Document:

<PAGE>

                                                                     Exhibit 4.3

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

                            PARK-OHIO HOLDINGS CORP.,
                                    as Issuer

                                   ----------

                                    INDENTURE

                            Dated as of [___], 20___

                                   ----------

                             WELLS FARGO BANK, N.A.,
                                   as Trustee

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

<PAGE>

                              CROSS-REFERENCE TABLE

<TABLE>
<CAPTION>
  TIA                                                               Indenture
Section                                                              Section
-------                                                         ----------------
<S>                                                             <C>
310  (a)(1)..................................................   11.5
     (a)(2)..................................................   11.5
     (a)(3)..................................................   N.A.
     (a)(4)..................................................   N.A.
     (b).....................................................   11.4, 11.5
311  (a).....................................................   11.9(a),(b)
     (b).....................................................   11.9(a),(b)
     (c).....................................................   11.11
312(a).......................................................   4.6(d), 11.11
     (b).....................................................   11.11
     (c).....................................................   11.11
313  (a).....................................................   11.10(a)
     (b)(1)..................................................   N.A.
     (b)(2)..................................................   11.10(b)
     (c).....................................................   11.10(c)
     (d).....................................................   11.10(d)
314  (a)(1)..................................................   4.6(a)
     (a)(2)..................................................   4.6(b)
     (a)(3)..................................................   4.6(c)
     (a)(4)..................................................   4.7
     (b).....................................................   N.A.
     (c).....................................................   3.7
     (d).....................................................   N.A.
     (e).....................................................   3.7
315  (a).....................................................   11.1(a), (b)
     (b).....................................................   11.3
     (c).....................................................   11.1(a)
     (d).....................................................   11.1(a), 11.1(b)
     (e).....................................................   7.7
316  (a)(1)(A)...............................................   7.6
     (a)(1)(B)...............................................   7.1, 7.5
     (a)(2)..................................................   N.A.
     (b).....................................................   7.7
317(a).......................................................   7.2
     (b).....................................................   4.8
318  (a).....................................................   3.3
     (b).....................................................   3.3
</TABLE>

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
                                    ARTICLE I
                  DEFINITIONS; TRUST INDENTURE ACT CONTROLLING

SECTION 1.1     Definitions..............................................     1
SECTION 1.2     Trust Indenture Act Definitions Controlling..............     5

                                   ARTICLE II
                 FORM, ISSUE AND REGISTRATION OF DEBT SECURITIES

SECTION 2.1     Forms Generally and Dating...............................     6
SECTION 2.2     Amount Unlimited; Issuable in Series.....................     6
SECTION 2.3     Denominations............................................    10
SECTION 2.4     Execution and Authentication.............................    10
SECTION 2.5     Issue of Debt Securities.................................    11
SECTION 2.6     Transfer of Debt Securities..............................    12
SECTION 2.7     Persons Deemed Owners....................................    12
SECTION 2.8     Temporary Form...........................................    12
SECTION 2.9     Mutilated, Destroyed, Lost or Stolen Debt Securities.....    12
SECTION 2.10    Exchanges of Debt Securities.............................    13
SECTION 2.11    Cancellation of Surrendered Debt Securities..............    14
SECTION 2.12    Payment of Interest; Defaulted Interest..................    14
SECTION 2.13    Global Securities; Depositary............................    15
SECTION 2.14    CUSIP Numbers............................................    16

                                   ARTICLE III
                            MISCELLANEOUS PROVISIONS

SECTION 3.1     Limitation of Rights.....................................    16
SECTION 3.2     Outstanding Debt Securities..............................    17
SECTION 3.3     Severability; Trust Indenture Act Controls...............    17
SECTION 3.4     Company Release..........................................    17
SECTION 3.5     Date of Execution........................................    17
SECTION 3.6     Execution of Documents...................................    17
SECTION 3.7     Officers' Certificate and Opinion of Counsel.............    18
SECTION 3.8     Notices and Demands......................................    18
SECTION 3.9     Successors and Assigns...................................    19
SECTION 3.10    Headings.................................................    19
</TABLE>

