Document:

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                                                                     EXHIBIT 4.6

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                            GROUP 1 AUTOMOTIVE, INC.,
                                    AS ISSUER

                                       AND

                     THE SUBSIDIARY GUARANTORS NAMED HEREIN,
                            AS SUBSIDIARY GUARANTORS

                                       TO

                             WELLS FARGO BANK, N.A.,
                                   AS TRUSTEE

                                   ----------

                             SUBORDINATED INDENTURE

                           DATED AS OF AUGUST 13, 2003

                                   ----------

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                                TABLE OF CONTENTS

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<S>                                                                                                                           <C>
PARTIES.....................................................................................................................    1
RECITALS OF THE COMPANY AND THE SUBSIDIARY GUARANTORS.......................................................................    1

                                                           ARTICLE ONE
                                     DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

SECTION 101.  Definitions...................................................................................................    1
   Act......................................................................................................................    2
   Affiliate................................................................................................................    2
   Authenticating Agent.....................................................................................................    2
   Board of Directors.......................................................................................................    2
   Board Resolution.........................................................................................................    2
   Business Day.............................................................................................................    2
   Capital Stock............................................................................................................    2
   Commission...............................................................................................................    2
   Company..................................................................................................................    3
   Company Request..........................................................................................................    3
   Company Order............................................................................................................    3
   Corporate Trust Office...................................................................................................    3
   corporation..............................................................................................................    3
   Covenant Defeasance......................................................................................................    3
   Defaulted Interest.......................................................................................................    3
   Defeasance...............................................................................................................    3
   Depositary...............................................................................................................    3
   Event of Default.........................................................................................................    3
   Exchange Act.............................................................................................................    3
   Expiration Date..........................................................................................................    3
   Global Security..........................................................................................................    3
   Holder...................................................................................................................    3
   Indenture................................................................................................................    3
   interest.................................................................................................................    4
   Interest Payment Date....................................................................................................    4
   Investment Company Act...................................................................................................    4
   Maturity.................................................................................................................    4
   Notice of Default........................................................................................................    4
   Officers' Certificate....................................................................................................    4
   Opinion of Counsel.......................................................................................................    4
   Original Issue Discount Security.........................................................................................    4
   Outstanding..............................................................................................................    4
   Paying Agent.............................................................................................................    5
   Person...................................................................................................................    5
   Place of Payment.........................................................................................................    5
   Predecessor Security.....................................................................................................    5
</TABLE>

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<TABLE>
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<S>                                                                                                                            <C>
   Redemption Date..........................................................................................................    6
   Redemption Price.........................................................................................................    6
   Regular Record Date......................................................................................................    6
   Securities...............................................................................................................    6
   Securities Act...........................................................................................................    6
   Security Register........................................................................................................    6
   Security Registrar.......................................................................................................    6
   Senior Debt..............................................................................................................    6
   Significant Subsidiary...................................................................................................    6
   Special Record Date......................................................................................................    6
   Stated Maturity..........................................................................................................    6
   Subsidiary...............................................................................................................    6
   Subsidiary Guarantees....................................................................................................    6
   Subsidiary Guarantors....................................................................................................    6
   Trust Indenture Act......................................................................................................    7
   Trustee..................................................................................................................    7
   U.S. Government Obligation...............................................................................................    7
   Vice President...........................................................................................................    7
   Voting Stock.............................................................................................................    7
   Wholly Owned Subsidiary..................................................................................................    7

SECTION 102.  Compliance Certificates and Opinions..........................................................................    7
SECTION 103.  Form of Documents Delivered to Trustee........................................................................    8
SECTION 104.  Acts of Holders; Record Dates.................................................................................    8
SECTION 105.  Notices, Etc., to Trustee and Company.........................................................................   10
SECTION 106.  Notice to Holders; Waiver.....................................................................................   11
SECTION 107.  Conflict with Trust Indenture Act.............................................................................   11
SECTION 108.  Effect of Headings and Table of Contents......................................................................   11
SECTION 109.  Successors and Assigns........................................................................................   11
SECTION 110.  Separability Clause...........................................................................................   12
SECTION 111.  Benefits of Indenture.........................................................................................   12
SECTION 112.  Governing Law.................................................................................................   12
SECTION 113.  Legal Holidays................................................................................................   12

                                                            ARTICLE TWO
                                                           SECURITY FORMS

SECTION 201.  Forms Generally...............................................................................................   12
SECTION 202.  Form of Face of Security......................................................................................   13
SECTION 203.  Form of Reverse of Security...................................................................................   14
SECTION 204.  Form of Subsidiary Guarantee..................................................................................   18
SECTION 205.  Form of Legend for Global Securities..........................................................................   21
SECTION 206.  Form of Trustee's Certificate of Authentication...............................................................   21
</TABLE>

                                       ii

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<S>                                                                                                                            <C>

                                                          ARTICLE THREE
                                                          THE SECURITIES

SECTION 301.  Amount Unlimited; Issuable in Series..........................................................................   22
SECTION 302.  Denominations.................................................................................................   25
SECTION 303.  Execution, Authentication, Delivery and Dating................................................................   25
SECTION 304.  Temporary Securities..........................................................................................   26
SECTION 305.  Registration, Registration of Transfer and Exchange...........................................................   27
SECTION 306.  Mutilated, Destroyed, Lost and Stolen Securities..............................................................   28
SECTION 307.  Payment of Interest; Interest Rights Preserved................................................................   29
SECTION 308.  Persons Deemed Owners.........................................................................................   30
SECTION 309.  Cancellation..................................................................................................   31
SECTION 310.  Computation of Interest.......................................................................................   31

                                                           ARTICLE FOUR
                                                    SATISFACTION AND DISCHARGE

SECTION 401.  Satisfaction and Discharge of Indenture.......................................................................   31
SECTION 402.  Application of Trust Money....................................................................................   32

                                                           ARTICLE FIVE
                                                             REMEDIES

SECTION 501.  Events of Default.............................................................................................   32
SECTION 502.  Acceleration of Maturity; Rescission and Annulment............................................................   34
SECTION 503.  Collection of Indebtedness and Suits for Enforcement by Trustee...............................................   35
SECTION 504.  Trustee May File Proofs of Claim..............................................................................   36
SECTION 505.  Trustee May Enforce Claims Without Possession of Securities...................................................   36
SECTION 506.  Application of Money Collected................................................................................   37
SECTION 507.  Limitation on Suits...........................................................................................   37
SECTION 508.  Unconditional Right of Holders to Receive Principal, Premium and Interest.....................................   38
SECTION 509.  Restoration of Rights and Remedies............................................................................   38
SECTION 510.  Rights and Remedies Cumulative................................................................................   38
SECTION 511.  Delay or Omission Not Waiver..................................................................................   38
SECTION 512.  Control by Holders............................................................................................   38
SECTION 513.  Waiver of Past Defaults.......................................................................................   39
SECTION 514.  Undertaking for Costs.........................................................................................   39
SECTION 515.  Waiver of Usury, Stay or Extension Laws.......................................................................   39

                                                            ARTICLE SIX
                                                            THE TRUSTEE

SECTION 601.  Certain Duties and Responsibilities...........................................................................   40
SECTION 602.  Notice of Defaults............................................................................................   40
SECTION 603.  Certain Rights of Trustee.....................................................................................   40
SECTION 604.  Not Responsible for Recitals or Issuance of Securities........................................................   41
</TABLE>

                                      iii

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<TABLE>
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<S>                                                                                                                            <C>
SECTION 605.  May Hold Securities...........................................................................................   41
SECTION 606.  Money Held in Trust...........................................................................................   41
SECTION 607.  Compensation and Reimbursement................................................................................   42
SECTION 608.  Conflicting Interests.........................................................................................   42
SECTION 609.  Corporate Trustee Required; Eligibility.......................................................................   42
SECTION 610.  Resignation and Removal; Appointment of Successor.............................................................   42
SECTION 611.  Acceptance of Appointment by Successor........................................................................   44
SECTION 612.  Merger, Conversion, Consolidation or Succession to Business...................................................   45
SECTION 613.  Preferential Collection of Claims Against Company and Subsidiary Guarantors...................................   45
SECTION 614.  Appointment of Authenticating Agent...........................................................................   45

                                                           ARTICLE SEVEN
                                         HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 701.  Company to Furnish Trustee Names and Addresses of Holders.....................................................   47
SECTION 702.  Preservation of Information; Communications to Holders........................................................   47
SECTION 703.  Reports by Trustee............................................................................................   48
SECTION 704.  Reports by Company and Subsidiary Guarantors..................................................................   48

                                                          ARTICLE EIGHT
                                       CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

SECTION 801.  Company May Consolidate, Etc., Only on Certain Terms..........................................................   48
SECTION 802.  Subsidiary Guarantors May Consolidate, Etc., Only on Certain Terms............................................   49
SECTION 803.  Successor Substituted.........................................................................................   50

                                                           ARTICLE NINE
                                                     SUPPLEMENTAL INDENTURES

SECTION 901.  Supplemental Indentures Without Consent of Holders............................................................   50
SECTION 902.  Supplemental Indentures With Consent of Holders...............................................................   51
SECTION 903.  Execution of Supplemental Indentures..........................................................................   53
SECTION 904.  Effect of Supplemental Indentures.............................................................................   53
SECTION 905.  Conformity with Trust Indenture Act...........................................................................   53
SECTION 906.  Reference in Securities to Supplemental Indentures............................................................   53

                                                           ARTICLE TEN
                                                            COVENANTS

SECTION 1001. Payment of Principal, Premium and Interest....................................................................   53
SECTION 1002. Maintenance of Office or Agency...............................................................................   54
SECTION 1003. Money for Securities Payments to Be Held in Trust.............................................................   54
SECTION 1004. Statement by Officers as to Default...........................................................................   55
SECTION 1005. Existence.....................................................................................................   55
SECTION 1006. Maintenance of Properties.....................................................................................   56
SECTION 1007. Payment of Taxes and Other Claims.............................................................................   56
SECTION 1008. Maintenance of Insurance......................................................................................   56
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                                       iv

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SECTION 1009. Waiver of Certain Covenants...................................................................................   56

                                                          ARTICLE ELEVEN
                                                     REDEMPTION OF SECURITIES

SECTION 1101. Applicability of Article......................................................................................   57
SECTION 1102. Election to Redeem; Notice to Trustee.........................................................................   57
SECTION 1103. Selection by Trustee of Securities to Be Redeemed.............................................................   57
SECTION 1104. Notice of Redemption..........................................................................................   58
SECTION 1105. Deposit of Redemption Price...................................................................................   59
SECTION 1106. Securities Payable on Redemption Date.........................................................................   59
SECTION 1107. Securities Redeemed in Part...................................................................................   59

                                                          ARTICLE TWELVE
                                                   SUBORDINATION OF SECURITIES

SECTION 1201. Applicability of Article......................................................................................   59
SECTION 1202. Securities Subordinate to Senior Debt.........................................................................   60
SECTION 1203. Payment Over of Proceeds Upon Dissolution, Etc................................................................   60
SECTION 1204. No Payment When Senior Debt of the Company in Default.........................................................   61
SECTION 1205. Payment Permitted If No Default...............................................................................   62
SECTION 1206. Subrogation to Rights of Holders of Senior Debt of the Company................................................   62
SECTION 1207. Provisions Solely to Define Relative Rights...................................................................   63
SECTION 1208. Trustee to Effectuate Subordination...........................................................................   63
SECTION 1209. No Waiver of Subordination Provisions.........................................................................   63
SECTION 1210. Notice to Trustee.............................................................................................   64
SECTION 1211. Reliance on Judicial Order or Certificate of Liquidating Agent................................................   64
SECTION 1212. Trustee Not Fiduciary for Holders of Senior Debt of the Company...............................................   65
SECTION 1213. Rights of Trustee as Holder of Senior Debt of the Company; Preservation of Trustee's Rights...................   65
SECTION 1214. Article Applicable to Paying Agents...........................................................................   65
SECTION 1215. Defeasance of this Article Twelve.............................................................................   65

                                                         ARTICLE THIRTEEN
                                                      SUBSIDIARY GUARANTEES

SECTION 1301. Applicability of Article......................................................................................   66
SECTION 1302. Subsidiary Guarantees.........................................................................................   66
SECTION 1303. Execution and Delivery of Subsidiary Guarantees...............................................................   68
SECTION 1304. Release of Subsidiary Guarantors..............................................................................   68
SECTION 1305. Additional Subsidiary Guarantors..............................................................................   69

                                                         ARTICLE FOURTEEN
                                              SUBORDINATION OF SUBSIDIARY GUARANTEES

SECTION 1401. Applicability of Article......................................................................................   69
SECTION 1402. Subsidiary Guarantees Subordinate to Senior Debt of Subordinate Guarantors....................................   69
</TABLE>

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<TABLE>
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<S>                                                                                                                           <C>
SECTION 1403. Payment Over of Proceeds Upon Dissolution, Etc................................................................   69
SECTION 1404. No Payment When Senior Debt of such Subsidiary Guarantor in Default...........................................   71
SECTION 1405. Payment Permitted If No Default...............................................................................   71
SECTION 1406. Subrogation to Rights of Holders of Senior Debt of such Subsidiary Guarantor..................................   72
SECTION 1407. Provisions Solely to Define Relative Rights...................................................................   72
SECTION 1408. Trustee to Effectuate Subordination...........................................................................   73
SECTION 1409. No Waiver of Subordination Provisions.........................................................................   73
SECTION 1410. Notice to Trustee.............................................................................................   73
SECTION 1411. Reliance on Judicial Order or Certificate of Liquidating Agent................................................   74
SECTION 1412. Trustee Not Fiduciary for Holders of Senior Debt of such Subsidiary Guarantor.................................   74
SECTION 1413. Rights of Trustee as Holder of Senior Debt of such Subsidiary Guarantor; Preservation of Trustee's Rights.....   74
SECTION 1414. Article Applicable to Paying Agents...........................................................................   75
SECTION 1415. Defeasance of this Article Fourteen...........................................................................   75

                                                         ARTICLE FIFTEEN
                                                DEFEASANCE AND COVENANT DEFEASANCE

SECTION 1501. Company's Option to Effect Defeasance or Covenant Defeasance..................................................   75
SECTION 1502. Defeasance and Discharge......................................................................................   75
SECTION 1503. Covenant Defeasance...........................................................................................   76
SECTION 1504. Conditions to Defeasance or Covenant Defeasance...............................................................   76
SECTION 1505. Deposited Money and U.S. Government Obligations to Be Held in Trust; Miscellaneous Provisions.................   78
SECTION 1506. Reinstatement.................................................................................................   79

                                                         ARTICLE SIXTEEN
                                                          SINKING FUNDS

SECTION 1601. Applicability of Article......................................................................................   79
SECTION 1602. Satisfaction of Sinking Fund Payments with Securities.........................................................   80
SECTION 1603. Redemption of Securities for Sinking Fund.....................................................................   80

SIGNATURES..................................................................................................................   80
SCHEDULE I..................................................................................................................  I-1
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                            GROUP 1 AUTOMOTIVE, INC.

          CERTAIN SECTIONS OF THIS INDENTURE RELATING TO SECTIONS 310
           THROUGH 318, INCLUSIVE, OF THE TRUST INDENTURE ACT OF 1939:

<TABLE>
<CAPTION>
TRUST INDENTURE
  ACT SECTION                                                                                           INDENTURE SECTION
---------------                                                                                         -----------------
<S>                                                                                                     <C>
Section 310(a)(1)..................................................................................       609
      (a)(2).......................................................................................       609
      (a)(3).......................................................................................       Not Applicable
      (a)(4).......................................................................................       Not Applicable
      (b)..........................................................................................       608
                                                                                                          610
Section 311(a).....................................................................................       613
      (b)..........................................................................................       613
Section 312(a)                                                                                            701
                                                                                                          702
      (b)..........................................................................................       702
      (c)..........................................................................................       702
Section 313(a).....................................................................................       703
      (b)..........................................................................................       703
      (c)..........................................................................................       703
      (d)..........................................................................................       703
Section 314(a).....................................................................................       704
      (a)(4).......................................................................................       101
                                                                                                          1004
      (b)..........................................................................................       Not Applicable
      (c)(1).......................................................................................       102
      (c)(2).......................................................................................       102
      (c)(3).......................................................................................       Not Applicable
      (d)..........................................................................................       Not Applicable
      (e)..........................................................................................       102
Section 315(a).....................................................................................       601
      (b)..........................................................................................       602
      (c)..........................................................................................       601
      (d)..........................................................................................       601
      (e)..........................................................................................       514
Section 316(a).....................................................................................       101
      (a)(1)(A)....................................................................................       502
                                                                                                          512
      (a)(1)(B)....................................................................................       513
      (a)(2).......................................................................................       Not Applicable
      (b)..........................................................................................       508
      (c)..........................................................................................       104
</TABLE>

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<TABLE>
<CAPTION>
TRUST INDENTURE
  ACT SECTION                                                                                           INDENTURE SECTION
---------------                                                                                         -----------------
<S>                                                                                                     <C>
Section 317(a)(1)..................................................................................       503
      (a)(2).......................................................................................       504
      (b)..........................................................................................       1003
Section 318(a).....................................................................................       107
</TABLE>

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

                                      viii
<PAGE>

         INDENTURE, dated as of August 13, 2003, among Group 1 Automotive, Inc.,
a corporation duly organized and existing under the laws of the State of
Delaware (herein called the "Company"), having its principal office at 950 Echo
Lane, Houston, Texas, each of the Subsidiary Guarantors (as hereinafter defined)
and Wells Fargo Bank, N.A., a national association duly organized and existing
under the laws of the United States, as Trustee (herein called the "Trustee").

             RECITALS OF THE COMPANY AND THE SUBSIDIARY GUARANTORS

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

         The Company and the Subsidiary Guarantors are members of the same
consolidated group of companies. The Subsidiary Guarantors will derive direct
and indirect economic benefit from the issuance of the Securities. Accordingly,
each Subsidiary Guarantor has duly authorized the execution and delivery of this
Indenture to provide for its full, unconditional and joint and several guarantee
of the Securities to the extent provided in or pursuant this Indenture.

         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 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, and,

                                       1

<PAGE>

         except as otherwise herein expressly provided, the term "generally
         accepted accounting principles" with respect to any computation
         required or permitted hereunder shall mean such accounting principles
         as are generally accepted at the date of this instrument;

                  (4)      unless the context otherwise requires, any reference
         to an "Article" or a "Section" refers to an Article or a Section, as
         the case may be, of this Indenture; and

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

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

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

         "Authenticating Agent" means any Person authorized by the Trustee
pursuant to Section 614 to act on behalf of the Trustee to authenticate
Securities of one or more series.

         "Board of Directors" means, with respect to the Company, either the
board of directors of the Company or any committee of that board duly authorized
to act for it in respect hereof, and with respect to any Subsidiary Guarantor,
either the board of directors of such Subsidiary Guarantor or any committee of
that board duly authorized to act for it in respect hereof.

         "Board Resolution" means, with respect to the Company or a Subsidiary
Guarantor, a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company or such Subsidiary Guarantor, as the case may be, to
have been duly adopted by its Board of Directors and to be in full force and
effect on the date of such certification, and delivered to the Trustee.

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

         "Capital Stock" of any Person means any and all shares, interests,
participations or other equivalents (however designated) of corporate stock or
other equity participations, including partnership interests, whether general or
limited, of such Person.

         "Commission" means the Securities and Exchange Commission, from time to
time constituted, created under the Exchange Act, 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.

                                       2

<PAGE>

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

         "Company 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
Vice Chairman of the Board of Directors, its President or a Vice President, and
by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant
Secretary, and delivered to the Trustee.

         "Corporate Trust Office" means the principal office of the Trustee at
505 Main Street, Fort Worth, Texas 76102 at which at any particular time its
corporate trust business shall be administered.

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

         "Covenant Defeasance" has the meaning specified in Section 1503.

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

         "Defeasance" has the meaning specified in Section 1502.

         "Depositary" means, with respect to Securities of any series issuable
in whole or in part in the form of one or more Global Securities, a clearing
agency registered under the Exchange Act that is designated to act as Depositary
for such Securities as contemplated by Section 301.

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

         "Exchange Act" means the Securities Exchange Act of 1934 and any
statute successor thereto, in each case as amended from time to time.

         "Expiration Date" has the meaning specified in Section 104.

         "Global Security" means a Security that evidences all or part of the
Securities of any series and bears the legend set forth in Section 205 (or such
legend as may be specified as contemplated by Section 301 for such Securities).

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

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

                                       3

<PAGE>

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

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

         "Investment Company Act" means the Investment Company Act of 1940 and
any statute successor thereto, in each case as amended from time to time.

         "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, call for redemption or otherwise.

         "Notice of Default" means a written notice of the kind specified in
Section 501(4).

         "Officers' Certificate" means a certificate signed by the Chairman of
the Board of Directors, a Vice Chairman of the Board of Directors, the President
or a Vice President, and by the Treasurer, an Assistant Treasurer, the Secretary
or an Assistant Secretary, of the Company or a Subsidiary Guarantor, as the case
may be, and delivered to the Trustee. One of the officers signing an Officers'
Certificate given pursuant to Section 1004 shall be the principal executive,
financial or accounting officer of the Company.

         "Opinion of Counsel" means, as to the Company or a Subsidiary
Guarantor, a written opinion of counsel, who may be counsel for the Company or
such Subsidiary Guarantor, as the case may be, and who shall be acceptable to
the Trustee.

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

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

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

                  (2)      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; provided that, if
         such Securities are to be redeemed, notice of such redemption has been
         duly given pursuant to this Indenture or provision therefor
         satisfactory to the Trustee has been made;

                  (3)      Securities as to which Defeasance has been effected
         pursuant to Section 1502; and

                                       4

<PAGE>

                  (4)      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, made or taken any request, demand,
         authorization, direction, notice, consent, waiver or other action
         hereunder as of any date, (A) the principal amount of an Original Issue
         Discount Security which shall be deemed to be Outstanding shall be the
         amount of the principal thereof which would be due and payable as of
         such date upon acceleration of the Maturity thereof to such date
         pursuant to Section 502, (B) if, as of such date, the principal amount
         payable at the Stated Maturity of a Security is not determinable, the
         principal amount of such Security which shall be deemed to be
         Outstanding shall be the amount as specified or determined as
         contemplated by Section 301, (C) the principal amount of a Security
         denominated in one or more foreign currencies or currency units which
         shall be deemed to be Outstanding shall be the U.S. dollar equivalent,
         determined as of such date in the manner provided as contemplated by
         Section 301, of the principal amount of such Security (or, in the case
         of a Security described in clause (A) or (B) above, of the amount
         determined as provided in such clause), and (D) Securities owned by the
         Company, any Subsidiary Guarantor or any other obligor upon the
         Securities or any Affiliate of the Company, any Subsidiary Guarantor or
         of such other obligor shall be disregarded and deemed not to be
         Outstanding, except that, in determining whether the Trustee shall be
         protected in relying upon any such request, demand, authorization,
         direction, notice, consent, waiver or other action, 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, a Subsidiary
         Guarantor or any other obligor upon the Securities or any Affiliate of
         the Company, a Subsidiary Guarantor or of such other obligor.

         "Paying Agent" means any Person authorized by the Company to pay the
principal of or any premium or interest on any Securities on behalf of the
Company.

         "Person" means any individual, corporation, partnership, joint venture,
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 any premium and
interest on the Securities of that series are payable as specified as
contemplated by Section 301.

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

                                       5

<PAGE>

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

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

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

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

         "Securities Act" means the Securities Act of 1933 and any statute
successor thereto, in each case as amended from time to time.

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

         "Senior Debt" with respect to any series of Securities shall have the
meaning specified as contemplated by Section 301.

         "Significant Subsidiary" means, at any date of determination, any
Subsidiary that represents 10% or more of the Company's total assets at the end
of the most recent fiscal quarter for which financial information is available
or 10% or more of the Company's consolidated net revenues or consolidated
operating income for the most recent four quarters for which financial
information is available.

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

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

         "Subsidiary" of any Person means (1) a corporation more than 50% of the
combined voting power of the outstanding Voting Stock of which is owned,
directly or indirectly, by such Person or by one or more other Subsidiaries of
such Person or by such Person and one or more Subsidiaries thereof or (2) any
other Person (other than a corporation) in which such Person, or one or more
other Subsidiaries of such Person or such Person and one or more other
Subsidiaries thereof, directly or indirectly, has at least a majority ownership
and power to direct the policies, management and affairs thereof.

         "Subsidiary Guarantees" means the guarantees of each Subsidiary
Guarantor as provided in Article Thirteen.

         "Subsidiary Guarantors" means (i) the subsidiaries listed in Schedule I
hereto; (ii) any successor of the foregoing; and (iii) each other Subsidiary of
the Company that becomes a

                                       6

<PAGE>

Subsidiary Guarantor in accordance with Section 1305 hereof, in each case (i),
(ii) and (iii) until such Subsidiary Guarantor ceases to be such in accordance
with Section 1304 hereof.

         "Trust Indenture Act" means the Trust Indenture Act of 1939 as in force
at the date as of which this instrument was executed; provided, however, that in
the event the Trust Indenture Act of 1939 is amended after such date, "Trust
Indenture Act" means, to the extent required by any such amendment, the Trust
Indenture Act of 1939 as so amended.

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

         "U.S. Government Obligation" has the meaning specified in Section 1504.

         "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" of any Person means Capital Stock of such Person which
ordinarily has voting power for the election of directors (or persons performing
similar functions) of such Person, whether at all times or only so long as no
senior class of securities has such voting power by reason of any contingency.

         "Wholly Owned Subsidiary" of any Person means a Subsidiary of such
Person all of the outstanding Capital Stock or other ownership interests of
which (other than directors' qualifying shares) shall at the time be owned by
such Person or by one or more Wholly Owned Subsidiaries of such Person or by
such Person and one or more Wholly Owned Subsidiaries of such Person.

SECTION 102. Compliance Certificates and Opinions.

         Upon any application or request by the Company or any Subsidiary
Guarantor to the Trustee to take any action under any provision of this
Indenture, the Company and/or such Subsidiary Guarantor, as appropriate, shall
furnish to the Trustee such certificates and opinions as may be required under
the Trust Indenture Act. Each such certificate or opinion shall be given in the
form of an Officers' Certificate, if to be given by an officer of the Company or
a Subsidiary Guarantor, or an Opinion of Counsel, if to be given by counsel, and
shall comply with the requirements of the Trust Indenture Act and any other
requirements set forth in this Indenture.

         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;

                                       7

<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 such
         individual, he has made such examination or investigation as is
         necessary to enable him to express an informed opinion as to whether or
         not such covenant or condition has been complied with; and

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

SECTION 103. Form of Documents Delivered to Trustee.

         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 or a Subsidiary
Guarantor 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 or such Subsidiary Guarantor stating that the information with respect
to such factual matters is in the possession of the Company or such Subsidiary
Guarantor, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
such matters are erroneous.

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

SECTION 104. Acts of Holders; Record Dates.

         Whenever in this Indenture it is provided that the Holders of a
specified percentage in aggregate principal amount of the Securities of any or
all series may take action (including the making of any demand or request, the
giving of any direction, notice, consent or waiver or the taking of any other
action) the fact that at the time of taking any such action the Holders of such
specified percentage have joined therein may be evidenced (a) by any instrument
or any number of instruments of similar tenor executed by Holders in Person or
by agent or proxy appointed in writing, (b) by the record of the Holders voting
in favor thereof at any meeting of Holders duly called and held in accordance
with procedures approved by the Trustee, (c) by a combination of such instrument
or instruments and any such record of such a meeting of Holders or (d) in the
case of Securities evidenced by a Global Security, by any electronic
transmission or other message, whether or not in written format, that complies
with the Depositary's applicable

                                       8

<PAGE>

procedures. Such evidence (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the relevant Holders.
Proof of execution of any such instrument or of a writing appointing any such
agent or proxy 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 fact and date of the execution by any Person of any such instrument
or writing may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such instrument
or writing acknowledged to him the execution thereof. Where such execution is by
a signer acting in a capacity other than his individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his
authority. The fact and date of the execution of any such instrument or writing,
or the authority of the Person executing the same, may also be proved in any
other manner that the Trustee deems sufficient.

         The ownership of Securities shall be proved by the Security Register.

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

         The Company may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to
give, make or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders of Securities of such series, provided that the
Company may not set a record date for, and the provisions of this paragraph
shall not apply with respect to, the giving or making of any notice,
declaration, request or direction referred to in the next paragraph. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of the relevant series on such record date, and no other Holders,
shall be entitled to take the relevant action, whether or not such Holders
remain Holders after such record date; provided that no such action shall be
effective hereunder unless taken on or prior to the applicable Expiration Date
by Holders of the requisite principal amount of Outstanding Securities of such
series on such record date. Nothing in this paragraph shall be construed to
prevent the Company from setting a new record date for any action for which a
record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be cancelled and of no effect), and nothing in this paragraph shall be construed
to render ineffective any action taken by Holders of the requisite principal
amount of Outstanding Securities of the relevant series on the date such action
is taken. Promptly after any record date is set pursuant to this paragraph, the
Company, at its own expense, shall cause notice of such record date, the
proposed action by Holders and the applicable Expiration Date to be given to the
Trustee in writing and to each Holder of Securities of the relevant series in
the manner set forth in Section 106.

         The Trustee may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to join
in the giving or making of (i) any Notice

                                       9

<PAGE>

of Default, (ii) any declaration of acceleration referred to in Section 502,
(iii) any request to institute proceedings referred to in Section 507(2) or (iv)
any direction referred to in Section 512, in each case with respect to
Securities of such series. If any record date is set pursuant to this paragraph,
the Holders of Outstanding Securities of such series on such record date, and no
other Holders, shall be entitled to join in such notice, declaration, request or
direction, whether or not such Holders remain Holders after such record date;
provided that no such action shall be effective hereunder unless taken on or
prior to the applicable Expiration Date by Holders of the requisite principal
amount of Outstanding Securities of such series on such record date. Nothing in
this paragraph shall be construed to prevent the Trustee from setting a new
record date for any action for which a record date has previously been set
pursuant to this paragraph (whereupon the record date previously set shall
automatically and with no action by any Person be cancelled and of no effect),
and nothing in this paragraph shall be construed to render ineffective any
action taken by Holders of the requisite principal amount of Outstanding
Securities of the relevant series on the date such action is taken. Promptly
after any record date is set pursuant to this paragraph, the Trustee, at the
Company's expense, shall cause notice of such record date, the proposed action
by Holders and the applicable Expiration Date to be given to the Company in
writing and to each Holder of Securities of the relevant series in the manner
set forth in Section 106.

         With respect to any record date set pursuant to this Section, the party
hereto which sets such record dates may designate any day as the "Expiration
Date" and from time to time may change the Expiration Date to any earlier or
later day; provided that no such change shall be effective unless notice of the
proposed new Expiration Date is given to the other party hereto in writing, and
to each Holder of Securities of the relevant series in the manner set forth in
Section 106, on or prior to the existing Expiration Date. If an Expiration Date
is not designated with respect to any record date set pursuant to this Section,
the party hereto which set such record date shall be deemed to have initially
designated the 180th day after such record date as the Expiration Date with
respect thereto, subject to its right to change the Expiration Date as provided
in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be
later than the 180th day after the applicable record date.

         Without limiting the foregoing, a Holder entitled hereunder to take any
action hereunder with regard to any particular Security may do so with regard to
all or any part of the principal amount of such Security or by one or more duly
appointed agents each of which may do so pursuant to such appointment with
regard to all or any part of such principal amount.

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

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

                  (1)      the Trustee by any Holder or by the Company or any
         Subsidiary Guarantor shall be sufficient for every purpose hereunder if
         made, given, furnished or filed in writing in the English language to
         or with the Trustee at its Corporate Trust Office, Attention: with a
         copy to Wells Fargo Bank, N.A., 45 Broadway, 12th Floor, New York, NY
         10002, Attention: Corporate Trust MAC T5415-030 or

                                       10

<PAGE>

                  (2)      the Company or any Subsidiary Guarantor by the
         Trustee or by any Holder shall be sufficient for every purpose
         hereunder (unless otherwise herein expressly provided) if in writing in
         the English language and mailed, first-class postage prepaid, in the
         case of 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 and, in the case of any Subsidiary Guarantor, to it at the
         address of the Company's principal office specified in the first
         paragraph of this instrument, Attention: Chief Financial Officer, or at
         any other address previously furnished in writing to the Trustee by
         such Subsidiary Guarantor.

SECTION 106. Notice to Holders; Waiver.

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

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

SECTION 107. Conflict with Trust Indenture Act.

         If any provision hereof limits, qualifies or conflicts with a provision
of the Trust Indenture Act which is required under such Act to be a part of and
govern this Indenture, the latter provision shall control. If any provision of
this Indenture modifies or excludes any provision of the Trust Indenture Act
which may be so modified or excluded, the latter provision shall be deemed to
apply to this Indenture as so modified or to be excluded, as the case may be.

SECTION 108. Effect of Headings and Table of Contents.

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

SECTION 109. Successors and Assigns.

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

                                       11

<PAGE>

SECTION 110. Separability Clause.

         In case any provision in this Indenture, the Securities or the
Subsidiary Guarantees shall be invalid, illegal or unenforceable, the validity,
legality and enforce ability of the remaining pro visions shall not in any way
be affected or impaired thereby.

SECTION 111. Benefits of Indenture.

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

SECTION 112. Governing Law.

         This Indenture, the Securities and the Subsidiary Guarantees shall be
governed by and construed in accordance with the law of the State of New York.

SECTION 113. Legal Holidays.

         In any case where any Interest Payment Date, Redemption Date, purchase
date or Stated Maturity of any Security shall not be a Business Day at any Place
of Payment, then (notwithstanding any other provision of this Indenture or of
the Securities (other than a provision of any Security which specifically states
that such provision shall apply in lieu of this Section)) payment of interest or
principal (and premium, if any) need not be made at such Place of Payment on
such date, but may be made on the next succeeding Business Day at such Place of
Payment with the same force and effect as if made on the Interest Payment Date,
Redemption Date or purchase date, or at the Stated Maturity.

                                  ARTICLE TWO

                                 SECURITY FORMS

SECTION 201. Forms Generally.

         The Securities of each series and, if applicable, the Subsidiary
Guarantees to be endorsed thereon shall be in substantially the form set forth
in this Article, or in such other form as shall be established by or pursuant to
a Board Resolution or 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 Depositary therefor or as may, consistently herewith, be
determined by the officers executing such Securities or Subsidiary Guarantees,
as the case may be, as evidenced by their execution thereof. If the form of
Securities of any series is established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by
the Secretary or an Assistant Secretary of

                                       12

<PAGE>

the Company and delivered to the Trustee at or prior to the delivery of the
Company Order contemplated by Section 303 for the authentication and delivery of
such Securities.

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

SECTION 202. Form of Face of Security.

[Insert any legend required by the Internal Revenue Code and the regulations
thereunder.]

                            Group 1 Automotive, Inc.
                            ________________________

No. __________                                                        $ ________

         Group 1 Automotive, Inc., a corporation duly organized and existing
under the laws of Delaware (herein called the "Company," which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to ____________________________, or registered
assigns, the principal sum of _____________________________ Dollars on
___________________________________ [if the Security is to bear interest prior
to Maturity, insert -- , and to pay interest thereon from _____________ or from
the most recent Interest Payment Date to which interest has been paid or duly
provided for, semi-annually on ____________ and ____________ in each year,
commencing _________, at the rate of ____% per annum, until the principal hereof
is paid or made available for payment, provided that any principal and premium,
and any such installment of interest, which is overdue shall bear interest at
the rate of ____% per annum (to the extent that the payment of such interest
shall be legally enforceable), from the dates such amounts are due until they
are paid or made available for payment, and such interest shall be payable on
demand. The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the _______ or _______ (whether or not a Business Day),
as the case may be, next preceding such Interest Payment Date. Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable
to the Holder on such Regular Record Date and may either be paid to the Person
in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Securities of this series not less than 10 days prior to
such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in said Indenture].

         [If the Security is not to bear interest prior to Maturity, insert --
The principal of this Security shall not bear interest except in the case of a
default in payment of principal upon acceleration, upon redemption or at Stated
Maturity and in such case the overdue principal and

                                       13

<PAGE>

any overdue premium shall bear interest at the rate of ____% per annum (to the
extent that the payment of such interest shall be legally enforceable), from the
dates such amounts are due until they are paid or made available for payment.
Interest on any overdue principal or premium shall be payable on demand. Any
such interest on overdue principal or premium which is not paid on demand shall
bear interest at the rate of ______% per annum (to the extent that the payment
of such interest on interest shall be legally enforceable), from the date of
such demand until the amount so demanded is paid or made available for payment.
Interest on any overdue interest shall be payable on demand.]

         Payment of the principal of (and premium, if any) and [if applicable,
insert -- any such] interest on this Security will be made at the office or
agency of the Company maintained for that purpose in ____________, in such coin
or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that at the
option of the Company payment of interest may be made by check mailed to the
address of the Person entitled thereto as such address shall appear in the
Security Register.

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

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

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:

                                                  Group 1 Automotive, Inc.

                                                  By ___________________________
Attest:

______________________

SECTION 203. Form of Reverse of Security.

         This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of August 13, 2003 (herein called the
"Indenture", which term shall have the meaning assigned to it in such
instrument), among the Company, the Subsidiary Guarantors named therein

                                       14

<PAGE>

and Wells Fargo Bank, N.A., as Trustee (herein called the "Trustee", which term
includes any successor trustee under the Indenture), and reference is hereby
made to the Indenture for a statement of the respective rights, limitations of
rights, duties and immunities thereunder of the Company, the Subsidiary
Guarantors, the Trustee, the holders of Senior Debt and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on
the face hereof [if applicable, insert -- , limited in aggregate principal
amount to $ __________].

         [If applicable, insert -- The Securities of this series are subject to
redemption upon not less than 30 days' notice by mail, [if applicable, insert --
(1) on ___________ in any year commencing with the year ______ and ending with
the year ______ through operation of the sinking fund for this series at a
Redemption Price equal to 100% of the principal amount, and (2)] at any time [if
applicable, insert -- on or after __________, 20__], as a whole or in part, at
the election of the Company, at the following Redemption Prices (expressed as
percentages of the principal amount): If redeemed [if applicable, insert -- on
or before _______________, ___%, and if redeemed] during the 12-month period
beginning _____________ of the years indicated,

<TABLE>
<CAPTION>
                                    Redemption                                                Redemption
Year                                  Price                     Year                            Price
----                                ----------                  ----                          ----------
<S>                                 <C>                         <C>                           <C>
</TABLE>

and thereafter at a Redemption Price equal to _____% of the principal amount,
together in the case of any such redemption [if applicable, insert -- (whether
through operation of the sinking fund or otherwise)] with accrued interest to
the Redemption Date, but interest installments whose Stated Maturity is on or
prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]

         [If applicable, insert -- The Securities of this series are subject to
redemption upon not less than 30 days' notice by mail, (1) on ____________ in
any year commencing with the year ____ and ending with the year ____ through
operation of the sinking fund for this series at the Redemption Prices for
redemption through operation of the sinking fund (expressed as percentages of
the principal amount) set forth in the table below, and (2) at any time [if
applicable, insert -- on or after ____________], as a whole or in part, at the
election of the Company, at the Redemption Prices for redemption otherwise than
through operation of the sinking fund (expressed as percentages of the principal
amount) set forth in the table below: If redeemed during the 12-month period
beginning ____________ of the years indicated,

                                       15

<PAGE>

<TABLE>
                                          Redemption Price
                                           For Redemption                             Redemption Price For
                                          Through Operation                           Redemption Otherwise
                                               of the                                Than Through Operation
Year                                        Sinking Fund                              of the Sinking Fund
----                                      -----------------                          ----------------------
<S>                                       <C>                                        <C>
</TABLE>

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

         [If applicable, insert -- Notwithstanding the foregoing, the Company
may not, prior to _____________, redeem any Securities of this series as
contemplated by [if applicable, insert -- clause (2) of] the preceding paragraph
as a part of, or in anticipation of, any refunding operation by the application,
directly or indirectly, of moneys borrowed having an interest cost to the
Company (calculated in accordance with generally accepted financial practice) of
less than _____% per annum.]

         [If applicable, insert -- The sinking fund for this series provides for
the redemption on ____________ in each year beginning with the year _______ and
ending with the year ______ of [if applicable, insert -- not less than $
_________ ("mandatory sinking fund") and not more than] $ ________ aggregate
principal amount of Securities of this series. Securities of this series
acquired or redeemed by the Company otherwise than through [if applicable,
insert -- mandatory] sinking fund payments may be credited against subsequent
[if applicable, insert -- mandatory] sinking fund payments otherwise required to
be made [if applicable, insert -- , in the inverse order in which they become
due].]

         [If the Security is subject to redemption of any kind, insert -- In the
event of redemption of this Security in part only, a new Security or Securities
of this series and of like tenor for the unredeemed portion hereof will be
issued in the name of the Holder hereof upon the cancellation hereof.]

         The indebtedness evidenced by this Security is, to the extent provided
in the Indenture, subordinate and subject in right of payment to the prior
payment in full of all Senior Debt of the Company, and this Security is issued
subject to the provisions of the Indenture with respect thereto. Each Holder of
this Security, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on his behalf to take such
action as may be necessary or appropriate to effectuate the subordination so
provided and (c) appoints the Trustee his attorney-in-fact for any and all such
purposes.

                                       16

<PAGE>

         [If applicable, insert -- As provided in the Indenture and subject to
certain limitations therein set forth, the obligations of the Company under this
Security are guaranteed on a senior subordinated basis pursuant to the
Subsidiary Guarantees endorsed hereon. The Indenture provides that a Subsidiary
Guarantor shall be released from its Subsidiary Guarantee upon compliance with
certain conditions.]

         [If applicable, insert -- The Indenture contains provisions for
Defeasance at any time of [the entire indebtedness of this Security] [or]
[certain restrictive covenants and Events of Default with respect to this
Security] [, in each case] upon compliance with certain conditions set forth in
the Indenture.]

         [If the Security is not an Original Issue Discount Security, insert --
If an Event of Default with respect to Securities of this series shall occur and
be continuing, the principal of the Securities of this series may be declared
due and payable in the manner and with the effect provided in the Indenture.]

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

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

         As provided in and subject to the provisions of the Indenture, the
Holder of this Security shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or
for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee

                                       17

<PAGE>

reasonable indemnity, and the Trustee shall not have received from the Holders
of a majority in principal amount of Securities of this series at the time
Outstanding a direction inconsistent with such request, and shall have failed to
institute any such proceeding, for 60 days after receipt of such notice, request
and offer of indemnity. The foregoing shall not apply to any suit instituted by
the Holder of this Security for the enforcement of any payment of principal
hereof or any premium or interest hereon on or after the respective due dates
expressed herein.

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

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of and any
premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of
this series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

         The Securities of this series are issuable only in registered form
without coupons in denominations of $ ______ and any integral multiple thereof.
As provided in the Indenture and subject to certain limitations therein set
forth, Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

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

         Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

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

SECTION 204. Form of Subsidiary Guarantee.

                              SUBSIDIARY GUARANTEE

         For value received, each of the Subsidiary Guarantors named (or deemed
herein to be named) below hereby jointly and severally fully and unconditionally
guarantees to the Holder of the Security upon which this Subsidiary Guarantee is
endorsed, and to the Trustee on behalf of such Holder, the due and punctual
payment of the principal of (and premium, if any) and interest

                                       18

<PAGE>

on such Security when and as the same shall become due and payable, whether at
the Stated Maturity, by acceleration, call for redemption, offer to purchase or
otherwise, according to the terms thereof and of the Indenture referred to
therein and to cover all the rights of the Trustee under Section 607. In case of
the failure of the Company punctually to make any such payment, each of the
Subsidiary Guarantors hereby jointly and severally agrees to cause such payment
to be made punctually when and as the same shall become due and payable, whether
at the Stated Maturity or by acceleration, call for redemption, offer to
purchase or otherwise, and as if such payment were made by the Company.

