve Account Amount
on such Distribution Date, the Series 2003-3 Letter of Credit Amount on such
Distribution Date and the Series 2003-3 AESOP I Operating Lease Loan Agreement
Borrowing Base on such Distribution Date.

 

6

 

“Interest Rate Swap Counterparty” means
AFC-II’s counterparty under a Series 2003-3 Interest Rate Swap.

 

“Lease Deficit Disbursement” means an amount
drawn under a Series 2003-3 Letter of Credit pursuant to a Certificate of Lease
Deficit Demand.

 

“LIBOR” means, with respect to each Series
2003-3 Interest Period, a rate per annum to be determined by the Trustee as
follows:

 

(i)            On each LIBOR
Determination Date, the Trustee will determine the London interbank offered
rate for U.S. dollar deposits for one month that appears on Telerate Page 3750
as it relates to U.S. dollars as of 11:00 a.m., London time, on such LIBOR
Determination Date:

 

(ii)           If, on any LIBOR
Determination Date, such rate does not appear on Telerate Page 3750, the
Trustee will request that the principal London offices of each of four major
banks in the London interbank market selected by the Trustee provide the Trustee
with offered quotations for deposits in U.S. dollars for a period of one month,
commencing on the first day of such Series 2003-3 Interest Period, to prime
banks in the London interbank market at approximately 11:00 a.m., London time,
on such LIBOR Determination Date and in a principal amount equal to an amount
of not less than $250,000 that is representative of a single transaction in
such market at such time.  If at least
two such quotations are provided, “LIBOR” for such Series 2003-3 Interest Period
will be the arithmetic mean of such quotations; or

 

(iii)          If fewer than two such
quotations are provided, “LIBOR” for such Series 2003-3 Interest Period will be
the arithmetic mean of rates quoted by three major banks in the City of New
York selected by the Trustee at approximately 11:00 a.m., New York City
time, on such LIBOR Determination Date for loans in U.S. dollars to leading
European banks, for a period of one month, commencing on the first day of such
Series 2003-3 Interest Period, and in a principal amount equal to an amount of
not less than $250,000 that is representative of a single transaction in such
market at such time; provided, however, that if the banks
selected as aforesaid by such Trustee are not quoting rates as mentioned in
this sentence, “LIBOR” for such Series 2003-3 Interest Period will be the same
as “LIBOR” for the immediately preceding Series 2003-3 Interest Period.

 

“LIBOR Determination Date” means, with respect
to any Series 2003-3 Interest Period, the second London Banking Day preceding
the first day of such Series 2003-3 Interest Period.

 

“London Banking Day” means any business day on
which dealings in deposits in United States dollars are transacted in the
London interbank market.

 

“Monthly Total Principal Allocation” means for
any Related Month the sum of all Series 2003-3 Principal Allocations with
respect to such Related Month.

 

“Moody’s” means Moody’s Investors Service.

 

7

 

“Past Due Rent Payment” is defined in Section
2.2(g).

 

“Permanent Global Class A-1 Note” is defined in
Section 5.2.

 

“Permanent Global Class A-2 Note” is defined in
Section 5.2.

 

“Permanent Global Class A-3 Note” is defined in
Section 5.2.

 

“Pre-Preference Period Demand Note Payments”
means, as of any date of determination, the aggregate amount of all proceeds of
demands made on the Series 2003-3 Demand Notes included in the Series 2003-3
Demand Note Payment Amount as of the Series 2003-3 Letter of Credit Termination
Date that were paid by the Demand Note Issuers more than one year before such
date of determination; provided, however,  that if an Event of
Bankruptcy (or the occurrence of an event described in clause (a) of the
definition thereof, without the lapse of a period of 60 consecutive days) with
respect to a Demand Note Issuer occurs during such one year period, (x) the
Pre-Preference Period Demand Note Payments as of any date during the period
from and including the date of the occurrence of such Event of Bankruptcy to
and including the conclusion or dismissal of the proceedings giving rise to
such Event of Bankruptcy without continuing jurisdiction by the court in  such
proceedings shall equal the Pre-Preference Period Demand Note Payments as of
the date of such occurrence for all Demand Note Issuers and (y) the
Pre-Preference Period Demand Note Payments as of any date after the conclusion
or dismissal of such proceedings shall equal the Series 2003-3 Demand Note
Payment Amount as of the date of the conclusion or dismissal of such
proceedings.

 

“Principal Deficit Amount” means, as of any
date of determination, the excess, if any, of (i) the Series 2003-3 Invested
Amount on such date (after giving effect to the distribution of the Monthly
Total Principal Allocation for the Related Month if such date is a Distribution
Date) over (ii) the Series 2003-3 AESOP I Operating Lease Loan Agreement
Borrowing Base on such date; provided, however the Principal
Deficit Amount on any date occurring during the period commencing on and
including the date of the filing by any of the Lessees of a petition for relief
under Chapter 11 of the Bankruptcy Code to but excluding the date on which each
of the Lessees shall have resumed making all payments of the portion of Monthly
Base Rent relating to Loan Interest required to be made under the AESOP I
Operating Lease, shall mean the excess, if any, of (x) the Series 2003-3
Invested Amount on such date (after giving effect to the distribution of
Monthly Total Principal Allocation for the Related Month if such date is a
Distribution Date) over (y) the sum of (1) the Series 2003-3 AESOP I Operating
Lease Loan Agreement Borrowing Base on such date and (2) the lesser of (a) the
Series 2003-3 Liquidity Amount on such date and (b) the Series 2003-3 Required
Liquidity Amount on such date.

 

“Pro Rata Share” means, with respect to any
Series 2003-3 Letter of Credit Provider as of any date, the fraction (expressed
as a percentage) obtained by dividing (A) the available amount under such
Series 2003-3 Letter of Credit Provider’s Series 2003-3 Letter of Credit as of
such date by (B) an amount equal to the aggregate available amount under all
Series 2003-3 Letters of Credit as of such date; provided, that only for
purposes of calculating the Pro Rata Share with respect to any Series 2003-3
Letter of Credit Provider as of any date, if such Series 2003-3 Letter of
Credit Provider has not complied with its obligation to pay the Trustee the
amount of any draw under its Series 2003-3 Letter of Credit made prior to such
date, the

 

8

 

available amount under such Series 2003-3 Letter of Credit Provider’s
Series 2003-3 Letter of Credit as of such date shall be treated as reduced (for
calculation purposes only) by the amount of such unpaid demand and shall not be
reinstated for purposes of such calculation unless and until the date as of
which such Series 2003-3 Letter of Credit Provider has paid such amount to the
Trustee and been reimbursed by the Lessee or the applicable Demand Note Issuer,
as the case may be, for such amount (provided that the foregoing
calculation shall not in any manner reduce the undersigned’s actual liability
in respect of any failure to pay any demand under its Series 2003-3 Letter of
Credit).

 

“Qualified Interest Rate Swap Counterparty”
means a counterparty to a Series 2003-3 Interest Rate Swap who is acceptable to
the Surety Provider and who is a bank or other financial institution, which has
(i) a short-term senior and unsecured debt rating of at least “A-1” from
Standard & Poor’s and of “P-1” from Moody’s and (ii) (a) on the date the
Series 2003-3 Interest Rate Swap is executed, a long-term senior and unsecured
debt rating of at least “AA-” from Standard & Poor’s (or is otherwise
acceptable to Standard & Poor’s) and “Aa3” from Moody’s and (b) on any
other date, a long-term senior and unsecured debt rating of at least “A+” from
Standard & Poor’s and “A1” from Moody’s.

 

“Requisite Noteholders” means Series 2003-3
Noteholders holding more than 50% of the Series 2003-3 Invested Amount.

 

“Restricted Global Class A-1 Note” is defined
in Section 5.1.

 

“Restricted Global Class A-2 Note” is defined
in Section 5.1.

 

“Restricted Global Class A-3 Note” is defined
in Section 5.1.

 

“Series 1998-1 Notes” means the Series of Notes
designated as the Series 1998-1 Notes.

 

“Series
2000-1 Notes” means the Series of Notes designated as the Series 2000-1
Notes.

 

“Series
2000-2 Notes” means the Series of Notes designated as the Series 2000-2
Notes.

 

“Series
2000-3 Notes” means the Series of Notes designated as the Series 2000-3
Notes.

 

“Series
2000-4 Notes” means the Series of Notes designated as the Series 2000-4
Notes.

 

“Series
2001-1 Notes” means the Series of Notes designated as the Series 2001-1
Notes.

 

“Series
2001-2 Notes” means the Series of Notes designated as the Series 2001-2
Notes.

 

9

 

“Series
2002-1 Notes” means the Series of Notes designated as the Series 2002-1
Notes.

 

“Series
2002-2 Notes” means the Series of Notes designated as the Series 2002-2 Notes.

 

“Series
2002-3 Notes” means the Series of Notes designated as the Series 2002-3
Notes.

 

“Series
2002-4 Notes” means the Series of Notes designated as the Series 2002-4
Notes.

 

“Series
2003-1 Notes” means the Series of Notes designated as the Series 2003-1
Notes.

 

“Series
2003-2 Notes” means the Series of Notes designated as the Series 2003-2
Notes.

 

“Series
2003-3 Accounts” means each of the Series 2003-3 Distribution Account, the
Series 2003-3 Reserve Account, the Series 2003-3 Collection Account, the Series
2003-3 Excess Collection Account and the Series 2003-3 Accrued Interest
Account.

 

“Series
2003-3 Accrued Interest Account” is defined in Section 2.1(b).

 

“Series 2003-3 Adjusted Monthly Interest” means
(a) for the initial Distribution Date, an amount equal to $2,674,158.61 and (b)
for any other Distribution Date, the sum of (i) the sum of (A) for the Series
2003-3 Interest Period ending on the day preceding such Distribution Date, an
amount equal to the product of (1) the Class A-1 Note Rate and (2) the Class
A-1 Outstanding Principal Amount on the first day of such Series 2003-3
Interest Period, divided by twelve, (B) an amount equal to the product of (1)
the Class A-2 Note Rate for such Series 2003-3 Interest Period, (2) the Class
A-2 Outstanding Principal Amount on the first day of such Series 2003-3
Interest Period, and (3) a fraction, the numerator of which is the number of
days in such Series 2003-3 Interest Period and the denominator of which is 360
and (C) an amount equal to the product of (1) the Class A-3 Note Rate and (2)
the Class A-3 Outstanding Principal Amount on the first day of such Series
2003-3 Interest Period, divided by twelve and (ii) any amount described in
clause (b)(i) with respect to a prior Distribution Date that remains unpaid as
of such Distribution Date (together with any accrued interest on such amount).

 

“Series 2003-3 Agent” is defined in the
recitals hereto.

 

“Series 2003-3 AESOP I Operating Lease Loan
Agreement Borrowing Base” means, as of any date of determination, the
product of (a) the Series 2003-3 AESOP I Operating Lease Vehicle Percentage as
of such date and (b) the AESOP I Operating Lease Loan Agreement Borrowing Base
as of such date.

 

“Series 2003-3 AESOP I Operating Lease Vehicle
Percentage” means, as of any date of determination, a fraction, expressed
as a percentage (which percentage shall never exceed 100%), the numerator of
which is the Series 2003-3 Required AESOP I Operating Lease Vehicle

 

10

 

Amount as of such date and the denominator of which is the sum of the
Required AESOP I Operating Lease Vehicle Amounts for all Series of Notes as of
such date.

 

“Series 2003-3 Available Cash Collateral Account
Amount” means, as of any date of determination, the amount on deposit in
the Series 2003-3 Cash Collateral Account (after giving effect to any deposits
thereto and withdrawals and releases therefrom on such date).

 

“Series-2003-3 Available Reserve Account Amount”
means, as of any date of determination, the amount on deposit in the Series
2003-3 Reserve Account (after giving effect to any deposits thereto and
withdrawals and releases therefrom on such date).

 

“Series 2003-3 Cash Collateral Account” is
defined in Section 2.8(f).

 

“Series 2003-3 Cash Collateral Account Collateral”
is defined in Section 2.8(a).

 

“Series 2003-3 Cash Collateral Account Surplus”
means, with respect to any Distribution Date, the lesser of (a) the Series
2003-3 Available Cash Collateral Account Amount and (b) the lesser of (A) the
excess, if any, of the Series 2003-3 Liquidity Amount (after giving effect to
any withdrawal from the Series 2003-3 Reserve Account on such Distribution
Date) over the Series 2003-3 Required Liquidity Amount on such Distribution
Date and (B) the excess, if any, of the Series 2003-3 Enhancement Amount (after
giving effect to any withdrawal from the Series 2003-3 Reserve Account on such
Distribution Date) over the Series 2003-3 Required Enhancement Amount on such
Distribution Date; provided, however that, on any date after the
Series 2003-3 Letter of Credit Termination Date, the Series 2003-3 Cash
Collateral Account Surplus shall mean the excess, if any, of (x) the Series
2003-3 Available Cash Collateral Account Amount over (y) the Series 2003-3
Demand Note Payment Amount minus  the Pre-Preference Period Demand Note
Payments as of such date.

 

“Series 2003-3 Cash Collateral Percentage”
means, as of any date of determination, the percentage equivalent of a
fraction, the numerator of which is the Series 2003-3 Available Cash Collateral
Amount as of such date and the denominator of which is the Series 2003-3 Letter
of Credit Liquidity Amount as of such date.

 

“Series 2003-3 Closing Date” means May 6, 2003.

 

“Series 2003-3 Collateral” means the
Collateral, each Series 2003-3 Letter of Credit, each Series 2003-3 Demand
Note, the Series 2003-3 Distribution Account Collateral, the Series 2003-3
Interest Rate Swap Collateral, the Series 2003-3 Cash Collateral Account
Collateral and the Series 2003-3 Reserve Account Collateral.

 

“Series 2003-3 Collection Account” is defined
in Section 2.1(b).

 

“Series 2003-3 Controlled Amortization Period”
means the Three-Year Notes Controlled Amortization Period and/or the Class A-3
Controlled Amortization Period, as the case may be.

 

11

 

“Series 2003-3 Demand Note” means each demand
note made by a Demand Note Issuer, substantially in the form of Exhibit C
to this Supplement, as amended, modified or restated from time to time.

 

“Series 2003-3 Demand Note Payment Amount”
means, as of the Series 2003-3 Letter of Credit Termination Date, the aggregate
amount of all proceeds of demands made on the Series 2003-3 Demand Notes
pursuant to Section 2.5(b) or (c) that were deposited into the Series
2003-3 Distribution Account and paid to the Series 2003-3 Noteholders during
the one year period ending on the Series 2003-3 Letter of Credit Termination
Date; provided, however, that if an Event of Bankruptcy (or the
occurrence of an event described in clause (a) of the definition thereof,
without the lapse of a period of 60 consecutive days) with respect to a Demand
Note Issuer shall have occurred during such one year period, the Series 2003-3
Demand Note Payment Amount as of the Series 2003-3 Letter of Credit Termination
Date shall equal the Series 2003-3 Demand Note Payment Amount as if it were
calculated as of the date of such occurrence.

 

“Series 2003-3 Deposit Date” is defined in
Section 2.2.

 

“Series 2003-3 Distribution Account” is defined
in Section 2.9(a).

 

“Series 2003-3 Distribution Account Collateral”
is defined in Section 2.9(d).

 

“Series 2003-3 Eligible Letter of Credit Provider”
means a person satisfactory to ARAC, the Demand Note Issuers and the Surety
Provider and having, at the time of the issuance of the related Series 2003-3
Letter of Credit, a long-term senior unsecured debt rating (or the equivalent
thereof in the case of Moody’s or Standard & Poor’s, as applicable) of at
least “A+” from Standard & Poor’s and at least “Al” from Moody’s and a
short-term senior unsecured debt rating of at least “A-1” from Standard &
Poor’s and “P-1” from Moody’s that is (a) a commercial bank having total assets
in excess of $500,000,000, (b) a finance company, insurance company or other
financial institution that in the ordinary course of business issues letters of
credit and has total assets in excess of $200,000,000 or (c) any other
financial institution; provided, however, that if a person is not
a Series 2003-3 Letter of Credit Provider (or a letter of credit provider under
the Supplement for any other Series of Notes), then such person shall not be a
Series 2003-3 Eligible Letter of Credit Provider until AFC-II has provided 10
days’ prior notice to the Rating Agencies that such person has been proposed as
a Series 2003-3 Letter of Credit Provider.

 

“Series 2003-3 Enhancement” means the Series
2003-3 Cash Collateral Account Collateral, the Series 2003-3 Letters of Credit,
the Series 2003-3 Demand Notes, the Series 2003-3 Overcollateralization Amount
and the Series 2003-3 Reserve Account Amount.

 

“Series 2003-3 Enhancement Amount” means, as of
any date of determination, the sum of (i) the Series 2003-3
Overcollateralization Amount as of such date, (ii) the Series 2003-3 Letter of
Credit Amount as of such date, (iii) the Series 2003-3 Available Reserve
Account Amount as of such date and (iv) the amount of cash and Permitted
Investments on deposit in the Series 2003-3 Collection Account (not including
amounts allocable to the Series 2003-3 Accrued Interest Account) and the Series
2003-3 Excess Collection Account as of such date.

 

12

 

“Series 2003-3 Enhancement Deficiency” means,
on any date of determination, the amount by which the Series 2003-3 Enhancement
Amount is less than the Series 2003-3 Required Enhancement Amount as of such
date.

 

“Series 2003-3 Excess Collection Account” is
defined in Section 2.1(b).

 

“Series 2003-3 Final Distribution Date” means
the Three-Year Notes Final Distribution Date or the Class A-3 Final Distribution
Date.

 

“Series 2003-3 Initial Invested Amount” means
the sum of the Class A-1 Initial Invested Amount, the Class A-2 Initial
Invested Amount and the Class A-3 Initial Invested Amount.