                                       -i-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
SECTION 3.11    Governing Law............................................    19
SECTION 3.12    Counterparts.............................................    19

                                   ARTICLE IV
                            COVENANTS OF THE COMPANY

SECTION 4.1     Payment of Principal and Interest........................    19
SECTION 4.2     Maintenance of Office or Agency..........................    20
SECTION 4.3     Corporate Existence......................................    20
SECTION 4.4     Restrictions on Mergers, Sales and Consolidations........    20
SECTION 4.5     Further Assurances.......................................    21
SECTION 4.6     Reports..................................................    21
SECTION 4.7     Compliance Certificate...................................    21
SECTION 4.8     Duties of Paying Agent...................................    22
SECTION 4.9     Calculation of Original Issue Discount...................    23

                                    ARTICLE V
                   REDEMPTION OF DEBT SECURITIES; SINKING FUND

SECTION 5.1     Applicability of Article.................................    23
SECTION 5.2     Notices of Redemption to Trustee -- Deposit of Cash
                (or Other Form of Payment) -- Selection of Debt
                Securities to be Redeemed................................    23
SECTION 5.3     Effect of Notice of Redemption...........................    24
SECTION 5.4     Credits Against Sinking Fund.............................    25
SECTION 5.5     Redemption Through Sinking Fund..........................    25
SECTION 5.6     Debt Securities No Longer Outstanding after Notice to
                Trustee and Deposit of Cash..............................    26
SECTION 5.7     Conversion Arrangement on Call for Redemption............    27

                                   ARTICLE VI
                     SATISFACTION AND DISCHARGE OF INDENTURE

SECTION 6.1     Satisfaction and Discharge...............................    28
SECTION 6.2     Application of Trust Money...............................    29
SECTION 6.3     Repayment of Moneys......................................    29

                                   ARTICLE VII
                              REMEDIES UPON DEFAULT

SECTION 7.1     Events of Default........................................    29
</TABLE>

                                      -ii-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
SECTION 7.2     Acceleration.............................................    32
SECTION 7.3     Trustee May Enforce Rights of Action without Possession
                of Debt Securities.......................................    34
SECTION 7.4     Delays or Omissions Not To Impair Any Rights or Powers
                Accruing upon Default....................................    35
SECTION 7.5     Holders of at Least a Majority May Direct Exercise of
                Remedies.................................................    35
SECTION 7.6     Limitation on Suits by Holders of Debt Securities........    35
SECTION 7.7     No Company Debt Securities To Be Deemed Outstanding......    36
SECTION 7.8     Discontinuance or Abandonment of Proceedings.............    37
SECTION 7.9     Statement by Officers as to Default......................    37

                                  ARTICLE VIII
                EVIDENCE OF ACTION BY HOLDERS OF DEBT SECURITIES

SECTION 8.1     Evidence of Action by Holders of Debt Securities.........    37

                                   ARTICLE IX
                IMMUNITY OF SHAREHOLDERS, OFFICERS AND DIRECTORS

SECTION 9.1     Immunity of Shareholders, Officers, Directors and
                Employees................................................    38

                                    ARTICLE X
                      MERGER, CONSOLIDATION, SALE OR LEASE

SECTION 10.1    Consolidation, Merger, Sale, Transfer or Lease...........    38
SECTION 10.2    Trustee May Rely upon Opinion of Counsel.................    39

                                   ARTICLE XI
                             CONCERNING THE TRUSTEE

SECTION 11.1    Certain Duties and Responsibilities......................    40
SECTION 11.2    Compensation and Indemnities.............................    42
SECTION 11.3    Notice of Default........................................    44
SECTION 11.4    Conflicting Interests....................................    44
SECTION 11.5    Eligibility of Trustee...................................    44
SECTION 11.6    Resignation or Removal of Trustee........................    44
SECTION 11.7    Acceptance by Successor Trustee..........................    46
SECTION 11.8    Successor to Trustee by Merger or Consolidation, etc.....    47
SECTION 11.9    Preferential Collection of Claims........................    47
SECTION 11.10   Reports by Trustee.......................................    47
</TABLE>