         Each of the Subsidiary Guarantors hereby jointly and severally agrees
that its obligations hereunder shall be absolute and unconditional, irrespective
of, and shall be unaffected by, the validity, regularity or enforceability of
such Security or the Indenture, the absence of any action to enforce the same or
any release, amendment, waiver or indulgence granted to the Company or any other
guarantor, or any consent to departure from any requirement of any other
guarantee of all or of any of the Securities of this series, or any other
circumstances which might otherwise constitute a legal or equitable discharge or
defense of a surety or guarantor; provided, however, that, notwithstanding the
foregoing, no such release, amendment, waiver or indulgence shall, without the
consent of such Subsidiary Guarantor, increase the principal amount of such
Security, or increase the interest rate thereon, or alter the Stated Maturity
thereof. Each of the Subsidiary Guarantors hereby waives the benefits of
diligence, presentment, demand of payment, any requirement that the Trustee or
any of the Holders protect, secure, perfect or insure any security interest in
or other lien on any property subject thereto or exhaust any right or take any
action against the Company or any other Person or any collateral, filing of
claims with a court in the event of insolvency or bankruptcy of the Company, any
right to require a proceeding first against the Company, protest or notice with
respect to such Security or the indebtedness evidenced thereby and all demands
whatsoever, and covenants that this Subsidiary Guarantee will not be discharged
except by complete performance of the obligations contained in such Security and
in this Subsidiary Guarantee. Each Subsidiary Guarantor agrees that if, after
the occurrence and during the continuance of an Event of Default with respect to
Securities of this series, the Trustee or any of the Holders are prevented by
applicable law from exercising their respective rights to accelerate the
maturity of the Securities of this series, to collect interest on the Securities
of this series, or to enforce or exercise any other right or remedy with respect
to the Securities of this series, such Subsidiary Guarantor agrees to pay to the
Trustee for the account of the Holders, upon demand therefor, the amount that
would otherwise have been due and payable had such rights and remedies been
permitted to be exercised by the Trustee or any of the Holders.

         The indebtedness of each Subsidiary Guarantor evidenced by this
Subsidiary Guarantee is, to the extent provided in the Indenture, subordinate in
right of payment to the prior payment in full of all Senior Debt of such
Subsidiary Guarantor, and the Subsidiary Guarantee of each Subsidiary Guarantor
is issued subject to the provisions of the Indenture with respect thereto.

         No reference herein to the Indenture and no provision of this
Subsidiary Guarantee or of the Indenture shall alter or impair the Subsidiary
Guarantee of any Subsidiary Guarantor, which is absolute and unconditional, of
the due and punctual payment of the principal (and premium, if any) and interest
on the Security upon which this Subsidiary Guarantee is endorsed.

                                       19

<PAGE>

         Each Subsidiary Guarantor shall be subrogated to all rights of the
Holder of this Security against the Company in respect of any amounts paid by
such Subsidiary Guarantor on account of this Security pursuant to the provisions
of its Subsidiary Guarantee or the Indenture; provided, however, that such
Subsidiary Guarantor shall not be entitled to enforce or to receive any payments
arising out of, or based upon, such right of subrogation until the principal of
(and premium, if any) and interest on this Security and all other Securities of
this series issued under the Indenture shall have been paid in full.

         This Subsidiary Guarantee shall remain in full force and effect and
continue to be effective should any petition be filed by or against the Company
for liquidation or reorganization, should the Company become insolvent or make
an assignment for the benefit of creditors or should a receiver or trustee be
appointed for all or any part of the Company's assets, and shall, to the fullest
extent permitted by law, continue to be effective or be reinstated, as the case
may be, if at any time payment and performance of the Securities of this series
is, pursuant to applicable law, rescinded or reduced in amount, or must
otherwise be restored or returned by any Holder of the Securities of this
series, whether as a "voidable preference," "fraudulent transfer," or otherwise,
all as though such payment or performance had not been made. In the event that
any payment, or any part thereof, is rescinded, reduced, restored or returned,
the Securities of this series shall, to the fullest extent permitted by law, be
reinstated and deemed reduced only by such amount paid and not so rescinded,
reduced, restored or returned.

         The Subsidiary Guarantors or any particular Subsidiary Guarantor shall
be released from this Subsidiary Guarantee upon the terms and subject to certain
conditions provided in the Indenture.

         By delivery to the Trustee of a supplement to the Indenture referred to
in the Security upon which this Subsidiary Guarantee is endorsed in accordance
with the terms of the Indenture, each Person that becomes a Subsidiary Guarantor
after the date of first issuance of the Securities of this series will be deemed
to have executed and delivered this Subsidiary Guarantee for the benefit of the
Holder of the Security upon which this Subsidiary Guarantee is endorsed with the
same effect as if such Subsidiary Guarantor was named below and has executed and
delivered this Subsidiary Guarantee.

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

         This Subsidiary Guarantee shall not be valid or obligatory for any
purpose until the certificate of authentication on the Security upon which this
Subsidiary Guarantee is endorsed shall have been executed by the Trustee under
the Indenture by manual signature.

         Reference is made to the Indenture for further provisions with respect
to this Subsidiary Guarantee.

         This Subsidiary Guarantee shall be governed by and construed in
accordance with the laws of the State of New York.

                                       20

<PAGE>

         IN WITNESS WHEREOF, each of the Subsidiary Guarantors has caused this
Subsidiary Guarantee to be duly executed.

                                        [Insert Names of Subsidiary Guarantors]

                                        By ______________________________
                                           Title:

Attest:

__________________________

SECTION 205. Form of Legend for Global Securities.

         Unless otherwise specified as contemplated by Section 301 for the
Securities evidenced thereby, every Global Security authenticated and delivered
hereunder shall bear a legend in substantially the following form:

         THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
         HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
         OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN
         PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN
         WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER
         THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
         CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

SECTION 206. Form of Trustee's Certificate of Authentication.

         The Trustee's certificates 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.

                                        Wells Fargo Bank, N.A.
                                             As Trustee

                                        By _____________________________
                                                Authorized Officer

                                       21

<PAGE>

                                  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, subject to Section 303,
set forth, or determined in the manner provided, in an Officers' Certificate, or
established in one or more indentures supplemental hereto, prior to the issuance
of Securities of any series,

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

                  (2)      if the Securities of the series will not have the
         benefit of the Subsidiary Guarantees of the Subsidiary Guarantors;

                  (3)      any change to the subordination provisions which
         applies to the Securities of the series from those contained in Article
         Twelve with respect to the Securities and/or, if applicable, those
         contained in Article Fourteen with respect to the Subsidiary
         Guarantees, and the definitions of Senior Debt and Designated Senior
         Debt which shall apply to the Securities of the series, and, if
         applicable, the Subsidiary Guarantees;

                  (4)      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);

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

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

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

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

                                       22

<PAGE>

                  (9)      the period or periods within which, the price or
         prices at which and the terms and conditions upon which any Securities
         of the series may be redeemed, in whole or in part, at the option of
         the Company and, if other than by a Board Resolution, the manner in
         which any election by the Company to redeem the Securities shall be
         evidenced;

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

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

                  (12)     if the amount of principal of or any premium or
         interest on any Securities of the series may be determined with
         reference to an index or pursuant to a formula, the manner in which
         such amounts shall be determined;

                  (13)     if other than the currency of the United States of
         America, the currency, currencies or currency units in which the
         principal of or any premium or interest on any Securities of the series
         shall be payable and the manner of determining the equivalent thereof
         in the currency of the United States of America for any purpose,
         including for purposes of the definition of "Outstanding" in Section
         101;

                  (14)     if the principal of or any premium or interest on any
         Securities of the series is to be payable, at the election of the
         Company or the Holder thereof, in one or more currencies or currency
         units other than that or those in which such Securities are stated to
         be payable, the currency, currencies or currency units in which the
         principal of or any premium or interest on such Securities as to which
         such election is made shall be payable, the periods within which and
         the terms and conditions upon which such election is to be made and the
         amount so payable (or the manner in which such amount shall be
         determined);

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

                  (16)     if the principal amount payable at the Stated
         Maturity of any Securities of the series will not be determinable as of
         any one or more dates prior to the Stated Maturity, the amount which
         shall be deemed to be the principal amount of such Securities as of any
         such date for any purpose thereunder or hereunder, including the
         principal amount thereof which shall be due and payable upon any
         Maturity other than the Stated Maturity or which shall be deemed to be
         Outstanding as of any date prior to the Stated Maturity (or, in any
         such case, the manner in which such amount deemed to be the principal
         amount shall be determined);

                                       23

<PAGE>

                  (17)     if applicable, that the Securities of the series, in
         whole or any specified part, shall be defeasible pursuant to Section
         1502 or Section 1503 or both such Sections and, if other than by a
         Board Resolution, the manner in which any election by the Company to
         defease such Securities shall be evidenced;

                  (18)     if applicable, that any Securities of the series
         shall be issuable in whole or in part in the form of one or more Global
         Securities and, in such case, the respective Depositories for such
         Global Securities, the form of any legend or legends which shall be
         borne by any such Global Security in addition to or in lieu of that set
         forth in Section 205 and any circumstances in addition to or in lieu of
         those set forth in clause (2) of the last paragraph of Section 305 in
         which any such Global Security may be exchanged in whole or in part for
         Securities registered, and any transfer of such Global Security in
         whole or in part may be registered, in the name or names of Persons
         other than the Depositary for such Global Security or a nominee
         thereof;

                  (19)     any addition to or change in the Events of Default
         which applies to any Securities of the series and any change in the
         right of the Trustee or the requisite Holders of such Securities to
         declare the principal amount thereof due and payable pursuant to
         Section 502;

                  (20)     any addition to or change in the covenants set forth
         in Article Ten which applies to Securities of the series;

                  (21)     whether the Securities of the series will be
         convertible into Capital Stock (or cash in lieu thereof) and, if so,
         the terms and conditions upon which such conversion will be effected;
         and

                  (22)     any other terms of the series (which terms shall not
         be inconsistent with the provisions of this Indenture, except as
         permitted by Section 901(5)).

         All Securities of any one series shall be substantially identical
except as to denomination and except as may otherwise be provided in or pursuant
to the Board Resolution referred to above and (subject to Section 303) set
forth, or determined in the manner provided, in the Officers' Certificate
referred to above or in any such indenture supplemental hereto.

         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.

         The Securities of each series shall have the benefit of the Subsidiary
Guarantees unless the Company elects otherwise upon the establishment of a
series pursuant to this Section 301.

         The Securities shall be subordinated in right of payment to Senior Debt
of the Company as provided in Article Twelve. Each Subsidiary Guarantee shall be
subordinated in right of payment to Senior Debt of the applicable Subsidiary
Guarantor as provided in Article Fourteen.

                                       24

<PAGE>

SECTION 302. Denominations.

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

SECTION 303. Execution, Authentication, Delivery and Dating.

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

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

         At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series executed by the
Company and, if applicable, having endorsed thereon the Subsidiary Guarantees
executed as provided in Section 1303 by the Subsidiary Guarantors to the Trustee
for authentication, together with a Company Order for the authentication and
delivery of such Securities, and the Trustee in accordance with the Company
Order shall authenticate and deliver such Securities. If the form or terms of
the Securities of the series have been established by or pursuant to one or more
Board Resolutions as permitted by Sections 201 and 301, in authenticating such
Securities, and accepting the additional responsibilities under this Indenture
in 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,

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

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

                  (3)      that such Securities, when authenticated and
         delivered by the Trustee and issued by the Company in the manner and
         subject to any conditions specified in such Opinion of Counsel, will
         constitute valid and legally binding obligations of the Company, and,
         if applicable, the Subsidiary Guarantees endorsed thereon will
         constitute valid and legally binding obligations of the Subsidiary
         Guarantors, enforceable in accordance with their terms, subject to
         bankruptcy, insolvency, fraudulent transfer, reorganization,

                                       25

<PAGE>

         moratorium and similar laws of general applicability relating to or
         affecting creditors' rights and to general equity principles.

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

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

         Each Security shall be dated the date of its authentication.

         No Security or Subsidiary Guarantee 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. 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, 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.

         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 and, if applicable,
having endorsed thereon the Subsidiary Guarantees in lieu of which they are
issued and with such appropriate insertions, omissions, substitutions and other
variations as the officers executing such Securities and, if applicable,
Subsidiary Guarantees may determine, as evidenced by their execution of such
Securities and Subsidiary Guarantees.

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

                                       26
<PAGE>

and of like tenor and aggregate principal amount and, if applicable, having
endorsed thereon Subsidiary Guarantees executed by the Subsidiary Guarantors.
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 and tenor.

Section 305. Registration, Registration of Transfer and Exchange.

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

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

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

         All Securities and, if applicable, the Subsidiary Guarantees endorsed
thereon issued upon any registration of transfer or exchange of Securities shall
be the valid obligations of the Company and, if applicable, the respective
Subsidiary Guarantors, evidencing the same debt, and entitled to the same
benefits under this Indenture, as the Securities and Subsidiaries Guarantees
surrendered upon such registration of transfer or exchange.

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

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

                                       27

<PAGE>

         If the Securities of any series (or of any series and specified tenor)
are to be redeemed in part, the Company shall not be required (A) to issue,
register the transfer of or exchange any Securities of that series (or of that
series and specified tenor, as the case may be) during a period beginning at the
opening of business 15 days before the day of the mailing of a notice of
redemption of any such Securities selected for redemption under Section 1103 and
ending at the close of business on the day of such mailing, or (B) to register
the transfer of or exchange any Security so selected for redemption in whole or
in part, except the unredeemed portion of any Security being redeemed in part.

         The provisions of clauses (1), (2), (3) and (4) below shall apply only
to Global Securities:

                  (1)      Each Global Security authenticated under this
         Indenture shall be registered in the name of the Depositary designated
         for such Global Security or a nominee thereof and delivered to such
         Depositary or a nominee thereof or custodian therefor, and each such
         Global Security shall constitute a single Security for all purposes of
         this Indenture.

                  (2)      Notwithstanding any other provision in this
         Indenture, no Global Security may be exchanged in whole or in part for
         Securities registered, and no transfer of a Global Security in whole or
         in part may be registered, in the name of any Person other than the
         Depositary for such Global Security or a nominee thereof unless (A)
         such Depositary (i) has notified the Company that it is unwilling or
         unable to continue as Depositary for such Global Security or (ii) has
         ceased to be a clearing agency registered under the Exchange Act, and
         in either case the Company fails to appoint a successor Depositary
         within 90 days, (B) there shall have occurred and be continuing an
         Event of Default with respect to such Global Security and the
         Depositary shall have notified the Trustee of its decision to exchange
         such Global Security for Securities in certificated form or (C) there
         shall exist such circumstances, if any, in addition to or in lieu of
         the foregoing as have been specified for this purpose as contemplated
         by Section 301.

                  (3)      Subject to clause (2) above, any exchange of a Global
         Security for other Securities may be made in whole or in part, and all
         Securities issued in exchange for a Global Security or any portion
         thereof shall be registered in such names as the Depositary for such
         Global Security shall direct.

                  (4)      Every Security authenticated and delivered upon
         registration of transfer of, or in exchange for or in lieu of, a Global
         Security or any portion thereof, whether pursuant to this Section,
         Section 304, 306, 906 or 1107 or otherwise, shall be authenticated and
         delivered in the form of, and shall be, a Global Security, unless such
         Security is registered in the name of a Person other than the
         Depositary for such Global Security or a nominee thereof.

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

         If any mutilated Security is surrendered to the Trustee, the Company
shall execute, if applicable the Subsidiary Guarantors shall execute the
Subsidiary Guarantees endorsed thereon and the Trustee shall authenticate and
deliver in exchange therefor a new Security of the same

                                       28

<PAGE>

series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

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

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

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

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

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

SECTION 307. Payment of Interest; Interest Rights Preserved.

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

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

                                       29

<PAGE>

                  (1)      The Company may elect to make payment of any
         Defaulted Interest to the Persons in whose names the Securities of such
         series (or their respective Predecessor Securities) are registered at
         the close of business on a Special Record Date for the payment of such
         Defaulted Interest, which shall be fixed in the following manner. The
         Company shall notify the Trustee in writing of the amount of Defaulted
         Interest proposed to be paid on each Security of such series and the
         date of the proposed payment, and at the same time the Company shall
         deposit with the Trustee 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 a Special Record Date for the payment of such Defaulted
         Interest which shall be not more than 15 days and not less than 10 days
         prior to the date of the proposed payment and not less than 10 days
         after the receipt by the Trustee of the notice of the proposed payment.
         The Trustee shall promptly notify the Company of such Special Record
         Date and, in the name and at the expense of the Company, shall cause
         notice of the proposed payment of such Defaulted Interest and the
         Special Record Date therefor to be given to each Holder of Securities
         of such series in the manner set forth in Section 106, not less than 10
         days prior to such Special Record Date. Notice of the proposed payment
         of such Defaulted Interest and the Special Record Date therefor having
         been so mailed, such Defaulted Interest shall be paid to the Persons in
         whose names the Securities of such series (or their respective
         Predecessor Securities) are registered at the close of business on such
         Special Record Date and shall no longer be payable pursuant to the
         following clause (2).

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

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

SECTION 308. Persons Deemed Owners.

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

                                       30

<PAGE>

SECTION 309. Cancellation.

         All Securities surrendered for payment, redemption, purchase,
registration of transfer or exchange or for credit against any sinking fund
payment shall, if surrendered to any Person other than the Trustee, be delivered
to the Trustee and shall be promptly cancelled by it. The Company may at any
time deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder which the Company may have acquired in any
manner whatsoever, and may deliver to the Trustee (or to any other Person for
delivery to the Trustee) for cancellation any Securities previously
authenticated hereunder which the Company has not issued and sold, and all
Securities so delivered shall be promptly cancelled by the Trustee. No
Securities shall be authenticated in lieu of or in exchange for any Securities
cancelled as provided in this Section, except as expressly permitted by this
Indenture. All cancelled Securities held by the Trustee shall be disposed of as
directed by a Company Order.

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.

                                  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 conversion, registration of transfer or
exchange of Securities herein expressly provided for) with respect to the
Securities of any series, 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 of such series theretofore
                  authenticated and delivered (other than (i) Securities of such
                  series which have been destroyed, lost or stolen and which
                  have been replaced or paid as provided in Section 306 and (ii)
                  Securities of such series 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 of such series not
                  theretofore delivered to the Trustee for cancellation

                                    (i)      have become due and payable, or

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<PAGE>

                                    (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 or, if applicable, a Subsidiary Guarantor, 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 money in an amount sufficient to pay and discharge
                  the entire indebtedness on such Securities not theretofore
                  delivered to the Trustee for cancellation, for principal and
                  any premium 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 or a Subsidiary Guarantor has paid or
         caused to be paid all other sums payable hereunder by the Company and
         the Subsidiary Guarantors; and

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

         Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 607, the obligations of
the Trustee to any Authenticating Agent under Section 614 and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of clause (1) of
this Section, 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 shall be held in trust
and applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium and
interest for whose payment such money has been deposited with the Trustee.

                                  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 occasioned by the provisions of Article
Twelve or be voluntary or involuntary or be

                                       32

<PAGE>

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 any
         premium on any Security of that series at its Maturity; or

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

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

                  (5)      a default under the terms of any instrument
         evidencing or securing any Debt of the Company or any Subsidiary having
         an outstanding principal amount of $10 million individually or in the
         aggregate which default results in the acceleration of the payment of
         all or any portion of such Debt (which acceleration is not rescinded
         within a period of 10 days of the occurrence of such acceleration) or
         constitutes the failure to pay all or any portion of the principal
         amount of such Debt when due; or

                  (6)      the rendering of a final judgment or judgments (not
         subject to appeal) against the Company or any Subsidiary in an amount
         in excess of $10 million which remains undischarged or unstayed for a
         period of 60 days after the date on which the right to appeal has
         expired;

                  (7)      the entry by a court having jurisdiction in the
         premises of (A) a decree or order for relief in respect of the Company,
         any Significant Subsidiary or any group of Subsidiaries that together
         would constitute a Significant Subsidiary in an involuntary case or
         proceeding under any applicable Federal or State bankruptcy,
         insolvency, reorganization or other similar law or (B) a decree or
         order adjudging the Company, any Significant Subsidiary or any group of
         Subsidiaries that together would constitute a Significant Subsidiary a
         bankrupt or insolvent, or approving as properly filed a petition
         seeking reorganization, arrangement, adjustment or composition of or in
         respect of the Company, any Significant Subsidiary or any group of
         Subsidiaries that together would constitute a Significant Subsidiary
         under any applicable Federal or State law, or appointing a custodian,
         receiver, liquidator, assignee, trustee, sequestrator or other similar

                                       33

<PAGE>

         official of the Company, any Significant Subsidiary or any group of
         Subsidiaries that together would constitute a Significant Subsidiary or
         of any substantial part of its or their property, or ordering the
         winding up or liquidation of its or their 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

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

                  (9)      in the event the Subsidiary Guarantors have issued
         Subsidiary Guarantees with respect to the Securities of such series,
         the Subsidiary Guarantee of any Subsidiary Guarantor is held by a final
         non-appealable order or judgment of a court of competent jurisdiction
         to be unenforceable or invalid or ceases for any reason to be in full
         force and effect (other than in accordance with the terms of this
         Indenture) or any Subsidiary Guarantor or any Person acting on behalf
         of any Subsidiary Guarantor denies or disaffirms such Subsidiary
         Guarantor's obligations under its Subsidiary Guarantee (other than by
         reason of a release of such Subsidiary Guarantor from its Subsidiary
         Guarantee in accordance with the terms of this Indenture); or

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

SECTION 502. Acceleration of Maturity; Rescission and Annulment.

         If an Event of Default (other than an Event of Default specified in
Section 501(7) or 501(8)) 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 of all the Securities of that
series (or, if any Securities of that series are Original Issue Discount
Securities, such portion

                                       34

<PAGE>

of the principal amount of such Securities as may be specified by the terms
thereof) 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. If an Event of Default specified in Section 501(7) or 501 (8) with
respect to Securities of any series at the time Outstanding occurs, the
principal amount of all the Securities of that series (or, if any Securities of
that series are Original Issue Discount Securities, such portion of the
principal amount of such Securities as may be specified by the terms thereof)
shall automatically, and without any declaration or other action on the part of
the Trustee or any Holder, 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 or, if applicable, any Subsidiary
         Guarantor has paid or deposited with the Trustee a sum sufficient to
         pay

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

                           (B)      the principal of (and premium, if any, on)
                  any Securities of that series which have become due otherwise
                  than by such declaration of acceleration and any 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

                  (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 has 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

                                       35

<PAGE>

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

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

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

SECTION 504. Trustee May File Proofs of Claim.

         In case of any judicial proceeding relative to the Company, any
Subsidiary Guarantor or any other obligor upon the Securities, or the property
or creditors of the Company, any Subsidiary Guarantor or any other obligor upon
the Securities, the Trustee shall be entitled and empowered, by intervention in
such proceeding or otherwise, to take any and all actions authorized under the
Trust Indenture Act in order to have claims of the Holders and the Trustee
allowed in any such proceeding. In particular, the Trustee shall be authorized
to collect and receive any moneys or other property payable or deliverable on
any such claims and to distribute the same; and any custodian, receiver,
assignee, trustee, liquidator, sequestrator or other similar official in any
such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
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.

         No provision of this Indenture shall be deemed to authorize the Trustee
to authorize or consent to or accept or adopt on behalf of any Holder any plan
of reorganization, arrangement, adjustment or composition affecting the
Securities or any Subsidiary Guarantee or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding; provided, however, that the Trustee may, on behalf of the Holders,
vote for the election of a trustee in bankruptcy or similar official and be a
member of a creditors' or other similar committee.

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

         All rights of action and claims under this Indenture or the Securities
or any Subsidiary Guarantee may be prosecuted and enforced by the Trustee
without the possession of any of the Securities or the production thereof in any
proceeding relating thereto, and any such proceeding

                                       36

<PAGE>

instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders
of the Securities in respect of which such judgment has been recovered.

SECTION 506. Application of Money Collected.

         Any money collected by the Trustee pursuant to this Article 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 any premium
or interest, upon presentation of the Securities 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: Subject to Article Twelve and Article Fourteen, to the
         payment of the amounts then due and unpaid for principal of and any
         premium and interest on the Securities in respect of which or for the
         benefit of which such money has been collected, ratably, without
         preference or priority of any kind, according to the amounts due and
         payable on such Securities for principal and any premium and interest,
         respectively.

SECTION 507. Limitation on Suits.

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

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

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

                  (3)      such Holder or Holders have offered to the Trustee
         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

                                       37

<PAGE>

or prejudice the rights of any other of such Holders, or to obtain or to seek to
obtain priority or preference over any other of such Holders or to enforce any
right under this Indenture, except in the manner herein provided and for the
equal and ratable benefit of all of such Holders.

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

         Notwithstanding any other provision in this Indenture, the Holder of
any Security shall have the right, which is absolute and unconditional, to
receive payment of the principal of and any premium and (subject to Section 307)
interest on such Security on the respective Stated Maturities expressed in such
Security (or, in the case of redemption or offer by the Company to purchase the
Securities pursuant to the terms of this Indenture, on the Redemption Date or
purchase date, as applicable) and to institute suit for the 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 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 Subsidiary Guarantors, the
Trustee and the Holders shall 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 in the last paragraph of
Section 306, no right or remedy herein conferred upon or reserved to the Trustee
or to the Holders is intended to be exclusive of any other right or remedy, and
every right and remedy shall, to the extent permitted by law, be cumulative and
in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

SECTION 511. Delay or Omission Not Waiver.

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

SECTION 512. Control by Holders.

         The Holders of a majority in principal amount of the Outstanding
Securities of any series shall have the right to direct the time, method and
place of conducting any proceeding for any

                                       38

<PAGE>

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

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

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

SECTION 513. Waiver of Past Defaults.

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

                  (1)      in the payment of the principal of or any premium or
         interest on any Security of such series (including any Security which
         is required to have been purchased by the Company pursuant to an offer
         to purchase by the Company made pursuant to the terms of this
         Indenture), 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.

         In any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any action taken, suffered or
omitted by it as Trustee, a court may require any party litigant in such suit to
file an undertaking to pay the costs of such suit, and may assess costs against
any such party litigant, in the manner and to the extent provided in the Trust
Indenture Act; provided, however, that neither this Section nor the Trust
Indenture Act shall be deemed to authorize any court to require such an
undertaking or to make such an assessment in any suit instituted by the Company
or any Subsidiary Guarantor.

SECTION 515. Waiver of Usury, Stay or Extension Laws.

         Each of the Company and the Subsidiary Guarantors covenants (to the
extent that it may lawfully do so) that it will not at any time insist upon, or
plead, or in any manner whatsoever claim or take the benefit or advantage of,
any usury, stay or extension law wherever enacted, now or at any time hereafter
in force, which may affect the covenants or the performance of this Indenture;
and each of the Company and the Subsidiary Guarantors (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,

                                       39

<PAGE>

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.

         The duties and responsibilities of the Trustee shall be as provided by
the Trust Indenture Act. Notwithstanding the foregoing, 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. 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.

         If a default occurs hereunder with respect to Securities of any series,
the Trustee shall give the Holders of Securities of such series notice of such
default as and to the extent provided by the Trust Indenture Act; provided,
however, 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 30 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.

SECTION 603. Certain Rights of Trustee.

         Subject to the provisions of Section 601:

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

                  (2)      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 shall be
         sufficiently evidenced by a Board Resolution;

                  (3)      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;

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<PAGE>

                  (4)      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;

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

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

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

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

         The recitals contained herein and in the Securities and the Subsidiary
Guarantees, except the Trustee's certificates of authentication, shall be taken
as the statements of the Company or the Subsidiary Guarantors, as the case may
be, 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 the
Subsidiary Guarantees endorsed thereon. Neither the Trustee nor any
Authenticating Agent shall 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 or any Subsidiary Guarantor, in its
individual or any other capacity, may become the owner or pledgee of Securities
and, subject to Sections 608 and 613, may otherwise deal with the Company and
any Subsidiary Guarantor 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

                                       41

<PAGE>

money received by it hereunder except as otherwise agreed with the Company or
any Subsidiary Guarantor, as the case may be.

SECTION 607. Compensation and Reimbursement.

         The Company and each Subsidiary Guarantor jointly and severally agree

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

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

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

SECTION 608. Conflicting Interests.

         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, the Trust Indenture Act and this Indenture. To the extent
permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under this Indenture with respect to
Securities of more than one series.

SECTION 609. Corporate Trustee Required; Eligibility.

         There shall at all times be one (and only one) Trustee hereunder with
respect to the Securities of each series, which may be Trustee hereunder for
Securities of one or more other series. Each Trustee shall be a Person that is
eligible pursuant to the Trust Indenture Act to act as such, and has a combined
capital and surplus of at least $50,000,000. If any such Person publishes
reports of condition at least annually, pursuant to law or to the requirements
of its supervising or examining authority, then for the purposes of this Section
and to the extent permitted by the Trust Indenture Act, the combined capital and
surplus of such Person 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 with respect to the Securities of any series shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

SECTION 610. Resignation and Removal; Appointment of Successor.

                                       42

<PAGE>

         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.

         The Trustee may resign at any time with respect to the Securities of
one or more series by giving written notice thereof to the Company. If the
instrument of acceptance by a successor Trustee required by Section 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.

         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.

         If at any time:

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

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

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

then, in any such case, (A) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, or (B) subject to Section 514, any
Holder 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.

         If the Trustee shall resign, be removed or become incapable of acting,
or if a vacancy shall occur in the office of Trustee for any cause, with respect
to the Securities of one or more series, the Company, by a Board Resolution,
shall promptly appoint a successor Trustee or Trustees with respect to the
Securities of that or those series (it being understood that any such successor
Trustee may be appointed with respect to the Securities of one or more or all of
such series and that at any time there shall be only one Trustee with respect to
the Securities of any particular series) and shall comply with the applicable
requirements of Section 611. If, 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

                                       43

<PAGE>

supersede the successor Trustee appointed by the Company. If no successor
Trustee with respect to the Securities of any series shall have been so
appointed by the Company or the Holders and accepted appointment in the manner
required by Section 611, any Holder who has been a bona fide Holder of a
Security of such series for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series.

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

SECTION 611. Acceptance of Appointment by Successor.

         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, the Subsidiary Guarantors 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.

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

                                       44

<PAGE>

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.

         Upon request of any such successor Trustee, the Company and the
Subsidiary Guarantors 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 the first or second preceding paragraph, as the
case may be.

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

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

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

SECTION 613. Preferential Collection of Claims Against Company and Subsidiary
             Guarantors.

         If and when the Trustee shall be or become a creditor of the Company,
any Subsidiary Guarantor or any other obligor upon the Securities, the Trustee
shall be subject to the provisions of the Trust Indenture Act regarding the
collection of claims against the Company, such Subsidiary Guarantor or any such
other obligor.

SECTION 614. Appointment of Authenticating Agent.

         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 original
issue and 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

                                       45

<PAGE>

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
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall give notice of such
appointment in the manner provided in Section 106 to all Holders of Securities
of the series with respect to which such Authenticating Agent will serve. Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

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

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

                                       46

<PAGE>

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

                                         Wells Fargo Bank, N.A.,
                                               As Trustee

                                         By __________________________,
                                            As Authenticating Agent

                                         By __________________________,
                                            Authorized Officer

                                  ARTICLE SEVEN

                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

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

         The Company will furnish or cause to be furnished to the Trustee with
respect to the Securities of each series:

                  (1)      not more than 10 days after each record date with
         respect to the payment of interest, if any, a list, in such form as the
         Trustee may reasonably require, of the names and addresses of the
         Holders of Securities of such series as of such record date, and

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

excluding from any such list names and addresses received by the Trustee in its
capacity as Security Registrar.

SECTION 702. Preservation of Information; Communications to Holders.

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

                                       47

<PAGE>

         The rights of Holders to communicate with other Holders with respect to
their rights under this Indenture or under the Securities, and the corresponding
rights and privileges of the Trustee, shall be as provided by the Trust
Indenture Act.

         Every Holder of Securities, by receiving and holding the same, agrees
with the Company and the Trustee that neither the Company, the Subsidiary
Guarantors nor the Trustee nor any agent of any of them shall be held
accountable by reason of any disclosure of information as to names and addresses
of Holders made pursuant to the Trust Indenture Act.

SECTION 703. Reports by Trustee.

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

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

SECTION 704. Reports by Company and Subsidiary Guarantors.

         The Company and each of the Subsidiary Guarantors shall file with the
Trustee and the Commission, and transmit to Holders, such information, documents
and other reports, and such summaries thereof, as may be required pursuant to
the Trust Indenture Act at the times and in the manner provided pursuant to such
Act; provided that any such information, documents or reports required to be
filed with the Commission pursuant to Section 13 or 15(d) of the Exchange Act
shall be filed with the Trustee within 15 days after the same is so required to
be filed with the Commission.

                                  ARTICLE EIGHT

              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

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

         The Company shall not, in a single transaction or a series of related
transactions, consolidate with or merge into any other Person or permit any
other Person to consolidate with or merge into the Company or, directly or
indirectly, transfer, convey, sell, lease or otherwise dispose of all or
substantially all of its assets, unless:

                  (1)      in a transaction in which the Company does not
         survive or in which the Company transfers, conveys, sells, leases or
         otherwise disposes of all or substantially all of its assets, the
         successor entity (for purposes of this Article Eight, a "Successor
         Company") shall be a corporation, partnership, trust or other entity
         organized and validly existing under the laws of the United States of
         America, any State thereof or the District of Columbia, and shall
         expressly assume, by an indenture supplemental hereto, executed

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<PAGE>

         and delivered to the Trustee, in form satisfactory to the Trustee, the
         due and punctual payment of the principal of and any premium and
         interest on all the Securities and the performance or observance of
         every covenant of this Indenture on the part of the Company to be
         performed or observed;

                  (2)      immediately before and after giving pro forma effect
         to such transaction and treating any indebtedness which becomes an
         obligation of the Company or any 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;

                  (3)      if, as a result of any such consolidation or merger
         or such transfer, conveyance, sale, lease or other disposition,
         properties or assets of the Company would become subject to a mortgage,
         pledge, lien, security interest or other encumbrance which would not be
         permitted by this Indenture, the Company or the successor company, as
         the case may be, shall take such steps as shall be necessary
         effectively to secure the Securities equally and ratably with (or prior
         to) all indebtedness secured thereby;

                  (4)      any other conditions provided pursuant to Section 301
         with respect to the Securities of a series are satisfied; and

                  (5)      the Company has delivered to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that such
         consolidation, merger, transfer, conveyance, sale, lease or other
         disposition and, if a supplemental indenture is required in connection
         with such transaction, 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. Subsidiary Guarantors May Consolidate, Etc., Only on Certain Terms.

         Except in a transaction resulting in the release of a Subsidiary
Guarantor in accordance with the terms of this Indenture, each Subsidiary
Guarantor shall not, and the Company shall not permit any Subsidiary Guarantor
to, in a single or a series of related transactions, consolidate or merge with
or into any Person (other than the Company or another Subsidiary Guarantor) or
permit any Person (other than another Subsidiary Guarantor) to consolidate or
merge with or into such Subsidiary Guarantor or, directly or indirectly,
transfer, convey, sell, lease or otherwise dispose of all or substantially all
of its assets unless, in each case:

                  (1)      in a transaction in which such Subsidiary Guarantor
         does not survive or in which all or substantially all of the assets of
         such Subsidiary Guarantor are transferred, conveyed, sold, leased or
         otherwise disposed of, the successor entity (the "Successor Subsidiary
         Guarantor") shall be a corporation, partnership, trust or other entity
         organized and validly existing under the laws of the United States of
         America, any State thereof or the District of Columbia, and shall
         expressly assume by an indenture supplemental hereto executed and
         delivered to the Trustee, in form satisfactory to the Trustee, the due
         and punctual payment of all obligations of such Subsidiary Guarantor
         under its Subsidiary

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<PAGE>

         Guarantee and this Indenture and the performance of every covenant of
         this Indenture on the part of such Subsidiary Guarantor to be performed
         or observed; and

                  (2)      the Company has delivered to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that such
         consolidation, merger, transfer, conveyance, sale, lease or other
         disposition and, if a supplemental indenture is required in connection
         with such transaction, such supplemental indenture, comply with this
         Article and that all conditions precedent herein provided for relating
         to such transaction have been complied with.

SECTION 803. Successor Substituted.

         (a)      Upon any consolidation of the Company with, or merger of the
Company into, any other Person or any transfer, conveyance, sale, lease or other
disposition of all or substantially all of the assets of the Company in
accordance with Section 801, the Successor Company shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor Person had been named
as the Company herein, and thereafter, except in the case of a lease, the
predecessor Person shall be relieved of all obligations and covenants under this
Indenture and the Securities.

         (b)      Upon any consolidation of a Subsidiary Guarantor with, or
merger of such Subsidiary Guarantor into, any other Person or any transfer,
conveyance, sale, lease or other disposition of all or substantially all of the
assets of such Subsidiary Guarantor in accordance with Section 802, the
Successor Subsidiary Guarantor shall succeed to, and be substituted for, and may
exercise every right and power of, such Subsidiary Guarantor under this
Indenture with the same effect as if such successor Person had been named as a
Subsidiary Guarantor herein, and thereafter, except in the case of a lease, the
predecessor Person shall be relieved of all obligations and covenants under this
Indenture and its Subsidiary Guarantee.

                                  ARTICLE NINE

                             SUPPLEMENTAL INDENTURES

SECTION 901. Supplemental Indentures Without Consent of Holders.

         Without the consent of any Holders, the Company, when authorized by a
Board Resolution, the Subsidiary Guarantors, when authorized by their respective
Board Resolutions, 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 Person to the
         Company or any Subsidiary Guarantor and the assumption by any such
         successor of the covenants of the Company or any Subsidiary Guarantor
         herein and in the Securities or Subsidiary Guarantees, as the case may
         be; 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

                                       50

<PAGE>

         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
         additional Events of Default are to be for the benefit of less than all
         series of Securities, stating that such additional Events of Default
         are expressly being included solely for the benefit of such series); or

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

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

                  (6)      to secure the Securities; or

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

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

                  (10)     to make any other provisions with respect to matters
         or questions arising under this Indenture, provided that such action
         pursuant to clause (9) above shall not adversely affect the interests
         of the Holders of Securities of any series in any material respect; or

                  (11)     to add new Subsidiary Guarantors.

SECTION 902. Supplemental Indentures With Consent of Holders.

         With the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities of each series affected by such
supplemental indenture, by Act of said Holders delivered to the Company, the
Subsidiary Guarantors and the Trustee, the Company, when authorized by a Board
Resolution, the Subsidiary Guarantors, when authorized by their

                                       50
<PAGE>

respective Board Resolutions and the Trustee may enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or
of modifying in any manner the rights of the Holders of Securities of such
series under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Security
affected thereby,

                  (1)      change the Stated Maturity of the principal of, or
         any 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 reduce the amount of
         the principal of an Original Issue Discount Security or any other
         Security which would be due and payable upon a declaration of
         acceleration of the Maturity thereof pursuant to Section 502, or change
         any Place of Payment where, or the coin or currency in which, any
         Security or any premium or 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 in the case of an offer to purchase
         Securities which has been made pursuant to a covenant contained in this
         Indenture, on or after the applicable purchase date), or modify the
         provisions of this Indenture with respect to the subordination of the
         Securities or the Subsidiary Guarantees in a manner adverse to the
         Holders, 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,

                  (3)      modify any of the provisions of this Section, Section
         513 or Section 1009, except to increase any such percentage or to
         provide that certain other provisions of this Indenture cannot be
         modified or waived without the consent of the Holder of each
         Outstanding Security affected thereby; provided, however, that this
         clause shall not be deemed to require the consent of any Holder with
         respect to changes in the references to "the Trustee" and concomitant
         changes in this Section and Section 1009, or the deletion of this
         proviso, in accordance with the requirements of Sections 611 and
         901(8); or

                  (4)      following the making of an offer to purchase
         Securities which has been made pursuant to a covenant contained in this
         Indenture, modify the provisions of this Indenture with respect to such
         offer to purchase in a manner adverse to such Holder.

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.

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<PAGE>

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

SECTION 903. Execution of Supplemental Indentures.

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

SECTION 904. Effect of Supplemental Indentures.

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

SECTION 905. Conformity with Trust Indenture Act.

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

SECTION 906. Reference in Securities to Supplemental Indentures.

         Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and shall
if required by the Trustee, bear a notation in form approved by the Trustee as
to any matter provided for in such supplemental indenture. If the Company 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, if applicable the Subsidiary Guarantees
may be endorsed thereon and such new Securities may be 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 any premium
and interest on the Securities of that series in accordance with the terms of
the Securities and this Indenture.

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<PAGE>

SECTION 1002. Maintenance of Office or Agency.

         The Company will maintain in each Place of Payment for any series of
Securities an office or agency where Securities of that series may be presented
or surrendered for payment, where Securities of that series may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Company or any Subsidiary Guarantor in respect of the Securities of
that series or any Subsidiary Guarantee 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 such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee, and the Company and each Subsidiary Guarantor hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

         The Company may also from time to time designate one or more other
offices or agencies 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 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 or any Subsidiary Guarantor 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 or any premium 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 any premium
and 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 so to act.

         Whenever the Company shall have one or more Paying Agents for any
series of Securities, it will, prior to 11:00 A.M., New York City time, on each
due date of the principal of or any premium or interest on any Securities of
that series, deposit with a Paying Agent a sum sufficient to pay such amount,
such sum to be held as provided by the Trust Indenture Act, 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) comply with the provisions of
the Trust Indenture Act applicable to it as a Paying Agent and (2) during the
continuance of any default by the Company, the Subsidiary Guarantors, if
applicable, or any other obligor upon the Securities of that series in the
making of any payment in respect of the Securities of that series, upon the
written request of the Trustee, forthwith pay to the Trustee all sums held in
trust by such Paying Agent for payment in respect of the Securities of that
series.

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<PAGE>

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

SECTION 1004. Statement by Officers as to Default.

         (a)      The Company and the Subsidiary Guarantors will deliver to the
Trustee, within 90 days after the end of each fiscal year of the Company ending
after the date hereof, an Officers' Certificate, stating whether or not to the
best knowledge of the signers thereof the Company or any Subsidiary Guarantor,
as the case may be, is in default in the performance and observance of any of
the terms, provisions and conditions of this Indenture (without regard to any
period of grace or requirement of notice provided hereunder) and, if the Company
or any Subsidiary Guarantor shall be in default, specifying all such defaults
and the nature and status thereof of which they may have knowledge.

         (b)      The Company and each Subsidiary Guarantor shall deliver to the
Trustee, as soon as possible and in any event within five days after the Company
or such Subsidiary Guarantor becomes aware or should reasonably become aware of
the occurrence of an Event of Default or an event which, with notice or the
lapse of time or both, would constitute an Event of Default, an Officers'
Certificate setting forth the details of such Event of Default or default, and
the action which the Company or such Subsidiary Guarantor proposes to take with
respect thereto.

SECTION 1005. 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 the existence,
rights (charter and statutory) and franchises of the Company; provided, however,
that the Company shall not be required to preserve any such right or franchise
if it shall determine that the preservation thereof is no longer

                                       55

<PAGE>

desirable in the conduct of the business of the Company and that the loss
thereof is not disadvantageous in any material respect to the Holders.

SECTION 1006. Maintenance of Properties.

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

SECTION 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 for labor, materials and supplies which, if unpaid, might by
law become a lien upon the property of the Company or any Subsidiary; provided,
however, that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings.

SECTION 1008. Maintenance of Insurance.

         The Company shall, and shall cause its Subsidiaries to, keep at all
times all of their properties which are of an insurable nature insured against
loss or damage with insurers believed by the Company to be responsible to the
extent that property of similar character is usually so insured by corporations
similarly situated and owning like properties in accordance with good business
practice.

SECTION 1009. Waiver of Certain Covenants.

         Except as otherwise specified as contemplated by Section 301 for
Securities of such series, the Company may, with respect to the Securities of
any series, omit in any particular instance to comply with any term, provision
or condition set forth in any of Sections 1006 through 1008 or in any covenant
provided pursuant to Section 301(20), 901(2) or 901(7) for the benefit of the
Holders of such series if before the time for such compliance the Holders of at
least a majority 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.