 

“Series 2003-3 Interest Period” means a period
commencing on and including a Distribution Date and ending on and including the
day preceding the next succeeding Distribution Date; provided, however
that the initial Series 2003-3 Interest Period shall commence on and include
the Series 2003-3 Closing Date and end on and include June 20, 2003.

 

“Series 2003-3 Interest Rate Swap” is defined
in Section 2.10(a).

 

“Series 2003-3 Interest Rate Swap Collateral”
is defined in Section 2.10(d).

 

“Series 2003-3 Interest Rate Swap Proceeds”
means the amounts received by the Trustee from an Interest Rate Swap
Counterparty from time to time in respect of a Series 2003-3 Interest Rate
Swap (including amounts received from a guarantor or from collateral).

 

“Series 2003-3 Invested Amount” means, as of
any date of determination, the sum of the Class A-1 Invested Amount as of such
date, the Class A-2 Invested Amount as of such date and the Class A-3 Invested
Amount as of such date.

 

“Series 2003-3 Invested Percentage” means as of
any date of determination:

 

(a)           when used with respect
to Principal Collections, the percentage equivalent (which percentage shall
never exceed 100%) of a fraction the numerator of which shall be equal to the
sum of the Series 2003-3 Invested Amount and the Series 2003-3
Overcollateralization Amount, determined during the Series 2003-3 Revolving
Period as of the end of the Related Month (or, until the end of the initial
Related Month, on the Series 2003-3 Closing Date), or, during the Series 2003-3
Controlled Amortization Period and the Series 2003-3 Rapid Amortization Period,
as of the end of the Series 2003-3 Revolving Period, and the denominator of
which shall be the greater of (I) the Aggregate Asset Amount as of the end of
the Related Month or, until the end of the initial Related Month, as of the
Series 2003-3 Closing Date, and (II) as of the same date as in clause (I), the
sum of the numerators used to determine (i) invested percentages for
allocations with respect to Principal Collections (for all Series of Notes and
all classes of such Series of Notes) and (ii) overcollateralization percentages
for allocations with respect to Principal Collections (for all Series of Notes
that provide for credit enhancement in the form of overcollateralization); and

 

13

 

(b)           when used with respect
to Interest Collections, the percentage equivalent (which percentage shall
never exceed 100%) of a fraction the numerator of which shall be the Accrued
Amounts with respect to the Series 2003-3 Notes on such date of determination,
and the denominator of which shall be the aggregate Accrued Amounts with
respect to all Series of Notes on such date of determination.

 

“Series 2003-3 Lease Interest Payment Deficit”
means on any Distribution Date an amount equal to the excess, if any, of (a) the
aggregate amount of Interest Collections which pursuant to Section 2.2(a), (b),
(c) or (d) would have been allocated to the Series 2003-3 Accrued Interest
Account if all payments of Monthly Base Rent required to have been made under
the Leases from and excluding the preceding Distribution Date to and including
such Distribution Date were made in full over (b) the aggregate amount of
Interest Collections which pursuant to Section 2.2(a), (b), (c) or (d) have
been allocated to the Series 2003-3 Accrued Interest Account (excluding any
amounts paid into the Series 2003-3 Accrued Interest Account pursuant to the
proviso in Sections 2.2(c)(ii) and/or 2.2(d)(ii)) from and excluding the
preceding Distribution Date to and including such Distribution Date.

 

“Series
2003-3 Lease Payment Deficit” means either a Series 2003-3 Lease Interest
Payment Deficit or a Series 2003-3 Lease Principal Payment Deficit.

 

“Series
2003-3 Lease Principal Payment Carryover Deficit” means (a) for the initial
Distribution Date, zero and (b) for any other Distribution Date, the excess of
(x) the Series 2003-3 Lease Principal Payment Deficit, if any, on the preceding
Distribution Date over (y) the amount deposited in the Distribution
Account on such preceding Distribution Date pursuant to Section 2.5(b) on
account of such Series 2003-3 Lease Principal Payment Deficit.

 

“Series 2003-3 Lease
Principal Payment Deficit” means on any Distribution Date the sum of (a)
the Series 2003-3 Monthly Lease Principal Payment Deficit for such Distribution
Date and (b) the Series 2003-3 Lease Principal Payment Carryover Deficit for
such Distribution Date.

 

“Series 2003-3
Letter of Credit” means an irrevocable letter of credit, if any,
substantially in the form of Exhibit D to this Supplement issued by a
Series 2003-3 Eligible Letter of Credit Provider in favor of the Trustee for
the benefit of the Series 2003-3 Noteholders and the Surety Provider in form
and substance satisfactory to the Surety Provider.

 

“Series 2003-3
Letter of Credit Amount” means, as of any date of determination, the lesser
of (a) the sum of (i) the aggregate amount available to be drawn on such
date under each Series 2003-3 Letter of Credit, as specified therein, and
(ii) if the Series 2003-3 Cash Collateral Account has been established and
funded pursuant to Section 2.8, the Series 2003-3 Available Cash
Collateral Account Amount on such date and (b) the aggregate outstanding
principal amount of the Series 2003-3 Demand Notes on such date.

 

“Series 2003-3
Letter of Credit Expiration Date” means, with respect to any Series 2003-3
Letter of Credit, the expiration date set forth in such Series 2003-3 Letter of
Credit, as such date may be extended in accordance with the terms of such
Series 2003-3 Letter of Credit.

 

14

 

“Series 2003-3
Letter of Credit Liquidity Amount” means, as of any date of determination,
the sum of (a) the aggregate amount available to be drawn on such date under
each Series 2003-3 Letter of Credit, as specified therein, and (b) if the
Series 2003-3 Cash Collateral Account has been established and funded pursuant
to Section 2.8, the Series 2003-3 Available Cash Collateral Account Amount
on such date.

 

“Series 2003-3
Letter of Credit Provider” means the issuer of a Series 2003-3 Letter of
Credit.

 

“Series 2003-3 Letter
of Credit Termination Date” means the first to occur of (a) the date
on which the Series 2003-3 Notes are fully paid and the Surety Provider has
been paid all Surety Provider Fees and all other Surety Provider Reimbursement
Amounts then due, (b) the Series 2003-3 Termination Date and (c) such earlier
date consented to by the Surety Provider and the Rating Agencies which consent
by the Surety Provider shall be in writing.

 

“Series
2003-3 Limited Liquidation Event of Default” means, so long as such event
or condition continues, any event or condition of the type specified in clauses
(a) through (j) of Article III; provided, however, that any event
or condition of the type specified in clauses (a) through (e) and (h) through
(j) of Article III shall not constitute a Series 2003-3 Limited Liquidation
Event of Default if (i) within such thirty (30) day period, such Amortization
Event shall have been cured and, after such cure of such Amortization Event is
provided for, the Trustee shall have received the written consent of the Surety
Provider waiving the occurrence of such Series 2003-3 Limited Liquidation Event
of Default or (ii) the Trustee shall have received the written consent of the
Surety Provider waiving the occurrence of such Series 2003-3 Limited
Liquidation Event of Default.

 

“Series
2003-3 Liquidity Amount” means, as of any date of determination, the sum of
(a) the Series 2003-3 Letter of Credit Liquidity Amount on such date and (b)
the Series 2003-3 Available Reserve Account Amount on such date.

 

“Series
2003-3 Maximum Aggregate Kia/Isuzu/Subaru/Hyundai/Suzuki Amount” means, as
of any day, with respect to Kia, Isuzu, Subaru, Hyundai and Suzuki, in the
aggregate, an amount equal to 15% of the aggregate Net Book Value of all
Vehicles leased under the Leases on such day or such lesser percentage as may
be agreed to in writing by AFC-II and the Surety Provider of the aggregate Net
Book Value of all Vehicles leased under the Leases on such day.

 

“Series
2003-3 Maximum Amount” means any of the Series 2003-3 Maximum Manufacturer
Amounts, the Series 2003-3 Maximum Non-Eligible Manufacturer Amount, the Series
2003-3 Maximum Non-Program Vehicle Amount or the Series 2003-3 Maximum
Specified States Amount.

 

“Series
2003-3 Maximum Individual Kia/Isuzu/Subaru/Hyundai/Suzuki Amount” means, as
of any day, with respect to Kia, Isuzu, Subaru, Hyundai or Suzuki,
individually, an amount equal to 5% of the aggregate Net Book Value of all
Vehicles leased under the Leases on such day.

 

“Series
2003-3 Maximum Manufacturer Amount” means, as of any day, any of the Series
2003-3 Maximum Mitsubishi Amount, the Series 2003-3 Maximum Individual

 

15

 

Kia/Isuzu/Subaru/Hyundai/Suzuki Amount or the Series
2003-3 Maximum Aggregate Kia/Isuzu/Subaru/Hyundai/Suzuki Amount.

 

“Series
2003-3 Maximum Mitsubishi Amount” means, as of any day, an amount equal to
10% of the aggregate Net Book Value of all Vehicles leased under the Leases on
such day.

 

“Series
2003-3 Maximum Non-Eligible Manufacturer Amount” means, as of any day, an
amount equal to 3% of the aggregate Net Book Value of all Vehicles leased under
the Leases on such day.

 

“Series
2003-3 Maximum Non-Program Vehicle Amount” means, as of any day, an amount equal
to the Series 2003-3 Maximum Non-Program Vehicle Percentage of the aggregate
Net Book Value of all Vehicles leased under the Leases on such day.

 

“Series
2003-3 Maximum Non-Program Vehicle Percentage” means 25% or such lesser
percentage as may be agreed to in writing by AFC-II and the Surety Provider on
or after the Series 2003-3 Closing Date, with prompt written notice thereof
delivered by AFC-II to the Trustee.

 

“Series
2003-3 Maximum Specified States Amount” means, as of any day, an amount
equal to 7.5% of the aggregate Net Book Value of all Vehicles leased under the
Leases on such day.

 

“Series
2003-3 Monthly Interest” means, with respect to any Series 2003-3 Interest
Period, the sum of the Class A-1 Monthly Interest, the Class A-2 Monthly
Interest and the Class A-3 Monthly Interest with respect to such Series 2003-3
Interest Period.

 

“Series 2003-3
Monthly Lease Principal Payment Deficit” means, on any Distribution Date,
an amount equal to the excess, if any, of (a) the aggregate amount of Principal
Collections which pursuant to Section 2.2(a), (b), (c) or (d) would have been
allocated to the Series 2003-3 Collection Account if all payments required to
have been made under the Leases from and excluding the preceding Distribution
Date to and including such Distribution Date were made in full over (b) the
aggregate amount of Principal Collections which pursuant to Section 2.2(a),
(b), (c) or (d) have been allocated to the Series 2003-3 Collection Account
(without giving effect to any amounts paid into the Series 2003-3 Accrued
Interest Account pursuant to the proviso in Sections 2.2(c)(ii) and/or
2.2(d)(ii)) from and excluding the preceding Distribution Date to and including
such Distribution Date.

 

“Series
2003-3 Non-Program Vehicle Percentage” means, as of any date of
determination, a fraction, expressed as a percentage, the numerator of which is
the aggregate Net Book Value of all Non-Program Vehicles leased under the AESOP
I Operating Lease as of such date and the denominator of which is the aggregate
Net Book Value of all Vehicles leased under the AESOP I Operating Lease as of
such date.

 

“Series
2003-3 Note Rate” means, the Class A-1 Note Rate, the Class A-2 Note Rate
or the Class A-3 Note Rate, as the context may require.

 

16

 

“Series
2003-3 Noteholder” means any Class A-1 Noteholder, any Class A-2 Noteholder
or any Class A-3 Noteholder.

 

“Series
2003-3 Notes” means, collectively, the Class A-1 Notes, the Class A-2 Notes
and the Class A-3 Notes.

 

“Series
2003-3 Outstanding Principal Amount” means, as of any date of
determination, the sum of the Class A-1 Outstanding Principal Amount, the Class
A-2 Outstanding Principal Amount and the Class A-3 Outstanding Principal
Amount.

 

“Series
2003-3 Overcollateralization Amount” means (i) as of any date on which no
AESOP I Operating Lease Vehicle Deficiency exists, the Series 2003-3 Required
Overcollateralization Amount as of such date and (ii) as of any date on which
an AESOP I Operating Lease Vehicle Deficiency exists, the excess, if any, of
(x) the Series 2003-3 AESOP I Operating Lease Loan Agreement Borrowing Base as
of such date over (y) the Series 2003-3 Invested Amount as of such date.

 

“Series
2003-3 Past Due Rent Payment” is defined in Section 2.2(g).

 

“Series
2003-3 Percentage” means, as of any date of determination, a fraction,
expressed as a percentage, the numerator of which is the Series 2003-3 Invested
Amount as of such date and the denominator of which is the Aggregate Invested
Amount as of such date.

 

“Series
2003-3 Principal Allocation” is defined in Section 2.2(a)(ii).

 

“Series
2003-3 Program Vehicle Percentage” means, as of any date of determination,
100% minus the Series 2003-3 Non-Program Vehicle Percentage.

 

“Series
2003-3 Rapid Amortization Period” means the period beginning at the close
of business on the Business Day immediately preceding the day on which an
Amortization Event is deemed to have occurred with respect to the Series 2003-3
Notes and ending upon the earliest to occur of (i) the date on which the Series
2003-3 Notes are fully paid and the Surety Provider has been paid all Surety
Provider Fees, all other Surety Provider Reimbursement Amounts then due and the
Series 2003-3 Interest Rate Swap has been terminated and there are no amounts
due and owing thereunder, (ii) the Series 2003-3 Termination Date and (iii) the
termination of the Indenture.

 

“Series
2003-3 Reimbursement Agreement” means any and each agreement providing for
the reimbursement of a Series 2003-3 Letter of Credit Provider for draws  under its Series 2003-3 Letter of Credit as
the same may be amended, supplemented, restated or otherwise modified from time
to time.

 

“Series
2003-3 Repurchase Amount” is defined in Section 6.1.

 

“Series
2003-3 Required AESOP I Operating Lease Vehicle Amount” means, as of any
date of determination, the sum of the Series 2003-3 Invested Amount and the
Series  2003-3 Required
Overcollateralization Amount as of such date.

 

17

 

“Series
2003-3 Required Enhancement Amount” means, as of any date of determination,
the sum of (i) the product of the Series 2003-3 Required Enhancement Percentage
as of such date and the Series 2003-3 Invested Amount as of such date, (ii) the
Series 2003-3 AESOP I Operating Lease Vehicle Percentage as of the immediately
preceding Business Day of the excess, if any, of the Non-Program Vehicle Amount
as of such date over the Series 2003-3 Maximum Non-Program Vehicle Amount as of
such date, (iii) the Series 2003-3 AESOP I Operating Lease Vehicle Percentage
as of the immediately preceding Business Day of the excess, if any, of the
aggregate Net Book Value of all Vehicles manufactured by Mitsubishi and leased
under the Leases as of such date over the Series 2003-3 Maximum Mitsubishi
Amount as of such date, (iv) the Series 2003-3 AESOP I Operating Lease Vehicle
Percentage as of the immediately preceding Business Day of the excess, if any,
of the aggregate Net Book Value of all Vehicles manufactured by Kia, Isuzu,
Subaru, Hyundai or Suzuki, individually, and leased under the Leases as of such
date over the Series 2003-3 Maximum Individual Kia/Isuzu/Subaru/ Hyundai/Suzuki
Amount as of such date, (v) the Series 2003-3 AESOP I Operating Lease Vehicle
Percentage as of the immediately preceding Business Day of the excess, if any,
of the aggregate Net Book Value of all Vehicles manufactured by Kia, Isuzu,
Subaru, Hyundai or Suzuki, in the aggregate, and leased under the Leases as of
such date over the Series 2003-3 Maximum Aggregate Kia/Isuzu/Subaru/Hyundai/Suzuki
Amount as of such date, (vi) the Series 2003-3 AESOP I Operating Lease Vehicle
Percentage as of the immediately preceding Business Day of the excess, if any,
of the Specified States Amount as of such date over the Series 2003-3 Maximum
Specified States Amount as of such date and (vii) the Series 2003-3 AESOP I
Operating Lease Vehicle Percentage as of the immediately preceding Business Day
of the excess, if any, of the Non-Eligible Manufacturer Amount as of such date
over the Series 2003-3 Maximum Non-Eligible Manufacturer Amount as of such
date.

 

“Series
2003-3 Required Enhancement Percentage” means, as of any date of
determination, the sum of (i) the product of (A) 14.0% times (B) the Series
2003-3 Program Vehicle Percentage as of such date and (ii) the product of (A)
the Series 2003-3 Required Non-Program Enhancement Percentage as of such date
times (B) the Series 2003-3 Non-Program Vehicle Percentage as of such date.

 

“Series
2003-3 Required Liquidity Amount” means, with respect to any Distribution
Date, an amount equal to 2.5% of the Series 2003-3 Invested Amount on such
Distribution Date (after giving effect to any payments of principal to be made
on the Series 2003-3 Notes on such Distribution Date).

 

“Series
2003-3 Required Non-Program Enhancement Percentage” means, as of any date
of determination, the greater of (a) 19.5% and (b) the sum of (i) 19.5% and
(ii) the highest, for any calendar month within the preceding twelve calendar
months, of the greater of (x) an amount (not less than zero) equal to 100%
minus the Measurement Month Average for the immediately preceding Measurement
Month and (y) an amount (not less than zero) equal to 100% minus the Market
Value Average as of the Determination Date within such calendar month (excluding
the Market Value Average for any Determination Date which has not yet
occurred).

 

“Series
2003-3 Required Overcollateralization Amount” means, as of any date of
determination, the excess, if any, of the Series 2003-3 Required Enhancement
Amount over the

 

18

 

sum of (i) the Series 2003-3 Letter of Credit Amount
as of such date, (ii) the Series 2003-3 Available Reserve Account Amount on
such date and (iii) the amount of cash and Permitted Investments on deposit in
the Series 2003-3 Collection Account (not including amounts allocable to the
Series 2003-3 Accrued Interest Account) and the Series 2003-3 Excess Collection
Account on such date.