                                      -iii-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
SECTION 11.11   Preservation of Information..............................    47
SECTION 11.12   Trustee May Hold Debt Securities and Otherwise Deal with
                Company..................................................    48
SECTION 11.13   Trustee may Comply with any Rule, Regulation or Order of
                the Commission...........................................    48
SECTION 11.14   Appointment of Authenticating Agent......................    48
SECTION 11.15   Trustee Not Responsible for Recitals, Disposition of Debt
                Securities or Application of Proceeds Thereof............    49

SECTION 11.16   Calculations in Respect of Debt Securities...............    49

                                   ARTICLE XII

                             SUPPLEMENTAL INDENTURES

SECTION 12.1    Supplemental Indentures for Special Purposes.............    50
SECTION 12.2    Amendments with Consent of Holders.......................    51
SECTION 12.3    Effect of Supplemental Indentures........................    52
SECTION 12.4    Supplemental Indentures to Conform to Trust
                Indenture Act............................................    53
SECTION 12.5    Notation on or Exchange of Debt Securities...............    53
SECTION 12.6    Revocation and Effect of Consents........................    53
</TABLE>

                                      -iv-
<PAGE>

          INDENTURE dated as of the [____] day of [___________________], 20___,
between PARK-OHIO HOLDINGS CORP., an Ohio corporation (the "Company"), and WELLS
FARGO BANK, N.A., as Trustee hereunder (the "Trustee");

          WHEREAS, the Company for its lawful corporate purposes has duly
authorized the execution and delivery of this Indenture (as defined herein) to
provide for the issuance from time to time of its Debt Securities (as defined
herein), to be issued in one or more series as herein provided.

          NOW, THEREFORE, THIS INDENTURE WITNESSETH:

          THAT, in consideration of the premises and of the mutual covenants
herein contained and of the purchase and acceptance of the Debt Securities by
the Holders (as defined herein) thereof, and for other valuable consideration
the receipt whereof is hereby acknowledged, and intending to be legally bound
hereby, it is hereby agreed among the Company and the Trustee, for the benefit
of those who shall hold the Debt Securities, as follows:

                                   ARTICLE I
                  DEFINITIONS; TRUST INDENTURE ACT CONTROLLING

          SECTION 1.1 DEFINITIONS. Unless otherwise specified or the context
otherwise requires, the terms defined in this Article I shall for all purposes
of this Indenture and of any indenture supplemental hereto have the meanings
herein specified, the following definitions to be equally applicable to both the
singular and plural forms of any of the terms herein defined. All accounting
terms not otherwise defined herein have the meanings assigned to them in
accordance with generally accepted accounting principles in the United States of
America, and the words "herein," "hereof" and "hereunder" and other words of
similar import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision.

          "AFFILIATE" of any specified person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified person. For purposes of this definition, "control,"
as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting securities, by
agreement or otherwise. For purposes of this definition, the terms
"controlling," "controlled by" and "under common control with" have correlative
meanings.

          "AGENT MEMBER" has the meaning specified in Section 2.13.

          "AUTHENTICATING AGENT" means any Person authorized by the Trustee
pursuant to Section 11.14 to act on behalf of the Trustee to authenticate Debt
Securities of one or more series.

          "AUTHORIZED NEWSPAPER" means a newspaper in the English language or in
an official language of the country of publication, customarily printed on each
Business Day, whether or not published on Saturdays, Sundays or holidays, and of
general circulation in the place in connection with which the term is used or in
the financial community of such place. If, because of temporary suspension of
publication or general circulation of any newspaper or for

<PAGE>

any other reason, it is impossible or, in the opinion of the Company,
impracticable to make any publication of any notice required by this Indenture
in the manner herein provided, such publication or other notice in lieu thereof
which is made at the written direction of the Company by the Trustee shall
constitute a sufficient publication of such notice. Where successive
publications are required to be made in Authorized Newspapers, the successive
publications may be made in the same or in different newspapers in the same
place meeting the foregoing requirements and in each case on any Business Day,
as directed in writing by the Company.