                                       56

<PAGE>

                                 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 such Securities) in
accordance with this Article.

SECTION 1102. Election to Redeem; Notice to Trustee.

         The election of the Company to redeem any Securities shall be evidenced
by a Board Resolution or in another manner specified as contemplated by Section
301 for such Securities. In case of any redemption at the election of the
Company of less than all the Securities of any series (including any such
redemption affecting only a single Security), the Company shall, at least five
Business Days prior to giving notice of such redemption (unless a shorter notice
shall be satisfactory to the Trustee), notify the Trustee of such Redemption
Date, of the principal amount of Securities of such series to be redeemed and,
if applicable, of the tenor of the Securities to be redeemed. In the case of any
redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officers' Certificate
evidencing compliance with such restriction.

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

         If less than all the Securities of any series are to be redeemed
(unless all the Securities of such series and of a specified tenor are to be
redeemed or unless such redemption affects only a single Security), the
particular Securities to be redeemed shall be selected by the Trustee, from the
Outstanding Securities of such series not previously called for redemption, (i)
in compliance with the requirements of the principal national securities
exchange on which such Securities are listed, if such Securities are listed on
any national securities exchange, and (ii) if such Securities are not so listed,
on a pro rata basis, by lot or by such method as the Trustee shall deem fair and
appropriate and which may provide for the selection for redemption of a portion
of the principal amount of any Security of such series, provided that the
unredeemed portion of the principal amount of any Security shall be in an
authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security. If less than all the Securities of such series
and of a specified tenor are to be redeemed (unless such redemption affects only
a single Security), the particular Securities to be redeemed shall be selected
by the Trustee, from the Outstanding Securities of such series and specified
tenor not previously called for redemption in accordance with the preceding
sentence.

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

         The provisions of the two preceding paragraphs shall not apply with
respect to any redemption affecting only a single Security, whether such
Security is to be redeemed in whole or

                                       57

<PAGE>

in part. In the case of any such redemption in part, the unredeemed portion of
the principal amount of the Security shall be in an authorized denomination
(which shall not be less than the minimum authorized denomination) for such
Security.

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

SECTION 1104. Notice of Redemption.

         Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption
Date, to each Holder of Securities to be redeemed, at his address appearing in
the Security Register; provided, however, notice of redemption may be given more
than 60 days prior to the Redemption Date if the notice is issued in connection
with a Defeasance pursuant to Section 1502 or a satisfaction and discharge
pursuant to Article Four.

         All notices of redemption shall state:

                  (1)      the Redemption Date,

                  (2)      the Redemption Price, if then determinable and
         otherwise the method of its determination,

                  (3)      if less than all the Outstanding Securities of any
         series consisting of more than a single Security are to be redeemed,
         the identification (and, in the case of partial redemption of any such
         Securities, the principal amounts) of the particular Securities to be
         redeemed and, if less than all the Outstanding Securities of any series
         consisting of a single Security are to be redeemed, the principal
         amount of the particular Security to be redeemed,

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

                  (5)      the place or places where each such Security is to be
         surrendered for payment of the Redemption Price, and

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

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

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<PAGE>

SECTION 1105. Deposit of Redemption Price.

         Prior to 11:00 A.M., New York City time, on any Redemption Date, the
Company shall deposit with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 1003) an amount of money sufficient to pay the Redemption
Price of, and (except if the Redemption Date shall be an Interest Payment Date)
accrued interest on, all the Securities which are to be redeemed on that date.

SECTION 1106. Securities Payable on Redemption Date.

         Notice of redemption having been given as aforesaid, the Securities so
to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest. Upon surrender of any
such Security for redemption in accordance with said notice, such Security shall
be paid by the Company at the Redemption Price, together with accrued interest
to the Redemption Date; provided, however, that, unless otherwise specified as
contemplated by Section 301, installments of interest whose Stated Maturity is
on or prior to the Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.

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

SECTION 1107. Securities Redeemed in Part.

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

                                 ARTICLE TWELVE

                           SUBORDINATION OF SECURITIES

SECTION 1201. Applicability of Article.

         Unless otherwise provided with respect to the Securities of any series
in or pursuant to the Board Resolution or supplemental indenture establishing
such series of Securities pursuant to Section 301, the provisions of this
Article shall be applicable to each series of Securities.

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<PAGE>

SECTION 1202. Securities Subordinate to Senior Debt.

         The Company covenants and agrees, and each Holder of a Security, by his
acceptance thereof, likewise covenants and agrees, that, to the extent and in
the manner hereinafter set forth in this Article (subject to the provisions of
Article Four and Article Fifteen), the payment of the principal of (and premium,
if any) and interest on each and all of the Securities of such series are hereby
expressly made subordinate and subject in right of payment to the prior payment
in full of all Senior Debt of the Company.

         No provisions of this Article Twelve shall prevent the occurrence of
any Event of Default.

SECTION 1203. Payment Over of Proceeds Upon Dissolution, Etc.

         In the event of (a) any insolvency or bankruptcy case or proceeding, or
any receivership, liquidation, reorganization or other similar case or
proceeding in connection therewith, relative to the Company or to its creditors,
as such, or to its assets, or (b) any liquidation, dissolution or other winding
up of the Company, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (c) any assignment for the benefit of creditors or
any other marshalling of assets and liabilities of the Company, then and in any
such event specified in (a), (b) or (c) above (each such event, if any, herein
sometimes referred to as a "Proceeding") the holders of Senior Debt of the
Company shall be entitled to receive payment in full of all amounts due or to
become due on or in respect of all Senior Debt of the Company, or provision
shall be made for such payment in cash or cash equivalents or otherwise in a
manner satisfactory to the holders of Senior Debt of the Company, before the
Holders of the Securities are entitled to receive any payment or distribution of
any kind or character, whether in cash, property or securities (including any
payment or distribution which may be payable or deliverable by reason of the
payment of any other indebtedness of the Company subordinated to the payment of
the Securities, such payment or distribution being hereinafter referred to as a
"Junior Subordinated Payment"), on account of principal of (or premium, if any)
or interest on the Securities or on account of any purchase or other acquisition
of Securities by the Company or any Subsidiary of the Company (all such
payments, distributions, purchases and acquisitions, other than the payment or
distribution of stock or securities of the Company referred to in the second
succeeding paragraph, herein referred to, individually and collectively, as a
"Securities Payment"), and to that end the holders of Senior Debt of the Company
shall be entitled to receive, for application to the payment thereof, any
Securities Payment which may be payable or deliverable in respect of the
Securities in any such Proceeding.

         In the event that, notwithstanding the foregoing provisions of this
Section, the Trustee or the Holder of any Security shall have received any
Securities Payment before all Senior Debt of the Company is paid in full or
payment thereof provided for in cash or cash equivalents or otherwise in a
manner satisfactory to the holders of Senior Debt of the Company, and if such
fact shall, at or prior to the time of such Securities Payment, have been made
known to the Trustee or, as the case may be, such Holder, then and in such event
such Securities Payment shall be paid over or delivered forthwith to the trustee
in bankruptcy, receiver, liquidating trustee, custodian, assignee, agent or
other Person making payment or distribution of assets of the Company for
application to the payment of all Senior Debt of the Company remaining unpaid,
to the extent

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<PAGE>

necessary to pay all Senior Debt of the Company in full, after giving effect to
any concurrent payment or distribution to or for the holders of Senior Debt of
the Company.

         For purposes of this Article only, the words "any payment or
distribution of any kind or character, whether in cash, property or securities"
shall not be deemed to include a payment or distribution of stock or securities
of the Company provided for by a plan of reorganization or readjustment
authorized by an order or decree of a court of competent jurisdiction in a
reorganization proceeding under any applicable bankruptcy law or of any other
corporation provided for by such plan of reorganization or readjustment which
stock or securities are subordinated in right of payment to all then outstanding
Senior Debt of the Company to substantially the same extent as the Securities
are so subordinated as provided in this Article. The consolidation of the
Company with, or the merger of the Company into, another Person or the
liquidation or dissolution of the Company following the conveyance or transfer
of all or substantially all of its assets to another Person upon the terms and
conditions set forth in Article Eight shall not be deemed a Proceeding for the
purposes of this Section if the Person formed by such consolidation or into
which the Company is merged or the Person which acquires by conveyance or
transfer such assets, as the case may be, shall, as a part of such
consolidation, merger, conveyance or transfer, comply with the conditions set
forth in Article Eight.

SECTION 1204. No Payment When Senior Debt of the Company in Default.

         In the event that any Senior Payment Default (as defined below) shall
have occurred and be continuing, then no Securities Payment shall be made unless
and until such Senior Payment Default shall have been cured or waived or shall
have ceased to exist or all amounts then due and payable in respect of Senior
Debt of the Company shall have been paid in full, or provision shall have been
made for such payment in cash or cash equivalents or otherwise in a manner
satisfactory to the holders of Senior Debt of the Company; provided, however,
that nothing in this Section shall prevent the satisfaction of any sinking fund
payment in accordance with Article Sixteen by delivering and crediting pursuant
to Section 1602 Securities which have been acquired (upon redemption or
otherwise) prior to such Senior Payment Default.

                  "Senior Payment Default" means any default in the payment of
         principal of (or premium, if any) or interest on any Senior Debt of the
         Company when due, whether at the Stated Maturity of any such payment or
         by declaration of acceleration, call for redemption or otherwise.

         In the event that any Senior Nonmonetary Default (as defined below)
shall have occurred and be continuing, then, upon the receipt by the Company,
the Subsidiary Guarantors and the Trustee of written notice of such Senior
Nonmonetary Default from the agent for the Designated Senior Debt which is the
subject of such Senior Nonmonetary Default, no Securities Payment shall be made
during the period (the "Payment Blockage Period") commencing on the date of such
receipt of such written notice and ending on the earlier of (i) the date on
which such Senior Nonmonetary Default shall have been cured or waived or shall
have ceased to exist or all Designated Senior Debt the subject of such Senior
Nonmonetary Default shall have been discharged; (ii) the 179th day after the
date of such receipt of such written notice; or (iii) the date on which the
Payment Blockage Period shall have been terminated by written notice to the
Company, any Subsidiary Guarantor or the Trustee from the agent for the
Designated Senior

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<PAGE>

Debt initiating the Payment Blockage Period; provided, however, that nothing in
this Section shall prevent the satisfaction of any sinking fund payment in
accordance with Article Sixteen by delivering and crediting pursuant to Section
1602 Securities which have been acquired (upon redemption or otherwise) prior to
the date of such receipt of such written notice. No more than one Payment
Blockage Period may be commenced with respect to the Securities of a particular
series during any 360-day period and there shall be a period of at least 181
consecutive days in each 360-day period when no Payment Blockage Period is in
effect. For all purposes of this paragraph, no Senior Nonmonetary Default that
existed or was continuing on the date of commencement of any Payment Blockage
Period shall be, or be made, the basis for the commencement of a subsequent
Payment Blockage Period, whether or not within a period of 360 consecutive days,
unless such Senior Nonmonetary Default shall have been cured for a period of not
less than 90 consecutive days.

         "Senior Nonmonetary Default" means the occurrence or existence and
continuance of any event of default with respect to any Designated Senior Debt,
other than a Senior Payment Default, permitting the holders of such Designated
Senior Debt (or a trustee or agent on behalf of the holders thereof) to declare
such Designated Senior Debt due and payable prior to the date on which it would
otherwise become due and payable.

         In the event that, notwithstanding the foregoing, the Company shall
make any Securities Payment to the Trustee or any Holder prohibited by the
foregoing provisions of this Section, and if such fact shall, at or prior to the
time of such Securities Payment, have been made known to the Trustee or, as the
case may be, such Holder, then and in such event such Securities Payment shall
be paid over and delivered forthwith to the Company.

         The provisions of this Section shall not apply to any Securities
Payment with respect to which Section 1203 would be applicable.

SECTION 1205. Payment Permitted If No Default.

         Nothing contained in this Article or elsewhere in this Indenture or in
any of the Securities shall prevent (a) the Company, at any time except during
the pendency of any Proceeding referred to in Section 1203 or under the
conditions described in Section 1204, from making Securities Payments, or (b)
the application by the Trustee of any money deposited with it hereunder to
Securities Payments or the retention of such Securities Payment by the Holders,
if, at the time of such application by the Trustee, it did not have knowledge
that such Securities Payment would have been prohibited by the provisions of
this Article.

SECTION 1206. Subrogation to Rights of Holders of Senior Debt of the Company.

         Subject to the payment in full of all amounts due or to become due on
or in respect of Senior Debt of the Company, or the provision for such payment
in cash or cash equivalents or otherwise in a manner satisfactory to the holders
of Senior Debt of the Company, the Holders of the Securities shall be subrogated
to the rights of the holders of such Senior Debt of the Company to receive
payments and distributions of cash, property and securities applicable to the
Senior Debt of the Company until the principal of (and premium, if any) and
interest on the Securities shall be paid in full. For purposes of such
subrogation, no payments or distributions to

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<PAGE>

the holders of the Senior Debt of the Company of any cash, property or
securities to which the Holders of the Securities or the Trustee would be
entitled except for the provisions of this Article, and no payments over
pursuant to the provisions of this Article to the holders of Senior Debt of the
Company by Holders of the Securities or the Trustee, shall, as among the
Company, its creditors other than holders of Senior Debt of the Company and the
Holders of the Securities, be deemed to be a payment or distribution by the
Company to or on account of the Senior Debt of the Company.

SECTION 1207. Provisions Solely to Define Relative Rights.

         The provisions of this Article are and are intended solely for the
purpose of defining the relative rights of the Holders on the one hand and the
holders of Senior Debt of the Company on the other hand. Nothing contained in
this Article or elsewhere in this Indenture or in the Securities is intended to
or shall (a) impair, as among the Company, its creditors other than holders of
Senior Debt of the Company and the Holders of the Securities, the obligation of
the Company, which is absolute and unconditional (and which, subject to the
rights under this Article of the holders of Senior Debt of the Company, is
intended to rank equally with all other general obligations of the Company), to
pay to the Holders of the Securities the principal of (and premium, if any) and
interest on the Securities as and when the same shall become due and payable in
accordance with their terms; or (b) affect the relative rights against the
Company of the Holders of the Securities and creditors of the Company other than
the holders of Senior Debt of the Company; or (c) prevent the Trustee or the
Holder of any Security from exercising all remedies otherwise permitted by
applicable law upon default under this Indenture, subject to the rights, if any,
under this Article of the holders of Senior Debt of the Company to receive cash,
property and securities otherwise payable or deliverable to the Trustee or such
Holder.

SECTION 1208. Trustee to Effectuate Subordination.

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

SECTION 1209. No Waiver of Subordination Provisions.

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

         Without in any way limiting the generality of the foregoing paragraph,
the holders of Senior Debt of the Company may, at any time and from time to
time, without the consent of or notice to the Trustee or the Holders of the
Securities, without incurring responsibility to the Holders of the Securities
and without impairing or releasing the subordination provided in this Article or
the obligations hereunder of the Holders of the Securities to the holders of
Senior Debt

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<PAGE>

of the Company, do any one or more of the following: (i) change the manner,
place or terms of payment or extend the time of payment of, or renew or alter,
Senior Debt of the Company, or otherwise amend or supplement in any manner
Senior Debt of the Company or any instrument evidencing the same or any
agreement under which Senior Debt of the Company is outstanding; (ii) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or
otherwise securing Senior Debt of the Company; (iii) release any Person liable
in any manner for the collection of Senior Debt of the Company; and (iv)
exercise or refrain from exercising any rights against the Company and any other
Person.

SECTION 1210. Notice to Trustee.

         The Company shall give prompt written notice to the Trustee of any fact
known to the Company which would prohibit the making of any payment to or by the
Trustee in respect of the Securities. Notwithstanding the provisions of this
Article or any other provision of this Indenture, the Trustee shall not be
charged with knowledge of the existence of any facts which would prohibit the
making of any payment to or by the Trustee in respect of the Securities, unless
and until the Trustee shall have received written notice thereof from the
Company or a holder of Senior Debt of the Company or from any trustee therefor;
and, prior to the receipt of any such written notice, the Trustee, subject to
the provisions of Section 601, shall be entitled in all respects to assume that
no such facts exist; provided, however, that if the Trustee shall not have
received the notice provided for in this Section at least three Business Days
prior to the date upon which by the terms hereof any money may become payable
for any purpose (including, without limitation, the payment of the principal of
(and premium, if any) or interest on any Security), then, anything herein
contained to the contrary notwithstanding, the Trustee shall have full power and
authority to receive such money and to apply the same to the purpose for which
such money was received and shall not be affected by any notice to the contrary
which may be received by it within three Business Days prior to such date.

         Subject to the provisions of Section 601, the Trustee shall be entitled
to rely on the delivery to it of a written notice by a Person representing
himself to be a holder of Senior Debt of the Company (or a trustee therefor) to
establish that such notice has been given by a holder of Senior Debt of the
Company (or a trustee therefor). 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 Debt of the Company to participate in any payment
or distribution pursuant to this Article, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount
of Senior Debt of the Company held by such Person, the extent to which such
Person is entitled to participate in such payment or distribution and any other
facts pertinent to the rights of such Person under this Article, 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 1211. Reliance on Judicial Order or Certificate of Liquidating Agent.

         Upon any payment or distribution of assets of the Company referred to
in this Article, the Trustee, subject to the provisions of Section 601, and the
Holders of the Securities shall be entitled to rely upon any order or decree
entered by any court of competent jurisdiction in which such Proceeding is
pending, or a certificate of the trustee in bankruptcy, receiver, liquidating

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<PAGE>

trustee, custodian, assignee for the benefit of creditors, agent or other Person
making such payment or distribution, delivered to the Trustee or to the Holders
of Securities, for the purpose of ascertaining the Persons entitled to
participate in such payment or distribution, the holders of the Senior Debt of
the Company and other indebtedness of the Company, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Article.

SECTION 1212. Trustee Not Fiduciary for Holders of Senior Debt of the Company.

         The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Debt of the Company and shall not be liable to any such
holders if it shall in good faith mistakenly pay over or distribute to Holders
of Securities or to the Company, a Subsidiary Guarantor or to any other Person
cash, property or securities to which any holders of Senior Debt of the Company
shall be entitled by virtue of this Article or otherwise.

SECTION 1213. Rights of Trustee as Holder of Senior Debt of the Company;
              Preservation of Trustee's Rights.

         The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article with respect to any Senior Debt of the Company
which may at any time be held by it, to the same extent as any other holder of
Senior Debt of the Company, and nothing in this Indenture shall deprive the
Trustee of any of its rights as such holder.

         Nothing in this Article shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 607.

SECTION 1214. Article Applicable to Paying Agents.

         In case at any time any Paying Agent other than the Trustee shall have
been appointed by the Company and be then acting hereunder, the term "Trustee"
as used in this Article shall in such case (unless the context otherwise
requires) be construed as extending to and including such Paying Agent within
its meaning as fully for all intents and purposes as if such Paying Agent were
named in this Article in addition to or in place of the Trustee; provided,
however, that Section 1213 shall not apply to the Company, any Subsidiary
Guarantor or any Affiliate of the Company if it or such Subsidiary Guarantor or
Affiliate acts as Paying Agent.

SECTION 1215. Defeasance of this Article Twelve.

         The subordination of the Securities of a series provided by this
Article Twelve is expressly made subject to the provisions for Defeasance or
Covenant Defeasance in Article Fifteen hereof and, anything herein to the
contrary notwithstanding, upon the effectiveness of any such Defeasance or
Covenant Defeasance, the Securities of such series then outstanding shall
thereupon cease to be subordinated pursuant to this Article Twelve.

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                                ARTICLE THIRTEEN

                              SUBSIDIARY GUARANTEES

SECTION 1301. Applicability of Article.

         Unless the Company elects to issue any series of Securities without the
benefit of the Subsidiary Guarantees, which election shall be evidenced in or
pursuant to the Board Resolution or supplemental indenture establishing such
series of Securities pursuant to Section 301, the provisions of this Article
shall be applicable to each series of Securities except as otherwise specified
in or pursuant to the Board Resolution or supplemental indenture establishing
such series pursuant to Section 301.

SECTION 1302. Subsidiary Guarantees.

         Subject to Section 1301, each Subsidiary Guarantor hereby, jointly and
severally, fully and unconditionally guarantees to each Holder of a Security
authenticated and delivered by the Trustee, the due and punctual payment of the
principal of (and premium, if any) and interest on such Security when and as the
same shall become due and payable, whether at the Stated Maturity, by
acceleration, call for redemption, offer to purchase or otherwise, in accordance
with the terms of such Security and of this Indenture, and each Subsidiary
Guarantor similarly guarantees to the Trustee the payment of all amounts owing
to the Trustee in accordance with the terms of this Indenture. In case of the
failure of the Company punctually to make any such payment, each Subsidiary
Guarantor hereby, jointly and severally, agrees to cause such payment to be made
punctually when and as the same shall become due and payable, whether at the
Stated Maturity or by acceleration, call for redemption, offer to purchase or
otherwise, and as if such payment were made by the Company.

         Each of the Subsidiary Guarantors hereby jointly and severally agrees
that its obligations hereunder shall be absolute, unconditional, irrespective
of, and shall be unaffected by, the validity, regularity or enforceability of
such Security or this Indenture, the absence of any action to enforce the same
or any release, amendment, waiver or indulgence granted to the Company or any
guarantor or any consent to departure from any requirement of any other
guarantee of all or any of the Securities of such series or any other
circumstances which might otherwise constitute a legal or equitable discharge or
defense of a surety or guarantor; provided, however, that, notwithstanding the
foregoing, no such release, amendment, waiver or indulgence shall, without the
consent of such Subsidiary Guarantor, increase the principal amount of such
Security, or increase the interest rate thereon, or alter the Stated Maturity
thereof. Each of the Subsidiary Guarantors hereby waives the benefits of
diligence, presentment, demand for payment, any requirement that the Trustee or
any of the Holders protect, secure, perfect or insure any security interest in
or other lien on any property subject thereto or exhaust any right or take any
action against the Company or any other Person or any collateral, filing of
claims with a court in the event of insolvency or bankruptcy of the Company, any
right to require a proceeding first against the Company, protest or notice with
respect to such Security or the indebtedness evidenced thereby and all demands
whatsoever, and covenants that this Subsidiary Guarantee will not be discharged
in respect of such Security except by complete performance of the obligations
contained in such Security and in such Subsidiary Guarantee. Each Subsidiary
Guarantor agrees

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<PAGE>

that if, after the occurrence and during the continuance of an Event of Default,
the Trustee or any of the Holders are prevented by applicable law from
exercising their respective rights to accelerate the maturity of the Securities
of a series, to collect interest on the Securities of a series, or to enforce or
exercise any other right or remedy with respect to the Securities of a series,
such Subsidiary Guarantor agrees to pay to the Trustee for the account of the
Holders, upon demand therefor, the amount that would otherwise have been due and
payable had such rights and remedies been permitted to be exercised by the
Trustee or any of the Holders.

         The indebtedness of each Subsidiary Guarantor evidenced by the
Subsidiary Guarantees is, to the extent provided in this Indenture, subordinate
and subject in right of payment to the prior payment in full of all Senior Debt
of each Subsidiary Guarantor, and the Subsidiary Guarantees are issued subject
to the provisions of this Indenture with respect thereto. Each Holder of such
Security, by accepting the same, will be deemed to have (a) agreed to and be
bound by such provisions, (b) authorized and directed the Trustee on his behalf
to take such action as may be necessary or appropriate to effectuate the
subordination so provided and (c) appointed the Trustee his attorney-in-fact for
any and all such purposes.

         Each Subsidiary Guarantor shall be subrogated to all rights of the
Holders of the Securities upon which its Subsidiary Guarantee is endorsed
against the Company in respect of any amounts paid by such Subsidiary Guarantor
on account of such Security pursuant to the provisions of its Subsidiary
Guarantee or this Indenture; provided, however, that no Subsidiary Guarantor
shall be entitled to enforce or to receive any payments arising out of, or based
upon, such right of subrogation until the principal of (and premium, if any) and
interest on all Securities of the relevant series issued hereunder shall have
been paid in full.

         Each Subsidiary Guarantor that makes or is required to make any payment
in respect of its Subsidiary Guarantee shall be entitled to seek contribution
from the other Subsidiary Guarantors to the extent permitted by applicable law;
provided, however, that no Subsidiary Guarantor shall be entitled to enforce or
receive any payments arising out of, or based upon, such right of contribution
until the principal of (and premium, if any) and interest on all Securities of
the relevant series issued hereunder shall have been paid in full.

         Each Subsidiary Guarantee shall remain in full force and effect and
continue to be effective should any petition be filed by or against the Company
for liquidation or reorganization, should the Company become insolvent or make
an assignment for the benefit of creditors or should a receiver or trustee be
appointed for all or any part of the Company's assets, and shall, to the fullest
extent permitted by law, continue to be effective or be reinstated, as the case
may be, if at any time payment and performance of the Securities of a series,
is, pursuant to applicable law, rescinded or reduced in amount, or must
otherwise be restored or returned by any Holder of the Securities, whether as a
"voidable preference," "fraudulent transfer," or otherwise, all as though such
payment or performance had not been made. In the event that any payment, or any
part thereof, is rescinded, reduced, restored or returned, the Securities shall,
to the fullest extent permitted by law, be reinstated and deemed reduced only by
such amount paid and not so rescinded, reduced, restored or returned.

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<PAGE>

SECTION 1303. Execution and Delivery of Subsidiary Guarantees.

         The Subsidiary Guarantees to be endorsed on the Securities shall
include the terms of the Subsidiary Guarantee set forth in Section 1302 and any
other terms that may be set forth in the form established pursuant to Section
204. Subject to Section 1301, each of the Subsidiary Guarantors hereby agrees to
execute its Subsidiary Guarantee, in a form established pursuant to Section 204,
to be endorsed on each Security authenticated and delivered by the Trustee.

         The Subsidiary Guarantee shall be executed on behalf of each respective
Subsidiary Guarantor by any one of such Subsidiary Guarantor's Chairman of the
Board of Directors, Vice Chairman of the Board of Directors, Chief Executive
Officer, President, one of its Vice Presidents, or its Secretary. The signature
of any or all of these persons on the Subsidiary Guarantee may be manual or
facsimile.

         A Subsidiary Guarantee bearing the manual or facsimile signature of
individuals who were at any time the proper officers of a Subsidiary Guarantor
shall bind such Subsidiary Guarantor, notwithstanding that such individuals or
any of them have ceased to hold such offices prior to the authentication and
delivery of the Security on which such Subsidiary Guarantee is endorsed or did
not hold such offices at the date of such Subsidiary Guarantee.

         The delivery of any Security by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of the Subsidiary Guarantee
endorsed thereon on behalf of the Subsidiary Guarantors and shall bind each
Subsidiary Guarantor notwithstanding the fact that Subsidiary Guarantee does not
bear the signature of such Subsidiary Guarantor. Each of the Subsidiary
Guarantors hereby jointly and severally agrees that its Subsidiary Guarantee set
forth in Section 1302 and in the form of Subsidiary Guarantee established
pursuant to Section 204 shall remain in full force and effect notwithstanding
any failure to endorse a Subsidiary Guarantee on any Security.

SECTION 1304. Release of Subsidiary Guarantors.

         Unless otherwise specified pursuant to Section 301 with respect to a
series of Securities, each Subsidiary Guarantee will remain in effect with
respect to the respective Subsidiary Guarantor until the entire principal of,
premium, if any, and interest on the Securities to which such Subsidiary
Guarantee relates shall have been paid in full or otherwise defeased or
discharged in accordance with the provisions of such Securities and this
Indenture and all amounts owing to the Trustee hereunder have been paid;
provided, however, that if (i) such Subsidiary Guarantor ceases to be a
Subsidiary in compliance with the applicable provisions of this Indenture, (ii)
either Defeasance or Covenant Defeasance occurs with respect to such Securities
pursuant to Article Fifteen or (iii) all or substantially all of the assets of
such Subsidiary Guarantor or all of the Capital Stock of such Subsidiary
Guarantor is sold (including by sale, merger, consolidation or otherwise) by the
Company or any Subsidiary in a transaction complying with the requirements of
this Indenture, then, in each case of (i), (ii) or (iii), upon delivery by the
Company of an Officers' Certificate and an Opinion of Counsel stating that all
conditions precedent herein provided for relating to the release of such
Subsidiary Guarantor from its obligations under its Subsidiary Guarantee and
this Article Thirteen have been complied with, such Subsidiary Guarantor shall
be released and discharged of its obligations under its

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<PAGE>

Subsidiary Guarantee and under this Article Thirteen without any action on the
part of the Trustee or any Holder, and the Trustee shall execute any documents
reasonably required in order to acknowledge the release of such Subsidiary
Guarantor from its obligations under its Subsidiary Guarantee endorsed on the
Securities of such series and under this Article Thirteen.

SECTION 1305. Additional Subsidiary Guarantors.

         Unless otherwise specified pursuant to Section 301 with respect to a
series of Securities, the Company will cause any domestic Subsidiary of the
Company that becomes a Subsidiary after the date the Securities of a series are
first issued hereunder to become a Subsidiary Guarantor as soon as practicable
after such Subsidiary becomes a Subsidiary. The Company shall cause any such
Subsidiary to become a Subsidiary Guarantor with respect to the Securities by
executing and delivering to the Trustee (a) a supplemental indenture, in form
and substance satisfactory to the Trustee, which subjects such Person to the
provisions (including the representations and warranties) of this Indenture as a
Subsidiary Guarantor and (b) an Opinion of Counsel to the effect that such
supplemental indenture has been duly authorized and executed by such Person and
such supplemental indenture and such Person's obligations under its Subsidiary
Guarantee and this Indenture constitute the legal, valid, binding and
enforceable obligations of such Person (subject to such customary exceptions
concerning creditors' rights and equitable principles as may be acceptable to
the Trustee in its discretion).

                                ARTICLE FOURTEEN

                     SUBORDINATION OF SUBSIDIARY GUARANTEES

SECTION 1401. Applicability of Article.

         Unless otherwise provided with respect to the Securities of any series
in or pursuant to the Board Resolution or supplemental indenture establishing
such series of Securities pursuant to Section 301, the provisions of this
Article shall be applicable to each series of Securities.

SECTION 1402. Subsidiary Guarantees Subordinate to Senior Debt of Subordinate
              Guarantors.

         Each Subsidiary Guarantor covenants and agrees, and each Holder of a
Security, by his acceptance thereof, likewise covenants and agrees, that, to the
extent and in the manner hereinafter set forth in this Article (subject to the
provisions of Article Four and Article Fifteen), the Subsidiary Guarantee of
such Subsidiary Guarantor is hereby expressly made subordinate and subject in
right of payment to the prior payment in full of all Senior Debt of such
Subsidiary Guarantor.

         No provisions of this Article Fourteen shall prevent the occurrence of
any Event of Default.

SECTION 1403. Payment Over of Proceeds Upon Dissolution, Etc.

         In the event of (a) any insolvency or bankruptcy case or proceeding, or
any receivership, liquidation, reorganization or other similar case or
proceeding in connection therewith, relative to

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<PAGE>

any Subsidiary Guarantor or to its creditors, as such, or to its assets, or (b)
any liquidation, dissolution or other winding up of any Subsidiary Guarantor,
whether voluntary or involuntary and whether or not involving insolvency or
bankruptcy, or (c) any assignment for the benefit of creditors or any other
marshalling of assets and liabilities of any Subsidiary Guarantor, then and in
any such event specified in (a), (b) or (c) above (each such event, if any,
herein sometimes referred to as a "Guarantor Proceeding") the holders of Senior
Debt of such Subsidiary Guarantor shall be entitled to receive payment in full
of all amounts due or to become due on or in respect of all Senior Debt of such
Subsidiary Guarantor, or provision shall be made for such payment in cash or
cash equivalents or otherwise in a manner satisfactory to the holders of Senior
Debt of such Subsidiary Guarantor, before the Holders of the Securities are
entitled to receive any payment or distribution of any kind or character,
whether in cash, property or securities (including any payment or distribution
which may be payable or deliverable by reason of the payment of any other
indebtedness of such Subsidiary Guarantor subordinated to the payment of the
Securities, such payment or distribution being hereinafter referred to as a
"Guarantor Junior Subordinated Payment"), on account of the Subsidiary Guarantee
of such Subsidiary Guarantor (all such payments, other than the payment or
distribution of stock or securities of a Subsidiary Guarantor referred to in the
second succeeding paragraph, herein referred to, individually and collectively,
as a "Guarantee Payment"), and to that end the holders of Senior Debt of such
Subsidiary Guarantor shall be entitled to receive, for application to the
payment thereof, any Guarantee Payment which may be payable or deliverable in
respect of such Subsidiary Guarantor's Subsidiary Guarantee in any such
Guarantor Proceeding.

         In the event that, notwithstanding the foregoing provisions of this
Section, the Trustee or the Holder of any Security shall have received any
Guarantee Payment before all Senior Debt of such Subsidiary Guarantor is paid in
full or payment thereof provided for in cash or cash equivalents or otherwise in
a manner satisfactory to the holders of Senior Debt of such Subsidiary
Guarantor, and if such fact shall, at or prior to the time of such Guarantee
Payment, have been made known to the Trustee or, as the case may be, such
Holder, then and in such event such Guarantee Payment shall be paid over or
delivered forthwith to the trustee in bankruptcy, receiver, liquidating trustee,
custodian, assignee, agent or other Person making payment or distribution of
assets of such Subsidiary Guarantor for application to the payment of all Senior
Debt of such Subsidiary Guarantor remaining unpaid, to the extent necessary to
pay all Senior Debt of such Subsidiary Guarantor in full, after giving effect to
any concurrent payment or distribution to or for the holders of Senior Debt of
such Subsidiary Guarantor.

         For purposes of this Article only, the words "any payment or
distribution of any kind or character, whether in cash, property or securities"
shall not be deemed to include a payment or distribution of stock or securities
of a Subsidiary Guarantor provided for by a plan of reorganization or
readjustment authorized by an order or decree of a court of competent
jurisdiction in a reorganization proceeding under any applicable bankruptcy law
or of any other corporation provided for by such plan of reorganization or
readjustment which stock or securities are subordinated in right of payment to
all then outstanding Senior Debt of such Subsidiary Guarantor to substantially
the same extent as the Subsidiary Guarantees are so subordinated as provided in
this Article. The consolidation of a Subsidiary Guarantor with, or the merger of
a Subsidiary Guarantor into, another Person or the liquidation or dissolution of
such Subsidiary Guarantor following the conveyance or transfer of all or
substantially all of its assets to another Person upon the terms and conditions
set forth in Article Eight shall not be deemed a Guarantor

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Proceeding for the purposes of this Section if the Person formed by such
consolidation or into which such Subsidiary Guarantor is merged or the Person
which acquires by conveyance or transfer such assets, as the case may be, shall,
as a part of such consolidation, merger, conveyance or transfer, comply with the
conditions set forth in Article Eight.

SECTION 1404. No Payment When Senior Debt of such Subsidiary Guarantor in
              Default.

         In the event that any Senior Payment Default shall have occurred and be
continuing, then no Guarantee Payment shall be made unless and until such Senior
Payment Default shall have been cured or waived or shall have ceased to exist or
all amounts then due and payable in respect of the relevant Senior Debt of the
Company shall have been paid in full, or provision shall have been made for such
payment in cash or cash equivalents or otherwise in a manner satisfactory to the
holders of such Senior Debt; provided, that nothing in this Section shall
prevent the satisfaction of any sinking fund payment in accordance with Article
Sixteen by delivering and crediting pursuant to Section 1602 Securities which
have been acquired (upon redemption or otherwise) prior to such Senior Payment
Default.

         In the event that any Senior Nonmonetary Default shall have occurred
and be continuing, then, upon the receipt by the Company, the Subsidiary
Guarantors and the Trustee of written notice of such Senior Nonmonetary Default
from any holder, or agent for the holders, of any Designated Senior Debt of the
Company, no Guarantee Payment shall be made during the applicable Payment
Blockage Period; provided, however, that nothing in this Section shall prevent
the satisfaction of any sinking fund payment in accordance with Article Sixteen
by delivering and crediting pursuant to Section 1602 Securities which have been
acquired (upon redemption or otherwise) prior to the date of such receipt of
such written notice. No more than one Payment Blockage Period may be commenced
with respect to the Subsidiary Guarantees during any 360-day period and there
shall be a period of at least 181 consecutive days in each 360-day period when
no Payment Blockage Period is in effect. For all purposes of this paragraph, no
Senior Nonmonetary Default that existed or was continuing on the date of
commencement of any Payment Blockage Period shall be, or be made, the basis for
the commencement of a subsequent Payment Blockage Period, whether or not within
a period of 360 consecutive days, unless such Senior Nonmonetary Default shall
have been cured for a period of not less than 90 consecutive days.

         In the event that, notwithstanding the foregoing, a Subsidiary
Guarantor shall make any Guarantee Payment to the Trustee or any Holder
prohibited by the foregoing provisions of this Section, and if such fact shall,
at or prior to the time of such Guarantee Payment, have been made known to the
Trustee or, as the case may be, such Holder, then and in such event such
Guarantee Payment shall be paid over and delivered forthwith to the Company.

         The provisions of this Section shall not apply to any Guarantee Payment
with respect to which Section 1403 would be applicable.

SECTION 1405. Payment Permitted If No Default.

         Nothing contained in this Article or elsewhere in this Indenture or in
any of the Subsidiary Guarantees shall prevent (a) a Subsidiary Guarantor, at
any time except during the

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<PAGE>

pendency of any Guarantor Proceeding referred to in Section 1403 or under the
conditions described in Section 1404, from making Guarantee Payments, or (b) the
application by the Trustee of any money deposited with it hereunder to Guarantee
Payments or the retention of such Guarantee Payment by the Holders, if, at the
time of such application by the Trustee, it did not have knowledge that such
Guarantee Payment would have been prohibited by the provisions of this Article.

SECTION 1406. Subrogation to Rights of Holders of Senior Debt of such
              Subsidiary Guarantor.

         Subject to the payment in full of all amounts due or to become due on
or in respect of Senior Debt of a Subsidiary Guarantor, or the provision for
such payment in cash or cash equivalents or otherwise in a manner satisfactory
to the holders of Senior Debt of such Subsidiary Guarantor, the Holders of the
Securities shall be subrogated to the rights of the holders of such Senior Debt
of such Subsidiary Guarantor to receive payments and distributions of cash,
property and securities applicable to the Senior Debt of such Subsidiary
Guarantor until the principal of (and premium, if any) and interest on the
Securities shall be paid in full. For purposes of such subrogation, no payments
or distributions to the holders of the Senior Debt of a Subsidiary Guarantor of
any cash, property or securities to which the Holders of the Securities or the
Trustee would be entitled except for the provisions of this Article, and no
payments over pursuant to the provisions of this Article to the holders of
Senior Debt of a Subsidiary Guarantor by Holders of the Securities or the
Trustee, shall, as among a Subsidiary Guarantor, its creditors other than
holders of Senior Debt of such Subsidiary Guarantor and the Holders of the
Securities, be deemed to be a payment or distribution by such Subsidiary
Guarantor to or on account of the Senior Debt of such Subsidiary Guarantor.

SECTION 1407. Provisions Solely to Define Relative Rights.

         The provisions of this Article are and are intended solely for the
purpose of defining the relative rights of the Holders on the one hand and the
holders of Senior Debt of a Subsidiary Guarantor on the other hand. Nothing
contained in this Article or elsewhere in this Indenture or in the Subsidiary
Guarantees is intended to or shall (a) impair, as among a Subsidiary Guarantor,
its creditors other than holders of Senior Debt of such Subsidiary Guarantor and
the Holders of the Securities, the obligation of such Subsidiary Guarantor,
which is absolute and unconditional (and which, subject to the rights under this
Article of the holders of Senior Debt of such Subsidiary Guarantor, is intended
to rank equally with all other general obligations of such Subsidiary
Guarantor), to guarantee payment to the Holders of the Securities of the
principal of (and premium, if any) and interest on the Securities as and when
the same shall become due and payable in accordance with their terms; or (b)
affect the relative rights against a Subsidiary Guarantor of the Holders of the
Securities and creditors of such Subsidiary Guarantor other than the holders of
Senior Debt of such Subsidiary Guarantor; or (c) prevent the Trustee or the
Holder of any Security from exercising all remedies otherwise permitted by
applicable law upon default under this Indenture, subject to the rights, if any,
under this Article of the holders of Senior Debt of a Subsidiary Guarantor to
receive cash, property and securities otherwise payable or deliverable to the
Trustee or such Holder.

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SECTION 1408. Trustee to Effectuate Subordination.

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

SECTION 1409. No Waiver of Subordination Provisions.

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

         Without in any way limiting the generality of the foregoing paragraph,
the holders of Senior Debt of a Subsidiary Guarantor may, at any time and from
time to time, without the consent of or notice to the Trustee or the Holders of
the Securities, without incurring responsibility to the Holders of the
Securities and without impairing or releasing the subordination provided in this
Article or the obligations hereunder of the Holders of the Securities to the
holders of Senior Debt of such Subsidiary Guarantor, do any one or more of the
following: (i) change the manner, place or terms of payment or extend the time
of payment of, or renew or alter, Senior Debt of such Subsidiary Guarantor, or
otherwise amend or supplement in any manner Senior Debt of such Subsidiary
Guarantor or any instrument evidencing the same or any agreement under which
Senior Debt of such Subsidiary Guarantor is outstanding; (ii) sell, exchange,
release or otherwise deal with any property pledged, mortgaged or otherwise
securing Senior Debt of such Subsidiary Guarantor; (iii) release any Person
liable in any manner for the collection of Senior Debt of such Subsidiary
Guarantor; and (iv) exercise or refrain from exercising any rights against such
Subsidiary Guarantor and any other Person.

SECTION 1410. Notice to Trustee.

         Each Subsidiary Guarantor shall give prompt written notice to the
Trustee of any fact known to such Subsidiary Guarantor which would prohibit the
making of any payment to or by the Trustee in respect of its Subsidiary
Guarantee. Notwithstanding the provisions of this Article or any other provision
of this Indenture, the Trustee shall not be charged with knowledge of the
existence of any facts which would prohibit the making of any payment to or by
the Trustee in respect of the Subsidiary Guarantees, unless and until the
Trustee shall have received written notice thereof from a Subsidiary Guarantor
or a holder of Senior Debt of such Subsidiary Guarantor or from any trustee
therefor; and, prior to the receipt of any such written notice, the Trustee,
subject to the provisions of Section 601, shall be entitled in all respects to
assume that no such facts exist; provided, however, that if the Trustee shall
not have received the notice provided for in this Section at least three
Business Days prior to the date upon which by the terms hereof any money may
become payable for any purpose (including, without limitation, the payment of
the principal of (and premium, if any) or interest on any Security), then,
anything herein contained to the contrary notwithstanding, the Trustee shall
have full power and authority

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<PAGE>

to receive such money and to apply the same to the purpose for which such money
was received and shall not be affected by any notice to the contrary which may
be received by it within three Business Days prior to such date.

         Subject to the provisions of Section 601, the Trustee shall be entitled
to rely on the delivery to it of a written notice by a Person representing
himself to be a holder of Senior Debt of a Subsidiary Guarantor (or a trustee
therefor) to establish that such notice has been given by a holder of Senior
Debt of such Subsidiary Guarantor (or a trustee therefor). 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 Debt of a Subsidiary Guarantor
to participate in any payment or distribution pursuant to this Article, the
Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Senior Debt of such Subsidiary
Guarantor held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and any other facts pertinent to the
rights of such Person under this Article, 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 1411. Reliance on Judicial Order or Certificate of Liquidating Agent.

         Upon any payment or distribution of assets of a Subsidiary Guarantor
referred to in this Article, the Trustee, subject to the provisions of Section
601, and the Holders of the Securities shall be entitled to rely upon any order
or decree entered by any court of competent jurisdiction in which such Guarantor
Proceeding is pending, or a certificate of the trustee in bankruptcy, receiver,
liquidating trustee, custodian, assignee for the benefit of creditors, agent or
other Person making such payment or distribution, delivered to the Trustee or to
the Holders of Securities, for the purpose of ascertaining the Persons entitled
to participate in such payment or distribution, the holders of the Senior Debt
of such Subsidiary Guarantor and other indebtedness of such Subsidiary
Guarantor, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article.