 

“Series
2003-3 Required Reserve Account Amount” means, with respect to any
Distribution Date, an amount equal to the greater of (a) the excess, if
any, of the Series 2003-3 Required Liquidity Amount on such Distribution Date
over the Series 2003-3 Letter of Credit Liquidity Amount on such Distribution
Date (after giving effect to any payments of principal to be made on the Series
2003-3 Notes on such Distribution Date) and (b) the excess, if any, of the
Series 2003-3 Required Enhancement Amount over the Series 2003-3 Enhancement
Amount (excluding therefrom the Series 2003-3 Available Reserve Account Amount
and calculated after giving effect to any payments of principal to be made on
the Series 2003-3 Notes) on such Distribution Date.

 

“Series
2003-3 Reserve Account” is defined in Section 2.7(a).

 

“Series
2003-3 Reserve Account Collateral” is defined in Section 2.7(d).

 

“Series
2003-3 Reserve Account Surplus” means, with respect to any Distribution
Date, the excess, if any, of the Series 2003-3 Available Reserve Account Amount
over the Series 2003-3 Required Reserve Account Amount on such Distribution
Date.

 

“Series
2003-3 Revolving Period” means, the period from and including the Series
2003-3 Closing Date to the earlier of (i) the commencement of the Three-Year
Notes Controlled Amortization Period and (ii) the commencement of the Series
2003-3 Rapid Amortization Period; provided that if the Class A-1 Notes and the
Class A-2 Notes are paid in full on or prior to the July 2006 Distribution
Date, then the Series 2003-3 Revolving Period shall also include the period
from and including the first day of the calendar month during which the
Distribution Date on which the Class A-1 Notes and Class A-2 Notes are paid in
full occurs to the earlier of (i) the commencement of the Class A-3 Controlled
Amortization Period and (ii) the commencement of the Series 2003-3 Rapid
Amortization Period.

 

“Series
2003-3 Shortfall” is defined in Section 2.3(g).

 

“Series
2003-3 Termination Date” means the July 2009 Distribution Date.

 

“Series
2003-3 Unpaid Demand Amount” means, with respect to any single draw
pursuant to Section 2.5(c) or (d) on the Series 2003-3 Letters of Credit, the
aggregate amount drawn by the Trustee on all Series 2003-3 Letters of Credit.

 

“Shadow
Rating” means the rating of the Series 2003-3 Notes by Standard &
Poor’s or Moody’s, as applicable, without giving effect to the Surety Bond.

 

“Standard
& Poor’s” means Standard & Poor’s Ratings Services, a division of
The McGraw-Hill Companies, Inc.

 

19

 

“Supplement”
is defined in the preamble hereto.

 

“Surety
Bond” means the Note Guaranty Insurance Policy No. AB0665BE, dated May 6,
2003, issued by the Surety Provider.

 

“Surety
Default” means (i) the occurrence and continuance of any failure by the
Surety Provider to pay upon a demand for payment in accordance with the
requirements of the Surety Bond or (ii) the occurrence of an Event of
Bankruptcy with respect to the Surety Provider.

 

“Surety
Provider” means Ambac Assurance Corporation, a Wisconsin-domiciled stock
insurance corporation.  The Surety
Provider shall constitute an “Enhancement Provider” with respect to the Series
2003-3 Notes for all purposes under the Indenture and the other Related
Documents.

 

“Surety
Provider Fee” is defined in the Insurance Agreement.

 

“Surety
Provider Reimbursement Amounts” means, as of any date of determination, (i)
an amount equal to the aggregate of any amounts due as of such date to the
Surety Provider pursuant to the Insurance Agreement in respect of unreimbursed
draws under the Surety Bond, including interest thereon determined in
accordance with the Insurance Agreement, and (ii) an amount equal to the
aggregate of any other amounts due as of such date to the Surety Provider
pursuant to the Insurance Agreement.

 

“Telerate
Page 3750” means the display page currently so designated on the Moneyline
Telerate Service (or such other page as may replace that page on that service
for the purpose of displaying comparable rates or prices).

 

“Temporary
Global Class A-1 Note” is defined in Section 5.2.

 

“Temporary
Global Class A-2 Note” is defined in Section 5.2.

 

“Temporary
Global Class A-3 Note” is defined in Section 5.2.

 

“Termination
Date Disbursement” means an amount drawn under a Series 2003-3 Letter of
Credit pursuant to a Certificate of Termination Date Demand.

 

“Termination
Disbursement” means an amount drawn under a Series 2003-3 Letter of Credit
pursuant to a Certificate of Termination Demand.

 

“Three-Year
Notes Controlled Amortization Period” means the period commencing at the
opening of business on January 1, 2006 (or, if such day is not a Business Day,
the Business Day immediately preceding such day) and continuing to the earliest
of (i) the commencement of the Series 2003-3 Rapid Amortization Period,
(ii) the date on which the Class A-1 Notes and the Class A-2 Notes are fully
paid and (iii) the termination of the Indenture.

 

“Three-Year
Notes Expected Final Distribution Date” means the July 2006 Distribution
Date.

 

20

 

“Three-Year
Notes Final Distribution Date” means the July 2007 Distribution Date.

 

“Trustee”
is defined in the recitals hereto.

 

“Unpaid
Demand Note Disbursement” means an amount drawn under a Series 2003-3
Letter of Credit pursuant to a Certificate of Unpaid Demand Note Demand.

 

“Waivable
Amount” is defined in Article IV.

 

“Waiver
Event” means the occurrence of the delivery of a Waiver Request and the
subsequent waiver of any Series 2003-3 Maximum Amount.

 

“Waiver
Request” is defined in Article IV.

 

ARTICLE II

 

SERIES 2003-3 ALLOCATIONS

 

With
respect to the Series 2003-3 Notes, the following shall apply:

 

Section 2.1  Establishment
of Series 2003-3 Collection Account, Series 2003-3 Excess Collection Account
and Series 2003-3 Accrued Interest Account.  (a)  All Collections allocable to the Series 2003-3
Notes shall be allocated to the Collection Account.

 

(b)           The
Trustee will create three administrative subaccounts within the Collection
Account for the benefit of the Series 2003-3 Noteholders and the Surety
Provider:  the Series 2003-3 Collection
Account (such sub-account, the “Series 2003-3 Collection Account”), the
Series 2003-3 Excess Collection Account (such sub-account, the “Series
2003-3 Excess Collection Account”) and the Series 2003-3 Accrued Interest
Account (such sub-account, the “Series 2003-3 Accrued Interest Account”).

 

Section 2.2  Allocations
with Respect to the Series 2003-3 Notes. 
The net proceeds from the initial sale of the Series 2003-3 Notes will
be deposited into the Collection Account. 
On each Business Day on which Collections are deposited into the
Collection Account (each such date, a “Series 2003-3 Deposit Date”), the
Administrator will direct the Trustee in writing pursuant to the Administration
Agreement to allocate all amounts deposited into the Collection Account in accordance
with the provisions of this Section 2.2:

 

(a)           Allocations of
Collections During the Series 2003-3 Revolving Period.  During the Series 2003-3 Revolving Period,
the Administrator will direct the Trustee in writing pursuant to the
Administration Agreement to allocate on each day, prior to 11:00 a.m. (New York
City time) on each Series 2003-3 Deposit Date, all amounts deposited into the
Collection Account as set forth below:

 

(i)            allocate to the Series
2003-3 Collection Account an amount equal to the sum of (A) the Series 2003-3
Invested Percentage (as of such day) of the aggregate amount of Interest
Collections on such day and (B) any amounts 

 

21

 

received by the Trustee on such day in respect of the
Series 2003-3 Interest Rate Swap.  All
such amounts allocated to the Series 2003-3 Collection Account shall be further
allocated to the Series 2003-3 Accrued Interest Account; and

 

(ii)           allocate to the Series
2003-3 Excess Collection Account an amount equal to the Series 2003-3 Invested
Percentage (as of such day) of the aggregate amount of Principal Collections on
such day (for any such day, the “Series 2003-3 Principal Allocation”); provided,
however, if a Waiver Event shall have occurred, then such allocation
shall be modified as provided in Article IV.

 

(b)           Allocations of Collections During any Series 2003-3
Controlled Amortization Period.  With respect
to any Series 2003-3 Controlled Amortization Period, the Administrator will
direct the Trustee in writing pursuant to the Administration Agreement to
allocate, prior to 11:00 a.m.  (New York
City time) on any Series 2003-3 Deposit Date, all amounts deposited into the
Collection Account as set forth below:

 

(i)            allocate to the Series
2003-3 Collection Account an amount determined as set forth in Section
2.2(a)(i) above for such day, which amount shall be further allocated to the
Series 2003-3 Accrued Interest Account; and

 

(ii)           (A) with respect to the
Three-Year Notes Controlled Amortization Period, allocate to the Series 2003-3
Collection Account an amount equal to the Series 2003-3 Principal Allocation
for such day, which amount shall be used to make principal payments in respect
of the Class A-1 Notes and the Class A-2 Notes; provided, however,
that if the Monthly Total Principal Allocation exceeds the sum of the Class A-1
Controlled Distribution Amount and the Class A-2 Controlled Distribution
Amount, then the amount of such excess shall be allocated to the Series 2003-3
Excess Collection Account; and provided, further, that if a
Waiver Event shall have occurred, then such allocation shall be modified as
provided in Article IV and (B) with respect to the Class A-3 Controlled
Amortization Period, allocate to the Series 2003-3 Collection Account an amount
equal to the Series 2003-3 Principal Allocation for such day, which amount
shall be used to make principal payments in respect of the Class A-3 Notes; provided,
however, that if the Monthly Total Principal Allocation exceeds the
Class A-3 Controlled Distribution Amount, then the amount of such excess shall
be allocated to the Series 2003-3 Excess Collection Account; and provided,
further, that if a Waiver Event shall have occurred, then such
allocation shall be modified as provided in Article IV.

 

(c)           Allocations of Collections During the Series 2003-3
Rapid Amortization Period.  With respect to the Series
2003-3 Rapid Amortization Period, other than after the occurrence of an Event
of Bankruptcy with respect to ARAC, any other Lessee or AGH, the Administrator
will direct the Trustee in writing pursuant to the Administration Agreement to
allocate, prior to 11:00 a.m. (New York City time) on any Series 2003-3
Deposit Date, all amounts deposited into the Collection Account as set forth
below:

 

22

 

(i)            allocate to the Series 2003-3 Collection Account an
amount determined as set forth in Section 2.2(a)(i) above for such day, which
amount shall be further allocated to the Series 2003-3 Accrued Interest
Account; and

 

(ii)           allocate to the Series 2003-3 Collection Account an
amount equal to the Series 2003-3 Principal Allocation for such day, which
amount shall be used to make principal payments in respect of the Class A-1
Notes, the Class A-2 Notes and the Class A-3 Notes, ratably, without preference
or priority of any kind, until the Series 2003-3 Invested Amount is paid in
full; provided that if on any Determination Date (A) the Administrator
determines that the amount anticipated to be available from Interest
Collections allocable to the Series 2003-3 Notes, any amounts payable to the
Trustee in respect of the Series 2003-3 Interest Rate Swap and other amounts
available pursuant to Section 2.3 to pay Series 2003-3 Adjusted Monthly
Interest and the Fixed Rate Payment on the next succeeding Distribution Date
will be less than the sum of the Series 2003-3 Adjusted Monthly Interest and
the Fixed Rate Payment for such Distribution Date and (B) the Series 2003-3
Enhancement Amount is greater than zero, then the Administrator shall direct
the Trustee in writing to reallocate a portion of the Principal Collections
allocated to the Series 2003-3 Notes during the Related Month equal to the
lesser of such insufficiency and the Series 2003-3 Enhancement Amount to the
Series 2003-3 Accrued Interest Account to be treated as Interest Collections on
such Distribution Date.

 

(d)           Allocations of Collections after the Occurrence of an
Event of Bankruptcy.  After the occurrence of an Event of
Bankruptcy with respect to ARAC, any other Lessee or AGH, the Administrator
will direct the Trustee in writing pursuant to the Administration Agreement to
allocate, prior to 11:00 a.m.  (New York
City time) on any Series 2003-3 Deposit Date, all amounts attributable to the
AESOP I Operating Lease Loan Agreement deposited into the Collection Account as
set forth below:

 

(i)            allocate to the Series 2003-3 Collection Account an
amount equal to the sum of (A) the Series 2003-3 AESOP I Operating Lease
Vehicle Percentage as of the date of the occurrence of such Event of Bankruptcy
of the aggregate amount of Interest Collections made under the AESOP I
Operating Lease Loan Agreement for such day and (B) any amounts received by the
Trustee in respect of the Series 2003-3 Interest Rate Swap on such day.  All such amounts allocated to the Series
2003-3 Collection Account shall be further allocated to the Series 2003-3
Accrued Interest Account;

 

(ii)           allocate to the Series 2003-3 Collection Account an
amount equal to the Series 2003-3 AESOP I Operating Lease Vehicle Percentage as
of the date of the occurrence of such Event of Bankruptcy of the aggregate
amount of Principal Collections made under the AESOP I Operating Lease Loan
Agreement, which amount shall be used to make principal payments in respect of
the Series Class A-1 Notes, the Class A-2 Notes and the Class A-3 Notes,
ratably, without preference or priority of any kind, until the Series 2003-3
Invested Amount is paid in full; provided that if on any Determination
Date (A) the Administrator

 

23

 

determines that the amount anticipated to be available
from Interest Collections allocable to the Series 2003-3 Notes, any amounts
payable to the Trustee in respect of Series 2003-3 Interest Rate Swap and other
amounts available pursuant to Section 2.3 to pay Series 2003-3 Adjusted Monthly
Interest and the Fixed Rate Payment on the next succeeding Distribution Date
will be less than the sum of the Series 2003-3 Adjusted Monthly Interest and
the Fixed Rate Payment for such Distribution Date and (B) the Series 2003-3
Enhancement Amount is greater than zero, then the Administrator shall direct
the Trustee in writing to reallocate a portion of the Principal Collections
allocated to the Series 2003-3 Notes during the Related Month equal to the
lesser of such insufficiency and the Series 2003-3 Enhancement Amount to the
Series 2003-3 Accrued Interest Account to be treated as Interest Collections on
such Distribution Date.

 

(e)           Series 2003-3 Excess Collection Account. 
Amounts allocated to the Series 2003-3 Excess Collection Account on any
Series 2003-3 Deposit Date will be (w) first, deposited in the Series 2003-3
Reserve Account in an amount up to the excess, if any, of the Series 2003-3
Required Reserve Account Amount for such date over the Series 2003-3 Available
Reserve Account Amount for such date, (x) second, used to pay the principal
amount of other Series of Notes that are then in amortization, (y) third,
released to AESOP Leasing in an amount equal to the product of (A) the Loan Agreement’s
Share with respect to the AESOP I Operating Lease Loan Agreement as of such
date times (B) 100% minus the Loan Payment Allocation Percentage with respect
to the AESOP I Operating Lease Loan Agreement as of such date times (C) the
amount of any remaining funds and (z) fourth, paid to AFC-II for any use
permitted by the Related Documents including to make Loans under the Loan
Agreements to the extent the Borrowers have requested Loans thereunder and
Eligible Vehicles are available for financing thereunder; provided, however,
that in the case of clauses (x), (y) and (z), that no Amortization Event,
Series 2003-3 Enhancement Deficiency or AESOP I Operating Lease Vehicle
Deficiency would result therefrom or exist immediately thereafter.  Upon the occurrence of an Amortization
Event, funds on deposit in the Series 2003-3 Excess Collection Account will be
withdrawn by the Trustee, deposited in the Series 2003-3 Collection Account and
allocated as Principal Collections to reduce the Series 2003-3 Invested Amount
on the immediately succeeding Distribution Date.

 

(f)            Allocations From Other Series. 
Amounts allocated to other Series of Notes that have been reallocated by
AFC-II to the Series 2003-3 Notes (i) during the Series 2003-3 Revolving Period
shall be allocated to the Series 2003-3 Excess Collection Account and applied
in accordance with Section 2.2(e) and (ii) during the Series 2003-3
Amortization Period shall be allocated to the Series 2003-3 Collection Account
and applied in accordance with Section 2.2(b) or 2.2(c), as applicable, to make
principal payments in respect of the Series 2003-3 Notes.

 

(g)           Past Due Rental Payments. 
Notwithstanding the foregoing, if in the case of Section 2.2(a) or (b),
after the occurrence of a Series 2003-3 Lease Payment Deficit, the Lessees
shall make payments of Monthly Base Rent or other amounts payable by the
Lessees under the Leases on or prior to the fifth Business Day after the
occurrence of such Series 2003-3 Lease Payment Deficit (a “Past Due Rent
Payment”), the

 

24

 

Administrator shall
direct the Trustee in writing pursuant to the Administration Agreement to
allocate to the Series 2003-3 Collection Account an amount equal to the Series
2003-3 Invested Percentage as of the date of the occurrence of such Series
2003-3 Lease Payment Deficit of the Collections attributable to such Past Due
Rent Payment (the “Series 2003-3 Past Due Rent Payment”).  The Administrator shall instruct the Trustee
in writing pursuant to the Administration Agreement to withdraw from the Series
2003-3 Collection Account and apply the Series 2003-3 Past Due Rent Payment in
the following order:

 

(i)            if the occurrence of such Series 2003-3 Lease Payment
Deficit resulted in one or more Lease Deficit Disbursements being made under
the Series 2003-3 Letters of Credit, pay to each Series 2003-3 Letter of Credit
Provider who made such a Lease Deficit Disbursement for application in
accordance with the provisions of the applicable Series 2003-3 Reimbursement Agreement
an amount equal to the lesser of (x) the unreimbursed amount of such
Series 2003-3 Letter of Credit Provider’s Lease Deficit Disbursement and (y)
such Series 2003-3 Letter of Credit Provider’s Pro Rata Share of the Series
2003-3 Past Due Rent Payment;

 

(ii)           if the occurrence of such Series 2003-3 Lease Payment
Deficit resulted in a withdrawal being made from the Series 2003-3 Cash
Collateral Account, deposit in the Series 2003-3 Cash Collateral Account an
amount equal to the lesser of (x) the amount of the Series 2003-3 Past Due Rent
Payment remaining after any payment pursuant to clause (i) above and (y) the
amount withdrawn from the Series 2003-3 Cash Collateral Account on account of
such Series 2003-3 Lease Payment Deficit;

 

(iii)          if the occurrence of such Series 2003-3 Lease Payment
Deficit resulted in a withdrawal being made from the Series 2003-3 Reserve
Account pursuant to Section 2.3(d), deposit in the Series 2003-3 Reserve
Account an amount equal to the lesser of (x) the amount of the Series 2003-3
Past Due Rent Payment remaining after any payments pursuant to clauses (i) and
(ii) above and (y) the excess, if any, of the Series 2003-3 Required Reserve
Account Amount over the Series 2003-3 Available Reserve Account Amount on such
day;

 

(iv)          allocate to the Series 2003-3 Accrued Interest Account
the amount, if any, by which the Series 2003-3 Lease Interest Payment Deficit,
if any, relating to such Series 2003-3 Lease Payment Deficit exceeds the amount
of the Series 2003-3 Past Due Rent Payment applied pursuant to clauses (i),
(ii) and (iii) above; and

 

(v)           treat the remaining amount of the Series 2003-3 Past
Due Rent Payment as Principal Collections allocated to the Series 2003-3 Notes
in accordance with Section 2.2(a)(ii) or 2.2(b)(ii), as the case may be.