          "BANKRUPTCY LAW" means Title 11, U.S. Code, or any similar federal or
state law for the relief of debtors.

          "BOARD" or "BOARD OF DIRECTORS" means the (i) Board of Directors (or
similar governing body) of the Company or (ii) the Executive Committee, if any,
thereof, (iii) any other committee of such Board duly authorized to act
hereunder, or (iv) any Officers of the Company duly authorized by such Board or
by any duly authorized committee of such Board to act hereunder.

          "BUSINESS DAY" means, with respect to any series of Debt Securities,
any day other than a (i) Saturday or Sunday or (ii) day that, in the City of New
York or in the city (or in any of the cities, if more than one) in which amounts
are payable, as specified in the terms of such Debt Securities, is not a day
upon which banking institutions are authorized by law, regulation or executive
order to close.

          "CAPITAL STOCK" means any and all shares, interests, participations or
other equivalents (however designated and whether or not voting) of corporate
stock, including each class of Common Shares and Preferred Stock of the Company,
and all options, warrants or other rights to purchase or acquire any of the
foregoing.

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

          "CODE" means the Internal Revenue Code of 1986, as amended.

          "COMMISSION" means the United States Securities and Exchange
Commission.

          "COMMON SHARES" means any and all shares, interests or other
participations in, and other equivalents (however designated and whether voting
or non-voting) of the Company's common shares, whether outstanding on any issue
date of any Debt Securities or issued thereafter, and includes without
limitation, all series and classes of such common shares including the common
shares, par value $1.00 per share, of the Company.

          "COMPANY" has the meaning set forth in the pre-amble hereof and,
subject to the provisions of Article X, shall include such entity's successors
and assigns.

          "COMPANY ORDER" means a written order signed in the name of the
Company by at least one Officer of the Company and delivered to the Trustee.

                                       2

<PAGE>

          "DEBT SECURITY" means one of the debentures, notes or other evidences
of indebtedness that are issued from time to time in one or more series under
this Indenture and, more particularly, any series of Debt Securities
authenticated and delivered under this Indenture.

          "DEPOSITARY" has the meaning specified in Section 2.13.

          "EVENT OF DEFAULT" means an event listed in Section 7.1, continued for
the period of time, if any, and after the required notices, if any, therein
designated.

          "EXCHANGE ACT" means the Securities Exchange Act of 1934.

          "GLOBAL SECURITY" has the meaning specified in Section 2.13.

          "HOLDERS," "HOLDERS OF DEBT SECURITIES" or other similar term means
any person who shall at the time be the registered holder of any Debt Security
or Debt Securities as shown by the register or registers kept by the Company or
its agent for that purpose in accordance with the terms of this Indenture.

          "INDENTURE" means this instrument as originally executed or, if
amended or supplemented as herein provided, as so amended or supplemented and,
unless the context otherwise indicates, shall include the form and terms of each
particular series of Debt Securities established as contemplated hereunder.

          "OFFICER" means (a) with respect to any Person that is a corporation,
the Chairman of the Board, the Chief Executive Officer, the President, the Chief
Operating Officer, the Chief Financial Officer, the Treasurer, any Assistant
Treasurer, the Controller, the Secretary, any Assistant Secretary or any
Vice-President of such Person and (b) with respect to any other Person, the
individuals selected by such Person to perform functions similar to those of the
officers listed in clause (a).

          "OFFICERS' CERTIFICATE" means a certificate in form and substance
reasonably acceptable to the Trustee signed on behalf of the Company by two
Officers of the Company, one of whom must be the principal executive officer,
the principal financial officer, the treasurer or the principal accounting
officer of the Company, and delivered to the Trustee. Each such certificate
shall include the statements provided for in Section 3.7, if and to the extent
required by the provisions thereof.

          "OPINION OF COUNSEL" means an opinion in writing signed by legal
counsel (who may be an employee of or counsel to the Company, a subsidiary of
the Company or the Trustee) reasonably acceptable in form and substance to the
Trustee and delivered to the Trustee. Such opinion shall include the statements
provided for in Section 3.7, if and to the extent required by the provisions
thereof.