SECTION 1412. Trustee Not Fiduciary for Holders of Senior Debt of such
              Subsidiary Guarantor.

         The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Debt of a Subsidiary Guarantor and shall not be liable to any
such holders if it shall in good faith mistakenly pay over or distribute to
Holders of Securities or to the Company, a Subsidiary Guarantor, or to any other
Person cash, property or securities to which any holders of Senior Debt of such
Subsidiary Guarantor shall be entitled by virtue of this Article or otherwise.

SECTION 1413. Rights of Trustee as Holder of Senior Debt of such Subsidiary
              Guarantor; Preservation of Trustee's Rights.

         The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article with respect to any Senior Debt of a Subsidiary
Guarantor which may at any time be held by it, to the same extent as any other
holder of Senior Debt of such Subsidiary Guarantor, and nothing in this
Indenture shall deprive the Trustee of any of its rights as such holder.

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<PAGE>

         Nothing in this Article shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 607.

SECTION 1414. Article Applicable to Paying Agents.

         In case at any time any Paying Agent other than the Trustee shall have
been appointed by the Company and be then acting hereunder, the term "Trustee"
as used in this Article shall in such case (unless the context otherwise
requires) be construed as extending to and including such Paying Agent within
its meaning as fully for all intents and purposes as if such Paying Agent were
named in this Article in addition to or in place of the Trustee; provided,
however, that Section 1413 shall not apply to the Company, any Subsidiary
Guarantor or any Affiliate of the Company if it or such Subsidiary Guarantor or
Affiliate acts as Paying Agent.

SECTION 1415. Defeasance of this Article Fourteen.

         The subordination of the Subsidiary Guarantees provided by this Article
Fourteen is expressly made subject to the provisions for Defeasance or Covenant
Defeasance of a series of Securities in Article Fifteen hereof and, anything
herein to the contrary notwithstanding, upon the effectiveness of any such
Defeasance or Covenant Defeasance with respect to a series of Securities, the
Subsidiary Guarantees of the Securities of such series shall thereupon cease to
be subordinated pursuant to this Article Fourteen.

                                 ARTICLE FIFTEEN

                       DEFEASANCE AND COVENANT DEFEASANCE

SECTION 1501. Company's Option to Effect Defeasance or Covenant Defeasance.

         The Company may elect, at its option at any time, to have Section 1502
or Section 1503 applied to any Securities or any series of Securities, as the
case may be, designated pursuant to Section 301 as being defeasible pursuant to
such Section 1502 or 1503, in accordance with any applicable requirements
provided pursuant to Section 301 and upon compliance with the conditions set
forth below in this Article. Any such election shall be evidenced in or pursuant
to a Board Resolution or in another manner specified as contemplated by Section
301 for such Securities.

SECTION 1502. Defeasance and Discharge.

         Upon the Company's exercise of its option (if any) to have this Section
applied to any Securities or any series of Securities, as the case may be, the
Company shall be deemed to have been discharged from its obligations, each
Subsidiary Guarantor shall be deemed to have been discharged from its
obligations with respect to its Subsidiary Guarantees of such Securities, and
the provisions of Articles Twelve and Fourteen shall cease to be effective, with
respect to such Securities and Subsidiary Guarantees as provided in this Section
on and after the date the conditions set forth in Section 1504 are satisfied
(herein called "Defeasance"). For this purpose, such Defeasance means that the
Company shall be deemed to have paid and discharged the entire indebtedness
represented by such Securities and to have satisfied all its other obligations
under

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<PAGE>

such Securities and this Indenture insofar as such Securities are concerned (and
the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging the same), subject to the following which shall survive until
otherwise terminated or discharged hereunder: (1) the rights of Holders of such
Securities to receive, solely from the trust fund described in Section 1504 and
as more fully set forth in such Section, payments in respect of the principal of
and any premium and interest on such Securities when payments are due, (2) the
Company's and each Subsidiary Guarantor's obligations with respect to such
Securities under Sections 304, 305, 306, 1002 and 1003, (3) the rights, powers,
trusts, duties and immunities of the Trustee hereunder and (4) this Article.
Subject to compliance with this Article, the Company may exercise its option (if
any) to have this Section applied to any Securities notwithstanding the prior
exercise of its option (if any) to have Section 1503 applied to such Securities.

SECTION 1503. Covenant Defeasance.

         Upon the Company's exercise of its option (if any) to have this Section
applied to any Securities or any series of Securities, as the case may be, (1)
the Company shall be released from its obligations under Section 801(3),
Sections 1006 through 1008, inclusive, and any covenants provided pursuant to
Section 301(20), 901(2) or 901(7) for the benefit of the Holders of such
Securities, and (2) the occurrence of any event specified in Sections 501(4)
(with respect to any of Section 801(3), Sections 1006 through 1008, inclusive,
and any such covenants provided pursuant to Section 301(20), 901(2) or 901(7)),
501(5), 501(6)), 501(9) and 501(10) shall be deemed not to be or result in an
Event of Default and (3) the provisions of Articles Twelve, Thirteen and
Fourteen shall cease to be effective, in each case with respect to such
Securities and Subsidiary Guarantees as provided in this Section on and after
the date the conditions set forth in Section 1504 are satisfied (herein called
"Covenant Defeasance"). For this purpose, such Covenant Defeasance means that,
with respect to such Securities, the Company and the Subsidiary Guarantors, as
applicable, may omit to comply with and shall have no liability in respect of
any term, condition or limitation set forth in any such specified Section (to
the extent so specified in the case of Section 501(4)) or Article Twelve,
Thirteen or Article Fourteen, whether directly or indirectly by reason of any
reference elsewhere herein to any such Section or Article or by reason of any
reference in any such Section or Article to any other provision herein or in any
other document, but the remainder of this Indenture and such Securities shall be
unaffected thereby.

SECTION 1504. Conditions to Defeasance or Covenant Defeasance.

         The following shall be the conditions to the application of Section
1502 or Section 1503 to any Securities or any series of Securities, as the case
may be:

                  (1)      The Company shall irrevocably have deposited or
         caused to be deposited with the Trustee (or another trustee which
         satisfies the requirements contemplated by Section 609 and agrees to
         comply with the provisions of this Article applicable to it) as trust
         funds in trust for the purpose of making the following payments,
         specifically pledged as security for, and dedicated solely to, the
         benefits of the Holders of such Securities, (A) money in an amount, or
         (B) U.S. Government Obligations which through the scheduled payment of
         principal and interest in respect thereof in accordance with their
         terms will provide, not later than one day before the due date of any
         payment,

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<PAGE>

         money in an amount, or (C) a combination thereof, in each case
         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, and which shall
         be applied by the Trustee (or any such other qualifying trustee) to pay
         and discharge, the principal of and any premium and interest on such
         Securities on the respective Stated Maturities, in accordance with the
         terms of this Indenture and such Securities. As used herein, "U.S.
         Government Obligation" means (x) any security which is (i) a direct
         obligation of the United States of America for the payment of which the
         full faith and credit of the United States of America is pledged or
         (ii) an obligation of a Person controlled or supervised by and acting
         as an agency or instrumentality of the United States of America the
         payment of which is unconditionally guaranteed as a full faith and
         credit obligation by the United States of America, which, in either
         case (i) or (ii), is not callable or redeemable at the option of the
         issuer thereof, and (y) any depositary receipt issued by a bank (as
         defined in Section 3(a)(2) of the Securities Act) as custodian with
         respect to any U.S. Government Obligation which is specified in clause
         (x) above and held by such bank for the account of the holder of such
         depositary receipt, or with respect to any specific payment of
         principal of or interest on any U.S. Government Obligation which is so
         specified and held, 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 depositary receipt from any amount
         received by the custodian in respect of the U.S. Government Obligation
         or the specific payment of principal or interest evidenced by such
         depositary receipt.

                  (2)      In the event of an election to have Section 1502
         apply to any Securities or any series of Securities, as the case may
         be, the Company shall have delivered to the Trustee an Opinion of
         Counsel stating 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 instrument, there has been a change in the applicable
         Federal income tax law, in either case (A) or (B) to the effect that,
         and based thereon such opinion shall confirm that, the Holders of such
         Securities will not recognize gain or loss for Federal income tax
         purposes as a result of the deposit, Defeasance and discharge to be
         effected with respect to such Securities and will be subject to Federal
         income tax on the same amount, in the same manner and at the same times
         as would be the case if such deposit, Defeasance and discharge were not
         to occur.

                  (3)      In the event of an election to have Section 1503
         apply to any Securities or any series of Securities, as the case may
         be, the Company shall have delivered to the Trustee an Opinion of
         Counsel to the effect that the Holders of such Securities will not
         recognize gain or loss for Federal income tax purposes as a result of
         the deposit and Covenant Defeasance to be effected with respect to such
         Securities and will be subject to Federal income tax on the same
         amount, in the same manner and at the same times as would be the case
         if such deposit and Covenant Defeasance were not to occur.

                  (4)      The Company shall have delivered to the Trustee an
         Officer's Certificate to the effect that neither such Securities nor
         any other Securities of the same series, if then listed on any
         securities exchange, will be delisted as a result of such deposit.

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<PAGE>

                  (5)      No event which is, or after notice or lapse of time
         or both would become, an Event of Default with respect to such
         Securities or any other Securities shall have occurred and be
         continuing at the time of such deposit or, with regard to any such
         event specified in Sections 501(7) and (8), at any time on or prior to
         the 121st day after the date of such deposit (it being understood that
         this condition shall not be deemed satisfied until after such 121st
         day).

                  (6)      Such Defeasance or Covenant Defeasance shall not
         cause the Trustee to have a conflicting interest within the meaning of
         the Trust Indenture Act (assuming all Securities are in default within
         the meaning of such Act).

                  (7)      Such Defeasance or Covenant Defeasance shall not
         result in a breach or violation of, or constitute a default under, any
         other agreement or instrument to which the Company or any Subsidiary is
         a party or by which it is bound.

                  (8)      At the time of such deposit, (A) no default in the
         payment of any principal of or premium or interest on any Senior Debt
         of the Company or any Subsidiary Guarantor shall have occurred and be
         continuing, (B) no event of default with respect to any Senior Debt of
         the Company or any Subsidiary Guarantor shall have resulted in such
         Senior Debt becoming, and continuing to be, due and payable prior to
         the date on which it would otherwise have become due and payable
         (unless payment of such Senior Debt has been made or duly provided
         for), and (C) no other event of default with respect to any Senior Debt
         of the Company or any Subsidiary Guarantor shall have occurred and be
         continuing permitting (after notice or lapse of time or both) the
         holders of such Senior Debt (or a trustee on behalf of such holders) to
         declare such Senior Debt due and payable prior to the date on which it
         would otherwise have become due and payable.

                  (9)      The Company shall have delivered to the Trustee an
         Opinion of Counsel to the effect that such deposit shall not cause
         either the Trustee or the trust so created to be subject to the
         Investment Company Act of 1940.

                  (10)     The Company shall have delivered to the Trustee an
         Officers' Certificate and an Opinion of Counsel, each stating that all
         conditions precedent with respect to such Defeasance or Covenant
         Defeasance have been complied with.

SECTION 1505. Deposited Money and U.S. Government Obligations to Be Held in
              Trust; Miscellaneous Provisions.

         Subject to the provisions of the last paragraph of Section 1003, all
money and U.S. Government Obligations (including the proceeds thereof) deposited
with the Trustee or other qualifying trustee (solely for purposes of this
Section and Section 1506, the Trustee and any such other trustee are referred to
collectively as the "Trustee") pursuant to Section 1504 in respect of any
Securities shall be held in trust and applied by the Trustee, in accordance with
the provisions of such Securities and this Indenture, to the payment, either
directly or through any such Paying Agent (including the Company acting as its
own Paying Agent) as the Trustee may determine, to the Holders of such
Securities, of all sums due and to become due thereon in respect of principal
and any premium and interest, but money so held in trust need not be segregated
from other

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<PAGE>

funds except to the extent required by law. Money and U.S. Government
Obligations so held in trust shall not be subject to the provisions of Article
Twelve or Article Fourteen.

         The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 1504 or the principal and interest received in
respect thereof other than any such tax, fee or other charge which by law is for
the account of the Holders of Outstanding Securities.

         Anything in this Article to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon Company Request any
money or U.S. Government Obligations held by it as provided in Section 1504 with
respect to any Securities which, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect the Defeasance or Covenant Defeasance, as
the case may be, with respect to such Securities.

SECTION 1506. Reinstatement.

         If the Trustee or the Paying Agent is unable to apply any money in
accordance with this Article with respect to any Securities by reason of any
order or judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting such application, then the obligations under this
Indenture and such Securities from which the Company has been discharged or
released pursuant to Section 1502 or 1503 shall be revived and reinstated as
though no deposit had occurred pursuant to this Article with respect to such
Securities, until such time as the Trustee or Paying Agent is permitted to apply
all money held in trust pursuant to Section 1505 with respect to such Securities
in accordance with this Article; provided, however, that if the Company makes
any payment of principal of or any premium or interest on any such Security
following such reinstatement of its obligations, the Company shall be subrogated
to the rights (if any) of the Holders of such Securities to receive such payment
from the money so held in trust.

                                 ARTICLE SIXTEEN

                                  SINKING FUNDS

SECTION 1601. Applicability of Article.

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

         The minimum amount of any sinking fund payment provided for by the
terms of any Securities is herein referred to as a "mandatory sinking fund
payment", and any payment in excess of such minimum amount provided for by the
terms of such Securities is herein referred to as an "optional sinking fund
payment." If provided for by the terms of any Securities, the cash amount of any
sinking fund payment may be subject to reduction as provided in Section 1602.

                                       79

<PAGE>

Each sinking fund payment shall be applied to the redemption of Securities as
provided for by the terms of such Securities.

SECTION 1602. Satisfaction of Sinking Fund Payments with Securities.

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

SECTION 1603. Redemption of Securities for Sinking Fund.

         Not less than 35 days prior to each sinking fund payment date for any
Securities, the Company will deliver to the Trustee an Officers' Certificate
specifying the amount of the next ensuing sinking fund payment for such
Securities pursuant to the terms of such Securities, 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 pursuant to
Section 1602 and will also deliver to the Trustee any Securities to be so
delivered. Not less than 32 days prior to each such sinking fund payment date,
the Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 1103 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 1104. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 1106 and 1107.

         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.

                                       80

<PAGE>

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

                            ISSUER:

                            GROUP 1 AUTOMOTIVE, INC.

                            By: /s/ Scott L. Thompson
                                -----------------------------------------------
                            Name:  Scott L. Thompson
                            Title: Executive Vice President, Chief Financial
                                   Officer and Treasurer

                            SUBSIDIARY GUARANTORS:

                            GROUP 1 REALTY, INC.
                            GROUP 1 FL HOLDINGS, INC.

                            By: /s/ Scott L. Thompson
                                -----------------------------------------------
                            Name:  Scott L. Thompson
                            Title: President

                            BOB HOWARD AUTOMOTIVE-EAST, INC.
                            BOB HOWARD AUTOMOTIVE-H, INC.
                            BOB HOWARD CHEVROLET, INC.
                            BOB HOWARD DODGE, INC.
                            BOB HOWARD MOTORS, INC.
                            BOB HOWARD NISSAN, INC.
                            BOHN HOLDINGS-DC, INC.
                            BOHN HOLDINGS-F, INC.
                            BOHN HOLDINGS-GM, INC.
                            BOHN HOLDINGS-S, INC.
                            CASA CHEVROLET INC.
                            CASA CHRYSLER PLYMOUTH JEEP INC.
                            DANVERS-DC, INC.
                            DANVERS-DCII, INC.
                            DANVERS-DCIII, INC.
                            DANVERS-GM, INC.
                            DANVERS-N, INC.
                            DANVERS-NII, INC.
                            DANVERS-S, INC.
                            DANVERS-SU, INC.
                            DANVERS-T, INC.

                                       81

<PAGE>

                            DANVERS-TII, INC.
                            DANVERS-TL, INC.
                            FMM, INC.
                            GPI ATLANTA-F, INC.
                            GPI ATLANTA-FLM, INC.
                            GPI ATLANTA-FLM II, INC.
                            GPI ATLANTA-T, INC.
                            GROUP 1 ASSOCIATES, INC.
                            HARVEY-T, INC.
                            HIGHLAND AUTOPLEX, INC.
                            HOWARD FORD, INC.
                            HOWARD PONTIAC-GMC, INC.
                            HOWARD-DC, INC.
                            HOWARD-DCII, INC.
                            HOWARD-GM, INC.
                            HOWARD-GMII, INC.
                            HOWARD-GMIII, INC.
                            HOWARD-H, INC.
                            HOWARD-HA, INC.
                            HOWARD-FLM, INC.
                            HOWARD-SB, INC.
                            HOWARD-SI, INC.
                            JIM TIDWELL FORD, INC.
                            LUBY CHEVROLET CO.
                            MIKE SMITH AUTOMOTIVE-H, INC.
                            MIKE SMITH AUTOMOTIVE-N, INC.
                            MIKE SMITH AUTOPLAZA, INC.
                            MIKE SMITH AUTOPLEX BUICK, INC.
                            MIKE SMITH AUTOPLEX DODGE, INC.
                            MIKE SMITH AUTOPLEX, INC.
                            MIKE SMITH AUTOPLEX-GERMAN IMPORTS, INC.
                            MIKE SMITH AUTOPLEX-V, INC.
                            MIKE SMITH GM, INC.
                            MIKE SMITH IMPORTS, INC.
                            MIKE SMITH MOTORS, INC.
                            MILLBRO, INC.
                            MILLER AUTOMOTIVE GROUP, INC.
                            MILLER FAMILY COMPANY, INC.
                            MILLER IMPORTS, INC.
                            MILLER INFINITI, INC.
                            MILLER MOTORS VAN NUYS, INC.
                            MILLER NISSAN, INC.
                            MILLER-NII, INC.
                            PERIMETER FORD, INC.

                                       82

<PAGE>

                            SUNSHINE BUICK PONTIAC GMC TRUCK, INC.

                            By: /s/ Scott L. Thompson
                                -----------------------------------------------
                            Name:  Scott L. Thompson
                            Title: Vice President

                            AMARILLO MOTORS-C, LTD.
                            AMARILLO MOTORS-F, LTD.
                            AMARILLO MOTORS-FM, LTD.
                            AMARILLO MOTORS-J, LTD.
                            AMARILLO MOTORS-SM, LTD.
                            CHAPERRAL DODGE, LTD.
                            COLONIAL CHRYSLER-PLYMOUTH, LTD.
                            GPI, LTD.
                            KUTZ-DC, LTD.
                            KUTZ-N, LTD.
                            LUBBOCK MOTORS, LTD.
                            LUBBOCK MOTORS-F, LTD.
                            LUBBOCK MOTORS-S, LTD.
                            LUBBOCK MOTORS-SH, LTD.
                            LUBBOCK MOTORS-T, LTD.
                            MAXWELL CHRYSLER DODGE JEEP, LTD.
                            MAXWELL FORD, LTD.
                            MAXWELL-G, LTD.
                            MAXWELL-N, LTD.
                            MAXWELL-NII, LTD.
                            MAXWELL-SM, LTD.
                            MCCALL-H, LTD.
                            MCCALL-HA, LTD.
                            MCCALL-N, LTD.
                            MCCALL-T, LTD.
                            MCCALL-TII, LTD.
                            MCCALL-TL, LTD.
                            PRESTIGE CHRYSLER NORTHWEST, LTD.
                            PRESTIGE CHRYSLER SOUTH, LTD.
                            ROCKWALL AUTOMOTIVE-DCD, LTD.

                                       83

<PAGE>

                            ROCKWALL AUTOMOTIVE-F, LTD.

                            By:  GROUP 1 ASSOCIATES, INC.,
                                 as general partner

                            By: /s/ Scott L. Thompson
                                ----------------------------
                            Name: Scott L. Thompson
                            Title: Vice President

                            GROUP 1 HOLDINGS-DC, L.L.C.
                            GROUP 1 HOLDINGS-F, L.L.C.
                            GROUP 1 HOLDINGS-GM, L.L.C.
                            GROUP 1 HOLDINGS-H, L.L.C.
                            GROUP 1 HOLDINGS-N, L.L.C.
                            GROUP 1 HOLDINGS-S, L.L.C.
                            GROUP 1 HOLDINGS-T, L.L.C.

                            By:  GROUP 1 AUTOMOTIVE, INC.,
                                 as sole member

                            By: /s/ Scott L. Thompson
                                -----------------------------
                            Name:  Scott L. Thompson
                            Title: Executive Vice President

                            COURTESY FORD, LLC
                            GULF BREEZE FORD, LLC
                            KEY FORD, LLC
                            KOONS FORD, LLC

                            By:  GROUP 1 FL HOLDINGS, INC.,
                                 as sole member

                            By: /s/ Scott L. Thompson
                                ----------------------------
                            Name:  Scott L. Thompson
                            Title: President

                                       84

<PAGE>

                            BOHN-DC, LLC

                            By: BOHN HOLDINGS-DC, INC.,
                                as sole member

                            By: /s/ Scott L. Thompson
                                ----------------------------
                            Name:  Scott L. Thompson
                            Title: Vice President

                            BOHN-FII, LLC
                            BOHN-FIII, LLC
                            HARVEY FORD, LLC
                            HARVEY-FLM, LLC

                           By: BOHN HOLDINGS-F, INC.,
                               as sole member

                            By: /s/ Scott L. Thompson
                                ----------------------------
                            Name:  Scott L. Thompson
                            Title: Vice President

                            HARVEY GM, LLC

                            By: BOHN HOLDINGS-GM, INC.,
                                as sole member

                            By: /s/ Scott L. Thompson
                                ----------------------------
                            Name:  Scott L. Thompson
                            Title: Vice President

                            HARVEY SM, LLC

                            By:  BOHN HOLDINGS-S, INC.,
                                 as sole member

                            By: /s/ Scott L. Thompson
                                ----------------------------
                            Name:  Scott L. Thompson
                            Title: Vice President

                                       85

<PAGE>

                            HARVEY OPERATIONS-T, LLC

                            By: HARVEY-T, INC.,
                                as sole member

                            By: /s/ Scott L. Thompson
                               __________________________________
                            Name:  Scott L. Thompson
                            Title: Vice President

                            IRA AUTOMOTIVE GROUP, LLC

                            By: DANVERS-T, INC.,
                                as sole member

                            By: /s/ Scott L. Thompson
                               __________________________________
                            Name:  Scott L. Thompson
                            Title: Vice President

                            GROUP 1 LP INTERESTS-F, INC.
                            GROUP 1 LP INTERESTS-DC, INC.
                            GROUP 1 LP INTERESTS-T, INC.
                            GROUP 1 LP INTERESTS-GM, INC.
                            GROUP 1 LP INTERESTS-H, INC.
                            GROUP 1 LP INTERESTS-S, INC.
                            GROUP 1 LP INTERESTS-N, INC.

                            By: /s/ Mathew J. Baer
                               __________________________________
                            Name:  Mathew J. Baer
                            Title: President

                            DELAWARE ACQUISITION-DC, LLC

                            By: GROUP 1 LP INTERESTS-DC, INC.,
                                as sole member

                            By: /s/ Mathew J. Baer
                               __________________________________
                            Name:  Mathew J. Baer
                            Title: President and Secretary

                                       86

<PAGE>

                            DELAWARE ACQUISITION-F, LLC

                            By: GROUP 1 LP INTERESTS-F, INC.,
                                as sole member

                            By: /s/ Mathew J. Baer
                               ___________________________________
                            Name:  Mathew J. Baer
                            Title: President and Secretary

                            DELAWARE ACQUISITION-GM, LLC

                            By: GROUP 1 LP INTERESTS-GM, INC.,
                                as sole member

                            By: /s/ Mathew J. Baer
                               ___________________________________
                            Name:  Mathew J. Baer
                            Title: President and Secretary

                            DELAWARE ACQUISITION-N, LLC

                            By: GROUP 1 LP INTERESTS-N, INC.,
                                as sole member

                            By: /s/ Mathew J. Baer
                               ___________________________________
                            Name:  Mathew J. Baer
                            Title: President and Secretary

                            DELAWARE ACQUISITION-T, LLC

                            By: GROUP 1 LP INTERESTS-T, INC.,
                                as sole member

                            By: /s/ Mathew J. Baer
                               ___________________________________
                            Name:  Mathew J. Baer
                            Title: President and Secretary

                                       87

<PAGE>

                                 TRUSTEE:

                                 WELLS FARGO BANK, N.A.,
                                   as Trustee

                                 By: /s/ Melissa Scott
                                    ______________________________
                                 Name:   Melissa Scott
                                 Title:  Vice President

                                       88

<PAGE>

                                   SCHEDULE I

                              SUBSIDIARY GUARANTORS

<TABLE>
<CAPTION>
         SUBSIDIARY                                      STATE OF ORGANIZATION
         ----------                                      ---------------------
<S>                                                      <C>
Group 1 Realty, Inc.                                           Delaware
Group 1 FL Holdings, Inc.                                      Delaware
Bob Howard Automotive-East, Inc.                               Oklahoma
Bob Howard Automotive-H, Inc.                                  Oklahoma
Bob Howard Chevrolet, Inc.                                     Oklahoma
Bob Howard Dodge, Inc.                                         Oklahoma
Bob Howard Motors, Inc.                                        Oklahoma
Bob Howard Nissan, Inc.                                        Oklahoma
Bohn Holdings-DC, Inc.                                         Delaware
Bohn Holdings-F, Inc.                                          Delaware
Bohn Holdings-GM, Inc.                                         Delaware
Bohn Holdings-S, Inc.                                          Delaware
Casa Chevrolet Inc.                                            New Mexico
Casa Chrysler Plymouth Jeep Inc.                               New Mexico
Danvers-DC, Inc.                                               Delaware
Danvers-DCII, Inc.                                             Delaware
Danvers-DCIII, Inc.                                            Delaware
Danvers-GM, Inc.                                               Delaware
Danvers-N, Inc.                                                Delaware
Danvers-NII, Inc.                                              Delaware
Danvers-S, Inc.                                                Delaware
Danvers-SU, Inc.                                               Delaware
Danvers-T, Inc.                                                Delaware
Danvers-TII, Inc.                                              Delaware
Danvers-TL, Inc.                                               Delaware
FMM, Inc.                                                      California
GPI Atlanta-F, Inc.                                            Georgia
GPI Atlanta-FLM, Inc.                                          Delaware
GPI Atlanta-FLM II, Inc.                                       Delaware
GPI Atlanta-T, Inc.                                            Delaware
Group 1 Associates, Inc.                                       Delaware
Harvey-T, Inc.                                                 Delaware
Highland Autoplex, Inc.                                        Texas
Howard Ford, Inc.                                              Delaware
Howard Pontiac-GMC, Inc.                                       Oklahoma
Howard-DC, Inc.                                                Delaware
Howard-DCII, Inc.                                              Delaware
Howard-GM, Inc.                                                Delaware
Howard-GMII, Inc.                                              Delaware
Howard-GMIII, Inc.                                             Delaware
Howard-H, Inc.                                                 Delaware
Howard-HA, Inc.                                                Delaware
</TABLE>

                                  Schedule I-1

<PAGE>

<TABLE>
<CAPTION>
         SUBSIDIARY                                            STATE OF ORGANIZATION
         ----------                                            ---------------------
<S>                                                            <C>
Howard-FLM, Inc.                                               Delaware
Howard-SB, Inc.                                                Delaware
Howard-SI, Inc.                                                Delaware
Jim Tidwell Ford, Inc.                                         Delaware
Luby Chevrolet Co.                                             Delaware
Mike Smith Automotive-H, Inc.                                  Delaware
Mike Smith Automotive-N, Inc.                                  Texas
Mike Smith Autoplaza, Inc.                                     Texas
Mike Smith Autoplex Buick, Inc.                                Texas
Mike Smith Autoplex Dodge, Inc.                                Texas
Mike Smith Autoplex, Inc.                                      Texas
Mike Smith Autoplex-German Imports, Inc.                       Texas
Mike Smith Autoplex-V, Inc.                                    Texas
Mike Smith GM, Inc.                                            Delaware
Mike Smith Imports, Inc.                                       Texas
Mike Smith Motors, Inc.                                        Texas
Millbro, Inc.                                                  California
Miller Automotive Group, Inc.                                  California
Miller Family Company, Inc.                                    California
Miller Imports, Inc.                                           California
Miller Infiniti, Inc.                                          California
Miller Motors Van Nuys, Inc.                                   California
Miller Nissan, Inc.                                            California
Miller-NII, Inc.                                               Delaware
Perimeter Ford, Inc.                                           Delaware
Sunshine Buick Pontiac GMC Truck, Inc.                         New Mexico
Amarillo Motors-C, Ltd.                                        Texas limited partnership
Amarillo Motors-F, Ltd.                                        Texas limited partnership
Amarillo Motors-FM, Ltd.                                       Texas limited partnership
Amarillo Motors-J, Ltd.                                        Texas limited partnership
Amarillo Motors-SM, Ltd.                                       Texas limited partnership
Chaperral Dodge, Ltd.                                          Texas limited partnership
Colonial Chrysler-Plymouth, Ltd.                               Texas limited partnership
GPI, Ltd.                                                      Texas limited partnership
Kutz-DC, Ltd.                                                  Texas limited partnership
Kutz-N, Ltd.                                                   Texas limited partnership
Lubbock Motors, Ltd.                                           Texas limited partnership
Lubbock Motors-F, Ltd.                                         Texas limited partnership
Lubbock Motors-S, Ltd.                                         Texas limited partnership
Lubbock Motors-SH, Ltd.                                        Texas limited partnership
Lubbock Motors-T, Ltd.                                         Texas limited partnership
Maxwell Chrysler Dodge Jeep, Ltd.                              Texas limited partnership
Maxwell Ford, Ltd.                                             Texas limited partnership
Maxwell-G, Ltd.                                                Texas limited partnership
Maxwell-N, Ltd.                                                Texas limited partnership
</TABLE>

                                  Schedule I-2

<PAGE>

<TABLE>
<CAPTION>
         SUBSIDIARY                                                 STATE OF ORGANIZATION
         ----------                                                 ---------------------
<S>                                                            <C>
Maxwell-NII, Ltd.                                              Texas limited partnership
Maxwell-SM, Ltd.                                               Texas limited partnership
McCall-H, Ltd.                                                 Texas limited partnership
McCall-HA, Ltd.                                                Texas limited partnership
McCall-N, Ltd.                                                 Texas limited partnership
McCall-T, Ltd.                                                 Texas limited partnership
McCall-TII, Ltd.                                               Texas limited partnership
McCall-TL, Ltd.                                                Texas limited partnership
Prestige Chrysler Northwest, Ltd.                              Texas limited partnership
Prestige Chrysler South, Ltd.                                  Texas limited partnership
Rockwall Automotive-DCD, Ltd.                                  Texas limited partnership
Rockwall Automotive-F, Ltd.                                    Texas limited partnership
Group 1 Holdings-DC, L.L.C.                                    Delaware limited liability company
Group 1 Holdings-F, L.L.C.                                     Delaware limited liability company
Group 1 Holdings-GM, L.L.C.                                    Delaware limited liability company
Group 1 Holdings-H, L.L.C.                                     Delaware limited liability company
Group 1 Holdings-N, L.L.C.                                     Delaware limited liability company
Group 1 Holdings-S, L.L.C.                                     Delaware limited liability company
Group 1 Holdings-T, L.L.C.                                     Delaware limited liability company
Courtesy Ford, LLC                                             Delaware limited liability company
Gulf Breeze Ford, LLC                                          Delaware limited liability company
Key Ford, LLC                                                  Delaware limited liability company
Koons Ford, LLC                                                Delaware limited liability company
Bohn-DC, LLC                                                   Delaware limited liability company
Bohn-FII, LLC                                                  Delaware limited liability company
Bohn-FIII, LLC                                                 Delaware limited liability company
Harvey Ford, LLC                                               Delaware limited liability company
Harvey-FLM, LLC                                                Delaware limited liability company
Harvey GM, LLC                                                 Delaware limited liability company
Harvey SM, LLC                                                 Delaware limited liability company
Harvey Operations-T, LLC                                       Delaware limited liability company
Ira Automotive Group, LLC                                      Delaware limited liability company
Group 1 LP Interests-F, Inc.                                   Delaware
Group 1 LP Interests-DC, Inc.                                  Delaware
Group 1 LP Interests-T, Inc.                                   Delaware
Group 1 LP Interests-GM, Inc.                                  Delaware
Group 1 LP Interests-H, Inc.                                   Delaware
Group 1 LP Interests-S, Inc.                                   Delaware
Group 1 LP Interests-N, Inc.                                   Delaware
Delaware Acquisition-DC, LLC                                   Delaware limited liability company
Delaware Acquisition-F, LLC                                    Delaware limited liability company
Delaware Acquisition-GM, LLC                                   Delaware limited liability company
Delaware Acquisition-N, LLC                                    Delaware limited liability company
Delaware Acquisition-T, LLC                                    Delaware limited liability company
</TABLE>

                                  Schedule I-3<PAGE>

                                                                     EXHIBIT 4.7

================================================================================

                            Group 1 Automotive, Inc.,
                                    as Issuer

                                       and

                     The Subsidiary Guarantors named herein,
                            as Subsidiary Guarantors

                                       to

                             Wells Fargo Bank, N.A.
                                     Trustee

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

                          FIRST SUPPLEMENTAL INDENTURE

                           Dated as of August 13, 2003

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

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                Page
<S>                                                                                             <C>
ARTICLE I DEFINITIONS AND OTHER PROVISIONS  OF GENERAL APPLICATION............................    2

   SECTION 1.01   DEFINITIONS.................................................................    2

   SECTION 1.02   TO BE READ WITH ORIGINAL INDENTURE..........................................   21

ARTICLE II THE NOTES..........................................................................   21

   SECTION 2.01   DESIGNATION.................................................................   21

   SECTION 2.02   INITIAL LIMIT OF AGGREGATE PRINCIPAL AMOUNT.................................   22

   SECTION 2.03   SUBSIDIARY GUARANTEES.......................................................   22

   SECTION 2.04   SUBORDINATION...............................................................   23

   SECTION 2.05   DATE OF PAYMENT OF PRINCIPAL................................................   23

   SECTION 2.06   INTEREST....................................................................   23

   SECTION 2.07   PLACE OF PAYMENT............................................................   23

   SECTION 2.08   REDEMPTION..................................................................   23

   SECTION 2.09   DEFEASANCE..................................................................   25

   SECTION 2.10   FORM........................................................................   25

   SECTION 2.11   ADDITIONAL EVENTS OF DEFAULT................................................   25

   SECTION 2.12   ADDITIONAL COVENANTS........................................................   25

   SECTION 2.13   ISSUANCE OF ADDITIONAL NOTES................................................   26

   SECTION 2.14   SPECIAL INTEREST............................................................   26

   SECTION 2.15   DEPOSITORY; GLOBAL NOTES....................................................   26

   SECTION 2.16   CUSIP NUMBERS...............................................................   27

ARTICLE III ADDITIONAL COVENANTS APPLICABLE TO THE NOTES......................................   27

   SECTION 3.01   LIMITATION ON DEBT..........................................................   27
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                              <C>
   SECTION 3.02   LIMITATION ON RESTRICTED PAYMENTS...........................................   30

   SECTION 3.03   LIMITATION ON DIVIDEND AND OTHER PAYMENT RESTRICTIONS AFFECTING RESTRICTED
                  SUBSIDIARIES................................................................   33

   SECTION 3.04   LIMITATION ON RANKING OF CERTAIN DEBT.......................................   35

   SECTION 3.05   LIMITATION ON LIENS SECURING PARI PASSU OR SUBORDINATED DEBT................   35

   SECTION 3.06   LIMITATION ON ASSET DISPOSITIONS............................................   36

   SECTION 3.07   [INTENTIONALLY OMITTED].....................................................   38

   SECTION 3.08   TRANSACTIONS WITH AFFILIATES................................................   38

   SECTION 3.09   CHANGE OF CONTROL...........................................................   39

   SECTION 3.10   PAYMENTS FOR CONSENT........................................................   40

   SECTION 3.11   PROVISION OF FINANCIAL INFORMATION..........................................   40

   SECTION 3.12   MERGERS, CONSOLIDATIONS AND CERTAIN SALES OF ASSETS.........................   41
</TABLE>

                              APPENDIX AND ANNEXES

<TABLE>
<S>                                                                                             <C>
RULE 144A/REGULATION S APPENDIX...............................................................    1
          EXHIBIT 1         Form of Initial Note..............................................    1
          EXHIBIT A         Form of Exchange Note or Private Exchange Note....................  A-1
</TABLE>

                                       ii
<PAGE>

                  THIS FIRST SUPPLEMENTAL INDENTURE (this "Supplemental
Indenture"), dated as of August 13, 2003, among Group 1 Automotive, Inc., a
corporation duly organized and existing under the laws of the State of Delaware
(the "Company"), each of the Subsidiary Guarantors named herein and Wells Fargo
Bank, N.A., a national banking association, as trustee (the "Trustee"), to the
Indenture, dated as of August 13, 2003, among the Company, each of the
Subsidiary Guarantors named therein and the Trustee (the "Original Indenture",
the Original Indenture, as amended and supplemented hereby, being referred to
herein as the "Indenture"),

                              W I T N E S S E T H :

                  WHEREAS, Section 901 of the Original Indenture permits the
execution of supplemental indentures without the consent of any Holder (as
defined therein) (i) to add to the covenants of the Company for the benefit of
the Holders of all or any series of Securities (Section 9.01(2)), (ii) to add
any additional Events of Default with respect to all or any series of Securities
(Section 9.01(3)), (iii) to add to, change or eliminate any provision of the
Original Indenture with respect to Securities of any series when there is no
Security of such series outstanding (Section 9.01(5)) and (iv) to establish the
form or terms of Securities of any series (Section 9.01(7));

                  WHEREAS, the Company has duly authorized, as a series of
Securities under the Indenture, its 8.25% Senior Subordinated Notes due August
15, 2013 (the "Notes");

                  WHEREAS, the Company and the Subsidiary Guarantors have duly
authorized the execution and delivery of this Supplemental Indenture, and
pursuant to Section 9.01 of the Original Indenture have requested that the
Trustee join in the execution and delivery of this Supplemental Indenture, in
order to establish the Notes as a series of Securities under the Original
Indenture and to provide for, among other things, the issuance of and the form
and terms of the Notes and additional covenants and Events of Default for
purposes of the Notes and the Holders thereof;

                  WHEREAS, all things necessary to make this Supplemental
Indenture a valid agreement according to its terms have been done; and

                  WHEREAS, the foregoing recitals are made as statements of fact
by the Company and the Subsidiary Guarantors and not by the Trustee;

                  NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

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

                                    ARTICLE I

                                       1
<PAGE>

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

SECTION 1.01 DEFINITIONS

                  (a) Unless otherwise defined in this Supplemental Indenture,
terms used herein have the meanings ascribed to them in the Original Indenture.
For all purposes of this Supplemental Indenture and the Notes, except as
otherwise expressly provided or unless the subject matter or context otherwise
requires:

                  "Additional Notes" means 8.25% Senior Subordinated Notes due
August 15, 2013 originally issued from time to time after the Closing Date under
the terms of the Indenture (other than Exchange Notes or Private Exchange Notes
issued pursuant to an exchange offer for other Notes outstanding under the
Indenture).

                  "Affiliate" of any Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such Person. For the purposes of this definition, "control" when
used with respect to any 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; provided that direct or
indirect beneficial ownership of 10% or more of the Voting Stock of a Person
shall be deemed to constitute control.

                  "Adjusted Treasury Rate" means with respect to any redemption
date, the rate per annum equal to the semi-annual equivalent yield to maturity
of the Comparable Treasury Issue, assuming a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date, plus 0.50%.

                  "Asset Disposition" by any Person means any transfer,
conveyance, sale, lease or other disposition (but excluding the creation of any
Lien) by such Person or any of its Restricted Subsidiaries (including a
consolidation or merger or other sale of any such Restricted Subsidiary with,
into or to another Person in a transaction in which such Restricted Subsidiary
ceases to be a Restricted Subsidiary, but excluding a disposition by a
Restricted Subsidiary of such Person to such Person or a Wholly Owned Restricted
Subsidiary of such Person or by such Person to a Wholly Owned Restricted
Subsidiary of such Person) of:

                  (1)      shares of Capital Stock (other than directors'
                           qualifying shares) or other ownership interests of a
                           Restricted Subsidiary of such Person,

                  (2)      substantially all of the assets of such Person or any
                           of its Restricted Subsidiaries representing a
                           division or line of business or

                  (3)      other assets or rights of such Person or any of its
                           Restricted Subsidiaries outside of the ordinary
                           course of business,

                                       2
<PAGE>

provided in each case that the aggregate consideration for such transfer,
conveyance, sale, lease or other disposition is equal to $2.5 million or more.

                  Notwithstanding the foregoing, the term "Asset Disposition"
shall not include:

                  (1)      a Restricted Payment that is made in compliance with
                           Section 3.02 hereof,

                  (2)      the designation of any Restricted Subsidiary as an
                           Unrestricted Subsidiary or the contribution to the
                           capital of any Unrestricted Subsidiary, in either
                           case in compliance with the applicable provisions of
                           the Indenture or

                  (3)      any transaction subject to and consummated in
                           compliance with Section 3.12 hereof.

                  "Average Life" means, as of any date of determination, with
respect to any Debt, the quotient obtained by dividing (1) the sum of the
products of the number of years from such date of determination to the dates of
each successive scheduled principal payments of such Debt by (2) the sum of all
such principal payments.

                  "Capital Lease Obligation" of any Person means the obligation
to pay rent or other payment amounts under a lease of (or other Debt
arrangements conveying the right to use) real or personal property of such
Person which is required to be classified and accounted for as a capital lease
or a liability on the face of a balance sheet of such Person in accordance with
generally accepted accounting principles. The stated maturity of such obligation
shall be the date of the last payment of rent or any other amount due under such
lease prior to the first date upon which such lease may be terminated by the
lessee without payment of a penalty. The principal amount of such obligation
shall be the capitalized amount thereof that would appear on the face of a
balance sheet of such Person in accordance with generally accepted accounting
principles.

                  "Capital Stock" of any Person means any and all shares,
interests, participations or other equivalents (however designated) of corporate
stock or other equity participations, including partnership interests, whether
general or limited, of such Person.

                  "Cash Equivalents" means:

                  (1)      securities issued or directly and fully guaranteed or
                           insured by the United States government or any agency
                           or instrumentality thereof having maturities of not
                           more than six months from the date of acquisition,

                  (2)      certificates of deposit and Eurodollar time deposits
                           with maturities of six months or less from the date
                           of acquisition, bankers' acceptances with maturities
                           not exceeding six months and

                                       3
<PAGE>

                           overnight bank deposits, in each case with any lender
                           party to the Senior Credit Facility or with any
                           domestic commercial bank having capital and surplus
                           in excess of $500 million and a Fitch Rating of "B"
                           or better,

                  (3)      repurchase obligations with a term of not more than
                           seven days for underlying securities of the types
                           described in clauses (1) and (2) above entered into
                           with any financial institution meeting the
                           qualifications specified in clause (2) above,

                  (4)      commercial paper having a rating of at least P-1 from
                           Moody's and a rating of at least A-1 from S&P,

                  (5)      deposits available for withdrawal on demand with any
                           commercial bank not meeting the qualifications
                           specified in clause (2) above, provided all such
                           deposits do not exceed $5 million in the aggregate at
                           any one time and

                  (6)      investments in money market or other mutual funds
                           substantially all of whose assets comprise securities
                           of the types described in clauses (1) through (4)
                           above.