 

Section 2.3  Payments
to Noteholders and Series 2003-3 Interest Rate Swap Counterparty.  On each Determination Date, as provided
below, the Administrator shall instruct the Paying Agent in writing pursuant to
the Administration Agreement to withdraw, and on the

 

25

 

following Distribution Date the Paying Agent, acting in accordance with
such instructions, shall withdraw the amounts required to be withdrawn from the
Collection Account pursuant to Section 2.3(a) below in respect of all funds
available from Series 2003-3 Interest Rate Swap Proceeds and Interest
Collections processed since the preceding Distribution Date and allocated to
the holders of the Series 2003-3 Notes.

 

(a)           Note Interest with respect
to the Series 2003-3 Notes and the Series 2003-3 Interest Rate Swap.  On each Determination Date, the
Administrator shall instruct the Trustee and the Paying Agent in writing
pursuant to the Administration Agreement as to the amount to be withdrawn and
paid pursuant to Section 2.4 from the Series 2003-3 Accrued Interest Account to
the extent funds are anticipated to be available from Interest Collections
allocable to the Series 2003-3 Notes and the Series 2003-3 Interest Rate
Swap Proceeds processed from but not including the preceding Distribution Date
through the succeeding Distribution Date in respect of (w) first, an amount
equal to the Series 2003-3 Monthly Interest for the Series 2003-3 Interest
Period ending on the day preceding the related Distribution Date, (x) second,
an amount equal to any Fixed Rate Payment for the next succeeding Distribution
Date, (y) third, an amount equal to the amount of any unpaid Series 2003-3
Shortfall as of the preceding Distribution Date (together with any accrued
interest on such Series 2003-3 Shortfall) and (z) fourth, an amount equal to
the Surety Provider Fee for such Series 2003-3 Interest Period plus any Surety
Provider Reimbursement Amounts then due and owing.  On the following Distribution Date, the Trustee shall withdraw
the amounts described in the first sentence of this Section 2.3(a) from
the Series 2003-3 Accrued Interest Account and deposit such amounts in the
Series 2003-3 Distribution Account.

 

(b)           Lease Payment
Deficit Notice.  On or before 10:00
a.m. (New York City time) on each Distribution Date, the Administrator shall
notify the Trustee and the Surety Provider of the amount of any Series 2003-3
Lease Payment Deficit, such notification to be in the form of Exhibit E
to this Supplement (each a “Lease Payment Deficit Notice”).

 

(c)           Draws on Series
2003-3 Letters of Credit For Series 2003-3 Lease Interest Payment Deficits.  If the Administrator determines on any
Distribution Date that there exists a Series 2003-3 Lease Interest Payment
Deficit, the Administrator shall instruct the Trustee in writing to draw on the
Series 2003-3 Letters of Credit, if any, and, the Trustee shall, by 12:00 noon
(New York City time) on such Distribution Date draw an amount as set forth in
such notice equal to the least of (i) such Series 2003-3 Lease Interest Payment
Deficit, (ii) the excess, if any, of the sum of the amounts described in
clauses (w), (x), (y) and (z) of Section 2.3(a) above on such Distribution Date
over the amounts available from the Series 2003-3 Accrued Interest Account and
(iii) the Series 2003-3 Letter of Credit Liquidity Amount on the Series 2003-3
Letters of Credit by presenting to each Series 2003-3 Letter of Credit Provider
(with a copy to the Surety Provider) a draft accompanied by a Certificate of
Lease Deficit Demand and shall cause the Lease Deficit Disbursements to be
deposited in the Series 2003-3 Distribution Account on such Distribution Date; provided,
however, that if the Series 2003-3 Cash Collateral Account has been
established and funded, the Trustee shall withdraw from the Series 2003-3 Cash
Collateral Account and deposit in the Series 2003-3 Distribution Account an
amount equal to the lesser of (x) the Series 2003-3 Cash Collateral Percentage
on such

 

26

 

Distribution Date of the least of the amounts
described in clauses (i), (ii) and (iii) above and (y) the Series 2003-3
Available Cash Collateral Account Amount on such Distribution Date and draw an
amount equal to the remainder of such amount on the Series 2003-3 Letters of
Credit.  During the continuance of a
Surety Default, no amounts in respect of the Surety Provider Fee shall be drawn
on the Series 2003-3 Letters of Credit.

 

(d)           Withdrawals from
Series 2003-3 Reserve Account.  If
the Administrator determines on any Distribution Date that the amounts
available from the Series 2003-3 Accrued Interest Account plus the amount, if
any, to be drawn under the Series 2003-3 Letters of Credit and /or withdrawn
from the Series 2003-3 Cash Collateral Account pursuant to Section 2.3(c) are
insufficient to pay the sum of the amounts described in clauses (w), (x), (y)
and (z) of Section 2.3(a) above on such Distribution Date, the Administrator
shall instruct the Trustee in writing to withdraw from the Series 2003-3
Reserve Account and deposit in the Series 2003-3 Distribution Account on such
Distribution Date an amount equal to the lesser of the Series 2003-3 Available
Reserve Account Amount and such insufficiency. 
During the continuance of a Surety Default, no amounts in respect of the
Surety Provider Fee shall be withdrawn from the Series 2003-3 Reserve
Account.  The Trustee shall withdraw
such amount from the Series 2003-3 Reserve Account and deposit such amount in
the Series 2003-3 Distribution Account.

 

(e)           Surety Bond.  If the Administrator determines on any
Distribution Date that the sum of the amounts available from the Series 2003-3
Accrued Interest Account plus the amount, if any, to be drawn under the
Series 2003-3 Letters of Credit and/or withdrawn from the Series 2003-3 Cash
Collateral Account pursuant to Section 2.3(c) above plus the amount, if
any, to be withdrawn from the Series 2003-3 Reserve Account pursuant to Section
2.3(d) above is insufficient to pay the Series 2003-3 Adjusted Monthly Interest
for such Distribution Date, the Administrator shall instruct the Trustee in
writing to make a demand on the Surety Bond and, upon receipt of such notice by
the Trustee on or prior to 11:00 a.m. (New York City time) on such Distribution
Date, the Trustee shall, by 12:00 noon (New York City time) on such
Distribution Date, make a demand on the Surety Bond in an amount equal to such
insufficiency in accordance with the terms thereof and shall cause the proceeds
thereof to be deposited in the Series 2003-3 Distribution Account.

 

(f)            Balance.  On or prior to the second Business Day
preceding each Distribution Date, the Administrator shall instruct the Trustee
and the Paying Agent in writing pursuant to the Administration Agreement to pay
the balance (after making the payments required in Section 2.4), if any, of the
amounts available from the Series 2003-3 Accrued Interest Account and the
Series 2003-3 Distribution Account, plus the amount, if any, drawn under the
Series 2003-3 Letters of Credit and/or withdrawn from the Series 2003-3 Cash
Collateral Account pursuant to Section 2.3(c) plus the amount, if any,
withdrawn from the Series 2003-3 Reserve Account pursuant to Section 2.3(d) as
follows:

 

(i)            on each Distribution Date during the Series 2003-3 Revolving
Period or a Series 2003-3 Controlled Amortization Period, (1) first, to the
Series 2003-3 Interest Rate Swap Counterparty, an amount equal to the Fixed
Rate

 

27

 

Payment for such Distribution Date, (2) second, to the
Surety Provider, in an amount equal to (x) the Surety Provider Fee for the
related Series 2003-3 Interest Period and, without duplication, (y) any Surety
Provider Reimbursement Amounts then due and owing, (3) third, to the
Administrator, an amount equal to the Series 2003-3 Percentage as of the
beginning of such Series 2003-3 Interest Period of the portion of the Monthly
Administration Fee payable by AFC-II (as specified in clause (iii) of the
definition thereof) for such Series 2003-3 Interest Period, (4) fourth, to the
Trustee, an amount equal to the Series 2003-3 Percentage as of the beginning of
such Series 2003-3 Interest Period of the Trustee’s fees for such Series 2003-3
Interest Period, (5) fifth, to pay any Carrying Charges (other than Carrying
Charges provided for above) to the Persons to whom such amounts are owed, an
amount equal to the Series 2003-3 Percentage as of the beginning of such Series
2003-3 Interest Period of such Carrying Charges (other than Carrying Charges
provided for above) for such Series 2003-3 Interest Period, (6) sixth, to the
Series 2003-3 Interest Rate Swap Counterparty, any amounts due and owing under
the Series 2003-3 Interest Rate Swap (other than any Fixed Rate Payment) and
(7) seventh, the balance, if any (“Excess Collections”), shall be
withdrawn by the Paying Agent from the Series 2003-3 Collection Account and
deposited in the Series 2003-3 Excess Collection Account; and

 

(ii)           on each Distribution Date during the Series 2003-3
Rapid Amortization Period, (1) first, to the Series 2003-3 Interest Rate Swap
Counterparty, an amount equal to the Fixed Rate Payment for such Distribution
Date, (2) second, to the Surety Provider, in an amount equal to (x) the Surety
Provider Fee for the related Series 2003-3 Interest Period and, without
duplication, (y) any Surety Provider Reimbursement Amounts then due and owing,
(3) third, to the Trustee, an amount equal to the Series 2003-3 Percentage as
of the beginning of such Series 2003-3 Interest Period of the Trustee’s fees
for such Series 2003-3 Interest Period, (4) fourth, to the Administrator, an
amount equal to the Series 2003-3 Percentage as of the beginning of such Series
2003-3 Interest Period of the portion of the Monthly Administration Fee (as
specified in clause (iii) of the definition thereof) payable by AFC-II for such
Series 2003-3 Interest Period, (5) fifth, to pay any Carrying Charges (other
than Carrying Charges provided for above) to the Persons to whom such amounts
are owed, an amount equal to the Series 2003-3 Percentage as of the beginning
of such Series 2003-3 Interest Period of such Carrying Charges (other than
Carrying Charges provided for above) for such Series 2003-3 Interest Period,
(6) sixth, so long as the Series 2003-3 Invested Amount is greater than the
Series 2003-3 Principal Allocations on such Distribution Date, an amount equal
to the excess of the Series 2003-3 Invested Amount over the Series 2003-3
Principal Allocations on such Distribution Date shall be treated as Principal
Collections and (7) seventh, to the Series 2003-3 Interest Rate Swap
Counterparty, any amounts due and owing under the Series 2003-3 Interest Rate
Swap (other than any Fixed Rate Payment).

 

(g)           Shortfalls.  If the
amounts described in Section 2.3 are insufficient to pay the Series 2003-3
Monthly Interest on any Distribution Date, payments of interest to the Series
2003-3 Noteholders will be reduced on a pro  rata basis by the
amount of such

 

28

 

deficiency. 
The aggregate amount, if any, of such deficiency on any Distribution
Date shall be referred to as the “Series 2003-3 Shortfall.”  Interest shall accrue on the portion of the
Series 2003-3 Shortfall allocable to the Class A-1 Notes at the Class A-1 Note
Rate, on the portion of the Series 2003-3 Shortfall allocable to the Class A-2
Notes at the Class A-2 Note Rate and on the portion of the Series 2003-3
Shortfall allocable to the Class A-3 Notes at the Class A-3 Note Rate.

 

(h)           Listing Information Requirement. 
Until the Administrator shall give the Trustee written notice that the
Class A-2 Notes are not listed on the Luxembourg Stock Exchange, the Trustee
shall, or shall instruct the Paying Agent to, cause the Class A-2 Note Rate for
the next succeeding Series 2003-3 Interest Period, the number of days in such
Series 2003-3 Interest Period, the Distribution Date for such Series 2003-3
Interest Period and the amount of interest payable on the Class A-2 Notes on
such Distribution Date to be (A) communicated to DTC, Euroclear, Clearstream,
the Paying Agent in Luxembourg and the Luxembourg Stock Exchange no later than
11:00 a.m. (London time) on the Business Day immediately following each LIBOR
Determination Date and (B) published in the Authorized Newspaper as soon as
possible after its determination.

 

Section 2.4  Payment
of Note Interest.  On each
Distribution Date, subject to Section 9.8 of the Base Indenture, the Paying
Agent shall, in accordance with Section 6.1 of the Base Indenture, pay to the
Series 2003-3 Noteholders from the Series 2003-3 Distribution Account the
amount due to the Series 2003-3 Noteholders deposited in the Series 2003-3
Distribution Account pursuant to Section 2.3.

 

Section 2.5  Payment
of Note Principal.  (a)  Monthly Payments During Controlled
Amortization Period or Rapid Amortization Period.  Commencing on the second Determination Date during the Three-Year
Notes Controlled Amortization Period or the Class A-3 Controlled
Amortization Period, as the case may be, or the first Determination Date after
the commencement of the Series 2003-3 Rapid Amortization Period, the
Administrator shall instruct the Trustee and the Paying Agent in writing
pursuant to the Administration Agreement and in accordance with this Section
2.5 as to (i) the amount allocated to the Series 2003-3 Notes during the
Related Month pursuant to Section 2.2(b)(ii), (c)(ii) or (d)(ii), as the case
may be, (ii) any amounts to be drawn on the Series 2003-3 Demand Notes and/or
on the Series 2003-3 Letters of Credit (or withdrawn from the Series 2003-3
Cash Collateral Account), (iii) any amounts to be withdrawn from the Series
2003-3 Reserve Account and deposited into the Series 2003-3 Distribution
Account and (iv) the amount of any demand on the Surety Bond in accordance with
the terms thereof.  On the Distribution
Date following each such Determination Date, the Trustee shall withdraw the
amount allocated to the Series 2003-3 Notes during the Related Month pursuant
to Section 2.2(b)(ii), (c)(ii) or (d)(ii), as the case may be, from the Series
2003-3 Collection Account and deposit such amount in the Series 2003-3
Distribution Account, to be paid to the holders of the Series 2003-3 Notes.

 

(b)           Principal
Draws on Series 2003-3 Letters of Credit. 
If the Administrator determines on any Distribution Date during the
Series 2003-3 Rapid Amortization Period that there exists a Series 2003-3 Lease
Principal Payment Deficit, the Administrator shall instruct the Trustee in
writing to draw on the Series 2003-3 Letters of Credit, if any, as provided
below; provided, however, that the Administrator shall not
instruct the Trustee to draw on the Series

 

29

 

2003-3 Letters of Credit in respect of a Series 2003-3 Lease Principal
Payment Deficit on or after the date of the filing by any of the Lessees of a
petition for relief under Chapter 11 of the Bankruptcy Code unless and until
the date on which each of the Lessees shall have resumed making all payments of
the portion of Monthly Base Rent relating to Loan Interest required to be made
under the AESOP I Operating Lease.  Upon
receipt of a notice by the Trustee from the Administrator in respect of a
Series 2003-3 Lease Principal Payment Deficit on or prior to 11:00 a.m. (New
York City time) on a Distribution Date, the Trustee shall, by 12:00 noon (New
York City time) on such Distribution Date draw an amount as set forth in such
notice equal to the lesser of (i) such Series 2003-3 Lease Principal Payment
Deficit and (ii) the Series 2003-3 Letter of Credit Liquidity Amount on the
Series 2003-3 Letters of Credit by presenting to each Series 2003-3 Letter of
Credit Provider a draft accompanied by a Certificate of Lease Deficit Demand
and shall cause the Lease Deficit Disbursements to be deposited in the Series
2003-3 Distribution Account on such Distribution Date; provided, however,
that if the Series 2003-3 Cash Collateral Account has been established and
funded, the Trustee shall withdraw from the Series 2003-3 Cash Collateral
Account and deposit in the Series 2003-3 Distribution Account an amount equal
to the lesser of (x) the Series 2003-3 Cash Collateral Percentage on such
Distribution Date of the Series 2003-3 Lease Principal Payment Deficit and (y)
the Series 2003-3 Available Cash Collateral Account Amount on such Distribution
Date and draw an amount equal to the remainder of such amount on the Series
2003-3 Letters of Credit.