          "ORIGINAL ISSUE DISCOUNT" with respect to any Debt Security, including
an Original Issue Discount Security, has the same meaning as set forth in
Section 1273 of the Code, or any successor provision, and the applicable
Treasury Regulations thereunder.

                                       3

<PAGE>

          "ORIGINAL ISSUE DISCOUNT SECURITY" means any series of a Debt Security
that 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 7.1.

          "OUTSTANDING," when used with respect to the Debt Securities, means,
subject to Section 3.2, as of the date of determination, all Debt Securities
theretofore authenticated and delivered under this Indenture, except: (a) Debt
Securities for the payment or redemption of which cash (or other form of payment
if permitted by the terms of such Debt Securities) in the necessary amount shall
have been deposited in trust with the Trustee or any Paying Agent (other than
the Company); provided, however, that, if such Debt Securities are to be
redeemed prior to the maturity thereof, notice of such redemption shall have
been duly given or provision satisfactory to the Trustee shall have been made
for giving such notice; (b) Debt Securities converted or exchanged into Capital
Stock in accordance with the provisions of such Debt Securities or the
resolution of the Board of Directors or the indenture supplement pursuant to
which such Debt Securities were issued, if the terms of such Debt Securities
provide for convertibility or exchangeability pursuant to Section 2.2; (c) Debt
Securities paid or in lieu of or in substitution for which other Debt Securities
shall have been authenticated and delivered pursuant to the terms of Section
2.9, unless proof satisfactory to the Trustee is presented that any such Debt
Securities are held by persons in whose hands such Debt Securities are valid,
binding and legal obligations; and (d) Debt Securities which have been cancelled
by the Trustee or delivered to the Trustee or its designee for cancellation.

          "PAYING AGENT" means any person authorized by the Company to pay the
Principal of, premium, if any, make-whole amount, if any and interest on any
Debt Securities.

          "PERSON" means an individual, partnership, corporation, company
(including limited liability company and joint-stock company), unincorporated
organization, trust or joint venture, association, or a government or agency or
political subdivision thereof or any other entity.

          "PREFERRED STOCK" means any Capital Stock that has preferential rights
to any other Capital Stock with respect to dividends or redemptions or upon
liquidation.

          "PRINCIPAL" of a debt security, including any series of Debt
Securities, on any day and for any purpose means the amount (including, without
limitation, in the case of an Original Issue Discount Security, any accrued
Original Issue Discount, but excluding interest) that is payable with respect to
such debt security as of such date and for such purpose (including, without
limitation, in connection with any sinking fund, upon any redemption at the
option of the Company upon any purchase or exchange at the option of the Company
or the Holder of such debt security and upon any acceleration of the maturity of
such debt security).

          "PRINCIPAL AMOUNT" of a debt security, including any series of Debt
Securities, means the principal amount as set forth on the face of such debt
security.

          "RESPONSIBLE OFFICER," when used with respect to the Trustee, means
any officer within the corporate trust department of the Trustee (or any similar
or successor group of the Trustee), including any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer or any other
officer of the Trustee who customarily performs functions

                                       4

<PAGE>

similar to those performed by the Persons who at the time shall be such
officers, respectively, or to whom any corporate trust matter is referred
because of such person's knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this
Indenture.

          "SECURITIES ACT" means the Securities Act of 1933.

          "SIGNIFICANT SUBSIDIARY" means any subsidiary of the Company that
satisfies the criteria for a "significant subsidiary" set forth in Article 1,
Rule 1-02(w) of Regulation S-X under the Securities Act.

          "TRUST INDENTURE ACT" means the Trust Indenture Act of 1939, as
amended, as in effect on the date on which this Indenture is qualified under the
Trust Indenture Act.

          "TRUSTEE" means the Trustee or Trustees hereunder for the time being,
whether original or successor. "Trustee" as used with respect to the Debt
Securities of any series means the Trustee with respect to Debt Securities of
such series. The term "principal office" of the Trustee means the principal
office of the Trustee at which, at any particular time, the corporate trust
business of the Trustee shall be administered, which office as of the date
hereof is at Sixth and Marquette, N9303-120, Minneapolis, Minnesota 55479;
Attention: Park-Ohio Account Manager.