                  A "Change of Control" will be deemed to have occurred at such
time as either:

                  (1)      any Person (other than a Permitted Holder) or any
                           Persons (other than Permitted Holders) acting
                           together that would constitute a "group" (a "Group")
                           for purposes of Section 13(d) of the Exchange Act, or
                           any successor provision thereto, shall beneficially
                           own (within the meaning of Rule 13d-3 under the
                           Exchange Act, or any successor provision thereto) at
                           least 50% of the aggregate voting power of all
                           classes of Voting Stock of the Company; or

                  (2)      any Person (other than a Permitted Holder) or Group
                           (other than Permitted Holders) shall succeed in
                           having a sufficient number of its nominees elected to
                           the Board of Directors of the Company such that such
                           nominees, when added to any existing director
                           remaining on the Board of Directors of the Company
                           after such election who was a nominee of or is an
                           Affiliate of such Person or Group, will constitute a
                           majority of the Board of Directors of the Company;

provided, that a transaction effected to create a holding company of the
Company, (i) pursuant to which the Company becomes a Wholly Owned Subsidiary of
such holding company, and (ii) as a result of which the holders of Capital Stock
of such holding company are substantially the same as the holders of Capital
Stock of the Company immediately prior to such transaction, shall not be deemed
to involve a "Change of Control"; provided further that following such a holding
company transaction, references

                                       4
<PAGE>

in this definition of "Change of Control" shall thereafter be treated as
references to such holding company. References to the "Board of Directors" in
this definition are to the full board of directors of the Company and not to a
committee thereof.

                  "Closing Date" means August 13, 2003.

                  "Common Stock" of any Person means Capital Stock of such
Person that does not rank prior, as to the payment of dividends or as to the
distribution of assets upon any voluntary or involuntary liquidation,
dissolution or winding up of such Person, to shares of Capital Stock of any
other class of such Person.

                  "Comparable Treasury Issue" means the United States Treasury
Security selected by an Independent Investment Banker as having a maturity
comparable to the remaining term of the Notes that would be utilized, at the
time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of the Notes.

                  "Comparable Treasury Price" means, with respect to any
Redemption Date, (i) the average of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
on the third Business Day preceding such Redemption Date, as set forth in the
daily statistical release (or any successor release) published by the Federal
Reserve Bank of New York and designated "Composite 3:30 p.m. Quotations for U.S.
Government Securities" or (ii) if such release (or any successor release) is not
published or does not contain such prices on such Business Day, (A) the
Reference Treasury Dealer Quotations for such Redemption Date, after excluding
the highest and lowest of such Reference Treasury Dealer Quotations, or (B) if
the Trustee obtains fewer than three such Reference Treasury Dealer Quotations,
the average of all such Quotations.

                  "Consolidated Cash Flow Available for Fixed Charges" for any
period means the Consolidated Net Income for such period increased by the sum
of:

                  (1)      Consolidated Interest Expense for such period, plus

                  (2)      the consolidated amount of interest capitalized by
                           the Company and its Restricted Subsidiaries during
                           such period calculated in accordance with generally
                           accepted accounting principles, plus

                  (3)      Consolidated Income Tax Expense for such period, plus

                  (4)      the consolidated depreciation and amortization
                           expense included in the income statement of the
                           Company and its Restricted Subsidiaries for such
                           period, plus

                  (5)      other non-cash expenses (excluding any such non-cash
                           expense to the extent that it represents an accrual
                           of or reserve for cash expenses in any future period
                           or amortization of a prepaid cash expense that was
                           paid in a prior period) included in the income

                                       5
<PAGE>

                           statement of the Company and its Restricted
                           Subsidiaries for such period; minus

                  (6)      non-cash items increasing Consolidated Net Income for
                           such period, other than items that were accrued in
                           the ordinary course of business, in each case, on a
                           consolidated basis and determined in accordance with
                           generally accepted accounting principles;

provided, however, that there shall be excluded therefrom the Consolidated Cash
Flow Available for Fixed Charges (if positive) of any Restricted Subsidiary that
is not a Subsidiary Guarantor (calculated separately for such Restricted
Subsidiary in the same manner as provided above for the Company) that is subject
to a restriction which prevents the payment of dividends or the making of
distributions to the Company or another Restricted Subsidiary to the extent of
such restriction.

                  "Consolidated Cash Flow Coverage Ratio" as of any date of
determination means the ratio of:

                  (1)      Consolidated Cash Flow Available for Fixed Charges
                           for the period of the most recently completed four
                           consecutive fiscal quarters for which quarterly or
                           annual financial statements are available to

                  (2)      Consolidated Fixed Charges for such period;

provided, however, that Consolidated Fixed Charges shall be adjusted to give
effect on a pro forma basis to any Debt that has been Incurred by the Company or
any Restricted Subsidiary since the end of such period that remains outstanding
and to any Debt that is proposed to be Incurred by the Company or any Restricted
Subsidiary as if in each case such Debt had been Incurred on the first day of
such period and as if any Debt that is or will no longer be outstanding as the
result of the Incurrence of any such Debt had not been outstanding as of the
first day of such period; provided, however, that in making such computation,
the Consolidated Interest Expense attributable to interest on any proposed Debt
bearing a floating interest rate shall be computed on a pro forma basis as if
the rate in effect on the date of computation had been the applicable rate for
the entire period; and provided further that, in the event the Company or any of
its Restricted Subsidiaries has made Asset Dispositions or acquisitions of
assets not in the ordinary course of business (including acquisitions of other
Persons by merger, consolidation or purchase of Capital Stock) during or after
such period, such computation shall be made on a pro forma basis as if the Asset
Dispositions or acquisitions had taken place on the first day of such period.

                  "Consolidated Fixed Charges" for any period means the sum of:

                  (1)      Consolidated Interest Expense and

                                       6
<PAGE>

                  (2)      the consolidated amount of interest capitalized by
                           the Company and its Restricted Subsidiaries during
                           such period calculated in accordance with generally
                           accepted accounting principles.

                  "Consolidated Income Tax Expense" for any period means the
consolidated provision for income taxes of the Company and its Restricted
Subsidiaries for such period calculated on a consolidated basis in accordance
with generally accepted accounting principles.

                  "Consolidated Interest Expense" means for any period the
consolidated interest expense, other than floor plan interest expense, included
in a consolidated income statement (without deduction of interest income) of the
Company and its Restricted Subsidiaries for such period calculated on a
consolidated basis in accordance with generally accepted accounting principles,
including without limitation or duplication (or, to the extent not so included,
with the addition of):

                  (1)      the amortization of Debt discounts;

                  (2)      any payments or fees with respect to letters of
                           credit, bankers' acceptances or similar facilities;

                  (3)      net fees with respect to interest rate swap or
                           similar agreements or foreign currency hedge,
                           exchange or similar agreements;

                  (4)      Preferred Stock dividends of the Company and its
                           Restricted Subsidiaries (other than with respect to
                           Redeemable Stock) declared and paid or payable;

                  (5)      accrued Redeemable Stock dividends of the Company and
                           its Restricted Subsidiaries, whether or not declared
                           or paid;

                  (6)      interest on Debt guaranteed by the Company and its
                           Restricted Subsidiaries; and

                  (7)      the portion of rental expense deemed to be
                           representative of the interest factor attributable to
                           leases for rental property.

                  "Consolidated Net Income" for any period means the
consolidated net income (or loss) of the Company and its Restricted Subsidiaries
for such period determined on a consolidated basis in accordance with generally
accepted accounting principles; provided that there shall be excluded therefrom:

                  (1)      the net income (or loss) of any Person acquired by
                           the Company or a Restricted Subsidiary in a
                           pooling-of-interests transaction for any period prior
                           to the date of such transaction,

                  (2)      the net income (or loss) of any Person that is not a
                           Restricted Subsidiary except to the extent of the
                           amount of dividends or other

                                       7
<PAGE>

                           distributions actually paid to the Company or a
                           Restricted Subsidiary by such Person during such
                           period,

                  (3)      gains or losses on Asset Dispositions by the Company
                           or its Subsidiaries,

                  (4)      all extraordinary gains and extraordinary losses,

                  (5)      gains or losses from the early retirement or
                           extinguishment of indebtedness,

                  (6)      the cumulative effect of changes in accounting
                           principles,

                  (7)      non-cash gains or losses resulting from fluctuations
                           in currency exchange rates and

                  (8)      the tax effect of any of the items described in
                           clauses (1) through (7) above;

provided, further, that for purposes of any determination pursuant to the
provisions of Section 3.02 hereof, there shall further be excluded therefrom the
net income (but not net loss) of any Restricted Subsidiary that is not a
Subsidiary Guarantor that is subject to a restriction which prevents the payment
of dividends or the making of distributions to the Company or another Restricted
Subsidiary to the extent of such restriction.

                  "Consolidated Net Tangible Assets" of any Person means the
total amount of assets (less applicable reserves and other properly deductible
items) which under generally accepted accounting principles would be included on
a consolidated balance sheet of such Person and its Restricted Subsidiaries
after deducting therefrom:

                  (1)      all goodwill, trade names, trademarks, patents,
                           patent applications, licenses, non-complete
                           agreements, unamortized debt discount and expense and
                           other like intangibles, which in each case under
                           generally accepted accounting principles would be
                           included on such consolidated balance sheet and

                  (2)      appropriate deductions for any minority interests.

                  "Debt" means (without duplication), with respect to any
Person, whether recourse is to all or a portion of the assets of such Person and
whether or not contingent:

                  (1)      every obligation of such Person for money borrowed;

                  (2)      every obligation of such Person evidenced by bonds,
                           debentures, notes or other similar instruments,
                           including obligations Incurred in connection with the
                           acquisition of property, assets or businesses;

                                       8
<PAGE>

                  (3)      every reimbursement obligation of such Person with
                           respect to letters of credit, bankers' acceptances or
                           similar facilities issued for the account of such
                           Person;

                  (4)      every obligation of such Person issued or assumed as
                           the deferred purchase price of property or services
                           (including securities repurchase agreements but
                           excluding trade accounts payable or accrued
                           liabilities arising in the ordinary course of
                           business and with respect to services, excluding
                           deferred compensation to employees), which purchase
                           price is due more than six months after the date of
                           placing such property in service or taking delivery
                           and title thereto or engaging such services, the
                           amount of such price being that which would be
                           negotiated in an arm's length transaction for cash
                           between a willing seller and a willing and able
                           buyer, neither of which is under any compulsion to
                           complete the transaction or services;

                  (5)      every Capital Lease Obligation of such Person;

                  (6)      all Receivables Sales of such Person which are sold
                           with recourse to such Person;

                  (7)      Redeemable Stock issued by such Person;

                  (8)      if such Person is a Restricted Subsidiary, all
                           Preferred Stock issued by such Person;

                  (9)      every net obligation under Interest Rate, Currency or
                           Commodity Price Agreements of such Person; and

                  (10)     every obligation of the type referred to in clauses
                           (1) through (9) of another Person and all dividends
                           of another Person the payment of which, in either
                           case, (a) such Person has Guaranteed or is
                           responsible or liable, directly or indirectly, as
                           obligor, Guarantor or otherwise or (b) is secured by
                           (or for which the holder of such obligation has an
                           existing right, contingent or otherwise, to be
                           secured by) any Lien upon or with respect to property
                           (including, without limitation, accounts and contract
                           rights) owned by such Person, even though such Person
                           has not assumed or become liable for the payment of
                           such Debt or dividends.

Notwithstanding the foregoing, Debt shall not include any obligation arising
from any agreement entered into in connection with the acquisition of any
business or assets with any seller of such business or assets that (1) provides
for the payment of earn-outs to such seller or (2) guarantees to such seller a
minimum price to be realized by such seller upon the sale of any Common Stock of
the Company that was issued by the Company to such seller in connection with
such acquisition.

                                       9
<PAGE>

                  "Designated Senior Debt" of the Company means:

                  (1)      Debt of the Company under the Senior Credit Facility
                           and

                  (2)      Senior Debt of the Company

                           (a)      which at the time of determination exceeds
                                    $25 million in aggregate principal amount
                                    outstanding or available under a committed
                                    facility,

                           (b)      which is specifically designated in the
                                    instrument evidencing such Senior Debt as
                                    "Designated Senior Debt" by the Company and

                           (c)      as to which the Trustee has received an
                                    Officers' Certificate of the Company
                                    specifying such Senior Debt as "Designated
                                    Senior Debt".

                  "Equity Offering" means an offering of Common Stock of the
Company that results in aggregate cash net proceeds to the Company.

                  "Floor Plan Debt" means Debt in an aggregate principal amount
at any time not to exceed the value of the Inventory of the Company and its
Restricted Subsidiaries, which Debt is secured primarily by a Lien on Inventory
of the Company and/or its Restricted Subsidiaries.

                  "Guarantee" by any Person means any obligation, contingent or
otherwise, of such Person guaranteeing, or having the economic effect of
guaranteeing, any Debt of any other Person (the "primary obligor") in any
manner, whether directly or indirectly, and including, without limitation, any
obligation of such Person,

                  (1)      to purchase or pay (or advance or supply funds for
                           the purchase or payment of) such Debt or to purchase
                           (or to advance or supply funds for the purchase of)
                           any security for the payment of such Debt,

                  (2)      to purchase property, securities or services for the
                           purpose of assuring the holder of such Debt of the
                           payment of such Debt, or

                  (3)      to maintain working capital, equity capital or other
                           financial statement condition or liquidity of the
                           primary obligor so as to enable the primary obligor
                           to pay such Debt (and "Guaranteed", "Guaranteeing"
                           and "Guarantor" shall have meanings correlative to
                           the foregoing);

provided, however, that the Guarantee by any Person shall not include
endorsements by such Person for collection or deposit, in either case, in the
ordinary course of business.

                                       10
<PAGE>

                  "Incur" means, with respect to any Debt or other obligation of
any Person, to create, issue, incur (by conversion, exchange or otherwise),
assume, Guarantee or otherwise become liable in respect of such Debt or other
obligation including by acquisition of Subsidiaries or the recording, as
required pursuant to generally accepted accounting principles or otherwise, of
any such Debt or other obligation on the balance sheet of such Person (and
"Incurrence", "Incurred", "Incurable" and "Incurring" shall have meanings
correlative to the foregoing); provided, however, that a change in generally
accepted accounting principles that results in an obligation of such Person that
exists at such time becoming Debt shall not be deemed an Incurrence of such
Debt.

                  "Independent Investment Banker" means any Reference Treasury
Dealer appointed by the Trustee after consultation with the Company.

                  "Interest Rate, Currency or Commodity Price Agreement" of any
Person means any forward contract, futures contract, swap, option or other
financial agreement or arrangement (including, without limitation, caps, floors,
collars and similar agreements) relating to, or the value of which is dependent
upon, interest rates, currency exchange rates or commodity prices or indices
(excluding contracts for the purchase or sale of goods in the ordinary course of
business).

                  "Inventory" of any Person means the automobile and automobile
parts and supplies inventories of such Person that are held for sale or lease,
or are to be used or consumed by such Person, in the ordinary course of
business. The value of each particular item of inventory shall be the historical
purchase price thereof.

                  "Investment" by any Person means any direct or indirect loan,
advance or other extension of credit or capital contribution (by means of
transfers of cash or other property (other than Capital Stock that is neither
Redeemable Stock nor Preferred Stock of a Restricted Subsidiary) to others or
payments for property or services for the account or use of others, or
otherwise) to, or purchase or acquisition of Capital Stock, bonds, notes,
debentures or other securities or evidence of Debt issued by, any other Person,
including any payment on a Guarantee of any obligation of such other Person, but
shall not include

                  (1)      trade accounts receivable in the ordinary course of
                           business on credit terms made generally available to
                           the customers of such Person,

                  (2)      any Permitted Interest Rate, Currency or Commodity
                           Price Agreement and

                  (3)      endorsements of negotiable instruments and documents
                           in the ordinary course of business.

                  "Investment Grade" means Baa3 or above in the case of Moody's
(or the equivalent under any successor rating categories of Moody's) and BBB- or
above in the case of S&P (or the equivalent under any successor rating
categories of S&P).

                                       11
<PAGE>

                  "Lien" means, with respect to any property or assets, any
mortgage or deed of trust, pledge, hypothecation, assignment, deposit
arrangement, security interest, lien, charge, easement (other than any easement
not materially impairing usefulness or marketability), encumbrance, preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever on or with respect to such property or assets (including,
without limitation, any sale and leaseback arrangement, conditional sale or
other title retention agreement having substantially the same economic effect as
any of the foregoing).

                  "Moody's" means Moody's Investors Service, Inc. and its
successors.

                  "Net Available Proceeds" from any Asset Disposition by any
Person means cash or Cash Equivalents received (including by way of sale or
discounting of a note, installment receivable or other receivable, but excluding
any other consideration received in the form of assumption by the acquiree of
Debt or other obligations relating to such properties or assets) therefrom by
such Person, net of:

                  (1)      all legal, title and recording tax expenses,
                           commissions and other fees and expenses Incurred and
                           all federal, state, foreign and local taxes required
                           to be accrued as a liability as a consequence of such
                           Asset Disposition;

                  (2)      all payments made by such Person or its Restricted
                           Subsidiaries on any Debt which is secured by such
                           assets in accordance with the terms of any Lien upon
                           or with respect to such assets or which must by the
                           terms of such Lien, or in order to obtain a necessary
                           consent to such Asset Disposition or by applicable
                           law, be repaid out of the proceeds from such Asset
                           Disposition;

                  (3)      all distributions and other payments made to minority
                           interest holders in Restricted Subsidiaries of such
                           Person or joint ventures as a result of such Asset
                           Disposition; and

                  (4)      appropriate amounts to be provided by such Person or
                           any Restricted Subsidiary thereof, as the case may
                           be, as a reserve in accordance with generally
                           accepted accounting principles against any
                           liabilities associated with such assets and retained
                           by such Person or any Restricted Subsidiary thereof,
                           as the case may be, after such Asset Disposition,
                           including, without limitation, liabilities under any
                           indemnification obligations and severance and other
                           employee termination costs associated with such Asset
                           Disposition, in each case as determined by the Board
                           of Directors, in its reasonable good faith judgment
                           evidenced by a resolution of the Board of Directors
                           filed with the Trustee; provided, however, that any
                           reduction in such reserve within twelve months
                           following the consummation of such Asset Disposition
                           will be treated for all purposes of the Indenture and
                           the Notes as a new Asset Disposition

                                       12
<PAGE>

                           at the time of such reduction with Net Available
                           Proceeds equal to the amount of such reduction.

                  "Offer to Purchase" means a written offer (the "Offer") sent
by the Company by first class mail, postage prepaid, to each Holder at his
address appearing in the Security Register on the date of the Offer offering to
purchase up to the principal amount of Notes specified in such Offer at the
purchase price specified in such Offer (as determined pursuant to this
Supplemental Indenture). Unless otherwise required by applicable law, the Offer
shall specify an expiration date (the "Offer Expiration Date") of the Offer to
Purchase which shall be, subject to any contrary requirements of applicable law,
not less than 30 days or more than 60 days after the date of such Offer and a
settlement date (the "Purchase Date") for purchase of Notes within five Business
Days after the Offer Expiration Date. The Company shall notify the Trustee at
least 15 Business Days (or such shorter period as is acceptable to the Trustee)
prior to the mailing of the Offer of the Company's obligation to make an Offer
to Purchase, and the Offer shall be mailed by the Company or, at the Company's
request, by the Trustee in the name and at the expense of the Company. The Offer
shall contain a description of the events requiring the Company to make the
Offer to Purchase and all instructions and materials necessary to enable such
Holders to tender Notes pursuant to the Offer to Purchase. The Offer shall also
state:

                  (1)      the Section of this Supplemental Indenture pursuant
                           to which the Offer to Purchase is being made;

                  (2)      the Offer Expiration Date and the Purchase Date;

                  (3)      the aggregate principal amount of the Outstanding
                           Notes offered to be purchased by the Company pursuant
                           to the Offer to Purchase (including, if less than
                           100%, the manner by which such has been determined
                           pursuant to the section of this Supplemental
                           Indenture requiring the Offer to Purchase) (the
                           "Purchase Amount");

                  (4)      the purchase price to be paid by the Company for each
                           $1,000 aggregate principal amount of Notes accepted
                           for payment (as specified pursuant to this
                           Supplemental Indenture) (the "Purchase Price");

                  (5)      that the Holder may tender all or any portion of the
                           Notes registered in the name of such Holder and that
                           any portion of a Note tendered must be tendered in an
                           integral multiple of $1,000 principal amount;

                  (6)      the place or places where Notes are to be surrendered
                           for tender pursuant to the Offer to Purchase;

                  (7)      that interest on any Note not tendered or tendered
                           but not purchased by the Company pursuant to the
                           Offer to Purchase will continue to accrue;

                                       13
<PAGE>

                  (8)      that on the Purchase Date the Purchase Price will
                           become due and payable upon each Note being accepted
                           for payment pursuant to the Offer to Purchase and
                           that interest thereon shall cease to accrue on and
                           after the Purchase Date;

                  (9)      that each Holder electing to tender a Note pursuant
                           to the Offer to Purchase will be required to
                           surrender such Note at the place or places specified
                           in the Offer prior to the close of business on the
                           Expiration Date (such Note being, if the Company or
                           the Trustee so requires, duly endorsed by, or
                           accompanied by a written instrument of transfer in
                           form satisfactory to the Company and the Trustee duly
                           executed by, the Holder thereof or his attorney duly
                           authorized in writing);

                  (10)     that Holders will be entitled to withdraw all or any
                           portion of Notes tendered if the Company (or its
                           Paying Agent) receives, not later than the close of
                           business on the Expiration Date, a telegram, telex,
                           facsimile transmission or letter setting forth the
                           name of the Holder, the principal amount of the Note
                           the Holder tendered, the certificate number of the
                           Note the Holder tendered and a statement that such
                           Holder is withdrawing all or a portion of his tender;

                  (11)     that (a) if Notes in an aggregate principal amount
                           less than or equal to the Purchase Amount are duly
                           tendered and not withdrawn pursuant to the Offer to
                           Purchase, the Company shall purchase all such Notes
                           and (b) if Notes in an aggregate principal amount in
                           excess of the Purchase Amount are tendered and not
                           withdrawn pursuant to the Offer to Purchase, the
                           Company shall purchase Notes having an aggregate
                           principal amount equal to the Purchase Amount on a
                           pro rata basis (with such adjustments as may be
                           deemed appropriate so that only Notes in
                           denominations of $1,000 or integral multiples thereof
                           shall be purchased); and

                  (12)     that in the case of any Holder whose Note is
                           purchased only in part, the Company shall execute,
                           and the Trustee shall authenticate and deliver to the
                           Holder of such Note without service charge, a new
                           Note or Notes, of any authorized denomination as
                           requested by such Holder, in an aggregate principal
                           amount equal to and in exchange for the unpurchased
                           portion of the Note so tendered.

If any of the Notes subject to an Offer to Purchase is a Global Security, then
the Offer shall be modified by the Company to the extent necessary to comply
with the procedures of the Depositary applicable to repurchases. Any Offer to
Purchase shall be governed by and effected in accordance with the Offer for such
Offer to Purchase.

                                       14
<PAGE>

                  "Permitted Holder" means:

                  (1)      each of B.B. Hollingsworth, Jr., John Turner and
                           Scott Thompson;

                  (2)      the members of the immediate family of any of the
                           persons referred to in clause (1) above;

                  (3)      any trust created for the benefit of the persons
                           described in clause (1) or (2) above or any of their
                           estates; or

                  (4)      any other Person that is wholly owned by any one or
                           more of the Persons described in clause (1), (2) or
                           (3) above.

                  "Permitted Interest Rate, Currency or Commodity Price
Agreement" of any Person means any Interest Rate, Currency or Commodity Price
Agreement entered into with one or more financial institutions in the ordinary
course of business that is designed to protect such Person against fluctuations
in interest rates or currency exchange rates with respect to Debt Incurred or
proposed to be Incurred and which shall have a notional amount no greater than
the payments due with respect to the Debt being hedged thereby, or in the case
of currency or commodity protection agreements, against currency exchange rate
or commodity price fluctuations in the ordinary course of business relating to
then existing financial obligations or then existing or sold production and not
for purposes of speculation.

                  "Permitted Investments" means:

                  (1)      any Investment in the Company or a Restricted
                           Subsidiary or a Person that will become or be merged
                           into or consolidated with a Restricted Subsidiary as
                           a result of such Investment,

                  (2)      any Investment in a Permitted Joint Venture which,
                           together with any other outstanding Investment made
                           pursuant to this clause (2), does not exceed the
                           greater of $10 million or 2.5% of the Company's
                           Consolidated Net Tangible Assets at the time of such
                           Investment,

                  (3)      any Investment in Cash Equivalents,

                  (4)      any non-cash consideration received in connection
                           with an Asset Disposition that was made in compliance
                           with Section 3.06 hereof and

                  (5)      any other Investment that, when taken together with
                           all other Investments made pursuant to this clause
                           (5) since the Closing Date and outstanding on the
                           date such Investment is made, does not exceed $10
                           million.

                  "Permitted Joint Venture" means any joint venture arrangement
(which may be structured as a corporation, partnership, trust, limited liability
company or any other Person):

                                       15
<PAGE>

                  (1)      in which the Company and its Restricted Subsidiaries
                           own an equity interest of at least 25% of the equity
                           interest of all joint venturers thereof and

                  (2)      which engages only in a business of the type
                           conducted by the Company and its Subsidiaries on the
                           Closing Date or any business ancillary thereto or
                           supportive thereof.

                  "Preferred Stock" of any Person means Capital Stock of such
Person of any class or classes (however designated) that ranks prior, as to the
payment of dividends or as to the distribution of assets upon any voluntary or
involuntary liquidation, dissolution or winding up of such Person, to shares of
Capital Stock of any other class of such Person.

                  "Receivables" means receivables, chattel paper, instruments,
documents or intangibles evidencing or relating to the right to payment of
money.

                  "Receivables Sale" of any Person means any sale of Receivables
of such Person (pursuant to a purchase facility or otherwise), other than in
connection with a disposition of the business operations of such Person relating
thereto or a disposition of defaulted Receivables for purpose of collection and
not as a financing arrangement.

                  "Redeemable Stock" of any Person means any Capital Stock of
such Person that by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable) or otherwise (including upon the
occurrence of an event) matures or is required to be redeemed (pursuant to any
sinking fund obligation or otherwise) or is convertible into or exchangeable for
Debt or is redeemable at the option of the holder thereof, in whole or in part,
at any time prior to the final Stated Maturity of the Notes.

                  "Reference Treasury Dealer" means Goldman, Sachs & Co. or any
of its affiliates in the United States and their respective successors;
provided, however, that if any of the foregoing shall cease to be a primary U.S.
Government securities dealer in New York City, the Trustee will substitute
another Reference Treasury Dealer.

                  "Reference Treasury Dealer Quotations" means, with respect to
each Reference Treasury Dealer and any Redemption Date, the average as
determined by the Trustee, of the bid and asked prices of the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m.
on the third Business Day preceding such Redemption Date.

                  "Replacement Assets" means:

                  (1)      properties and assets (other than cash, Cash
                           Equivalents or any Capital Stock or other security)
                           that will be used in the automotive retail business,
                           the business of the Company and its Restricted

                                       16
<PAGE>

                           Subsidiaries as conducted on the Closing Date or any
                           business ancillary thereto or supportive thereof; and

                  (2)      Capital Stock of any Person that is engaged in the
                           automotive retail business, the business of the
                           Company and its Restricted Subsidiaries as conducted
                           on the Closing Date or any business ancillary thereto
                           or supportive thereof and that will be merged or
                           consolidated with or into a Restricted Subsidiary or
                           that will become a Restricted Subsidiary.

                  "Restricted Subsidiary" means any Subsidiary of the Company,
whether existing on or after the Closing Date, unless such Subsidiary is an
Unrestricted Subsidiary.

                  "S&P" means Standard & Poor's Ratings Services, a division of
The McGraw-Hill Companies, Inc., and its successors.

                  "Sale and Leaseback Transaction" of any Person means an
agreement with any lender or investor or to which such lender or investor is a
party providing for the leasing by such Person of any property or asset of such
Person which has been or is being sold or transferred by such Person more than
270 days after the acquisition thereof or the completion of construction or
commencement of operation thereof to such lender or investor or to any person to
whom funds have been or are to be advanced by such lender or investor on the
security of such property or asset. The stated maturity of such arrangement
shall be the date of the last payment of rent or any other amount due under such
arrangement prior to the first date on which such arrangement may be terminated
by the lessee without payment of a penalty.

                  "Senior Credit Facility" means the Fifth Amended and Restated
Revolving Credit Agreement dated as of June 2, 2003 among the Company, its
subsidiaries listed therein, JPMorganChase Bank, as administrative agent,
Comerica Bank, as floorplan agent, Bank One, NA, as documentation agent, and
other lending institutions party thereto and any amendment, modification,
renewal, extension, refinancing, refunding or replacement thereof.

                  "Senior Debt" means, with respect to any Person:

                  (1)      the principal of (and premium, if any) and interest
                           (including interest accruing on or after the filing
                           of any petition in bankruptcy or for reorganization
                           relating to such Person whether or not such claim for
                           post-petition interest is allowed in such proceeding)
                           on, and penalties and any obligation of such Person
                           for reimbursement, indemnities and fees relating to,
                           the Senior Credit Facility,

                  (2)      the principal of (and premium, if any) and interest
                           on Debt of such Person for money borrowed, whether
                           Incurred on or prior to the Closing Date or
                           thereafter, and any amendments, renewals,

                                       17
<PAGE>

                           extensions, modifications, refinancings and
                           refundings of any such Debt and

                  (3)      Permitted Interest Rate Agreements and Permitted
                           Currency Agreements entered into with respect to Debt
                           described in clauses (1) and (2) above.

Notwithstanding the foregoing, the following shall not constitute Senior Debt:

                  (1)      any Debt as to which the terms of the instrument
                           creating or evidencing the same provide that such
                           Debt is on a parity with, or is not superior in right
                           of payment to, the Notes or, in the case of a
                           Subsidiary Guarantor, a Subsidiary Guarantee,

                  (2)      any Debt which is subordinated in right of payment in
                           any respect to any other Debt of such Person, other
                           than Debt under the Senior Credit Facility that is
                           subordinated to other Debt under the Senior Credit
                           Facility solely by reason of priority being granted
                           under the Senior Credit Facility to "swingline",
                           overdraft of similar tranches of Debt,

                  (3)      Debt evidenced by the Notes or a Subsidiary
                           Guarantee,

                  (4)      any Debt owed to a Person when such Person is a
                           Subsidiary of such Person

                  (5)      any obligation of such Person with respect to any
                           Capital Stock of such Person,

                  (6)      that portion of any Debt which is Incurred in
                           violation of the Indenture,

                  (7)      Debt which, when Incurred and without respect to any
                           election under Section 1111(b) of Title 11, United
                           States Code, is without recourse to such Person,

                  (8)      any liability for federal, state, local or other
                           taxes owed or owing by such Person,

                  (9)      any Debt for the purchase of goods, materials or
                           services, or consisting of operating lease rental
                           payments, in the ordinary course of business or Debt
                           consisting of trade payables or other current
                           liabilities (other than current liabilities for money
                           borrowed and the current portion of long-term Senior
                           Debt),

                  (10)     Debt of or amounts owed by such Person for
                           compensation to employees or for services rendered,
                           and

                                       18
<PAGE>

                  (11)     Debt issued as a dividend on, or in redemption of or
                           exchange for, Capital Stock of such Person.

                  "Significant Restricted Subsidiary" means, at any date of
determination, any Restricted Subsidiary that, together with its Restricted
Subsidiaries, represents 10% or more of the Company's total consolidated assets
at the end of the most recent fiscal quarter for which financial information is
available or 10% or more of the Company's consolidated net revenues or
consolidated operating income for the most recent four quarters for which
financial information is available.

                  "Special Interest" means all special or additional interest
then owing on the Notes pursuant to the applicable Registration Rights
Agreement.

                  "Subordinated Debt" means Debt of the Company as to which the
payment of principal of (and premium, if any) and interest and other payment
obligations in respect of such Debt shall be subordinate to the prior payment in
full of the Notes to at least the following extent:

                  (1)      no payments of principal of (or premium, if any) or
                           interest on or otherwise due in respect of such Debt
                           may be permitted for so long as any default in the
                           payment of principal (or premium, if any) or interest
                           on the Notes exists;

                  (2)      in the event that any other default that with the
                           passing of time or the giving of notice, or both,
                           would constitute an event of default exists with
                           respect to the Notes, upon notice by 25% or more in
                           principal amount of the Notes to the Trustee, the
                           Trustee shall have the right to give notice to the
                           Company and the holders of such Debt (or trustees or
                           agents therefor) of a payment blockage, and
                           thereafter no payments of principal of (or premium,
                           if any) or interest on or otherwise due in respect of
                           such Debt may be made for a period of 179 days from
                           the date of such notice; and

                  (3)      such Debt may not

                           (A)      provide for payments of principal of such
                                    Debt at the stated maturity thereof or by
                                    way of a sinking fund applicable thereto or
                                    by way of any mandatory redemption,
                                    defeasance, retirement or repurchase thereof
                                    by the Company (including any redemption,
                                    retirement or repurchase which is contingent
                                    upon events or circumstances, but excluding
                                    any retirement required by virtue of
                                    acceleration of such Debt upon an event of
                                    default thereunder), in each case prior to
                                    the final Stated Maturity of the Notes or

                           (B)      permit redemption or other retirement
                                    (including pursuant to an offer to purchase
                                    made by the Company) of such

                                       19
<PAGE>

                                    other Debt at the option of the holder
                                    thereof prior to the final Stated Maturity
                                    of the Notes, other than a redemption or
                                    other retirement at the option of the holder
                                    of such Debt (including pursuant to an offer
                                    to purchase made by the Company) which is
                                    conditioned upon a change of control of the
                                    Company pursuant to provisions substantially
                                    similar to those described under "Change of
                                    Control" (and which shall provide that such
                                    Debt will not be repurchased pursuant to
                                    such provisions prior to the Company's
                                    repurchase of the Notes required to be
                                    repurchased by the Company pursuant to the
                                    provisions described under "Change of
                                    Control").

                  "Subsidiary" of any Person means:

                  (1)      a corporation more than 50% of the combined voting
                           power of the outstanding Voting Stock of which is
                           owned, directly or indirectly, by such Person or by
                           one or more other Subsidiaries of such Person or by
                           such Person and one or more Subsidiaries thereof or

                  (2)      any other Person (other than a corporation) in which
                           such Person, or one or more other Subsidiaries of
                           such Person or such Person and one or more other
                           Subsidiaries thereof, directly or indirectly, has at
                           least a majority ownership and power to direct the
                           policies, management and affairs thereof.

                  "2009 Notes" means the Company's 10-7/8% Senior Subordinated
Notes due March 1, 2009 outstanding on the Closing Date.

                  "Unrestricted Subsidiary" means:

                  (1)      any Subsidiary designated as such by the Board of
                           Directors as set forth below where

                           (a)      neither the Company nor any of its other
                                    Subsidiaries (other than another
                                    Unrestricted Subsidiary) provides credit
                                    support for, or Guarantee of, any Debt of
                                    such Subsidiary or any Subsidiary of such
                                    Subsidiary (including any undertaking,
                                    agreement or instrument evidencing such
                                    Debt) or is directly or indirectly liable
                                    for any Debt of such Subsidiary or any
                                    Subsidiary of such Subsidiary, and

                           (b)      no default with respect to any Debt of such
                                    Subsidiary or any Subsidiary of such
                                    Subsidiary (including any right which the
                                    holders thereof may have to take enforcement
                                    action against such Subsidiary) would permit
                                    (upon notice, lapse of time or both) any
                                    holder of any other Debt of the Company and
                                    its Subsidiaries (other than another

                                       20
<PAGE>

                                    Unrestricted Subsidiary) to declare a
                                    default on such other Debt or cause the
                                    payment thereof to be accelerated or payable
                                    prior to its final scheduled maturity and

                  (2)      any Subsidiary of an Unrestricted Subsidiary.

                  The Board of Directors may designate any Subsidiary to be an
Unrestricted Subsidiary unless such Subsidiary owns any Capital Stock of, or
owns or holds any Lien on any property of, any other Restricted Subsidiary which
is not a Subsidiary of the Subsidiary to be so designated or otherwise an
Unrestricted Subsidiary, provided that the Company could make a Restricted
Payment in an amount equal to the greater of the fair market value and book
value of its Investment in such Subsidiary pursuant to Section 3.02 hereof and
such amount is thereafter treated as a Restricted Payment for the purpose of
calculating the aggregate amount available for Restricted Payments thereunder.

                  "Voting Stock" of any Person means Capital Stock of such
Person which ordinarily has voting power for the election of directors (or
persons performing similar functions) of such Person, whether at all times or
only so long as no senior class of securities has such voting power by reason of
any contingency.

                  "Wholly Owned Subsidiary" of any Person means a Subsidiary of
such Person all of the outstanding Capital Stock or other ownership interests of
which (other than directors' qualifying shares) shall at the time be owned by
such Person or by one or more Wholly Owned Subsidiaries of such Person or by
such Person and one or more Wholly Owned Subsidiaries of such Person.

                  (a)      Certain other capitalized terms used in this
Supplemental Indenture are defined in the Rule 144A/Regulation S Appendix
attached hereto (the "Appendix").

SECTION 1.02 TO BE READ WITH ORIGINAL INDENTURE

                  The Supplemental Indenture is a supplemental indenture within
the meaning of the Original Indenture and the Original Indenture and this
Supplemental Indenture shall be read together and shall have effect, so far as
practicable, as though all the provisions of the Original Indenture and this
Supplemental Indenture were contained in one instrument.

                                   ARTICLE II

                                    THE NOTES

SECTION 2.01 DESIGNATION

                  There is hereby authorized to be issued under the Original
Indenture a series of Securities designated as "8.25% Senior Subordinated Notes
due August 15, 2013".

                                       21
<PAGE>

SECTION 2.02 INITIAL LIMIT OF AGGREGATE PRINCIPAL AMOUNT

                  The aggregate principal amount of Notes that may be
authenticated and delivered on the Closing Date shall be limited to
$150,000,000.

                  Other provisions relating to the Initial Notes, the Private
Exchange Notes and the Exchange Notes are set forth in the Appendix, which is
hereby incorporated in and expressly made part of this Supplemental Indenture.

SECTION 2.03 SUBSIDIARY GUARANTEES.

                           (a)      Subject to the provisions of this Section
2.03, the Notes shall have the benefit of the Subsidiary Guarantees.

                           (b)      All of the Subsidiaries of the Company as of
the Closing Date, except for Group 1 Automotive Reinsurance, Ltd. and Group 1
Automotive Reinsurance TWO, Ltd., both companies incorporated in the Nevis
Islands, shall be Subsidiary Guarantors.

                           (c)      In lieu of the conditions contained in
clauses (i)-(iii) of Section 1304 of the Original Indenture for release of
Subsidiary Guarantors from their Subsidiary Guarantees, a Subsidiary Guarantor
of the Notes shall be released and discharged of its obligations under its
Subsidiary Guarantee and under Article Thirteen of the Original Indenture:

                                    (i)      in connection with any sale or
         other disposition of all or substantially all of the assets of that
         Subsidiary Guarantor (including by way of merger or consolidation) to a
         Person that is not (either before or after giving effect to such
         transaction) a Restricted Subsidiary, if the sale or other disposition
         complies with Section 3.06 of this Supplemental Indenture;

                                    (ii)     in connection with any sale of all
         of the Capital Stock of such Subsidiary Guarantor to a Person that is
         not (either before or after giving effect to such transaction) a
         Restricted Subsidiary, if the sale complies with Section 3.06 of this
         Supplemental Indenture;

                                    (iii)    upon the Legal Defeasance or
         Covenant Defeasance of the Notes in accordance with the terms of the
         Indenture; or

                                    (iv)     if the Company designates such
         Subsidiary Guarantor as an Unrestricted Subsidiary in accordance with
         the applicable provisions of the Indenture.

                           (d)      Notwithstanding the provisions of Article
1305 of the Original Indenture, the Company shall not be required to cause any
domestic Subsidiary of the Company that becomes a Subsidiary after the date of
the Original Indenture to become a Subsidiary Guarantor except as provided in
this Section 2.03(d). Any domestic

                                       22
<PAGE>

Restricted Subsidiary which Incurs any Debt shall, simultaneously with such
Incurrence (or, if the domestic Restricted Subsidiary has outstanding Debt at
the time of its creation or acquisition, at the time of such creation or
acquisition), become a Subsidiary Guarantor (if it is not already such) by
executing and delivering a supplemental indenture as provided in Section 1305 of
the Original Indenture.

SECTION 2.04 SUBORDINATION

                  The definitions of Senior Debt and Designated Senior Debt
which shall apply to the Notes and the Subsidiary Guarantees of the Notes are
set forth in Section 1.01 hereof.

SECTION 2.05 DATE OF PAYMENT OF PRINCIPAL

                  The principal of the Notes shall be payable on August 15,
2013.

SECTION 2.06 INTEREST

                           (a)      In addition to any Special Interest that may
be payable pursuant to Section 2.14 of this Supplemental Indenture, the Notes
shall bear interest at the rate of 8.25% per annum; provided, that any principal
and premium and any installment of interest which is overdue shall bear interest
at the rate of 9.25% per annum (to the extent that the payment of such interest
shall be legally enforceable).

                           (b)      The Interest Payment Dates on which interest
shall be payable in respect of the Notes shall be February 15 and August 15 in
each year, commencing February 15, 2004 in the case of the Initial Notes issued
on the Closing Date.

                           (c)      The Regular Record Dates for interest in
respect of the Notes shall be February 1 and August 1 (whether or not a Business
Day) in respect of the interest payable on February 15 and August 15,
respectively.

SECTION 2.07 PLACE OF PAYMENT

                  Payments of the principal, premium, if any, and interest on
the Notes will be made at the office or agency of the Company maintained for
that purpose in the Borough of Manhattan, the City of New York, New York,
provided that at the option of the Company payment of interest may be made by
check mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register for the Notes. Until otherwise designated by the
Company, such office or agency will be the corporate trust office of the
Trustee, as Paying Agent and Security Registrar, which on the date hereof is
located at 45 Broadway, 12th Floor, New York, New York 10002.

SECTION 2.08 REDEMPTION

                           (a)      The Notes may be redeemed at the election of
the Company from time to time in the event that on or before August 15, 2006 the
Company receives

                                       23
<PAGE>

net proceeds from the sale of its Common Stock in one or more Equity Offerings,
in which case the Company may, at its option and from time to time, use all or a
portion of any such net proceeds to redeem up to 35% of the aggregate principal
amount of the Notes (including any Additional Notes) issued under the Indenture;
provided, however, that at least 65% of the aggregate principal amount of the
Notes (including any Additional Notes) issued under the Indenture remains
outstanding after each such redemption. Any such redemption must occur on a
Redemption Date within 90 days of any such sale at a Redemption Price of 108.25%
of the principal amount of the Notes, together with accrued interest to but
excluding the Redemption Date (subject to the right of Holders of record on the
relevant Regular Record Date to receive interest due on an Interest Payment Date
that is on or prior to the Redemption Date).

                           In the case of any redemption pursuant to this
Section 2.08(a), in addition to the requirements of Section 1102 of the Original
Indenture the Company shall also furnish the Trustee an Officers' Certificate
stating that the Company is entitled to effect such redemption and setting forth
a statement of facts showing that the condition or conditions precedent to the
right of the Company so to redeem have occurred or been satisfied. In addition
to the information specified in Section 1104 of the Original Indenture, the
notice of redemption shall include a brief statement setting forth the Company's
right to effect such redemption and the Company's basis therefor.

                           (b)      Prior to August 15, 2008, the Company may
redeem all or a part of the Notes upon not less than 30 nor more than 60 days'
notice, at a Redemption Price equal to the greater of:

                           (1)      100% of the principal amount thereof; or

                           (2)      the present value, as determined by an
                  Independent Investment Banker, of

                                    (A)      104.125% of the principal amount of
                           the Notes being redeemed calculated as of August 15,
                           2008 (assuming a 360-day year consisting of twelve
                           30-day months), plus

                                    (B)      all required interest payments due
                           on such Notes through August 15, 2008 (excluding
                           accrued interest), discounted to the Redemption Date
                           on a semi-annual basis (assuming a 360-day year
                           consisting of twelve 30-day months) at the Adjusted
                           Treasury Rate, plus in each case accrued interest to
                           but excluding the Redemption Date (subject to the
                           right of Holders of record on the relevant Regular
                           Record Date to receive interest due on an Interest
                           Payment Date that is on or prior to the Redemption
                           Date).