 

(c)           Final
Distribution Date.  The entire Class
A-1 Invested Amount and the entire Class A-2 Invested Amount shall be due and
payable on the Three-Year Notes Final Distribution Date, and the entire Class
A-3 Invested Amount shall be due and payable on the Class A-3 Final
Distribution Date.  In connection
therewith:

 

(i)            Demand Note Draw.  If the amount to be deposited in the Series
2003-3 Distribution Account in accordance with Section 2.5(a) together with any
amounts to be deposited therein in accordance with Section 2.5(b) allocable to
the Class A-1 Notes or the Class A-2 Notes on the Three-Year Notes Final
Distribution Date or the Class A-3 Notes on the Class A-3 Final Distribution
Date, as the case may be, is less than the sum of the Class A-1 Invested Amount
and the Class A-2 Invested Amount or the Class A-3 Invested Amount, as the case
may be, and there are any Series 2003-3 Letters of Credit on such date, then,
prior to 10:00 a.m. (New York City time) on the second Business Day prior to
such Series 2003-3 Final Distribution Date, the Administrator shall instruct
the Trustee in writing (with a copy to the Surety Provider) to make a demand (a
“Demand Notice”) substantially in the form attached hereto as Exhibit
F on the Demand Note Issuers for payment under the Series 2003-3 Demand
Notes in an amount equal to the lesser of (i) such insufficiency and (ii)
the Series 2003-3 Letter of Credit Amount. 
The Trustee shall, prior to 12:00 noon (New York City time) on the
second Business Day preceding such Series 2003-3 Final Distribution Date,
deliver such Demand Notice to the Demand Note Issuers; provided, however,
that if an Event of Bankruptcy (or the occurrence of an event described in
clause (a) of the definition thereof, without the lapse of a period of 60
consecutive days) with respect to a Demand Note Issuer shall have occurred and
be continuing, the Trustee shall not be required to deliver such Demand Notice
to such Demand Note Issuer.  The Trustee
shall cause the proceeds of any demand

 

30

 

on the Series 2003-3 Demand Notes to be deposited into
the Series 2003-3 Distribution Account.

 

(ii)           Letter of Credit
Draw.  In the event that either (x)
on or prior to 10:00 a.m. (New York City time) on the Business Day immediately
preceding any Distribution Date next succeeding any date on which a Demand
Notice has been transmitted by the Trustee to the Demand Note Issuers pursuant
to clause (i) of this Section 2.5(c), any Demand Note Issuer shall have
failed to pay to the Trustee or deposit into the Series 2003-3 Distribution
Account the amount specified in such Demand Notice in whole or in part or (y)
due to the occurrence of an Event of Bankruptcy (or the occurrence of an event
described in clause (a) of the definition thereof, without the lapse of a
period of 60 consecutive days) with respect to one or more of the Demand Note
Issuers, the Trustee shall not have delivered such Demand Notice to any Demand
Note Issuer on the second Business Day preceding such Series 2003-3 Final
Distribution Date, then, in the case of (x) or (y) the Trustee shall draw on
the Series 2003-3 Letters of Credit by 12:00 noon (New York City time) on such
Business Day an amount equal to the lesser of (a) the amount that the Demand
Note Issuers failed to pay under the Series 2003-3 Demand Notes (or, the amount
that the Trustee failed to demand for payment thereunder) and (b) the
Series 2003-3 Letter of Credit Amount on such Business Day by presenting to
each Series 2003-3 Letter of Credit Provider (with a copy to the Surety
Provider) a draft accompanied by a Certificate of Unpaid Demand Note Demand; provided,
however,  that if the Series 2003-3 Cash Collateral Account has been
established and funded, the Trustee shall withdraw from the Series 2003-3 Cash
Collateral Account and deposit in the Series 2003-3 Distribution Account an
amount equal to the lesser of (x) the Series 2003-3 Cash Collateral Percentage
on such Business Day of the amount that the Demand Note Issuers failed to pay
under the Series 2003-3 Demand Notes (or, the amount that the Trustee failed to
demand for payment thereunder) and (y) the Series 2003-3 Available Cash
Collateral Account Amount on such Business Day and draw an amount equal to the
remainder of the amount that the Demand Note Issuers failed to pay under the
Series 2003-3 Demand Notes (or, the amount that the Trustee failed to demand
for payment thereunder) on the Series 2003-3 Letters of Credit.  The Trustee shall deposit, or cause the
deposit of, the proceeds of any draw on the Series 2003-3 Letters of Credit and
the proceeds of any withdrawal from the Series 2003-3 Cash Collateral Account
to be deposited in the Series 2003-3 Distribution Account.

 

(iii)          Reserve Account
Withdrawal.  If, after giving effect
to the deposit into the Series 2003-3 Distribution Account of the amount to be
deposited in accordance with Section 2.5(a) and the amounts described in
clauses (i) and (ii) of this Section 2.5(c), the amount to be deposited in the
Series 2003-3 Distribution Account with respect to a Series 2003-3 Final
Distribution Date is or will be less than the Class A-1 Invested Amount, the
Class A-2 Invested Amount or the Class A-3 Invested Amount, as the case may be,
then, prior to 12:00 noon (New York City time) on the second Business Day prior
to such Series 2003-3 Final Distribution Date, the Administrator shall instruct
the Trustee in writing to withdraw from the Series 2003-3 Reserve Account, an
amount equal to the lesser

 

31

 

of the Series 2003-3 Available Reserve Account Amount
and such remaining insufficiency and deposit it in the Series 2003-3
Distribution Account on such Series 2003-3 Final Distribution Date.

 

(iv)          Demand on Surety Bond.  If after giving effect to the deposit into
the Series 2003-3 Distribution Account of the amount to be deposited in
accordance with Section 2.5(a) and all other amounts described in clauses (i),
(ii) and (iii) of this Section 2.5(c), the amount to be deposited in the Series
2003-3 Distribution Account with respect to such Series 2003-3 Final
Distribution Date is or will be less than the Class A-1 Outstanding Principal
Amount, the Class A-2 Outstanding Principal Amount or the Class A-3 Outstanding
Principal Amount, as the case may be, then the Trustee shall make a demand on
the Surety Bond by 12:00 p.m. (New York City time) on the second Business Day
preceding such Distribution Date in an amount equal to such insufficiency in
accordance with the terms thereof and shall cause the proceeds thereof to be
deposited in the Series 2003-3 Distribution Account.

 

(d)           Principal
Deficit Amount.  On each
Distribution Date, other than the Three-Year Notes Final Distribution Date and
the Class A-3 Final Distribution Date, on which the Principal Deficit Amount is
greater than zero, amounts shall be transferred to the Series 2003-3
Distribution Account as follows:

 

(i)            Demand Note Draw.  If on any Determination Date, the
Administrator determines that the Principal Deficit Amount with respect to the
next succeeding Distribution Date will be greater than zero and there are any
Series 2003-3 Letters of Credit on such date, prior to 10:00 a.m. (New York
City time) on the second Business Day prior to such Distribution Date, the
Administrator shall instruct the Trustee in writing (with a copy to the Surety
Provider) to deliver a Demand Notice to the Demand Note Issuers demanding
payment of an amount equal to the lesser of (A) the Principal Deficit Amount
and (B) the Series 2003-3 Letter of Credit Amount.  The Trustee shall, prior to 12:00 noon (New York City time) on
the second Business Day preceding such Distribution Date, deliver such Demand
Notice to the Demand Note Issuers; provided, however, that if an
Event of Bankruptcy (or the occurrence of an event described in clause (a) of
the definition thereof, without the lapse of a period of 60 consecutive days)
with respect to a Demand Note Issuer shall have occurred and be continuing, the
Trustee shall not be required to deliver such Demand Notice to such Demand Note
Issuer.  The Trustee shall cause the
proceeds of any demand on the Series 2003-3 Demand Note to be deposited into
the Series 2003-3 Distribution Account.

 

(ii)           Letter of Credit
Draw.  In the event that either (x)
on or prior to 10:00 a.m. (New York City time) on the Business Day prior to
such Distribution Date, any Demand Note Issuer shall have failed to pay to the
Trustee or deposit into the Series 2003-3 Distribution Account the amount
specified in such Demand Notice in whole or in part or (y) due to the
occurrence of an Event of Bankruptcy (or the occurrence of an event described
in clause (a) of the definition thereof, without the lapse of a period of 60 consecutive
days) with respect to any Demand Note Issuer, the Trustee shall not have
delivered such Demand Notice to any Demand Note Issuer on the second Business
Day preceding

 

32

 

such Distribution Date, then, in the case of (x) or
(y) the Trustee shall on such Business Day draw on the Series 2003-3 Letters of
Credit an amount equal to the lesser of (i) Series 2003-3 Letter of Credit
Amount and (ii) the aggregate amount that the Demand Note Issuers failed
to pay under the Series 2003-3 Demand Notes (or, the amount that the Trustee
failed to demand for payment thereunder) by presenting to each Series 2003-3
Letter of Credit Provider (with a copy to the Surety Provider) a draft
accompanied by a Certificate of Unpaid Demand Note Demand; provided, however,
that if the Series 2003-3 Cash Collateral Account has been established and
funded, the Trustee shall withdraw from the Series 2003-3 Cash Collateral
Account and deposit in  the Series 2003-3 Distribution Account an
amount equal to the lesser of (x) the Series 2003-3 Cash Collateral Percentage
on such Business Day of the aggregate amount that the Demand Note Issuers
failed to pay under the Series 2003-3 Demand Notes (or, the amount that the
Trustee failed to demand for payment thereunder) and (y) the Series 2003-3
Available Cash Collateral Account Amount on such Business Day and draw an
amount equal to the remainder of the aggregate amount that the Demand Note
Issuers failed to pay under the Series 2003-3 Demand Notes (or, the amount that
the Trustee failed to demand for payment thereunder) on the Series 2003-3
Letters of Credit.  The Trustee shall
deposit into, or cause the deposit of, the proceeds of any draw on the Series
2003-3 Letters of Credit and the proceeds of any withdrawal from the Series
2003-3 Cash Collateral Account to be deposited in the Series 2003-3
Distribution Account.

 

(iii)          Reserve
Account Withdrawal.  If the Series 2003-3 Letter of Credit Amount
will be less than the Principal Deficit Amount on any Distribution Date, then,
prior to 12:00 noon (New York City time) on the second Business Day prior to
such Distribution Date, the Administrator shall instruct the Trustee in writing
to withdraw from the Series 2003-3 Reserve Account, an amount equal to the
lesser of (x) the Series 2003-3 Available Reserve Account Amount and (y) the
amount by which the Principal Deficit Amount exceeds the amounts to be
deposited in the Series 2003-3 Distribution Account in accordance with clauses
(i) and (ii) of this Section 2.5(d) and deposit it in the Series 2003-3
Distribution Account on such Distribution Date.

 

(iv)          Demand on Surety Bond. 
If the sum of the Series 2003-3 Letter of Credit Amount and the Series
2003-3 Available Reserve Account Amount will be less than the Principal Deficit
Amount on any Distribution Date, then the Trustee shall make a demand on the
Surety Bond by 12:00 noon (New York City time) on the second Business Day
preceding such Distribution Date in an amount equal to the Insured Principal
Deficit Amount and shall cause the proceeds thereof to be deposited in the
Series 2003-3 Distribution Account.

 

(e)           Distribution.  On each
Distribution Date occurring on or after the date a withdrawal is made from the
Series 2003-3 Collection Account pursuant to Section 2.5(a) or amounts are
deposited in the Series 2003-3 Distribution Account pursuant to Section 2.5(b),
(c) or (d) the Paying Agent shall, in accordance with Section 6.1 of the Base
Indenture, pay pro  rata to each Class A-1 Noteholder, Class A-2
Noteholder or Class A-3 Noteholder, as applicable, from the Series 2003-3
Distribution Account the amount deposited therein pursuant to Section 2.5(a),
(b), (c) or (d), to the extent necessary to pay the Class A-1 Controlled
Amortization Amount and the Class A-2 Controlled Amortization Amount or the
Class A-3 Controlled

 

33

 

Amortization Amount during the Three-Year Notes
Controlled Amortization Period or the Class A-3 Controlled Amortization Period,
as the case may be, or to the extent necessary to pay the Class A-1 Invested
Amount, the Class A-2 Invested Amount and the Class A-3 Invested Amount during
the Series 2003-3 Rapid Amortization Period.

 

Section 2.6  Administrator’s
Failure to Instruct the Trustee to Make a Deposit or Payment.  If the Administrator fails to give notice or
instructions to make any payment from or deposit into the Collection Account
required to be given by the Administrator, at the time specified in the
Administration Agreement or any other Related Document (including applicable
grace periods), the Trustee shall make such payment or deposit into or from the
Collection Account without such notice or instruction from the Administrator, provided
that the Administrator, upon request of the Trustee, promptly provides the
Trustee with all information necessary to allow the Trustee to make such a
payment or deposit.  When any payment or
deposit hereunder or under any other Related Document is required to be made by
the Trustee or the Paying Agent at or prior to a specified time, the
Administrator shall deliver any applicable written instructions with respect
thereto reasonably in advance of such specified time.

 

Section 2.7  Series-2003-3
Reserve Account.  (a)  Establishment of Series 2003-3 Reserve Account.  AFC-II shall establish and maintain in the
name of the Series 2003-3 Agent for the benefit of the Series 2003-3
Noteholders and the Surety Provider, or cause to be established and maintained,
an account (the “Series 2003-3 Reserve Account”), bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of
the Series 2003-3 Noteholders and the Surety Provider.  The Series 2003-3 Reserve Account shall be
maintained (i) with a Qualified Institution, or (ii) as a segregated trust
account with the corporate trust department of a depository institution or
trust company having corporate trust powers and acting as trustee for funds
deposited in the Series 2003-3 Reserve Account; provided that, if at any
time such Qualified Institution is no longer a Qualified Institution or the
credit rating of any securities issued by such depositary institution or trust
company shall be reduced to below “BBB-” by Standard & Poor’s or “Baa2” by
Moody’s, then AFC-II shall, within 30 days of such reduction, establish a new
Series 2003-3 Reserve Account with a new Qualified Institution.  If the Series 2003-3 Reserve Account is not
maintained in accordance with the previous sentence, AFC-II shall establish a
new Series 2003-3 Reserve Account, within ten (10) Business Days after
obtaining knowledge of such fact, which complies with such sentence, and shall
instruct the Series 2003-3 Agent in writing to transfer all cash and
investments from the non-qualifying Series 2003-3 Reserve Account into the new
Series 2003-3 Reserve Account. 
Initially, the Series 2003-3 Reserve Account will be established with
The Bank of New York.

 

(b)           Administration
of the Series 2003-3 Reserve Account. 
The Administrator may instruct the institution maintaining the Series
2003-3 Reserve Account to invest funds on deposit in the Series 2003-3 Reserve
Account from time to time in Permitted Investments; provided, however,
that any such investment shall mature not later than the Business Day prior to
the Distribution Date following the date on which such funds were received,
unless any Permitted Investment held in the Series 2003-3 Reserve Account is
held with the Paying Agent, then such investment may mature on such
Distribution Date and such funds shall be available for withdrawal on or prior
to such Distribution Date.  All such
Permitted Investments will be credited to the Series 2003-3 Reserve Account and
any such Permitted Investments that constitute (i) physical property (and
that is not either a United States security entitlement or a security

 

34

 

entitlement) shall be physically delivered to the Trustee;
(ii) United States security entitlements or security entitlements shall be
controlled (as defined in Section 8-106 of the New York UCC) by the
Trustee pending maturity or disposition, and (iii) uncertificated
securities (and not United States security entitlements) shall be delivered to
the Trustee by causing the Trustee to become the registered holder of such
securities.

 

(c)           Earnings from Series 2003-3 Reserve Account. 
All interest and earnings (net of losses and investment expenses) paid
on funds on deposit in the Series 2003-3 Reserve Account shall be deemed to be
on deposit therein and available for distribution.

 

(d)           Series 2003-3 Reserve Account Constitutes Additional
Collateral for Series 2003-3 Notes.  In order to
secure and provide for the repayment and payment of the AFC-II Obligations with
respect to the Series 2003-3 Notes, AFC-II hereby grants a security interest in
and assigns, pledges, grants, transfers and sets over to the Series 2003-3
Agent, for the benefit of the Series 2003-3 Noteholders and the Surety
Provider, all of AFC-II’s right, title and interest in and to the following
(whether now or hereafter existing or acquired):  (i) the Series 2003-3 Reserve Account, including any security
entitlement thereto; (ii) all funds on deposit therein from time to time; (iii)
all certificates and instruments, if any, representing or evidencing any or all
of the Series 2003-3 Reserve Account or the funds on deposit therein from time
to time; (iv) all investments made at any time and from time to time with
monies in the Series 2003-3 Reserve Account, whether constituting securities,
instruments, general intangibles, investment property, financial assets or
other property; (v) all interest, dividends, cash, instruments and other
property from time to time received, receivable or otherwise distributed in
respect of or in exchange for the Series 2003-3 Reserve Account, the funds on
deposit therein from time to time or the investments made with such funds; and
(vi) all proceeds of any and all of the foregoing, including, without
limitation, cash (the items in the foregoing clauses (i) through (vi) are
referred to, collectively, as the “Series 2003-3 Reserve Account Collateral”).  The Series 2003-3 Agent shall possess all
right, title and interest in and to all funds on deposit from time to time in
the Series 2003-3 Reserve Account and in all proceeds thereof, and shall be the
only person authorized to originate entitlement orders in respect of the Series
2003-3 Reserve Account.  The Series
2003-3 Reserve Account Collateral shall be under the sole dominion and control
of the Series 2003-3 Agent for the benefit of the Series 2003-3 Noteholders and
the Surety Provider.  The Series 2003-3
Agent hereby agrees (i) to act as the securities intermediary (as defined in
Section 8-102(a)(14) of the New York UCC) with respect to the Series 2003-3
Reserve Account; (ii) that each item of property (whether investment property,
financial asset, security, instrument or cash) credited to the Series 2003-3
Reserve Account shall be treated as a financial asset (as defined in Section
8-102(a)(9) of the New York UCC) and (iii) to comply with any entitlement
order (as defined in Section 8-102(a)(8) of the New York UCC) issued by
the Trustee.