                           (c)      The Notes further may be redeemed at the
election of the Company, as a whole or from time to time in part, at any time on
or after August 15, 2008, at the Redemption Prices specified in the form of Note
attached hereto as Exhibit 1 or Exhibit A to the Appendix, together with accrued
interest to but excluding the

                                       24
<PAGE>

Redemption Date (subject to the right of Holders of record on the relevant
Regular Record Date to receive interest due on an Interest Payment Date that is
on or prior to the Redemption Date).

SECTION 2.09 DEFEASANCE

                  The Notes shall be defeasible pursuant to both of Section 1502
and Section 1503 of the Original Indenture; provided, however, that the covenant
provided pursuant to Section 3.09 of this Supplemental Indenture shall not be
subject to Covenant Defeasance.

SECTION 2.10 FORM

                  The Initial Notes and the Trustee's certificate of
authentication shall be substantially in the form of Exhibit 1 to the Appendix,
which is hereby incorporated in and expressly made a part of this Indenture. The
Exchange Notes, the Private Exchange Notes and the Trustee's certificate of
authentication shall be substantially in the form of Exhibit A to the Appendix,
which is hereby incorporated in and expressly made a part of this Indenture. The
Notes may have notations, legends or endorsements required by law, stock
exchange rule, agreements to which the Company is subject, if any, or usage
(provided that any such notation, legend or endorsement is in a form acceptable
to the Company). The terms of the Notes set forth in the Appendix are part of
the terms of this Supplemental Indenture.

SECTION 2.11 ADDITIONAL EVENTS OF DEFAULT

                  (a)      In addition to the Events of Default contained in
Section 501 of the Original Indenture, the following will constitute an Event of
Default with respect to the Notes:

                  (1)      default in the payment of principal and interest on
                           Notes required to be purchased pursuant to an Offer
                           to Purchase under Section 3.06 or 3.09 when due and
                           payable;

                  (2)      failure to perform or comply with the provisions of
                           Section 3.12 of this Supplemental Indenture.

                  (b)      The references in Section 501 of the Original
Indenture to any "Significant Subsidiary" shall be deemed, insofar as they
relate to the Notes, to be references to a Significant Restricted Subsidiary as
defined in this Supplemental Indenture.

SECTION 2.12 ADDITIONAL COVENANTS

                  The covenants contained in Article Three of this Supplemental
Indenture shall apply to the Notes in addition to the covenants contained in
Article Ten of the Original Indenture.

                                       25
<PAGE>

SECTION 2.13 ISSUANCE OF ADDITIONAL NOTES

                  The Company shall be entitled, subject to its compliance with
Section 3.01, to issue Additional Notes under this Supplemental Indenture which
shall have identical terms as the Initial Notes issued on the Closing Date,
other than with respect to the date of issuance and the initial Interest Payment
Date. The Initial Notes issued on the Closing Date, any Additional Notes and all
Exchange Notes or Private Exchange Notes issued in exchange therefor shall be
treated as a single class for all purposes under the Indenture, including,
without limitation, waivers, amendments, redemptions and Offers to Purchase.

                  With respect to any Additional Notes, the Company shall set
forth in a Board Resolution and an Officers' Certificate, each of which shall be
delivered to the Trustee, the following information:

                  (1)      the aggregate principal amount of such Additional
         Notes to be authenticated and delivered pursuant to this Supplemental
         Indenture;

                  (2)      the issue date and the CUSIP number and corresponding
         ISIN of such Additional Notes; provided, however, that no Additional
         Notes may be issued at a price that would cause such Additional Notes
         to have "original issue discount" within the meaning of Section 1273 of
         the Internal Revenue Code of 1986, as amended; and

                  (3)      whether such Additional Notes shall be Transfer
         Restricted Securities and issued in the form of Initial Notes as set
         forth in Exhibit 1 to the Appendix to this Indenture or shall be issued
         in the form of Exchange Notes as set forth in Exhibit A to the
         Appendix.

SECTION 2.14 SPECIAL INTEREST

                  (a)      The Company shall pay Special Interest on the Notes
in accordance with the terms of the Notes and the applicable Registration Rights
Agreement. The Company shall notify the Trustee of the amount of any Special
Interest that may become payable on the Notes in advance of the relevant
Interest Payment Date.

                  (b)      All references to "interest" in this Supplemental
Indenture and, insofar as they pertain to the Notes, in the Original Indenture
shall be deemed to include Special Interest.

SECTION 2.15 DEPOSITORY; GLOBAL NOTES

                  As provided in the Appendix, the Initial Notes issued on the
Closing Date shall be represented by one or more Global Notes. The Depository
for the Global Notes shall be The Depository Trust Company, 55 Water Street, New
York, New York 10004.

                                       26
<PAGE>

SECTION 2.16 CUSIP NUMBERS.

                  The Company in issuing the Notes may use "CUSIP" numbers and
corresponding "ISINs" (if then generally in use) and, if so, the Trustee shall
use "CUSIP" numbers and corresponding "ISINs" in notices of redemption as a
convenience to Holders; provided, however, that any such notice may state that
no representation is made as to the correctness of such numbers either as
printed on the Notes or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the
Notes, and any such redemption shall not be affected by any defect in or
omission of such numbers.

                                  ARTICLE III

                  ADDITIONAL COVENANTS APPLICABLE TO THE NOTES

SECTION 3.01 LIMITATION ON DEBT

                  The Company may not, and may not permit any Restricted
Subsidiary to, Incur any Debt except that the Company and any Restricted
Subsidiary (but not any Restricted Subsidiary that is not a Subsidiary
Guarantor) may Incur Debt if after giving pro forma effect to the Incurrence of
such Debt and the receipt and application of the proceeds thereof the
Consolidated Cash Flow Coverage Ratio of the Company would be greater than 2.0
to 1.

                  Notwithstanding the foregoing limitation, the following Debt
may be Incurred.

                           (a)      Debt of the Company or any Subsidiary
Guarantor, other than Floor Plan Debt, under the Senior Credit Facility in an
aggregate principal amount at any one time not to exceed the greater of $200
million or 25% of the Company's Consolidated Net Tangible Assets at the time of
such Incurrence;

                           (b)      Debt of the Company or any Restricted
Subsidiary consisting of Floor Plan Debt or Guarantees of Floor Plan Debt of the
Company;

                           (c)      Debt owed by the Company to any Restricted
Subsidiary for which fair value has been received or Debt owed by a Restricted
Subsidiary to the Company or a Restricted Subsidiary; provided, however, that:

                                    (i)      any such Debt owing by the Company
         to a Restricted Subsidiary shall be Subordinated Debt evidenced by an
         intercompany promissory note and

                                    (ii)     upon either the transfer or other
         disposition by such Restricted Subsidiary or the Company of any Debt so
         permitted to a Person other than the Company or another Restricted
         Subsidiary or the issuance (other than directors' qualifying shares),
         sale, transfer or other disposition of shares of Capital Stock
         (including by consolidation or

                                       27
<PAGE>

         merger) of such Restricted Subsidiary to a Person other than the
         Company or another such Restricted Subsidiary, the provisions of this
         clause (c) shall no longer be applicable to such Debt and such Debt
         shall be deemed to have been Incurred at the time of such transfer or
         other disposition;

                           (d)      Debt consisting of the Notes (other than the
Additional Notes), the Subsidiary Guarantees and Guarantees by Restricted
Subsidiaries of any Debt Incurred to refinance or refund the Notes;

                           (e)      Debt of the Company or any of its Restricted
Subsidiaries represented by Capital Lease Obligations, mortgage financings or
purchase money obligations, in each case, Incurred for the purpose of financing
all or any part of the purchase price or cost of construction or improvement of
property, plant or equipment used in the business of the Company or such
Restricted Subsidiary, in an aggregate principal amount, including all Debt
Incurred to refund or refinance any Debt Incurred pursuant to this clause (e),
not to exceed, at any time outstanding, $20 million;

                           (f)      Debt of the Company or any Restricted
Subsidiary consisting of Permitted Interest Rate, Currency or Commodity Price
Agreements;

                           (g)      Debt which is exchanged for or the proceeds
of which are used to refinance or refund, or any extension or renewal of (each
of the foregoing, a "refinancing"),

                                    (i)      the Notes,

                                    (ii)     outstanding Debt that is not
         described in any other clause hereof that was outstanding as of the
         Closing Date (other than the 2009 Notes),

                                    (iii)    outstanding Debt Incurred pursuant
         to the first paragraph of this Section 3.01, and

                                    (iv)     Debt previously Incurred pursuant
         to this clause (g),

         in each case in an aggregate principal amount not to exceed the
         principal amount of the Debt so refinanced plus the amount of any
         premium required to be paid in connection with such refinancing
         pursuant to the terms of the Debt so refinanced or the amount of any
         premium reasonably determined by the Company as necessary to accomplish
         such refinancing by means of a tender offer or privately negotiated
         repurchase, plus the expenses of the Company or the Restricted
         Subsidiary, as the case may be, incurred in connection with such
         refinancing; provided, however, that:

                                             (1)      Debt the proceeds of which
         are used to refinance the Notes or Debt which is pari passu with or
         subordinate in right of payment to the Notes or the Subsidiary
         Guarantees, as the case may be, shall only be permitted if (A) in the
         case of any refinancing of the Notes or Debt which is pari passu to the
         Notes or the Subsidiary Guarantees, as the case

                                       28
<PAGE>

         may be, the refinancing Debt is made pari passu to the Notes or the
         Subsidiary Guarantees, as the case may be, or subordinated to the Notes
         or the Subsidiary Guarantees, as the case may be, and (B) in the case
         of any refinancing of Debt which is subordinated to the Notes or the
         Subsidiary Guarantees, as the case may be, the refinancing Debt
         constitutes Debt that is subordinated to the Notes or the Subsidiary
         Guarantees, as the case may be, at least to the same extent as the Debt
         being refinanced;

                                             (2)      the refinancing Debt by
         its terms, or by the terms of any agreement or instrument pursuant to
         which such Debt is issued, (A) does not have an Average Life that is
         less than the remaining Average Life of the Debt being refinanced and
         (B) does not permit redemption or other retirement (including pursuant
         to an offer to purchase) of such Debt at the option of the holder
         thereof prior to the final stated maturity of the Debt being
         refinanced, other than a redemption or other retirement at the option
         of the holder of such Debt (including pursuant to an offer to purchase)
         which is conditioned upon provisions substantially similar to those
         contained in Section 3.06 or Section 3.09 hereof;

                                             (3)      in the case of any
         refinancing of Debt of the Company, the refinancing Debt may be
         Incurred only by the Company, and in the case of any refinancing of
         Debt of a Restricted Subsidiary, the refinancing Debt may be Incurred
         only by such Restricted Subsidiary or the Company; and

                                             (4)      in the case of any
         refinancing of Preferred Stock of a Restricted Subsidiary, such
         Preferred Stock may be refinanced only with Preferred Stock of such
         Restricted Subsidiary; and

                           (h)      Debt of the Company or any Subsidiary
Guarantor not otherwise permitted to be Incurred pursuant to clauses (a) through
(g) above, which, together with any other outstanding Debt Incurred pursuant to
this clause (h), and in both such cases including any renewals, extensions,
substitutions, refinancings or replacements of such Debt has an aggregate
principal amount not in excess of $30 million at any time outstanding.

                  For purposes of determining compliance with, and the
outstanding principal amount of any particular Debt incurred pursuant to and in
compliance with, this Section 3.01:

                  (1)      in the event that Debt meets the criteria of more
         than one of the types of Debt described in the first and second
         paragraphs of this Section 3.01, the Company, in its sole discretion,
         will classify such item of Debt on the date of

                                       29
<PAGE>

         incurrence (or later classify or reclassify such Debt, in its sole
         discretion) and only be required to include the amount and type of such
         Debt in one of such clauses;

                  (2)      Guarantees of, or obligations in respect of letters
         of credit relating to, Debt which is otherwise included in the
         determination of a particular amount of Debt shall not be included;

                  (3)      the principal amount of any Redeemable Stock or
         Preferred Stock of the Company or a Restricted Subsidiary will be equal
         to the greater of the maximum redemption or repurchase price (not
         including, in either case, any redemption or repurchase premium) or the
         liquidation preference thereof;

                  (4)      Debt permitted by this covenant need not be permitted
         solely by reference to one provision permitting such Debt but may be
         permitted in part by one such provision and in part by one or more
         other provisions of this covenant permitting such Debt;

                  (5)      any Receivables Sale shall be the amount for which
         there is recourse to the seller; and

                  (6)      the amount of Debt issued at a price that is less
         than the principal amount thereof will be equal to the amount of the
         liability in respect thereof determined in accordance with generally
         accepted accounting principles.

                  Accrual of interest, accrual of dividends, the accretion of
accreted value, the payment of interest in the form of additional Debt and the
payment of dividends in the form of additional shares of Preferred Stock or
Redeemable Stock will not be deemed to be an incurrence of Debt for purposes of
this Section 3.01.

                  For purposes of determining compliance with any U.S.
dollar-denominated restriction on the Incurrence of Debt, the U.S.
dollar-equivalent principal amount of Debt denominated in a foreign currency
shall be calculated based on the relevant currency exchange rate in effect on
the date such Debt was Incurred, in the case of term Debt, or first committed,
in the case of revolving credit Debt; provided that if such Debt is Incurred to
refinance other Debt denominated in a foreign currency, and such refinancing
would cause the applicable U.S. dollar-dominated restriction to be exceeded if
calculated at the relevant currency exchange rate in effect on the date of such
refinancing, such U.S. dollar-dominated restriction shall be deemed not to have
been exceeded so long as the principal amount of such refinancing Debt does not
exceed the principal amount of such Debt being refinanced. Notwithstanding any
other provision of this Section 3.01, the maximum amount of Debt that the
Company may Incur pursuant to this Section 3.01 shall not be deemed to be
exceeded solely as a result of fluctuations in the exchange rate of currencies.

                                       30
<PAGE>

SECTION 3.02 LIMITATION ON RESTRICTED PAYMENTS

                  The Company:

                           (a)      may not, and may not permit any Restricted
Subsidiary to, directly or indirectly, declare or pay any dividend or make any
distribution (including any payment in connection with any merger or
consolidation derived from assets of the Company or any Restricted Subsidiary)
in respect of its Capital Stock or to the holders thereof (in their capacity as
holders of Capital Stock), other than

                                    (i)      any dividends or distributions by
         the Company payable solely in shares of its Capital Stock (other than
         Redeemable Stock) or in options, warrants or other rights to acquire
         its Capital Stock (other than Redeemable Stock), and

                                    (ii)     in the case of a Restricted
         Subsidiary, dividends or distributions payable to the Company or a
         Restricted Subsidiary or pro rata dividends or distributions,

                           (b)      may not, and may not permit any Restricted
Subsidiary to, purchase, redeem, or otherwise acquire or retire for value

                                    (i)      any Capital Stock of the Company or
         any Restricted Subsidiary or

                                    (ii)     any options, warrants or other
         rights to acquire shares of Capital Stock of the Company or any
         Restricted Subsidiary but excluding any debt securities convertible or
         exchangeable into shares of Capital Stock of the Company or any
         Restricted Subsidiary, except, in the case of Capital Stock of a
         Restricted Subsidiary, from the Company or a Restricted Subsidiary;

                           (c)      may not make, or permit any Restricted
Subsidiary to make, any Investment in any Unrestricted Subsidiary or any
Affiliate or any Person that would become an Affiliate after giving effect
thereto, other than a Permitted Investment; and

                           (d)      may not, and may not permit any Restricted
Subsidiary to, redeem, repurchase, defease or otherwise acquire or retire for
value prior to any scheduled maturity, repayment or sinking fund payment Debt of
the Company or any Subsidiary Guarantor which is subordinate in right of payment
to the Notes or the Subsidiary Guarantee of such Subsidiary Guarantor, as the
case may be (each of clauses (a) through (d) being a "Restricted Payment")
unless:

                                    (i)      no Event of Default, or an event
         that with the passing of time or the giving of notice, or both, would
         constitute an Event of Default, has occurred and is continuing or would
         result from such Restricted Payment,

                                    (ii)     the Company could Incur at least
         $1.00 of additional Debt pursuant to the terms of the first paragraph
         of Section 3.01 hereof, calculating the Consolidated Cash Flow Coverage
         Ratio on a pro

                                       31
<PAGE>

         forma basis to give effect to such Restricted Payment as if such
         Restricted Payment had been made at the beginning of the applicable
         four-fiscal-quarter period if such pro forma effect would affect the
         calculation of the Consolidated Cash Flow Coverage Ratio, and

                                    (iii)    upon giving effect to such
         Restricted Payment, the aggregate of all Restricted Payments from the
         Closing Date does not exceed the sum of:

                                             (1)      50% of cumulative
         Consolidated Net Income (or, in the case Consolidated Net Income shall
         be negative, less 100% of such deficit) of the Company since July 1,
         2003 through the last day of the last full fiscal quarter ending
         immediately preceding the date of such Restricted Payment for which
         quarterly or annual financial statements are available (taken as a
         single accounting period); plus

                                             (2)      100% of the aggregate net
         cash proceeds received by the Company (x) after the Closing Date from
         contributions of capital or the issuance and sale (other than to a
         Subsidiary of the Company) of Capital Stock (other than Redeemable
         Stock) of the Company, options, warrants or other rights to acquire
         Capital Stock (other than Redeemable Stock) of the Company and (y)
         related to Debt of the Company that has been converted into or
         exchanged for Capital Stock (other than Redeemable Stock and other than
         by or from a Subsidiary of the Company) of the Company after the
         Closing Date, provided that any such net proceeds received by the
         Company from an employee stock ownership plan financed by loans from
         the Company or a Subsidiary of the Company shall be included only to
         the extent such loans have been repaid with cash on or prior to the
         date of determination; plus

                                             (3)      an amount equal to the net
         reduction in Investments by the Company and its Restricted
         Subsidiaries, subsequent to the Closing Date, in any Person subject to
         clause (c) above upon the disposition, liquidation or repayment
         (including by way of dividends) thereof or from redesignations of
         Unrestricted Subsidiaries as Restricted Subsidiaries, but only to the
         extent such amounts are not included in Consolidated Net Income and not
         to exceed in the case of any one Person the amount of Investments
         previously made by the Company and its Restricted Subsidiaries in such
         Person.

                  Notwithstanding the foregoing, so long as no Event of Default,
or event that with the passing of time or the giving of notice, or both, would
constitute an Event of Default, shall have occurred and is continuing or would
result therefrom:

                           (a)      the Company and any Restricted Subsidiary
may pay any dividend on Capital Stock of any class within 60 days after the
declaration thereof if, on

                                       32
<PAGE>

the date when the dividend was declared, the Company or such Restricted
Subsidiary could have paid such dividend in accordance with the foregoing
provisions;

                           (b)      the Company may refinance any Debt otherwise
permitted by clause (g) of the second paragraph of Section 3.01 hereof or
redeem, acquire or retire any Debt solely in exchange for, by conversion into or
with the net proceeds of the substantially concurrent sale (other than from or
to a Subsidiary of the Company or from or to an employee stock ownership plan
financed by loans from the Company or a Subsidiary of the Company) of shares of
Capital Stock (other than Redeemable Stock) of the Company;

                           (c)      the Company may purchase, redeem, acquire or
retire any shares of Capital Stock of the Company solely in exchange for, by
conversion into or with the net proceeds of the substantially concurrent sale
(other than from or to a Subsidiary of the Company or from or to an employee
stock ownership plan financed by loans from the Company or a Subsidiary of the
Company) of shares of Capital Stock (other than Redeemable Stock) of the
Company;

                           (d)      the Company may purchase or redeem any Debt
from Net Available Proceeds to the extent permitted by Section 3.06 hereof; and

                           (e)      the Company may acquire shares of its
Capital Stock in connection with the exercise of employee or director stock
options or stock appreciation rights by way of cashless exercise;

                           (f)      the Company may acquire shares of its
Capital Stock pursuant to equity repurchases from present or former directors or
employees in an amount of up to $2 million per year; and

                           (g)      the Company may make other Restricted
Payments since the Closing Date in an aggregate in amount not to exceed $35
million.

Any payment made pursuant to clause (a) or (f) of this paragraph shall be a
Restricted Payment for purposes of calculating aggregate Restricted Payments
pursuant to the preceding paragraph and the amount of net proceeds from any
exchange for, conversion into or sale of Capital Stock of the Company pursuant
to clause (b) or (c) of this paragraph shall be excluded from the calculation of
the amount available for Restricted Payments pursuant to clause (iii)(2) above.

SECTION 3.03 LIMITATION ON DIVIDEND AND OTHER PAYMENT RESTRICTIONS AFFECTING
RESTRICTED SUBSIDIARIES

                  The Company may not, and may not permit any Restricted
Subsidiary to, directly or indirectly, create or otherwise cause or suffer to
exist or become effective any encumbrance or restriction on the ability of any
Restricted Subsidiary:

                           (a)      to pay dividends (in cash or otherwise) or
make any other distributions in respect of its Capital Stock owned by the
Company or any other

                                       33
<PAGE>

Restricted Subsidiary or pay any Debt or other obligation owed to the Company or
any other Restricted Subsidiary;

                           (b)      to make loans or advances to the Company or
any other Restricted Subsidiary; or

                           (c)      to transfer any of its property or assets to
the Company or any other Restricted Subsidiary.

                  Notwithstanding the foregoing, the Company may, and may permit
any Restricted Subsidiary to, suffer to exist any such encumbrance or
restriction:

                           (a)      imposed pursuant to any agreement in effect
on the Closing Date (including the Senior Credit Facility);

                           (b)      imposed pursuant to an agreement relating to
any Debt Incurred by a Person (other than a Restricted Subsidiary existing on
the Closing Date or any Restricted Subsidiary carrying on any of the businesses
of any such Restricted Subsidiary) prior to the date on which such Person became
a Restricted Subsidiary and outstanding on such date and not Incurred in
anticipation of becoming a Restricted Subsidiary, which encumbrance or
restriction is not applicable to any Person, or the properties or assets of any
Person, other than the Person so acquired, provided that the Incurrence of such
Debt is permitted by Section 3.01 hereof;

                           (c)      imposed pursuant to an agreement effecting a
renewal, refunding or extension of Debt Incurred pursuant to an agreement
referred to in clause (a) or (b) of this paragraph; provided, however, that the
provisions contained in such renewal, refunding or extension agreement relating
to such encumbrance or restriction are not materially more restrictive, taken as
a whole, than the provisions contained in the agreement the subject thereof;

                           (d)      in the case of a restriction described in
clause (c) of the preceding paragraph, contained in any security agreement
(including a capital lease) securing Debt of a Restricted Subsidiary otherwise
permitted under the Indenture, but only to the extent such restrictions restrict
the transfer of the assets or property subject to such security agreement;

                           (e)      in the case of a restriction described in
clause (c) of the preceding paragraph, consisting of customary nonassignment
provisions entered into in the ordinary course of business in leases and other
contracts to the extent such provisions restrict the transfer or subletting of
any such lease or the assignment of rights under any such contract;

                           (f)      contained in a franchise or other agreement
entered into in the ordinary course of business with an automobile manufacturer
and which has terms reasonably customary for such agreements between or among
such automobile manufacturer, its dealers and/or the owners of such dealers;

                                       34
<PAGE>

                           (g)      with respect to a Restricted Subsidiary,
imposed pursuant to an agreement which has been entered into for the sale or
disposition of all or substantially all of the Capital Stock or assets of such
Restricted Subsidiary, provided that such restriction terminates if such
transaction is closed or abandoned; or

                           (h)      in bona fide contracts for the sale of any
property or assets; or

                           (i)      if such encumbrance or restriction is the
result of applicable laws or regulations.

SECTION 3.04 LIMITATION ON RANKING OF CERTAIN DEBT

                  The Company:

                           (a)      may not Incur any Debt which by its terms is
both subordinate in right of payment to any Senior Debt of the Company and
senior in right of payment to the Notes;

                           (b)      may not permit any Subsidiary Guarantor to
Incur any Debt which by its terms is both subordinate in right of payment to any
Senior Debt of such Subsidiary Guarantor and senior in right of payment to the
Subsidiary Guarantee of such Subsidiary Guarantor; and

                           (c)      may not permit any Restricted Subsidiary to
Guarantee any Debt of the Company that is subordinate in right of payment to the
Notes unless:

                                    (i)      the Guarantee by such Restricted
         Subsidiary of such other Debt shall be subordinated to such Restricted
         Subsidiary's Subsidiary Guarantee at least to the same extent as such
         Debt of the Company is subordinated to the Notes and

                                    (ii)     such Restricted Subsidiary waives,
         and agrees that it will not in any manner whatsoever claim or take the
         benefit or advantage of, any rights of reimbursement, indemnity or
         subrogation or any other rights against the Company or any other
         Restricted Subsidiary as a result of any payment by such Restricted
         Subsidiary under its Guarantee of such other Debt of the Company until
         the Notes have been paid in full.

For purposes of this Supplemental Indenture, no Debt shall be deemed subordinate
in right of payment to any other Debt solely by reason of such other Debt having
the benefit of a security interest.

SECTION 3.05 LIMITATION ON LIENS SECURING PARI PASSU OR SUBORDINATED DEBT

                  The Company may not, and may not permit any Restricted
Subsidiary to, Incur or suffer to exist any Lien on or with respect to any
property or assets now owned

                                       35
<PAGE>

or hereafter acquired to secure any Debt that is expressly by its terms pari
passu, subordinate or junior in right of payment to the Notes or the Subsidiary
Guarantee of a Restricted Subsidiary without making, or causing such Restricted
Subsidiary to make, effective provision for securing the Notes or such
Restricted Subsidiary's Subsidiary Guarantee (1) in the event such Debt is pari
passu with the Notes or such Subsidiary Guarantee, equally and ratably with such
Debt as to such property or assets for so long as such Debt will be so secured
or (2) in the event such Debt is subordinate in right of payment to the Notes or
such Subsidiary Guarantee, prior to such Debt as to such property or assets for
so long as such Debt will be so secured.

SECTION 3.06 LIMITATION ON ASSET DISPOSITIONS

                  (a)      The Company may not, and may not permit any
Restricted Subsidiary to, make any Asset Disposition in one or more related
transactions unless:

                           (i)      the Company or the Restricted Subsidiary, as
the case may be, receives consideration for such disposition at least equal to
the fair market value for the assets sold or disposed of as determined by the
Board of Directors of the Company in good faith and evidenced by a Board
Resolution of the Company;

                           (ii)     at least 75% of the consideration for such
disposition consists of:

                                    (1)      or Cash Equivalents;

                                    (2)      the assumption of Debt of the
         Company or such Restricted Subsidiary (other than Debt that is
         subordinated to the Notes or such Restricted Subsidiary's Subsidiary
         Guarantee) relating to such assets and release from all liability on
         the Debt assumed;

                                    (3)      Replacement Assets; or

                                    (4)      a combination of the foregoing;

provided that the amount of any consideration received by the Company or such
Restricted Subsidiary that is converted into cash within 180 days of the closing
of such Asset Disposition shall be deemed to be cash for purposes of this
provision (to the extent of the cash received); and

                  (b)      all Net Available Proceeds, less any amounts invested
within 360 days of such disposition in Replacement Assets, are applied within
360 days of such disposition:

                           (i)      first, to the permanent repayment or
         reduction of Senior Debt of the Company or any Subsidiary Guarantor
         then outstanding under any agreements or instruments which would

                                       36
<PAGE>

         require such application or prohibit payments pursuant to clause (ii)
         following,

                           (ii)     second, to the extent of remaining Net
         Available Proceeds, to make an Offer to Purchase outstanding Notes at
         100% of their principal amount plus accrued interest to the Purchase
         Date and, to the extent required by the terms thereof, any other Debt
         of the Company that is pari passu with the Notes ("Pari Passu Debt") at
         a price no greater than 100% of the principal amount thereof plus
         accrued interest to the date of purchase,

                           (iii)    third, to the extent of any remaining Net
         Available Proceeds following the completion of the Offer to Purchase,
         to the repayment of other Debt of the Company or Debt of a Restricted
         Subsidiary, to the extent permitted under the terms thereof, and

                           (iv)     fourth, to the extent of any remaining Net
         Available Proceeds, to any other use as determined by the Company which
         is not otherwise prohibited by the Indenture.

Notwithstanding the foregoing, the Company shall not be required to make an
Offer to Purchase pursuant to clause (b)(ii) above if the remaining Net
Available Proceeds after giving effect to the application permitted by clause
(b)(i) is less than $10 million.

                  (c)      The Company will mail the Offer for an Offer to
Purchase required pursuant to Section 3.06(b) not more than 360 days after
consummation of the Asset Disposition referred to in Section 3.06(a), subject to
the provisions of the final sentence of Section 3.06(b). The aggregate principal
amount of the Notes (and any other Pari Passu Debt) to be offered to be
purchased pursuant to the Offer to Purchase shall equal the Net Available
Proceeds available therefor pursuant to clause (b)(ii) of this Section 3.06
(rounded down to the next lowest integral multiple of $1,000). Each Holder shall
be entitled to tender all or any portion of the Notes owned by such Holder
pursuant to the Offer to Purchase, subject to the requirement that any portion
of a Note tendered must be tendered in an integral multiple of $1,000 principal
amount.

         The Company shall not be entitled to any credit against its obligations
in connection with any Offer to Purchase made pursuant to this Section 306 for
the principal amount of any Notes acquired by the Company otherwise than
pursuant to such Offer to Purchase.

                  (d)      Not later than the date of the Offer with respect to
an Offer to Purchase pursuant to this Section 3.06, the Company shall deliver to
the Trustee an Officers' Certificate as to (i) the Purchase Amount, (ii) the
allocation of the Net Available Proceeds from the Asset Disposition pursuant to
which such Offer is being made, including, if any consideration consists of
Replacement Assets or any amounts are invested in Replacement Assets, the actual
assets acquired and a statement indicating the

                                       37
<PAGE>

relationship of such assets to the business of the Company and (iii) the
compliance of such allocation with the provisions of Section 3.06(a).

                  The Company and the Trustee shall perform their respective
obligations specified in the Offer for the Offer to Purchase. On or prior to the
Purchase Date, the Company shall (i) accept for payment (on a pro rata basis, if
necessary) Notes or portions thereof tendered pursuant to the Offer, (ii)
deposit with the Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust as provided in Section 1003 of the Original
Indenture) money sufficient to pay the Purchase Price of all Notes or portions
thereof so accepted and (iii) deliver or cause to be delivered to the Trustee
all Notes so accepted together with an Officers' Certificate stating the Notes
or portions thereof accepted for payment by the Company. The Paying Agent (or
the Company, if so acting) shall promptly mail or deliver to Holders of Notes so
accepted payment in an amount equal to the Purchase Price, and the Trustee shall
promptly authenticate and mail or deliver to such Holders a new Note equal in
principal amount to any unpurchased portion of the Note surrendered. Any Note
not accepted for payment shall be promptly mailed or delivered by the Company to
the Holder thereof. The Company shall publicly announce the results of the Offer
on or as soon as practicable after the Purchase Date.

SECTION 3.07 [INTENTIONALLY OMITTED]

                  This Section 3.07 has been intentionally omitted from this
Supplemental Indenture.

SECTION 3.08 TRANSACTIONS WITH AFFILIATES

                  The Company may not, and may not permit any Restricted
Subsidiary to, enter into any transaction (or series of related transactions)
with an Affiliate of the Company or a Restricted Subsidiary, including any
Investment, either directly or indirectly, unless such transaction is on terms
no less favorable to the Company or such Restricted Subsidiary than those that
could be obtained in a comparable arm's-length transaction with an entity that
is not an Affiliate and is in the best interests of such Company or such
Restricted Subsidiary. For any transaction that involves in excess of $5
million, a majority of the disinterested members of the Board of Directors shall
determine that the transaction satisfies the above criteria and shall evidence
such a determination by a Board Resolution of the Company filed with the
Trustee. For any transaction that involves in excess of $15 million, the Company
shall also obtain an opinion from a nationally recognized expert with experience
in appraising the terms and conditions of the type of transaction (or series of
related transactions) for which the opinion is required stating that such
transaction (or series of related transactions) is on terms no less favorable to
the Company or such Restricted Subsidiary than those that could be obtained in a
comparable arm's-length transaction with an entity that is not an Affiliate of
the Company, which opinion shall be filed with the Trustee.

                                       38
<PAGE>

                  The foregoing requirements shall not apply to:

                           (a)      any transaction pursuant to agreements in
effect on the Closing Date;

                           (b)      any employment agreement or employee benefit
arrangements with any officer or director, including under any stock option or
stock incentive plans, entered into by the Company or any of its Restricted
Subsidiaries in the ordinary course of business of the Company or such
Restricted Subsidiary or approved by a majority of the disinterested members of
the Board of Directors;

                           (c)      transactions between or among the Company
and/or its Restricted Subsidiaries;

                           (d)      payment of reasonable directors fees to
Persons who are not otherwise employees of the Company;

                           (e)      indemnities of officers, directors and
employees of the Company or any Subsidiary of the Company pursuant to bylaws, or
statutory provisions or indemnification agreements or the purchase of
indemnification insurance for any director or officer;

                           (f)      any Restricted Payment that is permitted to
be made by Section 3.02 hereof; and

                           (g)      written agreements entered into or assumed
in connection with acquisitions of other businesses with Persons who were not
Affiliates prior to such transactions.

                  Notwithstanding the foregoing, the requirements set forth in
the third sentence of the first paragraph of this Section 3.08 relating to an
opinion from a nationally recognized expert shall not apply to leases of
property or equipment entered into in the ordinary course of business.

SECTION 3.09 CHANGE OF CONTROL

                           (a)      Upon the occurrence of a Change of Control
each Holder of a Note shall have the right to have such Note repurchased by the
Company on the terms and conditions precedent set forth in this Section 3.09 and
the Indenture. The Company shall, within 30 days following the occurrence of a
transaction resulting in a Change of Control, mail an Offer with respect to an
Offer to Purchase all Outstanding Notes at a purchase price equal to 101% of
their aggregate principal amount plus accrued interest to the Purchase Date
(provided, however, that installments of interest whose Stated Maturity is on or
prior to the Purchase Date shall be payable to the Holders of such Notes 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 of the Original Indenture). Each Holder shall be entitled to tender all or
any portion of the Notes owned by such Holder pursuant to the Offer to Purchase,
subject to the requirement that any portion of a Note tendered must be tendered
in an integral multiple of $1,000 principal amount.

                                       39
<PAGE>

                           (b)      The Company and the Trustee shall perform
their respective obligations specified in the Offer for the Offer to Purchase.
On or prior to the Purchase Date, the Company shall (i) accept for payment Notes
or portions thereof tendered pursuant to the Offer, (ii) deposit with the Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold
in trust as provided in Section 1003 of the Original Indenture) money sufficient
to pay the Purchase Price of all Notes or portions thereof so accepted and (iii)
deliver or cause to be delivered to the Trustee all Notes so accepted together
with an Officers' Certificate stating the Notes or portions thereof accepted for
payment by the Company. The Paying Agent (or the Company, if so acting) shall
promptly mail or deliver to Holders of Notes so accepted payment in an amount
equal to the Purchase Price, and the Trustee shall promptly authenticate and
mail or deliver to such Holders a new Note or Notes equal in principal amount to
any unpurchased portion of the Note surrendered as requested by the Holder. Any
Note not accepted for payment shall be promptly mailed or delivered by the
Company to the Holder thereof. The Company shall publicly announce the results
of the Offer on or as soon as practicable after the Purchase Date.

SECTION 3.10 PAYMENTS FOR CONSENT

                  The Company may not, and may not permit any of its
Subsidiaries to, directly or indirectly, pay or cause to be paid any
consideration, whether by way of interest, fee or otherwise, to any Holder for
or as an inducement to any consent, waiver or amendment of any of the terms or
provisions of this Supplemental Indenture, the Original Indenture, the Notes or
any Subsidiary Guarantee unless such consideration is offered to be paid or is
paid to all Holders of the Notes that consent, waive or agree to amend in the
time frame set forth in the solicitation documents relating to such consent,
waiver or agreement.

SECTION 3.11 PROVISION OF FINANCIAL INFORMATION

                  Whether or not the Company is required to be subject to
Section 13(a) or 15(d) of the Exchange Act, or any successor provision thereto,
the Company shall file with the Commission the annual reports, quarterly reports
and other documents which the Company would have been required to file with the
Commission pursuant to such Section 13(a) or 15(d) or any successor provision
thereto if the Company were so required, such documents to be filed with the
Commission on or prior to the respective dates (the "Required Filing Dates") by
which the Company would have been required so to file such documents if the
Company were so required. The Company shall also in any event:

                                    (i)      within 15 days of each Required
         Filing Date transmit by mail to all Holders, as their names and
         addresses appear in the Security Register, without cost to such
         Holders, and file with the Trustee, copies (without exhibits) of the
         annual reports, quarterly reports and other documents which the Company
         files with the Commission pursuant to such Section 13(a) or 15(d) or
         any successor provision thereto or would have been required to file
         with the Commission pursuant to such Section

                                       40
<PAGE>

         13(a) or 15(d) or any successor provisions thereto if the Company were
         required to be subject to such Sections and

                                    (ii)     if filing such documents by the
         Company with the Commission is not permitted under the Exchange Act,
         promptly upon written request supply copies of such documents to any
         prospective Holder and the Trustee.

SECTION 3.12 MERGERS, CONSOLIDATIONS AND CERTAIN SALES OF ASSETS

                  In addition to conditions set forth in Section 801 of the
Original Indenture, the Company shall not, in a single transaction or a series
of related transactions: (1) consolidate with or merge into any other Person or
permit any other Person to consolidate with or merge into the Company or (2)
directly or indirectly, transfer, convey, sell, lease or otherwise dispose of
all or substantially all of its assets unless:

                           (a)      immediately before and after giving pro
forma effect to such transaction and treating any Debt which becomes an
obligation of the Company or a Restricted Subsidiary as a result of such
transaction as having been Incurred by the Company or such Restricted Subsidiary
at the time of the transaction, no Event of Default or event that with the
passing of time or the giving of notice, or both, would constitute an Event of
Default shall have occurred and be continuing;

                           (b)      except in the case of any such consolidation
or merger of the Company with or into a Restricted Subsidiary, immediately after
giving pro forma effect to such transaction and treating any Debt which becomes
an obligation of the Company or a Restricted Subsidiary as a result of such
transaction as having been Incurred by the Company or such Restricted Subsidiary
at the time of the transaction, the Company (or the Successor Company) could
Incur at least $1.00 of additional Debt pursuant to the provisions of the first
paragraph of Section 3.01 hereof; and

                           (c)      if, as a result of any such transaction,
property or assets of the Company or a Restricted Subsidiary would become
subject to a Lien prohibited by the provisions of Section 3.05 hereof, the
Company and/or such Restricted Subsidiary or the Successor Company shall have
secured the Notes or such Restricted Subsidiary's Subsidiary Guarantee, as
applicable, as required by Section 3.05.

                  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.

                                       41
<PAGE>

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

                                            THE COMPANY:

                                            GROUP 1 AUTOMOTIVE, INC.

                                            By: /s/ Scott L. Thompson
                                                ________________________________
                                            Name: Scott L. Thompson
                                            Title: Executive Vice President

                                            SUBSIDIARY GUARANTORS:

                                            GROUP 1 REALTY, INC.
                                            GROUP 1 FL HOLDINGS, INC.

                                            By: /s/ Scott L. Thompson
                                                ________________________________
                                            Name:  Scott L. Thompson
                                            Title: President

                                            BOB HOWARD AUTOMOTIVE-EAST, INC.
                                            BOB HOWARD AUTOMOTIVE-H, INC.
                                            BOB HOWARD CHEVROLET, INC.
                                            BOB HOWARD DODGE, INC.
                                            BOB HOWARD MOTORS, INC.
                                            BOB HOWARD NISSAN, INC.
                                            BOHN HOLDINGS-DC, INC.
                                            BOHN HOLDINGS-F, INC.
                                            BOHN HOLDINGS-GM, INC.
                                            BOHN HOLDINGS-S, INC.
                                            CASA CHEVROLET INC.
                                            CASA CHRYSLER PLYMOUTH JEEP INC.
                                            DANVERS-DC, INC.
                                            DANVERS-DCII, INC.
                                            DANVERS-DCIII, INC.
                                            DANVERS-GM, INC.
                                            DANVERS-N, INC.
                                            DANVERS-NII, INC.
                                            DANVERS-S, INC.
                                            DANVERS-SU, INC.
                                            DANVERS-T, INC.
                                            DANVERS-TII, INC.
                                            DANVERS-TL, INC.
                                            FMM, INC.

                                       42
<PAGE>

                                      GPI ATLANTA-F, INC.
                                      GPI ATLANTA-FLM, INC.
                                      GPI ATLANTA-FLM II, INC.
                                      GPI ATLANTA-T, INC.
                                      GROUP 1 ASSOCIATES, INC.
                                      HARVEY-T, INC.
                                      HIGHLAND AUTOPLEX, INC.
                                      HOWARD FORD, INC.
                                      HOWARD PONTIAC-GMC, INC.
                                      HOWARD-DC, INC.
                                      HOWARD-DCII, INC.
                                      HOWARD-GM, INC.
                                      HOWARD-GMII, INC.
                                      HOWARD-GMIII, INC.
                                      HOWARD-H, INC.
                                      HOWARD-HA, INC.
                                      HOWARD-FLM, INC.
                                      HOWARD-SB, INC.
                                      HOWARD-SI, INC.
                                      JIM TIDWELL FORD, INC.
                                      LUBY CHEVROLET CO.
                                      MIKE SMITH AUTOMOTIVE-H, INC.
                                      MIKE SMITH AUTOMOTIVE-N, INC.
                                      MIKE SMITH AUTOPLAZA, INC.
                                      MIKE SMITH AUTOPLEX BUICK, INC.
                                      MIKE SMITH AUTOPLEX DODGE, INC.
                                      MIKE SMITH AUTOPLEX, INC.
                                      MIKE SMITH AUTOPLEX-GERMAN IMPORTS, INC.
                                      MIKE SMITH AUTOPLEX-V, INC.
                                      MIKE SMITH GM, INC.
                                      MIKE SMITH IMPORTS, INC.
                                      MIKE SMITH MOTORS, INC.
                                      MILLBRO, INC.
                                      MILLER AUTOMOTIVE GROUP, INC.
                                      MILLER FAMILY COMPANY, INC.
                                      MILLER IMPORTS, INC.
                                      MILLER INFINITI, INC.
                                      MILLER MOTORS VAN NUYS, INC.
                                      MILLER NISSAN, INC.
                                      MILLER-NII, INC.
                                      PERIMETER FORD, INC.

                                       43
<PAGE>

                                          SUNSHINE BUICK PONTIAC GMC TRUCK, INC.

                                          By: /s/ Scott L. Thompson
                                              ________________________________
                                          Name:  Scott L. Thompson
                                          Title: Vice President

                                          AMARILLO MOTORS-C, LTD.
                                          AMARILLO MOTORS-F, LTD.
                                          AMARILLO MOTORS-FM, LTD.
                                          AMARILLO MOTORS-J, LTD.
                                          AMARILLO MOTORS-SM, LTD.
                                          CHAPERRAL DODGE, LTD.
                                          COLONIAL CHRYSLER-PLYMOUTH, LTD.
                                          GPI, LTD.
                                          KUTZ-DC, LTD.
                                          KUTZ-N, LTD.
                                          LUBBOCK MOTORS, LTD.
                                          LUBBOCK MOTORS-F, LTD.
                                          LUBBOCK MOTORS-S, LTD.
                                          LUBBOCK MOTORS-SH, LTD.
                                          LUBBOCK MOTORS-T, LTD.
                                          MAXWELL CHRYSLER DODGE JEEP, LTD.
                                          MAXWELL FORD, LTD.
                                          MAXWELL-G, LTD.
                                          MAXWELL-N, LTD.
                                          MAXWELL-NII, LTD.
                                          MAXWELL-SM, LTD.
                                          MCCALL-H, LTD.
                                          MCCALL-HA, LTD.
                                          MCCALL-N, LTD.
                                          MCCALL-T, LTD.
                                          MCCALL-TII, LTD.
                                          MCCALL-TL, LTD.
                                          PRESTIGE CHRYSLER NORTHWEST, LTD.
                                          PRESTIGE CHRYSLER SOUTH, LTD.
                                          ROCKWALL AUTOMOTIVE-DCD, LTD.