 

(e)           Series 2003-3 Reserve Account Surplus. 
In the event that the Series 2003-3 Reserve Account Surplus on any
Distribution Date, after giving effect to all withdrawals from the Series
2003-3 Reserve Account, is greater than zero, if no Series 2003-3 Enhancement
Deficiency or AESOP I Operating Lease Vehicle Deficiency would result therefrom
or exist thereafter, the Trustee, acting in accordance with the written instructions
of the Administrator (with a copy of such written instructions to be provided
by the Administrator to the Surety Provider) pursuant to the Administration
Agreement, shall withdraw from the Series 2003-3

 

35

 

Reserve Account an amount equal to the Series 2003-3
Reserve Account Surplus and shall pay such amount to AFC-II.

 

(f)            Termination of Series 2003-3 Reserve Account. 
Upon the termination of the Indenture pursuant to Section 11.1 of the
Base Indenture, the Trustee, acting in accordance with the written instructions
of the Administrator, after the prior payment of all amounts owing to the
Series 2003-3 Noteholders and to the Surety Provider and payable from the
Series 2003-3 Reserve Account as provided herein, shall withdraw from the
Series 2003-3 Reserve Account all amounts on deposit therein for payment to
AFC-II.

 

Section 2.8  Series
2003-3 Letters of Credit and Series 2003-3 Cash Collateral Account.  (a)  Series
2003-3 Letters of Credit and Series 2003-3 Cash Collateral Account Constitute
Additional Collateral for Series 2003-3 Notes. 
In order to secure and provide for the repayment and payment of the
AFC-II Obligations with respect to the Series 2003-3 Notes, AFC-II hereby
grants a security interest in and assigns, pledges, grants, transfers and sets
over to the Trustee, for the benefit of the Series 2003-3 Noteholders and the
Surety Provider, all of AFC-II’s right, title and interest in and to the
following (whether now or hereafter existing or acquired): (i) each Series
2003-3 Letter of Credit; (ii) the Series 2003-3 Cash Collateral Account,
including any security entitlement thereto; (iii) all funds on deposit in
the Series 2003-3 Cash Collateral Account from time to time; (iv) all
certificates and instruments, if any, representing or evidencing any or all of
the Series 2003-3 Cash Collateral Account or the funds on deposit therein from
time to time; (v) all investments made at any time and from time to time
with monies in the Series 2003-3 Cash Collateral Account, whether constituting
securities, instruments, general intangibles, investment property, financial
assets or other property; (vi) all interest, dividends, cash, instruments
and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for the Series 2003-3 Cash Collateral
Account, the funds on deposit therein from time to time or the investments made
with such funds; and (vii) all proceeds of any and all of the foregoing,
including, without limitation, cash (the items in the foregoing clauses (ii)
through (vii) are referred to, collectively, as the “Series 2003-3 Cash
Collateral Account Collateral”). 
The Trustee shall, for the benefit of the Series 2003-3 Noteholders and
the Surety Provider, possess all right, title and interest in all funds on
deposit from time to time in the Series 2003-3 Cash Collateral Account and in  all
proceeds thereof, and shall be the only person authorized to originate
entitlement orders in  respect of the Series 2003-3 Cash
Collateral Account.  The Series 2003-3
Cash Collateral Account shall be under the sole dominion and control of the
Trustee for the benefit of the Series 2003-3 Noteholders and the Surety
Provider.  The Series 2003-3 Agent
hereby agrees (i) to act as the securities intermediary (as defined in Section
8-102(a)(14) of the New York UCC) with respect to the Series 2003-3 Cash
Collateral Account; (ii) that each item of property (whether investment
property, financial asset, security, instrument or cash) credited to the Series
2003-3 Cash Collateral Account shall be treated as a financial asset (as
defined in Section 8-102(a)(9) of the New York UCC) and (iii) to comply
with any entitlement order (as defined in Section 8-102(a)(8) of the New York
UCC) issued by the Trustee.

 

(b)           Series
2003-3 Letter of Credit Expiration Date. 
If prior to the date which is ten (10) days prior to the then scheduled
Series 2003-3 Letter of Credit Expiration Date with respect to any Series
2003-3 Letter of Credit, excluding the amount available to be drawn under such
Series 2003-3 Letter of Credit but taking into account each substitute Series
2003-3 Letter

 

36

 

of Credit which has been obtained from a Series 2003-3 Eligible Letter
of Credit Provider and is in full force and effect on such date, the Series
2003-3 Enhancement Amount would be equal to or more than the Series 2003-3
Required Enhancement Amount and the Series 2003-3 Liquidity Amount would be
equal to or greater than the Series 2003-3 Required Liquidity Amount, then the
Administrator shall notify the Trustee and the Surety Provider (with the Surety
Provider to be provided supporting calculations in reasonable detail) in
writing no later than two Business Days prior to such Series 2003-3 Letter of
Credit Expiration Date of such determination. 
If prior to the date which is ten (10) days prior to the then scheduled
Series 2003-3 Letter of Credit Expiration Date with respect to any Series
2003-3 Letter of Credit, excluding the amount available to be drawn under such
Series 2003-3 Letter of Credit but taking into account a substitute Series
2003-3 Letter of Credit which has been obtained from a Series 2003-3 Eligible
Letter of Credit Provider and is in full force and effect on such date, the
Series 2003-3 Enhancement Amount would be less than the Series 2003-3 Required
Enhancement Amount or the Series 2003-3 Liquidity Amount would be less than the
Series 2003-3 Required Liquidity Amount, then the Administrator shall notify the
Trustee and the Surety Provider (with the Surety Provider to be provided
supporting calculations in reasonable detail) in writing no later than two
Business Days prior to such Series 2003-3 Letter of Credit Expiration Date of
(x) the greater of (A) the excess, if any, of the Series 2003-3 Required
Enhancement Amount over the Series 2003-3 Enhancement Amount, excluding the
available amount under such expiring Series 2003-3 Letter of Credit but taking
into account any substitute Series 2003-3 Letter of Credit which has been
obtained from a Series 2003-3 Eligible Letter of Credit Provider and is in full
force and effect, on such date, and (B) the excess, if any, of the Series
2003-3 Required Liquidity Amount over the Series 2003-3 Liquidity Amount,
excluding the available amount under such expiring Series 2003-3 Letter of
Credit but taking into account any substitute Series 2003-3 Letter of Credit
which has been obtained from a Series 2003-3 Eligible Letter of Credit Provider
and is in full force and effect, on such date, and (y) the amount available to
be drawn on such expiring Series 2003-3 Letter of Credit on such date.  Upon receipt of such notice by the Trustee
on or prior to 10:00 a.m. (New York City time) on any Business Day, the Trustee
shall, by 12:00 p.m. (New York City time) on such Business Day (or, in the case
of any notice given to the Trustee after 10:00 a.m. (New York City time), by
12:00 p.m. (New York City time) on the next following Business Day), draw the
lesser of the amounts set forth in clauses (x) and (y) above on such expiring
Series 2003-3 Letter of Credit by presenting a draft (with a copy to the Surety
Provider) accompanied by a Certificate of Termination Demand and shall cause
the Termination Disbursement to be deposited in the Series 2003-3 Cash
Collateral Account.

 

If the Trustee does not receive the notice from the
Administrator described in the first paragraph of this Section 2.8(b) on or
prior to the date that is two Business Days prior to each Series 2003-3 Letter
of Credit Expiration Date, the Trustee shall, by 12:00 p.m. (New York City
time) on such Business Day draw the full amount of such Series 2003-3 Letter of
Credit by presenting a draft accompanied by a Certificate of Termination Demand
and shall cause the Termination Disbursement to be deposited in the Series
2003-3 Cash Collateral Account.

 

(c)           Series
2003-3 Letter of Credit Providers. 
The Administrator shall notify the Trustee and the Surety Provider in
writing within one Business Day of becoming aware that (i) the long-term senior
unsecured debt credit rating of any Series 2003-3 Letter of Credit Provider has
fallen below “A+” as determined by Standard & Poor’s or “Al” as determined
by Moody’s or (ii) the short-term senior unsecured debt credit rating of any
Series 2003-3 Letter of

 

37

 

Credit Provider has fallen below “A-1” as determined by Standard &
Poor’s or “P-1” as determined by Moody’s. 
At such time the Administrator shall also notify the Trustee of
(i) the greater of (A) the excess, if any, of the Series 2003-3 Required
Enhancement Amount over the Series 2003-3 Enhancement Amount, excluding the
available amount under the Series 2003-3 Letter of Credit issued by such Series
2003-3 Letter of Credit Provider, on such date, and (B) the excess, if any, of
the Series 2003-3 Required Liquidity Amount over the Series 2003-3 Liquidity
Amount, excluding the available amount under such Series 2003-3 Letter of
Credit, on such date, and (ii) the amount available to be drawn on such
Series 2003-3 Letter of Credit on such date. 
Upon receipt of such notice by the Trustee on or prior to 10:00 a.m.
(New York City time) on any Business Day, the Trustee shall, by 12:00 p.m. (New
York City time) on such Business Day (or, in the case of any notice given to
the Trustee after 10:00 a.m. (New York City time), by 12:00 p.m. (New York City
time) on the next following Business Day), draw on such Series 2003-3 Letter of
Credit in an amount equal to the lesser of the amounts in clause (i) and clause
(ii) of the immediately preceding sentence on such Business Day by
presenting a draft accompanied by a Certificate of Termination Demand and shall
cause the Termination Disbursement to be deposited in the Series 2003-3 Cash
Collateral Account.

 

(d)           Termination
Date Demands on the Series 2003-3 Letters of Credit.  Prior to 10:00 a.m. (New York City time) on
the Business Day immediately succeeding the Series 2003-3 Letter of Credit
Termination Date, the Administrator shall determine the Series 2003-3 Demand
Note Payment Amount, if any, as of the Series 2003-3 Letter of Credit
Termination Date and, if the Series 2003-3 Demand Note Payment Amount is
greater than zero, instruct the Trustee in writing to draw on the Series 2003-3
Letters of Credit.  Upon receipt of any
such notice by the Trustee on or prior to 11:00 a.m. (New York City time) on a
Business Day, the Trustee shall, by 12:00 noon (New York City time) on such
Business Day draw an amount equal to the lesser of (i) the Series 2003-3
Demand Note Payment Amount and (ii) the Series 2003-3 Letter of Credit
Liquidity Amount on the Series 2003-3 Letters of Credit by presenting to each
Series 2003-3 Letter of Credit Provider (with a copy to the Surety Provider) a
draft accompanied by a Certificate of Termination Date Demand and shall cause
the Termination Date Disbursement to be deposited in the Series 2003-3 Cash
Collateral Account; provided, however, that if the Series 2003-3
Cash Collateral Account has been established and funded, the Trustee shall draw
an amount equal to the product of (a) 100% minus the Series 2003-3 Cash
Collateral Percentage and (b) the lesser of the amounts referred to in clause
(i) and (ii) on such Business Day on the Series 2003-3 Letters of Credit as
calculated by the Administrator and provided in writing to the Trustee and the
Surety Provider.

 

(e)           Draws
on the Series 2003-3 Letters of Credit. 
If there is more than one Series 2003-3 Letter of Credit on the date of
any draw on the Series 2003-3 Letters of Credit pursuant to the terms of this
Supplement, the Administrator shall instruct the Trustee, in writing, to draw
on each Series 2003-3 Letter of Credit in an amount equal to the Pro Rata Share
of the Series 2003-3 Letter of Credit Provider issuing such Series 2003-3
Letter of Credit of the amount of such draw on the Series 2003-3 Letters of
Credit.

 

(f)            Establishment
of Series 2003-3 Cash Collateral Account. 
On or prior to the date of any drawing under a Series 2003-3 Letter of
Credit pursuant to Section 2.8(b), (c) or (d) above, AFC-II shall
establish and maintain in the name of the Trustee for the benefit of the Series
2003-3 Noteholders and the Surety Provider, or cause to be established and
maintained, an

 

38

 

account (the “Series 2003-3 Cash Collateral Account”), bearing a
designation clearly indicating that the funds deposited therein are held for
the benefit of the Series 2003-3 Noteholders and the Surety Provider.  The Series 2003-3 Cash Collateral Account
shall be maintained (i) with a Qualified Institution, or (ii) as a
segregated trust account with the corporate trust department of a depository
institution or trust company having corporate trust powers and acting as
trustee for funds deposited in the Series 2003-3 Cash Collateral Account; provided,
however, that if at any time such Qualified Institution is no longer a
Qualified Institution or the credit rating of any securities issued by such
depository institution or trust company shall be reduced to below “BBB-” by
Standard & Poor’s or “Baa3” by Moody’s, then AFC-II shall, within 30 days
of such reduction, establish a new Series 2003-3 Cash Collateral Account with a
new Qualified Institution or a new segregated trust account with the corporate
trust department of a depository institution or trust company having corporate
trust powers and acting as trustee for funds deposited in the Series 2003-3
Cash Collateral Account.  If a new
Series 2003-3 Cash Collateral Account is established, AFC-II shall instruct the
Trustee in writing to transfer all cash and investments from the non-qualifying
Series 2003-3 Cash Collateral Account into the new Series 2003-3 Cash
Collateral Account.

 

(g)           Administration
of the Series 2003-3 Cash Collateral Account.  AFC-II may instruct (by standing instructions or otherwise) the
institution maintaining the Series 2003-3 Cash Collateral Account to invest
funds on deposit in the Series 2003-3 Cash Collateral Account from time to time
in Permitted Investments; provided, however, that any such
investment shall mature not later than the Business Day prior to the
Distribution Date following the date on which such funds were received, unless
any Permitted Investment held in the Series 2003-3 Cash Collateral Account is
held with the Paying Agent, in  which case such investment may mature on
such Distribution Date so long as such funds shall be available for withdrawal
on or prior to such Distribution Date. 
All such Permitted Investments will be credited to the Series 2003-3
Cash Collateral Account and any such Permitted Investments that constitute
(i) physical property (and that is not either a United States security
entitlement or a security entitlement) shall be physically delivered to the
Trustee; (ii) United States security entitlements or security entitlements
shall be controlled (as defined in Section 8-106 of the New York UCC) by the
Trustee pending maturity or disposition, and (iii) uncertificated
securities (and not United States security entitlements) shall be delivered to
the Trustee by causing the Trustee to become the registered holder of such
securities.  The Trustee shall, at the
expense of AFC-II, take such action as is required to maintain the Trustee’s
security interest in the Permitted Investments credited to the Series 2003-3
Cash Collateral Account.  AFC-II shall
not direct the Trustee to dispose of (or permit the disposal of) any Permitted
Investments prior to the maturity thereof to the extent such disposal would
result ina loss of principal of such Permitted Investment.  In the absence of written investment
instructions hereunder, funds on deposit in the Series 2003-3 Cash Collateral
Account shall remain uninvested.

 

(h)           Earnings
from Series 2003-3 Cash Collateral Account.  All interest and earnings (net of losses and investment expenses)
paid on funds on deposit in the Series 2003-3 Cash Collateral Account shall be
deemed to be on deposit therein and available for distribution.

 

(i)            Series
2003-3 Cash Collateral Account Surplus. 
In the event that the Series 2003-3 Cash Collateral Account Surplus on
any Distribution Date (or, after the Series 2003-3 Letter of Credit Termination
Date, on any date) is greater than zero, the Trustee, acting in

 

39

 

accordance with the written instructions (a copy of which shall be
provided by the Administrator to the Surety Provider) of the Administrator,
shall withdraw from the Series 2003-3 Cash Collateral Account an amount equal
to the Series 2003-3 Cash Collateral Account Surplus and shall pay such amount:  first, to the Series 2003-3 Letter of
Credit Providers to the extent of any unreimbursed drawings under the related
Series 2003-3 Reimbursement Agreement, for application in accordance with the
provisions of the related Series 2003-3 Reimbursement Agreement, and, second,
to AFC-II any remaining amount.

 

(j)            Post-Series
2003-3 Letter of Credit Termination Date Withdrawals from the Series 2003-3
Cash Collateral Account.  If the
Surety Provider notifies the Trustee in writing that the Surety Provider shall
have paid a Preference Amount (as defined in the Surety Bond) under the Surety
Bond, subject to the satisfaction of the conditions set forth in the next
succeeding sentence, the Trustee shall withdraw from the Series 2003-3 Cash
Collateral Account and pay to the Surety Provider an amount equal to the lesser
of (i) the Series 2003-3 Available Cash Collateral Account Amount on such
date and (ii) such Preference Amount. 
Prior to any withdrawal from the Series 2003-3 Cash Collateral Account
pursuant to this Section 2.8(j), the Trustee shall have received a
certified copy of the order requiring the return of such Preference Amount.

 

(k)           Termination
of Series 2003-3 Cash Collateral Account. 
Upon the termination of this Supplement in accordance with its terms,
the Trustee, acting in accordance with the written instructions of the
Administrator, after the prior payment of all amounts owing to the Series
2003-3 Noteholders and to the Surety Provider and payable from the Series
2003-3 Cash Collateral Account as provided herein, shall withdraw from the
Series 2003-3 Cash Collateral Account all amounts on deposit therein (to the
extent not withdrawn pursuant to Section 2.8(i) above) and shall pay such
amounts:  first, to the Series
2003-3 Letter of Credit Providers to the extent of any unreimbursed drawings
under the related Series 2003-3 Reimbursement Agreement, for application in
accordance with the provisions of the related Series 2003-3 Reimbursement
Agreement, and, second, to AFC-II any remaining amount.