                                       44
<PAGE>

                                            ROCKWALL AUTOMOTIVE-F, LTD.

                                            By: GROUP 1 ASSOCIATES, INC.,
                                                as general partner

                                            By: /s/ Scott L. Thompson
                                                ________________________________
                                            Name:  Scott L. Thompson
                                            Title: Vice President

                                            GROUP 1 HOLDINGS-DC, L.L.C.
                                            GROUP 1 HOLDINGS-F, L.L.C.
                                            GROUP 1 HOLDINGS-GM, L.L.C.
                                            GROUP 1 HOLDINGS-H, L.L.C.
                                            GROUP 1 HOLDINGS-N, L.L.C.
                                            GROUP 1 HOLDINGS-S, L.L.C.
                                            GROUP 1 HOLDINGS-T, L.L.C.

                                            By: GROUP 1 AUTOMOTIVE, INC.,
                                                as sole member

                                            By: /s/ Scott L. Thompson
                                                ________________________________
                                            Name:  Scott L. Thompson
                                            Title: Executive Vice President

                                            COURTESY FORD, LLC
                                            GULF BREEZE FORD, LLC
                                            KEY FORD, LLC
                                            KOONS FORD, LLC

                                            By: GROUP 1 FL HOLDINGS, INC.,
                                                as sole member

                                            By: /s/ Scott L. Thompson
                                                ________________________________
                                            Name:  Scott L. Thompson
                                            Title: President

                                       45
<PAGE>

                                            BOHN-DC, LLC

                                            By: BOHN HOLDINGS-DC, INC.,
                                                as sole member

                                            By: /s/ Scott L. Thompson
                                                ________________________________
                                            Name:  Scott L. Thompson
                                            Title: Vice President

                                            BOHN-FII, LLC
                                            BOHN-FIII, LLC
                                            HARVEY FORD, LLC
                                            HARVEY-FLM, LLC

                                            By: BOHN HOLDINGS-F, INC.,
                                                as sole member

                                            By: /s/ Scott L. Thompson
                                                ________________________________
                                            Name:  Scott L. Thompson
                                            Title: Vice President

                                            HARVEY GM, LLC

                                            By: BOHN HOLDINGS-GM, INC.,
                                                as sole member

                                            By: /s/ Scott L. Thompson
                                                ________________________________
                                            Name:  Scott L. Thompson
                                            Title: Vice President

                                            HARVEY SM, LLC

                                            By: BOHN HOLDINGS-S, INC.,
                                                as sole member

                                            By: /s/ Scott L. Thompson
                                                ________________________________
                                            Name:  Scott L. Thompson
                                            Title: Vice President

                                       46
<PAGE>

                                            HARVEY OPERATIONS-T, LLC

                                            By: HARVEY-T, INC.,
                                                as sole member

                                            By: /s/ Scott L. Thompson
                                                ________________________________
                                            Name:  Scott L. Thompson
                                            Title: Vice President

                                            IRA AUTOMOTIVE GROUP, LLC

                                            By: DANVERS-T, INC.,
                                                as sole member

                                            By: /s/ Scott L. Thompson
                                                ________________________________
                                            Name:  Scott L. Thompson
                                            Title: Vice President

                                            GROUP 1 LP INTERESTS-F, INC.
                                            GROUP 1 LP INTERESTS-DC, INC.
                                            GROUP 1 LP INTERESTS-T, INC.
                                            GROUP 1 LP INTERESTS-GM, INC.
                                            GROUP 1 LP INTERESTS-H, INC.
                                            GROUP 1 LP INTERESTS-S, INC.
                                            GROUP 1 LP INTERESTS-N, INC.

                                            By: /s/ Mathew J. Baer
                                                ________________________________
                                            Name:  Mathew J. Baer
                                            Title: President

                                            DELAWARE ACQUISITION-DC, LLC

                                            By: GROUP 1 LP INTERESTS-DC, INC.,
                                                as sole member

                                            By: /s/ Mathew J. Baer
                                                ________________________________
                                            Name:  Mathew J. Baer
                                            Title: President and Secretary

                                       47
<PAGE>

                                            DELAWARE ACQUISITION-F, LLC

                                            By: GROUP 1 LP INTERESTS-F, INC.,
                                                as sole member

                                            By: /s/ Mathew J. Baer
                                                ________________________________
                                            Name:  Mathew J. Baer
                                            Title: President and Secretary

                                            DELAWARE ACQUISITION-GM, LLC

                                            By: GROUP 1 LP INTERESTS-GM, INC.,
                                                as sole member

                                            By: /s/ Mathew J. Baer
                                                ________________________________
                                            Name:  Mathew J. Baer
                                            Title: President and Secretary

                                            DELAWARE ACQUISITION-N, LLC

                                            By: GROUP 1 LP INTERESTS-N, INC.,
                                                as sole member

                                            By: /s/ Mathew J. Baer
                                                ________________________________
                                            Name:  Mathew J. Baer
                                            Title: President and Secretary

                                            DELAWARE ACQUISITION-T, LLC

                                            By: GROUP 1 LP INTERESTS-T, INC.,
                                                as sole member

                                            By: /s/ Mathew J. Baer
                                                ________________________________
                                            Name:  Mathew J. Baer
                                            Title: President and Secretary

                                       48
<PAGE>

                                            TRUSTEE:

                                            WELLS FARGO BANK, N.A.,
                                              as Trustee

                                            By: /s/ Melissa Scott
                                                ________________________________
                                            Name:   Melissa Scott
                                            Title:  Vice President

                                       49
<PAGE>
                                                                     Exhibit 4.7

                                                 RULE 144A/REGULATION S APPENDIX

                      PROVISIONS RELATING TO INITIAL NOTES,
                             PRIVATE EXCHANGE NOTES
                               AND EXCHANGE NOTES

1.       Definitions

         1.1      Definitions.

         For the purposes of this Appendix the following terms shall have the
meanings indicated below:

         "Clearstream" means Clearstream Banking, societe anonyme, or any
successor securities clearing agency.

         "Depository" means The Depository Trust Company, its nominees and their
respective successors.

         "Euroclear" means Euroclear Bank S.A./N.V. or any successor securities
clearing agency.

         "Exchange Notes" means (1) the 8.25% Senior Subordinated Notes due
August 15, 2013 issued pursuant to the Indenture in connection with a Registered
Exchange Offer pursuant to a Registration Rights Agreement and (2) Additional
Notes, if any, issued pursuant to a registration statement filed with the SEC
under the Securities Act.

         "Initial Purchasers" means (1) with respect to the Initial Notes issued
on the Closing Date, Goldman, Sachs & Co., J.P. Morgan Securities Inc. and Banc
One Capital Markets, Inc. and (2) with respect to each issuance of Additional
Notes, the Persons purchasing such Additional Notes under the related Purchase
Agreement.

         "Initial Notes" means (1) $150 million aggregate principal amount of
8.25% Senior Subordinated Notes due August 15, 2013 issued on the Closing Date
and (2) Additional Notes, if any, issued in a transaction exempt from the
registration requirements of the Securities Act.

         "Notes" means the Initial Notes, the Additional Notes, the Exchange
Notes and the Private Exchange Notes, treated as a single class.

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

         "Private Exchange" means the offer by the Company, pursuant to a
Registration Rights Agreement, to an Initial Purchaser to issue and deliver to
such Initial Purchaser, in exchange for the Initial Notes held by the Initial
Purchaser as part of its initial distribution, a like aggregate principal amount
of Private Exchange Notes.

                                       1
<PAGE>

         "Private Exchange Notes" means any 8.25% Senior Subordinated Notes due
August 15, 2013 issued in connection with a Private Exchange.

         "Purchase Agreement" means (1) with respect to the Initial Notes issued
on the Initial Closing Date, the Purchase Agreement dated August 8, 2003 among
the Company, the Subsidiary Guarantors and the Initial Purchasers, and (2) with
respect to each issuance of Additional Notes, the purchase agreement or
underwriting agreement among the Company and the Persons purchasing such
Additional Notes.

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

         "Registered Exchange Offer" means the offer by the Company, pursuant to
a Registration Rights Agreement, to certain Holders of Initial Notes, to issue
and deliver to such Holders, in exchange for the Initial Notes, a like aggregate
principal amount of Exchange Notes registered under the Securities Act.

         "Registration Rights Agreement" means (1) with respect to the Initial
Notes issued on the Closing Date, the Registration Rights Agreement dated as of
August 13, 2003 among the Company, the Subsidiary Guarantors and the Initial
Purchasers, and (2) with respect to each issuance of Additional Notes issued in
a transaction exempt from the registration requirements of the Securities Act,
the registration rights agreement, if any, among the Company and the Persons
purchasing such Additional Notes under the related Purchase Agreement.

         "Securities Act" means the Securities Act of 1933.

         "Shelf Registration Statement" means the registration statement issued
by the Company in connection with the offer and sale of Initial Notes or Private
Exchange Notes pursuant to a Registration Rights Agreement.

         "Transfer Restricted Securities" means Notes that bear or are required
to bear the legend set forth in Section 2.3(b) hereof.

         1.2      Other Definitions.

<TABLE>
<CAPTION>
                Term                        Defined in Section:
                ----                        -------------------
<S>                                         <C>
"Agent Members"..........................         2.1(b)
"Global Note"............................         2.1(a)
"Regulation S"...........................         2.1(a)
"Restricted Global Note".................         2.1(a)
"Rule 144A"..............................         2.1(a)
</TABLE>

2.       The Notes.

         2.1      (a) Form and Dating. Initial Notes offered and sold to a QIB
in reliance on Rule 144A under the Securities Act ("Rule 144A") or in reliance
on Regulation S under the Securities Act ("Regulation S"), in each case as
provided in a Purchase Agreement, and Private Exchange Notes, as provided in a
Registration Rights Agreement, shall be issued initially in the form of

                                       2
<PAGE>

one or more permanent global Notes in definitive, fully registered form without
interest coupons with the global Notes legend and restricted Notes legend set
forth in Exhibit 1 hereto (each, a "Restricted Global Note"), which shall be
deposited on behalf of the purchasers of the Initial Notes represented thereby
with the Trustee, as custodian for the Depository (or with such other custodian
as the Depository may direct), and registered in the name of the Depository or a
nominee of the Depository, duly executed by the Company and authenticated by the
Trustee as hereinafter provided. Prior to the 40th day after the Initial
Issuance Date, beneficial interests in the Restricted Global Note representing
Initial Notes sold in reliance on Regulation S may only be held through
Euroclear or Clearstream, and any resale or transfer of such interests to U.S.
persons (as defined in Regulation S) shall not be permitted during such period
unless such resale or transfer is made pursuant to Rule 144A or Regulation S.
The aggregate principal amount of the Global Notes may from time to time be
increased or decreased by adjustments made on the records of the Trustee and the
Depository or its nominee as hereinafter provided. Exchange Notes shall be
issued in global form (with the global Notes legend set forth in Exhibit 1
hereto) or in certificated form as provided in Section 2.4 of this Appendix.
Exchange Notes issued in global form and Restricted Global Notes are sometimes
referred to in this Appendix as "Global Notes".

         For the avoidance of doubt, the Company agrees that no Private Exchange
Notes shall be issuable in relation to the Initial Notes issued on the Closing
Date, inasmuch as the initial Registration Rights Agreement makes no provision
for Private Exchange Notes.

         (b)      Book-Entry Provisions. This Section 2.1(b) shall apply only to
a Global Note deposited with or on behalf of the Depository.

         The Company shall execute and the Trustee shall, in accordance with
this Section 2.1(b), authenticate and deliver initially one or more Global Notes
that (a) shall be registered in the name of the Depository for such Global Note
or Global Notes or the nominee of such Depository and (b) shall be delivered by
the Trustee to such Depository or pursuant to such Depository's instructions or
held by the Trustee as custodian for the Depository.

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

         (c)      Certificated Notes. Except as provided in this Section 2.1 or
Section 2.3 or 2.4, owners of beneficial interests in Restricted Global Notes
shall not be entitled to receive physical delivery of certificated Notes.

         2.2      Authentication. The Trustee shall authenticate and deliver:
(1) on the Closing Date, an aggregate principal amount of $150 million 8.25%
Senior Subordinated Notes due August 15, 2013, (2) any Additional Notes for an
original issue in an aggregate principal amount

                                       3
<PAGE>

specified in the Company Order given pursuant to Section 303 of the Original
Indenture and (3) Exchange Notes or Private Exchange Notes for issue only in a
Registered Exchange Offer or a Private Exchange, respectively, pursuant to a
Registration Rights Agreement, for a like principal amount of Initial Notes, in
each case upon delivery to the Trustee of a Company Order. Such Company Order
shall specify the amount of the Notes to be authenticated and the date on which
the original issue of Notes is to be authenticated and, in the case of any
issuance of Additional Notes pursuant to Section 2.13 of this Supplemental
Indenture, shall certify that such issuance is in compliance with Section 3.01
of this Supplemental Indenture.

         2.3      Transfer and Exchange.

         (a)      Transfer and Exchange of Global Notes. (i) The transfer and
exchange of Global Notes or beneficial interests therein shall be effected
through the Depository, in accordance with the Indenture (including applicable
restrictions on transfer set forth in this Appendix, if any) and the procedures
of the Depository therefor. A transferor of a beneficial interest in a Global
Note shall deliver to the Security Registrar a written order given in accordance
with the Depository's procedures containing information regarding the
participant account of the Depository to be credited with a beneficial interest
in the Global Note. The Security Registrar shall, in accordance with such
instructions instruct the Depository to credit to the account of the Person
specified in such instructions a beneficial interest in the Global Note and to
debit the account of the Person making the transfer the beneficial interest in
the Global Note being transferred.

                  (ii)     Notwithstanding any other provisions of this Appendix
         (other than the provisions set forth in Section 2.4), a Global Note may
         not be transferred as a whole except by the Depository to a nominee of
         the Depository or by a nominee of the Depository to the Depository or
         another nominee of the Depository or by the Depository or any such
         nominee to a successor Depository or a nominee of such successor
         Depository.

                  (iii)    In the event that a Restricted Global Note is
         exchanged for Notes in certificated registered form pursuant to Section
         2.4 of this Appendix, prior to the consummation of a Registered
         Exchange Offer or the effectiveness of a Shelf Registration Statement
         with respect to such Notes, such Notes may be exchanged only in
         accordance with such procedures as are substantially consistent with
         the provisions of this Section 2.3 (including the certification
         requirements set forth on the reverse of the Initial Notes intended to
         ensure that such transfers comply with Rule 144A, Regulation S or
         another exemption from registration under the Securities Act) and such
         other procedures as may from time to time be adopted by the Company.

         (b)      Legend.

                  (i)      Except as permitted by the following paragraphs (ii),
         (iii) and (iv), each Note certificate evidencing the Restricted Global
         Notes (and all Notes issued in exchange therefor or in substitution
         thereof) shall bear a legend in substantially the following form:

         THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
         TRANSACTION THAT WAS NOT REGISTERED UNDER THE UNITED STATES
         SECURITIES ACT OF 1933 (THE "SECURITIES ACT") AND MAY NOT BE
         OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) (1)
         TO A PERSON WHOM THE SELLER REASONABLY

                                       4
<PAGE>

         BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING
         OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN
         ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER
         IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (2) IN
         AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF
         REGULATION S UNDER THE SECURITIES ACT, (3) PURSUANT TO AN
         EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED
         BY RULE 144 THEREUNDER (IF AVAILABLE), (4) TO AN INSTITUTIONAL
         ACCREDITED INVESTOR IN A TRANSACTION EXEMPT FROM THE
         REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR (5)
         PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
         SECURITIES ACT AND (B) IN ACCORDANCE WITH ALL APPLICABLE
         SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER
         JURISDICTIONS. THE HOLDER OF THIS NOTE SHALL BE DEEMED TO HAVE
         AGREED TO INDEMNIFY THE ISSUER AND THE SUBSIDIARY GUARANTORS
         AGAINST CERTAIN LOSSES ARISING OUT OF INFORMATION FURNISHED IN
         WRITING BY THE HOLDER OF THIS NOTE FOR INCLUSION IN ANY SHELF
         REGISTRATION STATEMENT UNDER THE CIRCUMSTANCES CONTEMPLATED BY
         THE REGISTRATION RIGHTS AGREEMENT.

                  (ii)     Upon any sale or transfer of a Transfer Restricted
         Security (including any Transfer Restricted Security represented by a
         Restricted Global Note) pursuant to Rule 144 under the Securities Act,
         the Security Registrar shall permit the transferee thereof to exchange
         such Transfer Restricted Security for a certificated Note that does not
         bear the legend set forth above and rescind any restriction on the
         transfer of such Transfer Restricted Security, if the transferor
         thereof certifies in writing to the Registrar that such sale or
         transfer was made in reliance on Rule 144 (such certification to be in
         the form set forth on the reverse of the Note).

                  (iii)    After a transfer of any Initial Notes or Private
         Exchange Notes pursuant to and during the period of the effectiveness
         of a Shelf Registration Statement with respect to such Initial Notes or
         Private Exchange Notes, as the case may be, all requirements pertaining
         to legends on such Initial Note or such Private Exchange Note will
         cease to apply, the requirements requiring any such Initial Note or
         such Private Exchange Note issued to certain Holders be issued in
         global form will cease to apply, and a certificated Initial Note or
         Private Exchange Note or an Initial Note or Private Exchange Note in
         global form, in each case without restrictive transfer legends, will be
         available to the transferee of the Holder of such Initial Notes or
         Private Exchange Notes upon exchange of such transferring Holder's
         certificated Initial Note or Private Exchange Note or directions to
         transfer such Holder's interest in the Global Note, as applicable.

                  (iv)     Upon the consummation of a Registered Exchange Offer
         with respect to the Initial Notes, all requirements pertaining to such
         Initial Notes that Initial Notes issued to certain Holders be issued in
         global form will still apply with respect to Holders of such Initial
         Notes that do not exchange their Initial Notes, and Exchange Notes in
         certificated

                                       5
<PAGE>

         or global form will be available to Holders that exchange such Initial
         Notes in such Registered Exchange Offer.

                  (v)      Upon the consummation of a Private Exchange with
         respect to the Initial Notes, all requirements pertaining to such
         Initial Notes that Initial Notes issued to certain Holders be issued in
         global form will still apply with respect to Holders of such Initial
         Notes that do not exchange their Initial Notes, and Private Exchange
         Notes in global form with the global Notes legend and the Restricted
         Notes legend set forth in Exhibit 1 hereto will be available to Holders
         that exchange such Initial Notes in such Private Exchange.

         (c)      Cancellation or Adjustment of Global Note. At such time as all
beneficial interests in a Global Note have either been exchanged for
certificated Notes, redeemed, purchased or canceled, such Global Note shall be
returned to the Depository for cancellation or retained and canceled by the
Trustee. At any time prior to such cancellation, if any beneficial interest in a
Global Note is exchanged for certificated Notes, redeemed, purchased or
canceled, the principal amount of Notes represented by such Global Note shall be
reduced and an adjustment shall be made on the books and records of the Trustee
(if it is then the Notes Custodian for such Global Note) with respect to such
Global Note, by the Trustee or the Notes Custodian, to reflect such reduction.

         (d)      Obligations with Respect to Transfers and Exchanges of Notes.

                  (i)      To permit registrations of transfers and exchanges,
         the Company shall execute and the Trustee shall authenticate
         certificated Notes and Global Notes at the Security Registrar's
         request.

                  (ii)     Prior to the due presentation for registration of
         transfer of any Note, the Company, the Subsidiary Guarantors, the
         Trustee, the Paying Agent and the Security Registrar may deem and treat
         the Person in whose name a Note is registered as the absolute owner of
         such Note for the purpose of receiving payment of principal of,
         premium, if any, interest and Special Interest, if any, on such Note
         and for all other purposes whatsoever, whether or not such Note is
         overdue, and none of the Company, the Subsidiary Guarantors, the
         Trustee, the Paying Agent or the Security Registrar shall be affected
         by notice to the contrary.

                  (iii)    All Notes issued upon any transfer or exchange
         pursuant to the terms of the Indenture shall evidence the same debt and
         shall be entitled to the same benefits under this Indenture (including,
         without limitation, accrued but unpaid interest) as the Notes
         surrendered upon such transfer or exchange.

         (e)      No Obligation of the Trustee.

                  (i)      The Trustee shall have no responsibility or
         obligation to any beneficial owner of a Global Note, a member of, or a
         participant in the Depository or other Person with respect to the
         accuracy of the records of the Depository or its nominee or of any
         participant or member thereof, with respect to any ownership interest
         in the Notes or with respect to the delivery to any participant,
         member, beneficial owner or other Person (other than the Depository) of
         any notice (including any notice of redemption) or the payment of any
         amount, under or with respect to such Notes. All notices and
         communications to be given to the Holders and all payments to be made
         to Holders under

                                       6
<PAGE>

         the Notes shall be given or made only to or upon the order of the
         registered Holders (which shall be the Depository or its nominee in the
         case of a Global Note). The rights of beneficial owners in any Global
         Note shall be exercised only through the Depository subject to the
         applicable rules and procedures of the Depository. The Trustee may rely
         and shall be fully protected in relying upon information furnished by
         the Depository with respect to its members, participants and any
         beneficial owners.

                  (ii)     The Trustee shall have no obligation or duty to
         monitor, determine or inquire as to compliance with any restrictions on
         transfer imposed under the Indenture or under applicable law with
         respect to any transfer of any interest in any Note (including any
         transfers between or among Depository participants, members or
         beneficial owners in any Global Note) other than to require delivery of
         such certificates and other documentation or evidence as are expressly
         required by, and to do so if and when expressly required by, the terms
         of this Indenture, and to examine the same to determine substantial
         compliance as to form with the express requirements hereof.

         2.4      Certificated Notes.

         (a)      A Global Note deposited with the Depository or with the
Trustee as custodian for the Depository pursuant to Section 2.1 shall be
transferred to the beneficial owners thereof in the form of certificated Notes
in an aggregate principal amount equal to the principal amount of such Global
Note, in exchange for such Global Note, only if such transfer complies with
Section 2.3 and (i) the Depository notifies the Company that it is unwilling or
unable to continue as Depository for such Global Note or if at any time such
Depository ceases to be a "clearing agency" registered under the Exchange Act
and in either event a successor Depository is not appointed by the Company
within 90 days of such notice, (ii) such Global Note is (a) held for the account
of Euroclear or Clearstream and (b) Euroclear or Clearstream, as the case may
be, (1) is closed for business for a continuous period of 14 days (other than by
reason of statutory or other holidays) or (2) announces an intention permanently
to cease business or does in fact do so or (iii) an Event of Default with
respect to the Notes has occurred and is continuing and DTC notifies the Trustee
of its decision to exchange such Global Note, or (iv) the Company, in its sole
discretion, notifies the Trustee in writing that it elects to cause the issuance
of certificated Notes under this Indenture.

         (b)      Any Global Note that is transferable to the beneficial owners
thereof pursuant to this Section shall be surrendered by the Depository or the
Notes Custodian to the Trustee located at its Corporate Trust Office to be so
transferred, in whole or from time to time in part, without charge, and the
Trustee shall authenticate and deliver, upon such transfer of each portion of
such Global Note, an equal aggregate principal amount of certificated Notes of
authorized denominations. Any portion of a Global Note transferred pursuant to
this Section shall be executed, authenticated and delivered only in
denominations of $1,000 principal amount and any integral multiple thereof and
registered in such names as the Depository shall direct. Any certificated Note
or Private Exchange Note delivered in exchange for an interest in the Global
Note shall, except as otherwise provided by Section 2.3(b), bear the restricted
Notes legend set forth in Exhibit 1 hereto.

         (c)      Subject to the provisions of Section 2.4(b), the Holder of a
Global Note shall be entitled to grant proxies and otherwise authorize any
Person, including Agent Members and

                                       7
<PAGE>

Persons that may hold interests through Agent Members, to take any action which
a Holder is entitled to take under this Indenture or the Notes.

         (d)      In the event of the occurrence of any of the events specified
in Section 2.4(a), the Company shall promptly make available to the Trustee a
reasonable supply of certificated Notes in definitive, fully registered form
without interest coupons.

                                       8
<PAGE>

                                    EXHIBIT 1 TO RULE 144A/REGULATION S APPENDIX

                         [FORM OF FACE OF INITIAL NOTE]

                              [Global Notes Legend]

         THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A
NOMINEE THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE
REGISTERED, AND NO TRANSFER OF THIS NOTE IN WHOLE OR IN PART MAY BE REGISTERED,
IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITORY OR A NOMINEE THEREOF,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

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

                            [Restricted Notes Legend]

         THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
THAT WAS NOT REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE
"SECURITIES ACT") AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT (A) (1) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (2) IN AN OFFSHORE
TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE
SECURITIES ACT, (3) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (4) TO AN
INSTITUTIONAL ACCREDITED INVESTOR IN A TRANSACTION EXEMPT FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT OR (5) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND (B) IN ACCORDANCE WITH ALL APPLICABLE
SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS. THE
HOLDER

                                       1
<PAGE>

OF THIS NOTE SHALL BE DEEMED TO HAVE AGREED TO INDEMNIFY THE ISSUER AND THE
SUBSIDIARY GUARANTORS AGAINST CERTAIN LOSSES ARISING OUT OF INFORMATION
FURNISHED IN WRITING BY THE HOLDER OF THIS NOTE FOR INCLUSION IN ANY SHELF
REGISTRATION STATEMENT UNDER THE CIRCUMSTANCES CONTEMPLATED BY THE REGISTRATION
RIGHTS AGREEMENT.

                                       2
<PAGE>

                            GROUP 1 AUTOMOTIVE, INC.

No.                                                                    $

                                                                       CUSIP No.
                                                                        ISIN No.

               8.25% Senior Subordinated Note due August 15, 2013

         Group 1 Automotive, Inc., a Delaware corporation, promises to pay to
__________, or registered assigns, the principal sum of _______ Dollars on
August 15, 2013 [or such greater or lesser amount as may be indicated on
Schedule A hereto].(1)

         Interest Payment Dates:  February 15 and August 15.

         Regular Record Dates:  February 1 and August 1.

         Additional provisions of this Note are set forth on the other side of
this Note.

                                             GROUP 1 AUTOMOTIVE, INC.

                                             By: _______________________________
                                                 Name:
                                                 Title:

TRUSTEE'S CERTIFICATE OF
AUTHENTICATION

WELLS FARGO BANK, N.A.,
  as Trustee, certifies that
  this is one of the Notes
  referred to in the Indenture.

By__________________________________
        Authorized Signatory

Dated: ________________________

------------------------
(1) If this Note is a Global Note, add this provision.

                                       3

<PAGE>

                     [FORM OF REVERSE SIDE OF INITIAL NOTE]

                      8.25% Senior Note due August 15, 2013

         Capitalized terms used herein but not defined shall have the meanings
assigned to them in the Indenture referred to below unless otherwise indicated.

         1.       Interest. Group 1 Automotive, Inc., a Delaware corporation
(the "Company"), promises (i) to pay interest on the principal amount of this
Note at 8.25% per annum from August 13, 2003 until maturity, provided that any
principal and premium, and any installment of interest, which is overdue shall
bear interest at the rate of 9.25% per annum (to the extent that the payment of
such interest shall be legally enforceable), and (ii) to pay the Special
Interest payable pursuant to Section 2(c) of the Registration Rights Agreement
referred to below. The Company will pay interest and Special Interest, if any,
semi-annually in arrears on February 15 and August 15 of each year, commencing
February 15, 2004, or if any such day is not a Business Day, on the next
succeeding Business Day (each an "Interest Payment Date"). Interest on the Notes
will accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from the date of original issuance; provided, however,
that if this Note is authenticated between a Regular Record Date referred to on
the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date, except in the case of
the original issuance of Notes, in which case interest shall accrue from the
date of authentication. Interest will be computed on the basis of a 360-day year
of twelve 30-day months.

         2.       Method of Payment. The Company will pay interest on the Notes
and Special Interest to the Persons who are registered Holders of Notes at the
close of business on the February 1 or August 1 (each a "Regular Record Date")
next preceding the Interest Payment Date, even if such Notes are cancelled after
such Regular Record Date and on or before such Interest Payment Date, except as
provided in Section 307 of the Original Indenture with respect to Defaulted
Interest. Holders must surrender Notes to the Paying Agent to collect payments
of principal and premium, if any. The Notes will be payable as to principal,
premium, if any, interest and Special Interest, if any, at the office or agency
of the Company maintained for such purpose within the Borough of Manhattan, The
City and State of New York, or, at the option of the Company, payment of
interest and Additional Interest may be made by check mailed to the Holders at
their addresses set forth in the Security Register, and provided that payment by
wire transfer of immediately available funds will be required with respect to
principal of and interest, premium and Additional Interest on all Global Notes.
Such payment shall be in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private
debts.

         3.       Paying Agent and Registrar. Initially, Wells Fargo Bank, N.A.,
the Trustee under the Indenture, will act as Paying Agent and Security
Registrar. The Company may change any Paying Agent or Security Registrar without
notice to any Holder. The Company may act in any such capacity.

                                       4

<PAGE>

         4.       Indenture. This Note is one of a duly authorized issue of
Securities of the Company, issued and to be issued under an Indenture dated as
of August 13, 2003 ("Original Indenture") among the Company, the Subsidiary
Guarantors and the Trustee, as supplemented and amended by the First
Supplemental Indenture of even date (the "Supplemental Indenture"). The Original
Indenture, as so supplemented and amended, is referred to herein as the
"Indenture." The terms of the Notes include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act of
1939, as amended (15 U.S. Code Sections 77aaa-77bbbb). The Notes are subject to
all such terms, and Holders are referred to the Indenture and such Act for a
statement of such terms. The Notes are senior unsecured obligations of the
Company limited to $150,000,000 aggregate principal amount in the case of Notes
issued on the Closing Date.

         5.       Optional Redemption; Repurchases.

                  The Notes of this series are subject to redemption upon not
less than 30 nor more than 60 days' notice by mail in the event that on or
before August 15, 2006 the Company receives net proceeds from the sale of its
Common Stock in one or more Equity Offerings, in which case the Company may, at
its option, use all or a portion of any such net proceeds to redeem up to 35% of
the aggregate principal amount of the Notes (including any Additional Notes)
issued under the Indenture, provided, however, that at least 65% of the
aggregate principal amount of the Notes (including any Additional Notes) issued
under the Indenture remains outstanding after each such redemption. Any such
redemption must occur on a Redemption Date within 90 days of any such sale at a
Redemption Price of 108.25% of the principal amount of the Notes, together in
the case of any such redemption with accrued interest to the Redemption Date,
but interest installments whose Stated Maturity is on or prior to such
Redemption Date will be payable to the Holders of such Notes, or one or more
Predecessor Securities, of record at the close of business on the relevant
Regular Record Dates referred to on the face hereof, all as provided in the
Indenture.

                  The Notes are further subject to redemption upon not less than
30 nor more than 60 days' notice by mail, at any time on or after August 15,
2008, as a whole or in part, at the election of the Company, at the following
Redemption Prices (expressed as percentages of the principal amount), if
redeemed during the 12-month period beginning August 15 of the years indicated:

<TABLE>
<CAPTION>
Year              Redemption Price
----              ----------------
<S>               <C>
2008                  104.125%
2009                  102.750%
2010                  101.375%
</TABLE>

and thereafter at a Redemption Price equal to 100% of the principal amount,
together in the case of any such redemption with accrued interest to the
Redemption Date, but interest installments whose Stated Maturity is on or prior
to such Redemption Date will be payable to the Holders of such Notes, or one or
more Predecessor Securities, of record

                                       5

<PAGE>

at the close of business on the relevant Regular Record Dates referred to on the
face hereof, all as provided in the Indenture.

                  Prior to August 15, 2008, upon not less than 30 nor more than
60 days' notice by mail the Company may redeem all or a part of the Notes upon
not less than 30 nor more than 60 days' notice, at a Redemption Price equal to
the greater of:

                           (1)      100% of the principal amount thereof; or

                           (2)      the present value, as determined by an
                  Independent Investment Banker, of

                                    (A)      104.125% of the principal amount of
                           the Notes being redeemed calculated as of August 15,
                           2008 (assuming a 360-day year consisting of twelve
                           30-day months), plus

                                    (B)      all required interest payments due
                           on such Notes through August 15, 2008 (excluding
                           accrued interest), discounted to the Redemption Date
                           on a semi-annual basis (assuming a 360-day year
                           consisting of twelve 30-day months) at the Adjusted
                           Treasury Rate, plus in each case accrued interest to
                           but excluding the Redemption Date (subject to the
                           right of Holders of record on the relevant Regular
                           Record Date to receive interest due on an Interest
                           Payment Date that is on or prior to the Redemption
                           Date).

                  The Notes are also subject to repurchase by the Company at the
option of the Holders in the event of a Change of Control or following certain
Asset Dispositions, all as provided in the Indenture.

                  In the event of redemption or repurchase of this Note in part
only, a new Note or Notes of like tenor for the unredeemed portion hereof will
be issued in the name of the Holder hereof upon the cancellation hereof.

         6.       Subordination. The indebtedness evidenced by this Note is, to
the extent provided in the Indenture, subordinate and subject in right of
payment to the prior payment in full of all Senior Debt of the Company, and this
Note is issued subject to the provisions of the Indenture with respect thereto.
Each Holder of this Note, by accepting the same, (a) agrees to and shall be
bound by such provisions, (b) authorizes and directs the Trustee on his behalf
to take such action as may be necessary or appropriate to effectuate the
subordination so provided and (c) appoints the Trustee his attorney-in-fact for
any and all such purposes.

         7.       Subsidiary Guarantees. As provided in the Indenture and
subject to certain limitations therein set forth, the obligations of the Company
under this Note are guaranteed on a senior subordinated basis pursuant to the
Subsidiary Guarantees endorsed hereon. The Indenture provides that a Subsidiary
Guarantor shall be released from its Subsidiary Guarantee upon compliance with
certain conditions.

                                       6

<PAGE>

         8.       Events of Default; Remedies, Etc.

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

                  As provided in and subject to the provisions of the Indenture,
the Holder of this Note shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or
for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the
Notes, the Holders of not less than 25% in principal amount of the Notes at the
time Outstanding shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default as Trustee and offered the
Trustee reasonable indemnity, and the Trustee shall not have received from the
Holders of a majority in principal amount of Notes at the time Outstanding a
direction inconsistent with such request, and shall have failed to institute any
such proceeding, for 60 days after receipt of such notice, request and offer of
indemnity. The foregoing shall not apply to any suit instituted by the Holder of
this Note for the enforcement of any payment of principal hereof or any premium
or interest hereon on or after the respective due dates expressed herein.

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

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

         10.      Transfer and Exchange of Notes.

                  As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Note is registrable in the
Security Register, upon surrender of this Note for registration of transfer at
the office or agency of the Company in any place where the principal of and any
premium and interest on this Note are payable, duly endorsed by, or accompanied
by a written instrument of transfer in form satisfactory to

                                       7

<PAGE>

the Company and the Security Registrar duly executed by, the Holder hereof or
his attorney duly authorized in writing, and thereupon one or more new Notes of
like tenor, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.

                  The Notes are issuable only in registered form without coupons
in denominations of $1,000 and any integral multiple thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Notes are
exchangeable for a like aggregate principal amount of Notes and of like tenor of
a different authorized denomination, as requested by the Holder surrendering the
same.

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

         11.      Owner. Prior to due presentment of this Note for registration
of transfer, the Company, the Subsidiary Guarantors, the Trustee and any agent
of the Company or the Trustee may treat the Person in whose name this Note is
registered as the absolute owner hereof for all purposes, whether or not this
Note is overdue, and neither the Company, the Subsidiary Guarantors, the Trustee
nor any such agent shall be affected by notice to the contrary.

         12.      Defeasance and Discharge. The Notes are subject to Covenant
Defeasance, Defeasance and satisfaction and discharge upon the terms and
conditions specified in the Indenture.

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

         14.      No Recourse Against Others. No past, present or future
director, officer, employee, incorporator, member, partner or stockholder or
other owner of Capital Stock of the Company or any Subsidiary Guarantor, as
such, shall have any liability for any obligations of the Company or any
Subsidiary Guarantor under the Notes, the Subsidiary Guarantees or the Indenture
or for any claim based on, in respect of, or by reason of, such obligations or
their creation. Each Holder by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for the issuance
of the Notes.

         15.      Authentication. This Note shall not be valid until
authenticated by the manual signature of an authorized signatory of the Trustee
or an Authenticating Agent.

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

                                       8

<PAGE>

         17.      Additional Rights and Obligations of Holders of Transfer
Restricted Securities. In addition to the rights provided to Holders of Notes
under the Indenture, Holders of Transfer Restricted Securities shall have all
the rights and obligations set forth in the Registration Rights Agreement dated
as of August 13, 2003, among the Company, the Subsidiary Guarantors and the
Initial Purchasers named on the signature page thereof (the "Registration Rights
Agreement").

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

         19.      Governing Law. THE INDENTURE AND THIS NOTE SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

         20.      Successor Company. In the event a successor assumes all the
obligations of the Company under the Notes and the Indenture, pursuant to the
terms thereof, the Company will be released from all such obligations.

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

                  Group 1 Automotive, Inc.
                  950 Echo Lane, Suite 100
                  Houston, Texas 77024
                  Attention: Chief Financial Officer

                                       9

<PAGE>

                                 ASSIGNMENT FORM

         To assign this Note, fill in the form below:

         I or we assign and transfer this Note to

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

________________________________________________________________________________
                  (Insert assignee's soc. sec. or tax I.D. No.)

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

Date: _________________________         Your Signature: ________________________
                                        Sign exactly as your name appears on the
                                        other side of this Note.

In connection with any transfer of any of the Notes evidenced by this
certificate occurring prior to the expiration of the period referred to in Rule
144(k) under the Securities Act after the later of the date of original issuance
of such Notes and the last date, if any, on which such Notes were owned by the
Company or any Affiliate of the Company, the undersigned confirms that such
Notes are being transferred in accordance with its terms:

CHECK ONE BOX BELOW

         (1)      [ ]      to the Company; or

         (2)      [ ]      pursuant to an effective registration statement under
                           the Securities Act of 1933; or

         (3)      [ ]      inside the United States to a "qualified
                           institutional buyer" (as defined in Rule 144A under
                           the Securities Act of 1933) that purchases for its
                           own account or for the account of a qualified
                           institutional buyer to whom notice is given that such
                           transfer is being made in reliance on Rule 144A, in
                           each case pursuant to and in compliance with Rule
                           144A under the Securities Act of 1933; or

         (4)      [ ]      outside the United States in an offshore transaction
                           within the meaning of Regulation S under the
                           Securities Act in compliance with Rule 903 or 904
                           under the Securities Act of 1933; or

         (5)      [ ]      pursuant to the exemption from registration provided
                           by Rule 144 under the Securities Act of 1933; or

         (6)      [ ]      to an institutional accredited investor in a
                           transaction exempt from the registration requirements
                           of the Securities Act.

                                       10

<PAGE>

Unless one of the boxes is checked, the Trustee will refuse to register any of
the Notes evidenced by this certificate in the name of any person other than the
registered holder thereof; provided, however, that if box (4), (5) or (6) is
checked, the Trustee shall be entitled to require, prior to registering any such
transfer of the Notes, such legal opinions, certifications and other information
as the Company has reasonably requested to confirm that such transfer is being
made pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933, such as the exemption
provided by Rule 144 under such Act.

                                             ___________________________________
                                             Signature

Signature Guarantee:

____________________________                 ___________________________________
Signature must be guaranteed                 Signature

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Security Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

________________________________________________________________________________

                                       11

<PAGE>

TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

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

Dated:_____________________       ______________________________________________
                                  Notice: To be executed by an executive officer

                                       12

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you want to elect to have this Note purchased by the Company
pursuant to Section 306 or 309 of the Supplemental Indenture, check the box
below:

           [ ] Section 306                        [ ] Section 309

         If you want to elect to have only part of this Note purchased by the
Company pursuant to Section 306 or Section 309 of the Supplemental Indenture,
state the amount (in minimum denomination of $1,000 or integral multiples
thereof) you elect to have purchased: $____________

Date: ___________________     Your Signature: __________________________________
                                              (Sign exactly as your name appears
                                               on the Note)

                              Soc. Sec. or Tax Identification No.: _____________

Signature Guarantee: ___________________________________
                       (Signature must be guaranteed)

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Security Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

                                       13

<PAGE>

                         [TO BE ATTACHED TO GLOBAL NOTE]

                SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

The following increases or decreases in this Global Note have been made:

<TABLE>
<CAPTION>
            Amount of          Amount of       Principal Amount
           decrease in        increase in       of this Global       Signature of
         Principal Amount   Principal Amount    Note following    authorized officer
          of this Global     of this Global    such decrease or     of Trustee or
Date          Note               Note              increase        Notes Custodian
----     ----------------   ----------------   ----------------   ------------------
<S>      <C>                <C>                <C>                <C>
</TABLE>

                                       14
<PAGE>

                              SUBSIDIARY GUARANTEE

                  For value received, each of the Subsidiary Guarantors named
(or deemed herein to be named) below hereby jointly and severally fully and
unconditionally guarantees to the Holder of the Note upon which this Subsidiary
Guarantee is endorsed, and to the Trustee on behalf of such Holder, the due and
punctual payment of the principal of (and premium, if any) and interest on such
Note when and as the same shall become due and payable, whether at the Stated
Maturity, by acceleration, call for redemption, offer to purchase or otherwise,
according to the terms thereof and of the Indenture referred to therein and to
cover all the rights of the Trustee under Section 607 of the Original Indenture.
In case of the failure of the Company punctually to make any such payment, each
of the Subsidiary Guarantors hereby jointly and severally agrees to cause such
payment to be made punctually when and as the same shall become due and payable,
whether at the Stated Maturity or by acceleration, call for redemption, offer to
purchase or otherwise, and as if such payment were made by the Company.

                  Each of the Subsidiary Guarantors hereby jointly and severally
agrees that its obligations hereunder shall be absolute and unconditional,
irrespective of, and shall be unaffected by, the validity, regularity or
enforceability of such Note or the Indenture, the absence of any action to
enforce the same or any release, amendment, waiver or indulgence granted to the
Company or any other guarantor, or any consent to departure from any requirement
of any other guarantee of all or of any of the Notes, or any other circumstances
which might otherwise constitute a legal or equitable discharge or defense of a
surety or guarantor; provided, however, that, notwithstanding the foregoing, no
such release, amendment, waiver or indulgence shall, without the consent of such
Subsidiary Guarantor, increase the principal amount of such Note, or increase
the interest rate thereon, or alter the Stated Maturity thereof. Each of the
Subsidiary Guarantors hereby waives the benefits of diligence, presentment,
demand of payment, any requirement that the Trustee or any of the Holders
protect, secure, perfect or insure any security interest in or other lien on any
property subject thereto or exhaust any right or take any action against the
Company or any other Person or any collateral, filing of claims with a court in
the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest or notice with respect to such
Note or the indebtedness evidenced thereby and all demands whatsoever, and
covenants that this Subsidiary Guarantee will not be discharged except by
complete performance of the obligations contained in such Note and in this
Subsidiary Guarantee. Each Subsidiary Guarantor agrees that if, after the
occurrence and during the continuance of an Event of Default with respect to the
Notes, the Trustee or any of the Holders are prevented by applicable law from
exercising their respective rights to accelerate the maturity of the Notes, to
collect interest on the Notes, or to enforce or exercise any other right or
remedy with respect to the Notes, such Subsidiary Guarantor agrees to pay to the
Trustee for the account of the Holders, upon demand therefor, the amount that
would otherwise have been due and payable had such rights and remedies been
permitted to be exercised by the Trustee or any of the Holders.