 

Section 2.9  Series
2003-3 Distribution Account  
(a)   Establishment of Series
2003-3 Distribution Account.  The
Trustee shall establish and maintain in the name of the Series 2003-3 Agent for
the benefit of the Series 2003-3 Noteholders and the Surety Provider, or cause to
be established and maintained, an account (the “Series 2003-3 Distribution
Account”), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Series 2003-3 Noteholders and
the Surety Provider.  The Series 2003-3
Distribution Account shall be maintained (i) with a Qualified Institution, or
(ii) as a segregated trust account with the corporate trust department of a
depository institution or trust company having corporate trust powers and
acting as trustee for funds deposited in the Series 2003-3 Distribution
Account; provided, however, that if at any time such Qualified
Institution is no longer a Qualified Institution or the credit rating of any
securities issued by such depositary institution or trust company shall be
reduced to below “BBB-” by Standard & Poor’s or “Baa3” by Moody’s, then
AFC-II shall, within 30 days of such reduction, establish a new Series 2003-3
Distribution Account with a new Qualified Institution.  If the Series 2003-3 Distribution Account is
not maintained in accordance with the previous sentence, AFC-II shall establish
a new Series 2003-3 Distribution Account, within ten (10) Business Days after
obtaining knowledge of such fact, which complies with such sentence, and shall
instruct the Series 2003-3 Agent in writing to

 

40

 

transfer all cash and investments from the non-qualifying
Series 2003-3 Distribution Account into the new Series 2003-3 Distribution
Account.  Initially, the Series 2003-3
Distribution Account will be established with The Bank of New York.

 

(b)           Administration of the Series 2003-3 Distribution
Account.  The Administrator may instruct the
institution maintaining the Series 2003-3 Distribution Account to invest funds
on deposit in the Series 2003-3 Distribution Account from time to time in
Permitted Investments; provided, however, that any such
investment shall mature not later than the Business Day prior to the
Distribution Date following the date on which such funds were received, unless
any Permitted Investment held in the Series 2003-3 Distribution Account is held
with the Paying Agent, then such investment may mature on such Distribution
Date and such funds shall be available for withdrawal on or prior to such
Distribution Date.  All such Permitted
Investments will be credited to the Series 2003-3 Distribution Account and any
such Permitted Investments that constitute (i) physical property (and that
is not either a United States security entitlement or a security entitlement)
shall be physically delivered to the Trustee; (ii) United States security
entitlements or security entitlements shall be controlled (as defined in
Section 8-106 of the New York UCC) by the Trustee pending maturity or
disposition, and (iii) uncertificated securities (and not United States
security entitlements) shall be delivered to the Trustee by causing the Trustee
to become the registered holder of such securities.

 

(c)           Earnings from Series 2003-3 Distribution Account. 
All interest and earnings (net of losses and investment expenses) paid
on funds on deposit in the Series 2003-3 Distribution Account shall be deemed
to be on deposit and available for distribution.

 

(d)           Series 2003-3 Distribution Account Constitutes
Additional Collateral for Series 2003-3 Notes.  In order to
secure and provide for the repayment and payment of the AFC-II Obligations with
respect to the Series 2003-3 Notes, AFC-II hereby grants a security interest in
and assigns, pledges, grants, transfers and sets over to the Series 2003-3
Agent, for the benefit of the Series 2003-3 Noteholders and the Surety
Provider, all of AFC-II’s right, title and interest in and to the following
(whether now or hereafter existing or acquired):  (i) the Series 2003-3 Distribution Account, including any
security entitlement thereto; (ii) all funds on deposit therein from time to
time; (iii) all certificates and instruments, if any, representing or
evidencing any or all of the Series 2003-3 Distribution Account or the funds on
deposit therein from time to time; (iv) all investments made at any time and
from time to time with monies in the Series 2003-3 Distribution Account,
whether constituting securities, instruments, general intangibles, investment
property, financial assets or other property; (v) all interest, dividends,
cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for the Series 2003-3
Distribution Account, the funds on deposit therein from time to time or the
investments made with such funds; and (vi) all proceeds of any and all of the
foregoing, including, without limitation, cash (the items in the foregoing
clauses (i) through (vi) are referred to, collectively, as the “Series
2003-3 Distribution Account Collateral”). 
The Series 2003-3 Agent shall possess all right, title and interest in
all funds on deposit from time to time in the Series 2003-3 Distribution
Account and in and to all proceeds thereof, and shall be the only person
authorized to originate entitlement orders in respect of the Series 2003-3
Distribution Account.  The Series 2003-3
Distribution Account Collateral shall be under the sole dominion and control of
the Series 2003-3 Agent for the benefit of the Series 2003-3 Noteholders and
the Surety Provider.  The Series 2003-3
Agent hereby agrees (i) to act as the securities intermediary

 

41

 

(as defined in Section 8-102(a)(14) of the
New York UCC) with respect to the Series 2003-3 Distribution Account;
(ii) that each item of property (whether investment property, financial
asset, security, instrument or cash) credited to the Series 2003-3 Distribution
Account shall be treated as a financial asset (as defined in Section
8-102(a)(9) of the New York UCC) and (iii) to comply with any entitlement
order (as defined in Section 8-102(a)(8) of the New York UCC) issued by
the Trustee.

 

Section 2.10  Series
2003-3 Interest Rate Swap.  (a)  On the Series 2003-3 Closing Date, AFC-II
shall acquire one or more interest rate swaps acceptable to the Surety Provider
(each a “Series 2003-3 Interest Rate Swap”) from a Qualified Interest
Rate Swap Counterparty.  The aggregate
initial notional amount of all Series 2003-3 Interest Rate Swaps shall equal
the Class A-2 Initial Invested Amount and the aggregate notional amount of all
Series 2003-3 Interest Rate Swaps shall be reduced pursuant to the related
Series 2003-3 Interest Rate Swaps but shall not at any time be less than
the Class A-2 Invested Amount.  The
fixed rate of each Series 2003-3 Interest Rate Swap shall not be greater than
2.4225%.

 

(b)           Replacement
of Series 2003-3 Interest Rate Swap. 
If, at any time, an Interest Rate Swap Counterparty is not a Qualified
Interest Rate Swap Counterparty, then AFC-II will cause the Interest Rate Swap
Counterparty within 30 days following such occurrence, at the Interest Rate
Swap Counterparty’s expense, to do either of the following (i) obtain a
replacement interest rate swap on the same terms as the Series 2003-3 Interest
Rate Swap from a Qualified Interest Rate Swap Counterparty and simultaneously
with such replacement, AFC-II shall terminate the Series 2003-3 Interest Rate
Swap being replaced or (ii) enter into any arrangement satisfactory to Standard
& Poor’s, Moody’s and the Surety Provider, which is sufficient to maintain
or restore the immediately prior Shadow Rating; provided, however,
that no termination of the Series 2003-3 Interest Rate Swap shall occur until
AFC-II has entered into a replacement Series 2003-3 Interest Rate Swap.

 

Each Series 2003-3 Interest Rate Swap must provide
that if the Interest Rate Swap Counterparty is required to take any of the
actions described in clauses (i) or (ii) of the preceding sentence and such
action is not taken within 30 days, then the Interest Rate Swap Counterparty
must, until a replacement Series 2003-3 Interest Rate Swap is executed and in
effect, collateralize its obligations under such Series 2003-3 Interest Rate
Swap in an amount equal to the greatest of (i) the marked to market value of such
Series 2003-3 Interest Rate Swap, (ii) the next payment due from the Interest
Rate Swap Counterparty and (iii) 1% of the notional amount of such Series
2003-3 Interest Rate Swap.

 

(c)           To
secure payment of all AFC-II Obligations with respect to the Series 2003-3
Notes, AFC-II grants a security interest in, and assigns, pledges, grants,
transfers and sets over to the Series 2003-3 Agent, for the benefit of the
Series 2003-3 Noteholders and the Surety Provider, all of AFC-II’s right, title
and interest in the Series 2003-3 Interest Rate Swaps and all proceeds thereof
(the “Series 2003-3 Interest Rate Swap Collateral”).  AFC-II shall require all Series 2003-3
Interest Rate Swap Proceeds to be paid to, and the Trustee shall allocate all
Series 2003-3 Interest Rate Swap Proceeds to, the Series 2003-3 Accrued
Interest Account of the Series 2003-3 Collection Account.

 

42

 

Section 2.11  Series
2003-3 Accounts Permitted Investments. 
AFC-II shall not, and shall not permit, funds on deposit in the Series
2003-3 Accounts to be invested in:

 

(i)            Permitted Investments that do not mature at least one
Business Day before the next Distribution Date;

 

(ii)           demand deposits, time deposits or certificates of
deposit with a maturity in excess of 360 days;

 

(iii)          commercial paper which is not rated “P-1” by Moody’s;

 

(iv)          money market funds or eurodollar time deposits which
are not rated at least “AAA” by Standard & Poor’s;

 

(v)           eurodollar deposits that are not rated “P-1” by Moody’s
or that are with financial institutions not organized under the laws of a G-7
nation; or

 

(vi)          any investment, instrument or security not otherwise
listed in clause (i) through (vi) of the definition of “Permitted Investments”
in the Base Indenture that is not approved in writing by the Surety Provider.

 

Section 2.12  Series
2003-3 Demand Notes Constitute Additional Collateral for Series 2003-3 Notes.

 

In
order to secure and provide for the repayment and payment of the AFC-II
Obligations with respect to the Series 2003-3 Notes, AFC-II hereby grants a
security interest in and assigns, pledges, grants, transfers and sets over to
the Trustee, for the benefit of the Series 2003-3 Noteholders and the Surety
Provider, all of AFC-II’s right, title and interest in and to the following
(whether now or hereafter existing or acquired): (i) the Series 2003-3
Demand Notes; (ii) all certificates and instruments, if any, representing
or evidencing the Series 2003-3 Demand Notes; and (iii) all proceeds of
any and all of the foregoing, including, without limitation, cash.  On the date hereof, AFC-II shall deliver to
the Trustee, for the benefit of the Series 2003-3 Noteholders and the Surety
Provider, each Series 2003-3 Demand Note, endorsed in blank.  The Trustee, for the benefit of the Series
2003-3 Noteholders and the Surety Provider, shall be the only Person authorized
to make a demand for payments on the Series 2003-3 Demand Notes.

 

ARTICLE III

 

AMORTIZATION
EVENTS

 

In
addition to the Amortization Events set forth in Section 9.1 of the Base
Indenture, any of the following shall be an Amortization Event with respect to
the Series 2003-3 Notes and collectively shall constitute the Amortization
Events set forth in Section 9.1(n) of the Base Indenture with respect to the Series
2003-3 Notes (without notice or other action on the part of the Trustee or any
holders of the Series 2003-3 Notes):

 

43

 

(a)           a Series 2003-3 Enhancement Deficiency shall occur and
continue for at least two (2) Business Days; provided, however,
that such event or condition shall not be an Amortization Event if during such
two (2) Business Day period such Series 2003-3 Enhancement Deficiency shall
have been cured in accordance with the terms and conditions of the Indenture
and the Related Documents;

 

(b)           the Series 2003-3 Liquidity Amount shall be less than
the Series 2003-3 Required Liquidity Amount for at least two (2) Business Days;
provided, however, that such event or condition shall not be an
Amortization Event if during such two (2) Business Day period such
insufficiency shall have been cured in accordance with the terms and conditions
of the Indenture and the Related Documents;

 

(c)           the Collection Account, the Series 2003-3 Collection
Account, the Series 2003-3 Excess Collection Account or the Series 2003-3
Reserve Account shall be subject to an injunction, estoppel or other stay or a
Lien (other than Liens permitted under the Related Documents);

 

(d)           all principal of and interest on the Class A-1 Notes
and the Class A-2 Notes is not paid in full on or before the Three-Year Notes
Expected Final Distribution Date or all principal of and interest on the Class
A-3 Notes is not paid in full on or before the Class A-3 Expected Final
Distribution Date;

 

(e)           the Trustee shall make a demand for payment under the
Surety Bond;

 

(f)            the occurrence of an Event of Bankruptcy with respect
to the Surety Provider;

 

(g)           the Surety Provider fails to pay a demand for payment
in accordance with the requirements of the Surety Bond;

 

(h)           any Series 2003-3
Letter of Credit shall not be in full force and effect for at least two (2)
Business Days and (x) either a Series 2003-3 Enhancement Deficiency would
result from excluding such Series 2003-3 Letter of Credit from the Series 2003-3
Enhancement Amount or (y) the Series 2003-3 Liquidity Amount, excluding
therefrom the available amount under such Series 2003-3 Letter of Credit, would
be less than the Series 2003-3 Required Liquidity Amount;

 

(i)            from and after the
funding of the Series 2003-3 Cash Collateral Account, the Series 2003-3 Cash
Collateral Account shall be subject to an injunction, estoppel or other stay or
a Lien (other than Liens permitted under the Related Documents) for at least
two (2) Business Days and either (x) a Series 2003-3 Enhancement Deficiency
would result from excluding the Series 2003-3 Available Cash Collateral Account
Amount from the Series 2003-3 Enhancement Amount or (y) the Series 2003-3
Liquidity Amount, excluding therefrom the Series 2003-3 Available Cash
Collateral Amount, would be less than the Series 2003-3 Required Liquidity
Amount; and

 

(j)            an Event of Bankruptcy
shall have occurred with respect to any Series 2003-3 Letter of Credit Provider
or any Series 2003-3 Letter of Credit Provider repudiates

 

44

 

its Series 2003-3 Letter of Credit or refuses to honor
a proper draw thereon and either (x) a Series 2003-3 Enhancement Deficiency
would result from excluding such Series 2003-3 Letter of Credit from the Series
2003-3 Enhancement Amount or (y) the Series 2003-3 Liquidity Amount, excluding
therefrom the available amount under such Series 2003-3 Letter of Credit, would
be less than the Series 2003-3 Required Liquidity Amount.

 

ARTICLE IV

 

RIGHT TO
WAIVE PURCHASE RESTRICTIONS

 

Notwithstanding
any provision to the contrary in the Indenture or the Related Documents, upon
the Trustee’s receipt of notice from any Lessee, any Borrower or AFC-II (i) to
the effect that a Manufacturer Program is no longer an Eligible Manufacturer
Program and that, as a result, the Series 2003-3 Maximum Non-Program Vehicle
Amount is or will be exceeded or (ii) that the Lessees, the Borrowers and
AFC-II have determined to increase any Series 2003-3 Maximum Amount, (such
notice, a “Waiver Request”), each Series 2003-3 Noteholder may, at its
option, waive the Series 2003-3 Maximum Non-Program Vehicle Amount or any other
Series 2003-3 Maximum Amount (collectively, a “Waivable Amount”) if (i)
no Amortization Event exists, (ii) the Requisite Noteholders and the Surety
Provider consent to such waiver and (iii) 60 days’ prior written notice of such
proposed waiver is provided to the Rating Agencies by the Trustee.

 

Upon
receipt by the Trustee of a Waiver Request (a copy of which the Trustee shall
promptly provide to the Rating Agencies), all amounts which would otherwise be
allocated to the Series 2003-3 Excess Collection Account (collectively, the “Designated
Amounts”) from the date the Trustee receives a Waiver Request through the
Consent Period Expiration Date will be held by the Trustee in the Series 2003-3
Collection Account for ratable distribution as described below.

 

Within
ten (10) Business Days after the Trustee receives a Waiver Request, the Trustee
shall furnish notice thereof to the Series 2003-3 Noteholders and the Surety
Provider, which notice shall be accompanied by a form of consent (each a “Consent”)
in the form of Exhibit B hereto by which the Series 2003-3
Noteholders may, on or before the Consent Period Expiration Date, consent to
waiver of the applicable Waivable Amount. 
If the Trustee receives the consent of the Surety Provider and Consents
from the Requisite Noteholders agreeing to waiver of the applicable Waivable
Amount within forty-five (45) days after the Trustee notifies the Series 2003-3
Noteholders of a Waiver Request (the day on which such forty-five (45) day
period expires, the “Consent Period Expiration Date”), (i) the
applicable Waivable Amount shall be deemed waived by the consenting Series
2003-3 Noteholders, (ii) the Trustee will distribute the Designated Amounts as
set forth below and (iii) the Trustee shall promptly (but in any event
within two days) provide the Rating Agency with notice of such waiver.  Any Series 2003-3 Noteholder from whom the
Trustee has not received a Consent on or before the Consent Period Expiration
Date will be deemed not to have consented to such waiver.

 

45

 

If
the Trustee receives Consents from the Requisite Noteholders on or before the
Consent Period Expiration Date, then on the immediately following Distribution
Date, the Trustee will pay the Designated Amounts as follows:

 

(i)            to the non-consenting Series 2003-3 Noteholders, if
any, pro  rata up to the amount required to pay all Series 2003-3
Notes held by such non-consenting Series 2003-3 Noteholders in full; and

 

(ii)           any remaining Designated Amounts to the Series 2003-3
Excess Collection Account.

 

If
the amount paid pursuant to clause (i) of the preceding paragraph is not paid in
full on the date specified therein, then on each day following such
Distribution Date, the Administrator will allocate to the Series 2003-3
Collection Account on a daily basis all Designated Amounts collected on such
day.  On each following Distribution
Date, the Trustee will withdraw a portion of such Designated Amounts from the
Series 2003-3 Collection Account and deposit the same in the Series 2003-3
Distribution Account for distribution as follows:

 

(a)           to the non-consenting Series 2003-3 Noteholders, if
any, pro  rata an amount equal to the Designated Amounts in the
Series 2003-3 Collection Account as of the applicable Determination Date up to
the aggregate outstanding principal balance of the Series 2003-3 Notes held by
the non-consenting Series 2003-3 Noteholders; and

 

(b)           any remaining Designated Amounts to the Series 2003-3
Excess Collection Account.

 

If
the Requisite Noteholders or the Surety Provider do not timely consent to such
waiver, the Designated Amounts will be re-allocated to the Series 2003-3 Excess
Collection Account for allocation and distribution in accordance with the terms
of the Indenture and the Related Documents.

 

In
the event that the Series 2003-3 Rapid Amortization Period shall commence after
receipt by the Trustee of a Waiver Request, all such Designated Amounts will
thereafter be considered Principal Collections allocated to the Series 2003-3
Noteholders.