                  The indebtedness of each Subsidiary Guarantor evidenced by
this Subsidiary Guarantee is, to the extent provided in the Indenture,
subordinate in right of

                                       15

<PAGE>

payment to the prior payment in full of all Senior Debt of such Subsidiary
Guarantor, and the Subsidiary Guarantee of each Subsidiary Guarantor is issued
subject to the provisions of the Indenture with respect thereto.

                  No reference herein to the Indenture and no provision of this
Subsidiary Guarantee or of the Indenture shall alter or impair the Subsidiary
Guarantee of any Subsidiary Guarantor, which is absolute and unconditional, of
the due and punctual payment of the principal (and premium, if any) and interest
on the Note upon which this Subsidiary Guarantee is endorsed.

                  Each Subsidiary Guarantor shall be subrogated to all rights of
the Holder of this Note against the Company in respect of any amounts paid by
such Subsidiary Guarantor on account of this Note pursuant to the provisions of
its Subsidiary Guarantee or the Indenture; provided, however, that such
Subsidiary Guarantor shall not be entitled to enforce or to receive any payments
arising out of, or based upon, such right of subrogation until the principal of
(and premium, if any) and interest on this Note and all other Notes issued under
the Indenture shall have been paid in full.

                  This Subsidiary Guarantee shall remain in full force and
effect and continue to be effective should any petition be filed by or against
the Company for liquidation or reorganization, should the Company become
insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any part of the Company's assets,
and shall, to the fullest extent permitted by law, continue to be effective or
be reinstated, as the case may be, if at any time payment and performance of the
Notes is, pursuant to applicable law, rescinded or reduced in amount, or must
otherwise be restored or returned by any Holder of the Notes, whether as a
"voidable preference," "fraudulent transfer," or otherwise, all as though such
payment or performance had not been made. In the event that any payment, or any
part thereof, is rescinded, reduced, restored or returned, the Notes shall, to
the fullest extent permitted by law, be reinstated and deemed reduced only by
such amount paid and not so rescinded, reduced, restored or returned.

                  The Subsidiary Guarantors or any particular Subsidiary
Guarantor shall be released from this Subsidiary Guarantee upon the terms and
subject to certain conditions provided in the Indenture.

                  By delivery to the Trustee of a supplement to the Indenture
referred to in the Note upon which this Subsidiary Guarantee is endorsed in
accordance with the terms of the Indenture, each Person that becomes a
Subsidiary Guarantor after the date of first issuance of the Notes will be
deemed to have executed and delivered this Subsidiary Guarantee for the benefit
of the Holder of the Note upon which this Subsidiary Guarantee is endorsed with
the same effect as if such Subsidiary Guarantor was named below and has executed
and delivered this Subsidiary Guarantee.

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

                                       16

<PAGE>

                  This Subsidiary Guarantee shall not be valid or obligatory for
any purpose until the certificate of authentication on the Note upon which this
Subsidiary Guarantee is endorsed shall have been executed by the Trustee under
the Indenture by manual signature.

                  Reference is made to the Indenture for further provisions with
respect to this Subsidiary Guarantee.

                  This Subsidiary Guarantee shall be governed by and construed
in accordance with the laws of the State of New York.

                                       17

<PAGE>

                  IN WITNESS WHEREOF, each of the Subsidiary Guarantors has
caused this Subsidiary Guarantee to be duly executed.

                              GROUP 1 REALTY, INC.
                              GROUP 1 FL HOLDINGS, INC.

                              By: /s/ Scott L. Thompson
                                 _______________________________________________
                              Name:  Scott L. Thompson
                              Title: President

                              BOB HOWARD AUTOMOTIVE-EAST, INC.
                              BOB HOWARD AUTOMOTIVE-H, INC.
                              BOB HOWARD CHEVROLET, INC.
                              BOB HOWARD DODGE, INC.
                              BOB HOWARD MOTORS, INC.
                              BOB HOWARD NISSAN, INC.
                              BOHN HOLDINGS-DC, INC.
                              BOHN HOLDINGS-F, INC.
                              BOHN HOLDINGS-GM, INC.
                              BOHN HOLDINGS-S, INC.
                              CASA CHEVROLET INC.
                              CASA CHRYSLER PLYMOUTH JEEP INC.
                              DANVERS-DC, INC.
                              DANVERS-DCII, INC.
                              DANVERS-DCIII, INC.
                              DANVERS-GM, INC.
                              DANVERS-N, INC.
                              DANVERS-NII, INC.
                              DANVERS-S, INC.
                              DANVERS-SU, INC.
                              DANVERS-T, INC.
                              DANVERS-TII, INC.
                              DANVERS-TL, INC.
                              FMM, INC.
                              GPI ATLANTA-F, INC.
                              GPI ATLANTA-FLM, INC.
                              GPI ATLANTA-FLM II, INC.
                              GPI ATLANTA-T, INC.
                              GROUP 1 ASSOCIATES, INC.
                              HARVEY-T, INC.
                              HIGHLAND AUTOPLEX, INC.
                              HOWARD FORD, INC.
                              HOWARD PONTIAC-GMC, INC.
                              HOWARD-DC, INC.
                              HOWARD-DCII, INC.

                                       18

<PAGE>

                              HOWARD-GM, INC.
                              HOWARD-GMII, INC.
                              HOWARD-GMIII, INC.
                              HOWARD-H, INC.
                              HOWARD-HA, INC.
                              HOWARD-FLM, INC.
                              HOWARD-SB, INC.
                              HOWARD-SI, INC.
                              JIM TIDWELL FORD, INC.
                              LUBY CHEVROLET CO.
                              MIKE SMITH AUTOMOTIVE-H, INC.
                              MIKE SMITH AUTOMOTIVE-N, INC.
                              MIKE SMITH AUTOPLAZA, INC.
                              MIKE SMITH AUTOPLEX BUICK, INC.
                              MIKE SMITH AUTOPLEX DODGE, INC.
                              MIKE SMITH AUTOPLEX, INC.
                              MIKE SMITH AUTOPLEX-GERMAN IMPORTS, INC.
                              MIKE SMITH AUTOPLEX-V, INC.
                              MIKE SMITH GM, INC.
                              MIKE SMITH IMPORTS, INC.
                              MIKE SMITH MOTORS, INC.
                              MILLBRO, INC.
                              MILLER AUTOMOTIVE GROUP, INC.
                              MILLER FAMILY COMPANY, INC.
                              MILLER IMPORTS, INC.
                              MILLER INFINITI, INC.
                              MILLER MOTORS VAN NUYS, INC.
                              MILLER NISSAN, INC.
                              MILLER-NII, INC.
                              PERIMETER FORD, INC.
                              SUNSHINE BUICK PONTIAC GMC TRUCK, INC.

                              By: /s/ Scott L. Thompson
                                 _______________________________________________
                              Name:  Scott L. Thompson
                              Title: Vice President

                              AMARILLO MOTORS-C, LTD.
                              AMARILLO MOTORS-F, LTD.
                              AMARILLO MOTORS-FM, LTD.
                              AMARILLO MOTORS-J, LTD.
                              AMARILLO MOTORS-SM, LTD.
                              CHAPERRAL DODGE, LTD.
                              COLONIAL CHRYSLER-PLYMOUTH, LTD.
                              GPI, LTD.

                                       19

<PAGE>

                              KUTZ-DC, LTD.
                              KUTZ-N, LTD.
                              LUBBOCK MOTORS, LTD.
                              LUBBOCK MOTORS-F, LTD.
                              LUBBOCK MOTORS-S, LTD.
                              LUBBOCK MOTORS-SH, LTD.
                              LUBBOCK MOTORS-T, LTD.
                              MAXWELL CHRYSLER DODGE JEEP, LTD.
                              MAXWELL FORD, LTD.
                              MAXWELL-G, LTD.
                              MAXWELL-N, LTD.
                              MAXWELL-NII, LTD.
                              MAXWELL-SM, LTD.
                              MCCALL-H, LTD.
                              MCCALL-HA, LTD.
                              MCCALL-N, LTD.
                              MCCALL-T, LTD.
                              MCCALL-TII, LTD.
                              MCCALL-TL, LTD.
                              PRESTIGE CHRYSLER NORTHWEST, LTD.
                              PRESTIGE CHRYSLER SOUTH, LTD.
                              ROCKWALL AUTOMOTIVE-DCD, LTD.
                              ROCKWALL AUTOMOTIVE-F, LTD.

                              By: GROUP 1 ASSOCIATES, INC.,
                                  as general partner

                              By: /s/ Scott L. Thompson
                                 _______________________________________________
                              Name:  Scott L. Thompson
                              Title: Vice President

                              GROUP 1 HOLDINGS-DC, L.L.C. GROUP 1
                              HOLDINGS-F, L.L.C. GROUP 1
                              HOLDINGS-GM, L.L.C. GROUP 1
                              HOLDINGS-H, L.L.C. GROUP 1
                              HOLDINGS-N, L.L.C. GROUP 1
                              HOLDINGS-S, L.L.C. GROUP 1
                              HOLDINGS-T, L.L.C.

                              By: GROUP 1 AUTOMOTIVE, INC.,
                                  as sole member

                              By: /s/ Scott L. Thompson
                                 _______________________________________________
                              Name:  Scott L. Thompson
                              Title: Executive Vice President

                                       20

<PAGE>

                              COURTESY FORD, LLC
                              GULF BREEZE FORD, LLC
                              KEY FORD, LLC
                              KOONS FORD, LLC

                              By: GROUP 1 FL HOLDINGS, INC.,
                                  as sole member

                              By: /s/ Scott L. Thompson
                                 _______________________________________________
                              Name:  Scott L. Thompson
                              Title: President

                              BOHN-DC, LLC

                              By: BOHN HOLDINGS-DC, INC.,
                                  as sole member

                              By: /s/ Scott L. Thompson
                                 _______________________________________________
                              Name:  Scott L. Thompson
                              Title: Vice President

                              BOHN-FII, LLC
                              BOHN-FIII, LLC
                              HARVEY FORD, LLC
                              HARVEY-FLM, LLC

                              By: BOHN HOLDINGS-F, INC.,
                                  as sole member

                              By: /s/ Scott L. Thompson
                                 _______________________________________________
                              Name:  Scott L. Thompson
                              Title: Vice President

                              HARVEY GM, LLC

                              By: BOHN HOLDINGS-GM, INC.,
                                  as sole member

                              By: /s/ Scott L. Thompson
                                 _______________________________________________
                              Name:  Scott L. Thompson
                              Title: Vice President

                                       21

<PAGE>

                              HARVEY SM, LLC

                              By: BOHN HOLDINGS-S, INC.,
                                  as sole member

                              By: /s/ Scott L. Thompson
                                 -----------------------------------------------
                              Name:  Scott L. Thompson
                              Title: Vice President

                              HARVEY OPERATIONS-T, LLC

                              By: HARVEY-T, INC.,
                                  as sole member

                              By: /s/ Scott L. Thompson
                                 -----------------------------------------------
                              Name:  Scott L. Thompson
                              Title: Vice President

                              IRA AUTOMOTIVE GROUP, LLC

                              By: DANVERS-T, INC.,
                                  as sole member

                              By: /s/ Scott L. Thompson
                                 -----------------------------------------------
                              Name:  Scott L. Thompson
                              Title: Vice President

                              GROUP 1 LP INTERESTS-F, INC.
                              GROUP 1 LP INTERESTS-DC, INC.
                              GROUP 1 LP INTERESTS-T, INC.
                              GROUP 1 LP INTERESTS-GM, INC.
                              GROUP 1 LP INTERESTS-H, INC.
                              GROUP 1 LP INTERESTS-S, INC.
                              GROUP 1 LP INTERESTS-N, INC.

                              By: /s/ Mathew J. Baer
                                 -----------------------------------------------
                              Name:  Mathew J. Baer
                              Title: President

                                       22

<PAGE>

                              DELAWARE ACQUISITION-DC, LLC

                              By: GROUP 1 LP INTERESTS-DC, INC.,
                                  as sole member

                              By: /s/ Mathew J. Baer
                                 -----------------------------------------------
                              Name:  Mathew J. Baer
                              Title: President and Secretary

                              DELAWARE ACQUISITION-F, LLC

                              By: GROUP 1 LP INTERESTS-F, INC.,
                                  as sole member

                              By:  /s/ Mathew J. Baer
                                  ----------------------------------------------
                              Name:  Mathew J. Baer
                              Title: President and Secretary

                              DELAWARE ACQUISITION-GM, LLC

                              By: GROUP 1 LP INTERESTS-GM, INC.,
                                  as sole member

                              By:  /s/ Mathew J. Baer
                                  ----------------------------------------------
                              Name:  Mathew J. Baer
                              Title: President and Secretary

                              DELAWARE ACQUISITION-N, LLC

                              By: GROUP 1 LP INTERESTS-N, INC.,
                                  as sole member

                              By:  /s/ Mathew J. Baer
                                  ----------------------------------------------
                              Name:  Mathew J. Baer
                              Title: President and Secretary

                                       23

<PAGE>

                              DELAWARE ACQUISITION-T, LLC

                              By: GROUP 1 LP INTERESTS-T, INC.,
                                  as sole member

                              By:  /s/ Mathew J. Baer
                                  ----------------------------------------------
                              Name:  Mathew J. Baer
                              Title: President and Secretary

                                       24

<PAGE>

                                    EXHIBIT A TO RULE 144A/REGULATION S APPENDIX

                         [FORM OF FACE OF EXCHANGE NOTE
                       OR PRIVATE EXCHANGE NOTE] ___*/**/

*/ If the Note is to be issued in global form add the Global Notes Legend from
Exhibit 1 to Rule 144A/Regulation S Appendix and the attachment from such
Exhibit 1 captioned "[TO BE ATTACHED TO GLOBAL NOTES] - SCHEDULE OF INCREASES OR
DECREASES IN GLOBAL NOTE".

**/ If the Note is a Private Exchange Note issued in a Private Exchange to an
Initial Purchaser holding an unsold portion of its initial allotment, add the
Restricted Notes Legend from Exhibit 1 to Rule 144A/Regulation S Appendix and
replace the Assignment Form included in this Exhibit A with the Assignment Form
included in such Exhibit 1.

All references to "Special Interest" in the Note shall be deleted unless if at
the date of issuance of the Exchange Note or Private Exchange Note (as the case
may be) any Registration Default (as defined in the Registration Rights
Agreement) has occurred with respect to the related Initial Notes during the
interest period in which such date of issuance occurs.

                                      A-1

<PAGE>

                        [FORM OF FACE OF EXCHANGE NOTE OR
                             PRIVATE EXCHANGE NOTE]

                            GROUP 1 AUTOMOTIVE, INC.

No.                                                                    $

                                                                       CUSIP No.
                                                                        ISIN No.

               8.25% Senior Subordinated Note due August 15, 2013

         Group 1 Automotive, Inc., a Delaware corporation, promises to pay to
__________, or registered assigns, the principal sum of ______ Dollars on August
15, 2013 [or such greater or lesser amount as may be indicated on Schedule A
hereto].(2)

         Interest Payment Dates: February 15 and August 15.

         Regular Record Dates: February 1 and August 1.

         Additional provisions of this Note are set forth on the other side of
this Note.

                                                        GROUP 1 AUTOMOTIVE, INC.

                                                        By:_____________________
                                                           Name:
                                                           Title:

TRUSTEE'S CERTIFICATE OF
AUTHENTICATION

WELLS FARGO BANK, N.A.,
  as Trustee, certifies that
  this is one of the Notes
  referred to in the Indenture.

By________________________________
       Authorized Signatory

Dated: ___________________________

--------------
(2) If this Note is a Global Note, add this provision.

                                      A-2
<PAGE>

        [FORM OF REVERSE SIDE OF EXCHANGE NOTE OR PRIVATE EXCHANGE NOTE]

               8.25% Senior Subordinated Note due August 15, 2013

         Capitalized terms used herein but not defined shall have the meanings
assigned to them in the Indenture referred to below unless otherwise indicated.

         1.       Interest. Group 1 Automotive, Inc., a Delaware corporation
(the "Company"), promises (i) to pay interest on the principal amount of this
Note at 8.25% per annum from August 13, 2003 until maturity, provided that any
principal and premium, and any installment of interest, which is overdue shall
bear interest at the rate of 9.25% per annum (to the extent that the payment of
such interest shall be legally enforceable), and (ii) to pay the Special
Interest payable pursuant to Section 2(c) of the Registration Rights Agreement
referred to below. The Company will pay interest and Special Interest, if any,
semi-annually in arrears on February 15 and August 15 of each year, commencing
February 15, 2004, or if any such day is not a Business Day, on the next
succeeding Business Day (each an "Interest Payment Date"). Interest on the Notes
will accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from the date of original issuance; provided, however,
that if this Note is authenticated between a Regular Record Date referred to on
the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date, except in the case of
the original issuance of Notes, in which case interest shall accrue from the
date of authentication. Interest will be computed on the basis of a 360-day year
of twelve 30-day months.

         2.       Method of Payment. The Company will pay interest on the Notes
and Special Interest to the Persons who are registered Holders of Notes at the
close of business on the February 1 or August 1 (each a "Regular Record Date")
next preceding the Interest Payment Date, even if such Notes are cancelled after
such Regular Record Date and on or before such Interest Payment Date, except as
provided in Section 307 of the Original Indenture with respect to Defaulted
Interest. Holders must surrender Notes to the Paying Agent to collect payments
of principal and premium, if any. The Notes will be payable as to principal,
premium, if any, interest and Special Interest, if any, at the office or agency
of the Company maintained for such purpose within the Borough of Manhattan, The
City and State of New York, or, at the option of the Company, payment of
interest and Additional Interest may be made by check mailed to the Holders at
their addresses set forth in the Security Register, and provided that payment by
wire transfer of immediately available funds will be required with respect to
principal of and interest, premium and Additional Interest on all Global Notes.
Such payment shall be in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private
debts.

         3.       Paying Agent and Registrar. Initially, Wells Fargo Bank, N.A.,
the Trustee under the Indenture, will act as Paying Agent and Security
Registrar. The Company may change any Paying Agent or Security Registrar without
notice to any Holder. The Company may act in any such capacity.

         4.       Indenture. This Note is one of a duly authorized issue of
Securities of the Company, issued and to be issued under an Indenture dated as
of August 13, 2003 ("Original

                                      A-3

<PAGE>

Indenture") among the Company, the Subsidiary Guarantors and the Trustee, as
supplemented and amended by the First Supplemental Indenture of even date (the
"Supplemental Indenture"). The Original Indenture, as so supplemented and
amended, is referred to herein as the "Indenture." The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code Sections
77aaa-77bbbb). The Notes are subject to all such terms, and Holders are referred
to the Indenture and such Act for a statement of such terms. The Notes are
senior unsecured obligations of the Company limited to $150,000,000 aggregate
principal amount in the case of Notes issued on the Closing Date.

         5.       Optional Redemption; Repurchase.

                  The Notes of this series are subject to redemption upon not
less than 30 nor more than 60 days' notice by mail in the event that on or
before August 15, 2006 the Company receives net proceeds from the sale of its
Common Stock in one or more Equity Offerings, in which case the Company may, at
its option, use all or a portion of any such net proceeds to redeem up to 35% of
the aggregate principal amount of the Notes (including any Additional Notes)
issued under the Indenture, provided, however, that at least 65% of the
aggregate principal amount of the Notes (including any Additional Notes) issued
under the Indenture remains outstanding after each such redemption. Any such
redemption must occur on a Redemption Date within 90 days of any such sale at a
Redemption Price of 108.25% of the principal amount of the Notes, together in
the case of any such redemption with accrued interest to the Redemption Date,
but interest installments whose Stated Maturity is on or prior to such
Redemption Date will be payable to the Holders of such Notes, or one or more
Predecessor Securities, of record at the close of business on the relevant
Regular Record Dates referred to on the face hereof, all as provided in the
Indenture.

                  The Notes are further subject to redemption upon not less than
30 nor more than 60 days' notice by mail, at any time on or after August 15,
2008, as a whole or in part, at the election of the Company, at the following
Redemption Prices (expressed as percentages of the principal amount), if
redeemed during the 12-month period beginning August 15 of the years indicated:

<TABLE>
<CAPTION>
Year              Redemption Price
----              ----------------
<S>               <C>
2008                  104.125%
2009                  102.750%
2010                  101.375%
</TABLE>

and thereafter at a Redemption Price equal to 100% of the principal amount,
together in the case of any such redemption with accrued interest to the
Redemption Date, but interest installments whose Stated Maturity is on or prior
to such Redemption Date will be payable to the Holders of such Notes, or one or
more Predecessor Securities, of record at the close of business on the relevant
Regular Record Dates referred to on the face hereof, all as provided in the
Indenture.

                                      A-4

<PAGE>

                  Prior to August 15, 2008, upon not less than 30 nor more than
60 days' notice by mail the Company may redeem all or a part of the Notes upon
not less than 30 nor more than 60 days' notice, at a Redemption Price equal to
the greater of:

                           (1)      100% of the principal amount thereof; or

                           (2)      the present value, as determined by an
                  Independent Investment Banker, of

                                    (A)      104.125% of the principal amount of
                           the Notes being redeemed calculated as of August 15,
                           2008 (assuming a 360-day year consisting of twelve
                           30-day months), plus

                                    (B)      all required interest payments due
                           on such Notes through August 15, 2008 (excluding
                           accrued interest), discounted to the Redemption Date
                           on a semi-annual basis (assuming a 360-day year
                           consisting of twelve 30-day months) at the Adjusted
                           Treasury Rate, plus in each case accrued interest to
                           but excluding the Redemption Date (subject to the
                           right of Holders of record on the relevant Regular
                           Record Date to receive interest due on an Interest
                           Payment Date that is on or prior to the Redemption
                           Date).

                  The Notes are also subject to repurchase by the Company at the
option of the Holders in the event of a Change of Control or following certain
Asset Dispositions, all as provided in the Indenture.

                  In the event of redemption or repurchase of this Note in part
only, a new Note or Notes of like tenor for the unredeemed portion hereof will
be issued in the name of the Holder hereof upon the cancellation hereof.

         6.       Subordination. The indebtedness evidenced by this Note is, to
the extent provided in the Indenture, subordinate and subject in right of
payment to the prior payment in full of all Senior Debt of the Company, and this
Note is issued subject to the provisions of the Indenture with respect thereto.
Each Holder of this Note, by accepting the same, (a) agrees to and shall be
bound by such provisions, (b) authorizes and directs the Trustee on his behalf
to take such action as may be necessary or appropriate to effectuate the
subordination so provided and (c) appoints the Trustee his attorney-in-fact for
any and all such purposes.

         7.       Subsidiary Guarantees. As provided in the Indenture and
subject to certain limitations therein set forth, the obligations of the Company
under this Note are guaranteed on a senior subordinated basis pursuant to the
Subsidiary Guarantees endorsed hereon. The Indenture provides that a Subsidiary
Guarantor shall be released from its Subsidiary Guarantee upon compliance with
certain conditions.

                                      A-5

<PAGE>

         8.       Events of Default; Remedies, Etc.

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

                  As provided in and subject to the provisions of the Indenture,
the Holder of this Note shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or
for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the
Notes, the Holders of not less than 25% in principal amount of the Notes at the
time Outstanding shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default as Trustee and offered the
Trustee reasonable indemnity, and the Trustee shall not have received from the
Holders of a majority in principal amount of Notes at the time Outstanding a
direction inconsistent with such request, and shall have failed to institute any
such proceeding, for 60 days after receipt of such notice, request and offer of
indemnity. The foregoing shall not apply to any suit instituted by the Holder of
this Note for the enforcement of any payment of principal hereof or any premium
or interest hereon on or after the respective due dates expressed herein.

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

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

         10.      Transfer and Exchange of Notes.

                  As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Note is registrable in the
Security Register, upon surrender of this Note for registration of transfer at
the office or agency of the Company in any place where the principal of and any
premium and interest on this Note are payable, duly endorsed by, or accompanied
by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Notes of like tenor, of
authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

                                      A-6

<PAGE>

                  The Notes are issuable only in registered form without coupons
in denominations of $1,000 and any integral multiple thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Notes are
exchangeable for a like aggregate principal amount of Notes and of like tenor of
a different authorized denomination, as requested by the Holder surrendering the
same.

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

         11.      Owner. Prior to due presentment of this Note for registration
of transfer, the Company, the Subsidiary Guarantors, the Trustee and any agent
of the Company or the Trustee may treat the Person in whose name this Note is
registered as the absolute owner hereof for all purposes, whether or not this
Note is overdue, and neither the Company, the Subsidiary Guarantors, the Trustee
nor any such agent shall be affected by notice to the contrary.

         12.      Defeasance and Discharge. The Notes are subject to Covenant
Defeasance, Defeasance and satisfaction and discharge upon the terms and
conditions specified in the Indenture.

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

         14.      No Recourse Against Others. No past, present or future
director, officer, employee, incorporator, member, partner or stockholder or
other owner of Capital Stock of the Company or any Subsidiary Guarantor, as
such, shall have any liability for any obligations of the Company or any
Subsidiary Guarantor under the Notes, the Subsidiary Guarantees or the Indenture
or for any claim based on, in respect of, or by reason of, such obligations or
their creation. Each Holder by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for the issuance
of the Notes.

         15.      Authentication. This Note shall not be valid until
authenticated by the manual signature of an authorized signatory of the Trustee
or an Authenticating Agent.

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

         17.      [Additional Rights and Obligations of Holders of Transfer
Restricted Securities. In addition to the rights provided to Holders of Notes
under the Indenture, Holders of Transfer Restricted Securities shall have all
the rights and obligations set forth in the Registration Rights

                                      A-7

<PAGE>

Agreement dated as of August 13, 2003, among the Company, the Subsidiary
Guarantors and the Initial Purchasers named on the signature page thereof (the
"Registration Rights Agreement").](3)

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

         19.      Governing Law. THE INDENTURE AND THIS NOTE SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

         20.      Successor Company. In the event a successor assumes all the
obligations of the Company under the Notes and the Indenture, pursuant to the
terms thereof, the Company will be released from all such obligations.

         The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture [and/or the Registration Rights Agreement](4).
Requests may be made to:

                  Group 1 Automotive, Inc.
                  950 Echo Lane, Suite 100
                  Houston, Texas  77024
                  Attention: Chief Financial Officer

---------------------
(3) Delete if this Note is not being issued in exchange for an Initial Note.

(4) Delete if this Note is not being issued in exchange for an Initial Note.

                                      A-8

<PAGE>

                                 ASSIGNMENT FORM

         To assign this Note, fill in the form below:

         I or we assign and transfer this Note to

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

________________________________________________________________________________
                  (Insert assignee's soc. sec. or tax I.D. No.)

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

Date: ____________         Your Signature: _____________________________________
                                           Sign exactly as your name appears on
                                           the other side of this Note.

                           Soc. Sec. or Tax Identification No.:_________________

Signature Guarantee: __________________________________________
                           (Signature must be guaranteed)

         Signatures must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Security Registrar, which requirements include
membership or participation in the Security Transfer Agent Medallion Program
("STAMP") or such other "signature guarantee program" as may be determined by
the Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as amended.

                                      A-9

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you want to elect to have this Note purchased by the Company
pursuant to Section 306 or 309 of the Supplemental Indenture, check the box
below:

                 [ ] Section 306                 [ ] Section 309

         If you want to elect to have only part of this Note purchased by the
Company pursuant to Section 306 or Section 309 of the Supplemental Indenture,
state the amount (in minimum denomination of $1,000 or integral multiples
thereof) you elected to have purchased: $____________

Date: ____________         Your Signature: _____________________________________
                                           (Sign exactly as your name appears on
                                           the other side of this Note)

                           Soc. Sec. or Tax Identification No.: ________________

Signature Guarantee: _________________________________
                      (Signature must be guaranteed)

         Signatures must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Security Registrar, which requirements include
membership or participation in the Security Transfer Agent Medallion Program
("STAMP") or such other "signature guarantee program" as may be determined by
the Registrar in addition to, or in substitution for, STAMP, all in accordance
with the Securities Exchange Act of 1934, as amended.

                                      A-10

<PAGE>

                              SUBSIDIARY GUARANTEE

                  For value received, each of the Subsidiary Guarantors named
(or deemed herein to be named) below hereby jointly and severally fully and
unconditionally guarantees to the Holder of the Note upon which this Subsidiary
Guarantee is endorsed, and to the Trustee on behalf of such Holder, the due and
punctual payment of the principal of (and premium, if any) and interest on such
Note when and as the same shall become due and payable, whether at the Stated
Maturity, by acceleration, call for redemption, offer to purchase or otherwise,
according to the terms thereof and of the Indenture referred to therein and to
cover all the rights of the Trustee under Section 607 of the Original Indenture.
In case of the failure of the Company punctually to make any such payment, each
of the Subsidiary Guarantors hereby jointly and severally agrees to cause such
payment to be made punctually when and as the same shall become due and payable,
whether at the Stated Maturity or by acceleration, call for redemption, offer to
purchase or otherwise, and as if such payment were made by the Company.

                  Each of the Subsidiary Guarantors hereby jointly and severally
agrees that its obligations hereunder shall be absolute and unconditional,
irrespective of, and shall be unaffected by, the validity, regularity or
enforceability of such Note or the Indenture, the absence of any action to
enforce the same or any release, amendment, waiver or indulgence granted to the
Company or any other guarantor, or any consent to departure from any requirement
of any other guarantee of all or of any of the Notes, or any other circumstances
which might otherwise constitute a legal or equitable discharge or defense of a
surety or guarantor; provided, however, that, notwithstanding the foregoing, no
such release, amendment, waiver or indulgence shall, without the consent of such
Subsidiary Guarantor, increase the principal amount of such Note, or increase
the interest rate thereon, or alter the Stated Maturity thereof. Each of the
Subsidiary Guarantors hereby waives the benefits of diligence, presentment,
demand of payment, any requirement that the Trustee or any of the Holders
protect, secure, perfect or insure any security interest in or other lien on any
property subject thereto or exhaust any right or take any action against the
Company or any other Person or any collateral, filing of claims with a court in
the event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest or notice with respect to such
Note or the indebtedness evidenced thereby and all demands whatsoever, and
covenants that this Subsidiary Guarantee will not be discharged except by
complete performance of the obligations contained in such Note and in this
Subsidiary Guarantee. Each Subsidiary Guarantor agrees that if, after the
occurrence and during the continuance of an Event of Default with respect to the
Notes, the Trustee or any of the Holders are prevented by applicable law from
exercising their respective rights to accelerate the maturity of Notes, to
collect interest on the Notes, or to enforce or exercise any other right or
remedy with respect to the Notes, such Subsidiary Guarantor agrees to pay to the
Trustee for the account of the Holders, upon demand therefor, the amount that
would otherwise have been due and payable had such rights and remedies been
permitted to be exercised by the Trustee or any of the Holders.

                  The indebtedness of each Subsidiary Guarantor evidenced by
this Subsidiary Guarantee is, to the extent provided in the Indenture,
subordinate in right of payment to the prior payment in full of all Senior Debt
of such Subsidiary Guarantor, and the Subsidiary Guarantee of each Subsidiary
Guarantor is issued subject to the provisions of the Indenture with respect
thereto.

                                      A-11

<PAGE>

                  No reference herein to the Indenture and no provision of this
Subsidiary Guarantee or of the Indenture shall alter or impair the Subsidiary
Guarantee of any Subsidiary Guarantor, which is absolute and unconditional, of
the due and punctual payment of the principal (and premium, if any) and interest
on the Note upon which this Subsidiary Guarantee is endorsed.

                  Each Subsidiary Guarantor shall be subrogated to all rights of
the Holder of this Note against the Company in respect of any amounts paid by
such Subsidiary Guarantor on account of this Security pursuant to the provisions
of its Subsidiary Guarantee or the Indenture; provided, however, that such
Subsidiary Guarantor shall not be entitled to enforce or to receive any payments
arising out of, or based upon, such right of subrogation until the principal of
(and premium, if any) and interest on this Note and all other Notes issued under
the Indenture shall have been paid in full.

                  This Subsidiary Guarantee shall remain in full force and
effect and continue to be effective should any petition be filed by or against
the Company for liquidation or reorganization, should the Company become
insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any part of the Company's assets,
and shall, to the fullest extent permitted by law, continue to be effective or
be reinstated, as the case may be, if at any time payment and performance of the
Notes is, pursuant to applicable law, rescinded or reduced in amount, or must
otherwise be restored or returned by any Holder of the Notes, whether as a
"voidable preference," "fraudulent transfer," or otherwise, all as though such
payment or performance had not been made. In the event that any payment, or any
part thereof, is rescinded, reduced, restored or returned, the Notes shall, to
the fullest extent permitted by law, be reinstated and deemed reduced only by
such amount paid and not so rescinded, reduced, restored or returned.

                  The Subsidiary Guarantors or any particular Subsidiary
Guarantor shall be released from this Subsidiary Guarantee upon the terms and
subject to certain conditions provided in the Indenture.

                  By delivery to the Trustee of a supplement to the Indenture
referred to in the Note upon which this Subsidiary Guarantee is endorsed in
accordance with the terms of the Indenture, each Person that becomes a
Subsidiary Guarantor after the date of first issuance of the Notes will be
deemed to have executed and delivered this Subsidiary Guarantee for the benefit
of the Holder of the Note upon which this Subsidiary Guarantee is endorsed with
the same effect as if such Subsidiary Guarantor was named below and has executed
and delivered this Subsidiary Guarantee.

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

                  This Subsidiary Guarantee shall not be valid or obligatory for
any purpose until the certificate of authentication on the Note upon which this
Subsidiary Guarantee is endorsed shall have been executed by the Trustee under
the Indenture by manual signature.

                                      A-12

<PAGE>

                  Reference is made to the Indenture for further provisions with
respect to this Subsidiary Guarantee.

                  This Subsidiary Guarantee shall be governed by and construed
in accordance with the laws of the State of New York.

                                      A-13

<PAGE>

                  IN WITNESS WHEREOF, each of the Subsidiary Guarantors has
caused this Subsidiary Guarantee to be duly executed.

                                    GROUP 1 REALTY, INC.
                                    GROUP 1 FL HOLDINGS, INC.

                                    By:  /s/ Scott L. Thompson
                                        ---------------------------------
                                    Name:Scott L. Thompson
                                    Title: President

                                    BOB HOWARD AUTOMOTIVE-EAST, INC.
                                    BOB HOWARD AUTOMOTIVE-H, INC.
                                    BOB HOWARD CHEVROLET, INC.
                                    BOB HOWARD DODGE, INC.
                                    BOB HOWARD MOTORS, INC.
                                    BOB HOWARD NISSAN, INC.
                                    BOHN HOLDINGS-DC, INC.
                                    BOHN HOLDINGS-F, INC.
                                    BOHN HOLDINGS-GM, INC.
                                    BOHN HOLDINGS-S, INC.
                                    CASA CHEVROLET INC.
                                    CASA CHRYSLER PLYMOUTH JEEP INC.
                                    DANVERS-DC, INC.
                                    DANVERS-DCII, INC.
                                    DANVERS-DCIII, INC.
                                    DANVERS-GM, INC.
                                    DANVERS-N, INC.
                                    DANVERS-NII, INC.
                                    DANVERS-S, INC.
                                    DANVERS-SU, INC.
                                    DANVERS-T, INC.
                                    DANVERS-TII, INC.
                                    DANVERS-TL, INC.
                                    FMM, INC.
                                    GPI ATLANTA-F, INC.
                                    GPI ATLANTA-FLM, INC.
                                    GPI ATLANTA-FLM II, INC.
                                    GPI ATLANTA-T, INC.
                                    GROUP 1 ASSOCIATES, INC.
                                    HARVEY-T, INC.
                                    HIGHLAND AUTOPLEX, INC.
                                    HOWARD FORD, INC.
                                    HOWARD PONTIAC-GMC, INC.
                                    HOWARD-DC, INC.
                                    HOWARD-DCII, INC.
                                    HOWARD-GM, INC.

                                      A-14

<PAGE>

                                    HOWARD-GMII, INC.
                                    HOWARD-GMIII, INC.
                                    HOWARD-H, INC.
                                    HOWARD-HA, INC.
                                    HOWARD-FLM, INC.
                                    HOWARD-SB, INC.
                                    HOWARD-SI, INC.
                                    JIM TIDWELL FORD, INC.
                                    LUBY CHEVROLET CO.
                                    MIKE SMITH AUTOMOTIVE-H, INC.
                                    MIKE SMITH AUTOMOTIVE-N, INC.
                                    MIKE SMITH AUTOPLAZA, INC.
                                    MIKE SMITH AUTOPLEX BUICK, INC.
                                    MIKE SMITH AUTOPLEX DODGE, INC.
                                    MIKE SMITH AUTOPLEX, INC.
                                    MIKE SMITH AUTOPLEX-GERMAN IMPORTS, INC.
                                    MIKE SMITH AUTOPLEX-V, INC.
                                    MIKE SMITH GM, INC.
                                    MIKE SMITH IMPORTS, INC.
                                    MIKE SMITH MOTORS, INC.
                                    MILLBRO, INC.
                                    MILLER AUTOMOTIVE GROUP, INC.
                                    MILLER FAMILY COMPANY, INC.
                                    MILLER IMPORTS, INC.
                                    MILLER INFINITI, INC.
                                    MILLER MOTORS VAN NUYS, INC.
                                    MILLER NISSAN, INC.
                                    MILLER-NII, INC.
                                    PERIMETER FORD, INC.
                                    SUNSHINE BUICK PONTIAC GMC TRUCK, INC.

                                    By:  /s/ Scott L. Thompson
                                        --------------------------------------
                                    Name: Scott L. Thompson
                                    Title: Vice President

                                    AMARILLO MOTORS-C, LTD.
                                    AMARILLO MOTORS-F, LTD.
                                    AMARILLO MOTORS-FM, LTD.
                                    AMARILLO MOTORS-J, LTD.
                                    AMARILLO MOTORS-SM, LTD.
                                    CHAPERRAL DODGE, LTD.
                                    COLONIAL CHRYSLER-PLYMOUTH, LTD.
                                    GPI, LTD.
                                    KUTZ-DC, LTD.

                                      A-15

<PAGE>

                                    KUTZ-N, LTD.
                                    LUBBOCK MOTORS, LTD.
                                    LUBBOCK MOTORS-F, LTD.
                                    LUBBOCK MOTORS-S, LTD.
                                    LUBBOCK MOTORS-SH, LTD.
                                    LUBBOCK MOTORS-T, LTD.
                                    MAXWELL CHRYSLER DODGE JEEP, LTD.
                                    MAXWELL FORD, LTD.
                                    MAXWELL-G, LTD.
                                    MAXWELL-N, LTD.
                                    MAXWELL-NII, LTD.
                                    MAXWELL-SM, LTD.
                                    MCCALL-H, LTD.
                                    MCCALL-HA, LTD.
                                    MCCALL-N, LTD.
                                    MCCALL-T, LTD.
                                    MCCALL-TII, LTD.
                                    MCCALL-TL, LTD.
                                    PRESTIGE CHRYSLER NORTHWEST, LTD.
                                    PRESTIGE CHRYSLER SOUTH, LTD.
                                    ROCKWALL AUTOMOTIVE-DCD, LTD.
                                    ROCKWALL AUTOMOTIVE-F, LTD.

                                    By: GROUP 1 ASSOCIATES, INC.,
                                        as general partner

                                    By: /s/ Scott L. Thompson
                                        ________________________________________
                                    Name: Scott L. Thompson
                                    Title: Vice President

                                    GROUP 1 HOLDINGS-DC, L.L.C. GROUP 1
                                    HOLDINGS-F, L.L.C.
                                    GROUP 1 HOLDINGS-GM, L.L.C.
                                    GROUP 1 HOLDINGS-H, L.L.C.
                                    GROUP 1 HOLDINGS-N, L.L.C.
                                    GROUP 1 HOLDINGS-S, L.L.C.
                                    GROUP 1 HOLDINGS-T, L.L.C.

                                    By: GROUP 1 AUTOMOTIVE, INC.,
                                        as sole member

                                    By: /s/ Scott L. Thompson
                                       _______________________________________
                                    Name: Scott L. Thompson
                                    Title: Executive Vice President

                                      A-16

<PAGE>

                                    COURTESY FORD, LLC
                                    GULF BREEZE FORD, LLC
                                    KEY FORD, LLC
                                    KOONS FORD, LLC

                                    By: GROUP 1 FL HOLDINGS, INC.,
                                        as sole member

                                    By: /s/ Scott L. Thompson
                                        _______________________________________
                                    Name: Scott L. Thompson
                                    Title: President

                                    BOHN-DC, LLC

                                    By: BOHN HOLDINGS-DC, INC.,
                                        as sole member

                                    By: /s/ Scott L. Thompson
                                        _______________________________________
                                    Name: Scott L. Thompson
                                    Title: Vice President

                                    BOHN-FII, LLC
                                    BOHN-FIII, LLC
                                    HARVEY FORD, LLC
                                    HARVEY-FLM, LLC

                                    By: BOHN HOLDINGS-F, INC.,
                                        as sole member

                                    By:  /s/ Scott L. Thompson
                                        ______________________________________
                                    Name: Scott L. Thompson
                                    Title: Vice President

                                    HARVEY GM, LLC

                                    By: BOHN HOLDINGS-GM, INC.,
                                        as sole member

                                      A-17

<PAGE>

                                    By:  /s/ Scott L. Thompson
                                        _______________________________________
                                    Name: Scott L. Thompson
                                    Title: Vice President

                                    HARVEY SM, LLC

                                    By: BOHN HOLDINGS-S, INC.,
                                        as sole member

                                    By:  /s/ Scott L. Thompson
                                        _______________________________________
                                    Name: Scott L. Thompson
                                    Title: Vice President
                                    HARVEY OPERATIONS-T, LLC

                                    By: HARVEY-T, INC.,
                                        as sole member

                                    By:  /s/ Scott L. Thompson
                                        _______________________________________
                                    Name: Scott L. Thompson
                                    Title: Vice President

                                    IRA AUTOMOTIVE GROUP, LLC

                                    By: DANVERS-T, INC.,
                                        as sole member

                                    By:  /s/ Scott L. Thompson
                                        _______________________________________
                                    Name: Scott L. Thompson
                                    Title: Vice President

                                    GROUP 1 LP INTERESTS-F, INC.
                                    GROUP 1 LP INTERESTS-DC, INC.
                                    GROUP 1 LP INTERESTS-T, INC.
                                    GROUP 1 LP INTERESTS-GM, INC.
                                    GROUP 1 LP INTERESTS-H, INC.
                                    GROUP 1 LP INTERESTS-S, INC.
                                    GROUP 1 LP INTERESTS-N, INC.

                                      A-18

<PAGE>
                                    By:  /s/ Mathew J. Baer
                                        _______________________________________
                                    Name:  Mathew J. Baer
                                    Title: President

                                    DELAWARE ACQUISITION-DC, LLC

                                    By: GROUP 1 LP INTERESTS-DC, INC.,
                                        as sole member

                                    By:  /s/ Mathew J. Baer
                                        _______________________________________
                                    Name:  Mathew J. Baer
                                    Title: President and Secretary

                                    DELAWARE ACQUISITION-F, LLC

                                    By: GROUP 1 LP INTERESTS-F, INC.,
                                        as sole member

                                    By:  /s/ Mathew J. Baer
                                        _______________________________________
                                    Name:  Mathew J. Baer
                                    Title: President and Secretary

                                    DELAWARE ACQUISITION-GM, LLC

                                    By: GROUP 1 LP INTERESTS-GM, INC.,
                                        as sole member

                                    By:  /s/ Mathew J. Baer
                                        _______________________________________
                                    Name: Mathew J. Baer
                                    Title: President and Secretary

                                    DELAWARE ACQUISITION-N, LLC

                                    By: GROUP 1 LP INTERESTS-N, INC.,
                                        as sole member

                                    By:  /s/ Mathew J. Baer
                                        ________________________________________

                                    Name:  Mathew J. Baer
                                    Title: President and Secretary

                                    DELAWARE ACQUISITION-T, LLC

                                    By: GROUP 1 LP INTERESTS-T, INC.,
                                        as sole member

                                    By: /s/ Mathew J. Baer
                                        ________________________________________
                                    Name: Mathew J. Baer
                                    Title: President and Secretary

                                      A-19

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