 

ARTICLE V

 

FORM OF
SERIES 2003-3 NOTES

 

Section 5.1  Restricted
Global Series 2003-3 Notes.  The
Series 2003-3 Notes to be issued in the United States will be issued in
book-entry form and represented by one or more permanent global Notes in fully
registered form without interest coupons (each, a “Restricted Global Class
A-1 Note”, a “Restricted Global Class A-2 Note” or a “Restricted
Global Class A-3 Note”, as the case may be), substantially in the forms set
forth in Exhibit A-1-1, A-2-1 and A-3-1 hereto, with such legends as may
be applicable thereto as set forth in the Base Indenture, and will be sold only
in the United States (1) initially to institutional accredited investors within
the meaning of Regulation D under the Securities Act in reliance on an
exemption from the registration

 

46

 

requirements of the Securities Act and (2) thereafter to qualified
institutional buyers within the meaning of, and in reliance on, Rule 144A under
the Securities Act and shall be deposited on behalf of the purchasers of the
Series 2003-3 Notes represented thereby, with the Trustee as custodian for DTC,
and registered in the name of Cede as DTC’s nominee, duly executed by AFC-II
and authenticated by the Trustee in the manner set forth in Section 2.4 of the
Base Indenture.

 

Section 5.2  Temporary
Global Series 2003-3 Notes; Permanent Global Series 2003-3 Notes.  The Series 2003-3 Notes to be issued outside
the United States will be issued and sold in transactions outside the United
States in reliance on Regulation S under the Securities Act, as provided in the
applicable note purchase agreement, and shall initially be issued in the form
of one or more temporary notes in registered form without interest coupons
(each, a “Temporary Global Class A-1 Note”, a “Temporary Global Class
A-2 Note” or a “Temporary Global Class A-3 Note”, as the case may be),
substantially in the forms set forth in Exhibits A-1-2, A-2-2 and A-3-2
hereto, which shall be deposited on behalf of the purchasers of the Series
2003-3 Notes represented thereby with a custodian for, and registered in the
name of a nominee of DTC, for the account of Euroclear Bank S.A./N.V., as
operator of the Euroclear System (“Euroclear”) or for Clearstream
Banking, société anonyme (“Clearstream”), duly executed by AFC-II and
authenticated by the Trustee in the manner set forth in Section 2.4 of the Base
Indenture.  Interests in a Temporary
Global Class A-1 Note, a Temporary Global Class A-2 Note or a Temporary Global
Class A-3 Note will be exchangeable, in whole or in part, for interests in one
or more permanent global notes in registered form without interest coupons
(each, a “Permanent Global Class A-1 Note”, a “Permanent Global Class
A-2 Note” or a “Permanent Global Class A-3 Note”, as the case may
be), substantially in the form of Exhibits A-1-3, A-2-3 and A-3-3
hereto, in accordance with the provisions of such Temporary Global Class A-1
Note, Temporary Global Class A-2 Note or Temporary Global Class A-3 Note and
the Base Indenture (as modified by this Supplement).  Interests in a Permanent Global Class A-1 Note, a Permanent
Global Class A-2 Note or a Permanent Global Class A-3 Note will be exchangeable
for definitive Class A-1 Notes, definitive Class A-2 Notes or definitive Class
A-3 Notes, as the case may be, in accordance with the provisions of such
Permanent Global Class A-1 Note, Permanent Global Class A-2 Note or Permanent
Global Class A-3 Note and the Base Indenture (as modified by this Supplement).

 

ARTICLE VI

 

GENERAL

 

Section 6.1  Optional
Repurchase.  Each Class of the
Series 2003-3 Notes shall be subject to repurchase by AFC-II at its option in
accordance with Section 6.3 of the Base Indenture on any Distribution Date
after the Class A-1 Invested Amount, the Class A-2 Invested Amount or the Class
A-3 Invested Amount, as the case may be, is reduced to an amount less than or
equal to 10% of the Class A-1 Initial Invested Amount, the Class A-2 Initial
Invested Amount or the Class A-3 Initial Invested Amount, as the case may be
(the “Series 2003-3 Repurchase Amount”); provided, however,
that as a condition precedent to any such optional repurchase, on or prior to
the Distribution Date on which any Series 2003-3 Note is repurchased by AFC-II
pursuant to this Section 6.1, AFC-II shall have paid the Surety Provider all
Surety Provider Fees

 

47

 

and all other Surety Provider Reimbursement Amounts due and unpaid as
of such Distribution Date.  The
repurchase price for any Series 2003-3 Note shall equal the aggregate
outstanding principal balance of such Series 2003-3 Note (determined after
giving effect to any payments of principal and interest on such Distribution
Date), plus accrued and unpaid interest on such outstanding principal balance.

 

Section 6.2  Information.  The Trustee shall provide to the Series
2003-3 Noteholders, or their designated agent, and the Surety Provider copies
of all information furnished to the Trustee or AFC-II pursuant to the Related
Documents, as such information relates to the Series 2003-3 Notes or the Series
2003-3 Collateral.  In connection with
any Preference Amount payable under the Surety Bond, the Trustee shall furnish
to the Surety Provider its records evidencing the distributions of principal of
and interest on the Series 2003-3 Notes that have been made and
subsequently recovered from Series 2003-3 Noteholders and the dates on
which such payments were made.

 

Section 6.3  Exhibits.  The following exhibits attached hereto
supplement the exhibits included in the Indenture.

 

	
  Exhibit A-1-1:

  	
   

  	
  Form of Restricted Global Class A-1 Note

  
	
  Exhibit A-1-2:

  	
   

  	
  Form of Temporary Global Class A-1 Note

  
	
  Exhibit A-1-3:

  	
   

  	
  Form of Permanent Global Class-1 Note

  
	
  Exhibit A-2-1

  	
   

  	
  Form of Restricted Global Class A-2 Note

  
	
  Exhibit A-2-2

  	
   

  	
  Form of Temporary Global Class A-2 Note

  
	
  Exhibit A-2-3

  	
   

  	
  Form of Permanent Global Class A-2 Note

  
	
  Exhibit A-3-1

  	
   

  	
  Form of Restricted Global Class A-3 Note

  
	
  Exhibit A-3-2

  	
   

  	
  Form of Temporary Global Class A-3 Note

  
	
  Exhibit A-3-3

  	
   

  	
  Form of Permanent Global Class A-3 Note

  
	
  Exhibit B:

  	
   

  	
  Form of Consent

  
	
  Exhibit C:

  	
   

  	
  Form of Series 2003-3 Demand Note

  
	
  Exhibit D:

  	
   

  	
  Form of Letter of Credit

  
	
  Exhibit E:

  	
   

  	
  Form of Lease Payment Deficit Notice

  
	
  Exhibit F:

  	
   

  	
  Form of Demand Notice

  

 

Section 6.4  Ratification
of Base Indenture.  As supplemented
by this Supplement, the Base Indenture is in all respects ratified and
confirmed and the Base Indenture as so supplemented by this Supplement shall be
read, taken, and construed as one and the same instrument.

 

Section 6.5  Counterparts.  This Supplement may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all of such counterparts shall together constitute but one and
the same instrument.

 

Section 6.6  Governing
Law.  This Supplement shall be
construed in accordance with the law of the State of New York, and the
obligations, rights and remedies of the parties hereto shall be determined in
accordance with such law.

 

48

 

Section 6.7  Amendments.  This Supplement may be modified or amended
from time to time with the consent of the Surety Provider and in accordance
with the terms of the Base Indenture; provided, however, that if,
pursuant to the terms of the Base Indenture or this Supplement, the consent of
the Required Noteholders is required for an amendment or modification of this
Supplement, such requirement shall be satisfied if such amendment or
modification is consented to by the Series 2003-3 Noteholders representing more
than 50% of the aggregate outstanding principal amount of the Series 2003-3
Notes affected thereby; provided, further, that if that consent
of the Required Noteholders is required for a proposed amendment or
modification of this Supplement that (i) affects only the Class A-1 Notes (and
does not affect in any material respect the Class A-2 Notes or Class A-3 Notes,
as evidenced by an opinion of counsel to such effect), then such requirement
shall be satisfied if such amendment or modification is consented to by the
Class A-1 Noteholders representing more than 50% of the aggregate outstanding
principal amount of the Class A-1 Notes (without the necessity of obtaining the
consent of the Required Noteholders in respect of the Class A-2 Notes or Class
A-3 Notes), (ii) affects only the Class A-2 Notes (and does not affect in
material respect the Class A-1 Notes or Class A-3 Notes, as evidenced by an
opinion of counsel to such effect), then such requirement shall be satisfied if
such amendment or modification is consented to by the Class A-2 Noteholders
representing more than 50% of the aggregate outstanding principal amount of the
Class A-2 Notes (without the necessity of obtaining the consent of the Required
Noteholders in respect of the Class A-1 Notes or Class A-3 Notes) or (iii)
affects only the Class A-3 Notes (and does not affect in any material respect
the Class A-1 Notes or Class A-2 Notes, as evidenced by an opinion of counsel
to such effect), then such requirement shall be satisfied if such amendment or
modification is consented to by the Class A-3 Noteholders representing more
than 50% of the aggregate outstanding principal amount of the Class A-3 Notes
(without the necessity of obtaining the consent of the Required Noteholders in
respect of the Class A-1 Notes or Class A-2 Notes).

 

Section 6.8  Discharge
of Indenture.  Notwithstanding
anything to the contrary contained in the Base Indenture, no discharge of the
Indenture pursuant to Section 11.1(b) of the Base Indenture will be effective
as to the Series 2003-3 Notes without the consent of the Required Noteholders.

 

Section 6.9  Notice
to Surety Provider and Rating Agencies. 
The Trustee shall provide to the Surety Provider and each Rating Agency
a copy of each notice, opinion of counsel, certificate or other item delivered
to, or required to be provided by, the Trustee pursuant to this Supplement or
any other Related Document.  Each such
opinion of counsel shall be addressed to the Surety Provider, shall be from
counsel reasonably acceptable to the Surety Provider and shall be in form and
substance reasonably acceptable to the Surety Provider.  All such notices, opinions, certificates or
other items delivered to the Surety Provider shall be forwarded to Ambac
Assurance Corporation, One State Street Plaza, New York, New York 10004,
Attention: General Counsel, telephone: (212) 668-0430.

 

Section 6.10  Certain
Rights of Surety Provider.  The
Surety Provider shall be deemed to be an Enhancement Provider entitled to
receive confirmation of the rating on the Series 2003-3 Notes (without regard
to the Surety Bond) pursuant to the definition of “Rating Agency Confirmation
Condition.”  In addition, the Surety
Provider shall be deemed to be an

 

49

 

Enhancement Provider entitled to exercise the consent rights described
in clause (ii) of the definition of “Rating Agency Consent Condition.”

 

Section 6.11  Surety
Provider Deemed Noteholder and Secured Party.  Except for any period during which a Surety Default is
continuing, the Surety Provider shall be deemed to be the holder of 100% of the
Series 2003-3 Notes for the purposes of giving any consents, waivers,
approvals, instructions, directions, requests, declarations and/or notices
pursuant to the Base Indenture and this Supplement.  Any reference in the Base Indenture or the Related Documents
(including, without limitation, in Sections 2.3, 8.14, 9.1, 9.2 or 12.1 of the
Base Indenture) to materially, adversely, or detrimentally affecting the rights
or interests of the Noteholders, or words of similar meaning, shall be deemed,
for purposes of the Series 2003-3 Notes, to refer to the rights or interests of
the Surety Provider.  The Surety
Provider shall constitute an “Enhancement Provider” with respect to the Series
2003-3 Notes for all purposes under the Indenture and the other Related
Documents.  Furthermore, the Surety
Provider shall be deemed to be a “Secured Party” under the Base Indenture and
the Related Documents to the extent of amounts payable to the Surety Provider
pursuant to this Supplement and the Insurance Agreement shall constitute an
“Enhancement Agreement” with respect to the Series 2003-3 Notes for all
purposes under the Indenture and the Related Documents.  Moreover, wherever in the Related Documents
money or other property is assigned, conveyed, granted or held for, a filing is
made for, action is taken for or agreed to be taken for, or a representation or
warranty is made for the benefit of the Noteholders, the Surety Provider shall
be deemed to be the Noteholder with respect to 100% of the Series 2003-3 Notes
for such purposes.

 

Section 6.12  Capitalization
of AFC-II.  AFC-II agrees that on
the Series 2003-3 Closing Date it will have capitalization in an amount equal
to or greater than 3% of the sum of (x) the Series 2003-3 Invested Amount and
(y) the invested amount of the Series 1998-1 Notes, Series 2000-1 Notes, Series
2000-2 Notes, Series 2000-3 Notes, the Series 2000-4 Notes, the Series 2001-1
Notes, the Series 2001-2 Notes, the Series 2002-1 Notes, the Series 2002-2
Notes, the Series 2002-3 Notes, the Series 2002-4 Notes, the Series 2003-1
Notes and the Series 2003-2 Notes.

 

Section 6.13  Series
2003-3 Required Non-Program Enhancement Percentage.  AFC-II agrees that it will not make any Loan
under any Loan Agreement to finance the acquisition of any Vehicle by AESOP
Leasing, AESOP Leasing II or ARAC, as the case may be, if, after giving effect
to the making of such Loan, the acquisition of such Vehicle and the inclusion
of such Vehicle under the relevant Lease, the Series 2003-3 Required
Non-Program Enhancement Percentage would exceed 25.0%.

 

Section 6.14  Third
Party Beneficiary.  The Surety
Provider is an express third party beneficiary of (i) the Base Indenture to the
extent of provisions relating to any Enhancement Provider and (ii) this
Supplement.

 

Section 6.15  Prior
Notice by Trustee to Surety Provider. 
Subject to Section 10.1 of the Base Indenture, the Trustee agrees that,
so long as no Amortization Event shall have occurred and be continuing with
respect to any Series of Notes other than the Series 2003-3 Notes, it shall not
exercise any rights or remedies available to it as a result of the occurrence
of an Amortization Event with respect to the Series 2003-3 Notes (except those
set forth in clauses (f)

 

50

 

and (g) of Article III) or a Series 2003-3 Limited Liquidation
Event of Default until after the Trustee has given prior written notice thereof
to the Surety Provider and obtained the direction of the Required Noteholders
with respect to the Series 2003-3 Notes. 
The Trustee agrees to notify the Surety Provider promptly following any
exercise of rights or remedies available to it as a result of the occurrence of
any Amortization Event or a Series 2003-3 Limited Liquidation Event of Default.

 

Section 6.16  Effect
of Payments by the Surety Provider. 
Anything herein to the contrary notwithstanding, any distribution of
principal of or interest on the Series 2003-3 Notes that is made with
moneys received pursuant to the terms of the Surety Bond shall not (except for
the purpose of calculating the Principal Deficit Amount) be considered payment
of the Series 2003-3 Notes by AFC-II. 
The Trustee acknowledges that, without the need for any further action
on the part of the Surety Provider, (i) to the extent the Surety Provider
makes payments, directly or indirectly, on account of principal of or interest
on the Series 2003-3 Notes to the Trustee for the benefit of the
Series 2003-3 Noteholders or to the Series 2003-3 Noteholders
(including any Preference Amounts as defined in the Surety Bond), the Surety
Provider will be fully subrogated to the rights of such Series 2003-3
Noteholders to receive such principal and interest and will be deemed to the
extent of the payments so made to be a Series 2003-3 Noteholder and
(ii) the Surety Provider shall be paid principal and interest in its capacity
as a Series 2003-3 Noteholder until all such payments by the Surety
Provider have been fully reimbursed, but only from the sources and in the
manner provided herein for the distribution of such principal and interest and
in each case only after the Series 2003-3 Noteholders have received all
payments of principal and interest due to them hereunder on the related
Distribution Date.

 

Section 6.17  Series
2003-3 Demand Notes.  Other than
pursuant to a demand thereon pursuant to Section 2.5, AFC-II shall not
reduce the amount of the Series 2003-3 Demand Notes or forgive amounts payable
thereunder so that the outstanding principal amount of the Series 2003-3 Demand
Notes after such reduction or forgiveness is less than the Series 2003-3 Letter
of Credit Liquidity Amount.  AFC-II
shall not agree to any amendment of the Series 2003-3 Demand Notes without
first satisfying the Rating Agency Confirmation Condition and the Rating Agency
Consent Condition.

 

Section 6.18  Subrogation.  In furtherance of and not in limitation of
the Surety Provider’s equitable right of subrogation, each of the Trustee and
AFC-II acknowledge that, to the extent of any payment made by the Surety
Provider under the Surety Bond with respect to interest on or principal of the
Series 2003-3 Notes, including any Preference Amount, as defined in the Surety
Bond, the Surety Provider is to be fully subrogated to the extent of such
payment and any additional interest due on any late payment, to the rights of
the Series 2003-3 Noteholders under the Indenture.  Each of AFC-II and the Trustee agree to such subrogation and,
further, agree to take such actions as the Surety Provider may reasonably
request in writing to evidence such subrogation.

 

Section 6.19  Termination
of Supplement.  This Supplement
shall cease to be of further effect when all outstanding Series 2003-3 Notes
theretofore authenticated and issued have been delivered (other than destroyed,
lost, or stolen Series 2003-3 Notes which have been replaced or paid) to the
Trustee for cancellation, AFC-II has paid all sums payable hereunder, the

 

51

 

Surety Provider has been paid all Surety Provider Fees and all other
Surety Provider Reimbursement Amounts due under the Insurance Agreement, the Series
2003-3 Interest Rate Swap has been terminated and there are no amounts due and
owing thereunder and, if the Series 2003-3 Demand Note Payment Amount on the
Series 2003-3 Letter of Credit Termination Date was greater than zero, all
amounts have been withdrawn from the Series 2003-3 Cash Collateral Account in
accordance with Section 2.8(i).

 

52

 

IN WITNESS WHEREOF, AFC-II and the Trustee have caused
this Supplement to be duly executed by their respective officers thereunto duly
authorized as of the day and year first above written.

 

	
   

  	
  AESOP FUNDING II L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Lori Gebron

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW
  YORK (as successor in

  interest to the corporate trust administration of

  Harris Trust and Savings Bank), as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Eric A. Lindahl

  
	
   

  	
   

  	
  Title:

  	
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW
  YORK, as Series 2003-3 Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Eric A. Lindahl

  
	
   

  	
   

  	
  Title:

  	
  Agent

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]