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

          SECTION 1.2 TRUST INDENTURE ACT DEFINITIONS CONTROLLING. All terms
used in this Indenture which are defined in the Trust Indenture Act, or which
are by reference therein defined in the Securities Act (except as herein
otherwise expressly provided or unless the context otherwise requires) shall
have the meanings assigned to such terms in the Trust Indenture Act and the
Securities Act as they were respectively in force at the date of this Indenture,
except as otherwise provided in Section 12.3.

                                       5

<PAGE>

                                   ARTICLE II
                 FORM, ISSUE AND REGISTRATION OF DEBT SECURITIES

          SECTION 2.1 FORMS GENERALLY AND DATING. The Debt Securities of each
series shall be in the form or forms (including temporary or permanent global
form) established from time to time by or pursuant to a resolution of the Board
of Directors or in one or more supplemental indentures, which shall set forth
the information required by Section 2.2. The Debt Securities and the Trustee's
certificate of authentication shall have such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture or by a resolution of the Board of Directors and may have such
notations, legends or endorsements as the Company may deem appropriate and as
are not inconsistent with the provisions of this Indenture or as may be required
by law, securities exchange rule or usage. The Company shall approve and provide
the form of the Debt Securities and any notation, legend or endorsement thereon.
If the form of Debt Securities of any series is established by action taken
pursuant to a resolution of the Board of Directors, a Certified Resolution shall
be delivered to the Trustee at or prior to the delivery of the Company Order
contemplated by Section 2.5 for the authentication and delivery of such Debt
Securities.

          Each Debt Security shall be dated the date of its authentication. The
form of the Trustee's certificate of authentication to be borne by the Debt
Securities shall be substantially as follows:

                [FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION]

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

                                        WELLS FARGO BANK, N.A., as Trustee

Dated:                                                                         ,
       ------------------------------   ---------------------------------------
                                        By: Authorized Signatory

          SECTION 2.2 AMOUNT UNLIMITED; ISSUABLE IN SERIES.

          The aggregate Principal Amount of the Debt Securities which may be
authenticated and delivered under this Indenture is unlimited.

          The Debt Securities may be issued in one or more series. There shall
be established in or pursuant to one or more resolutions of the Board of
Directors, or established in or pursuant to one or more indentures supplemental
hereto, prior to the issuance of the Debt Securities of any series:

          (1) the title and designation of the Debt Securities of the series
     (which shall distinguish Debt Securities of the series from Debt Securities
     of any other series) including whether the Debt Securities of the series
     shall be issued as senior Debt

                                       6

<PAGE>

     Securities, senior subordinated Debt Securities or subordinated Debt
     Securities, any subordination provisions particular to such series of Debt
     Securities, and whether such Debt Securities are convertible and/or
     exchangeable for other securities;

          (2) the aggregate Principal Amount of the Debt Securities of the
     series and any limit upon the aggregate Principal Amount of the Debt
     Securities of the series which may be authenticated and delivered under
     this Indenture (except for the Debt Securities authenticated and delivered
     upon registration of transfer of, or in exchange for, or in lieu of, other
     Debt Securities of the series pursuant to Section 2.6, 2.8, 2.9, 2.10,
     2.11, 5.2 or 12.5);

          (3) the date or dates (whether fixed or extendable) on which the
     Principal of the Debt Securities of the series is payable or the method of
     determination thereof;

          (4) the rate or rates (which may be fixed, floating or adjustable) at
     which the Debt Securities of the series shall bear interest, if any, the
     method of calculating such rates, the date or dates from which such
     interest shall accrue or the manner of determining such dates, the interest
     payment dates on which such interest shall be payable and the record dates
     for the determination of Holders of Debt Securities to whom interest is
     payable, and the basis upon which interest shall be calculated if other
     than that of a 360-day year consisting of twelve 30-day months;

          (5) the place or places where the Principal of and premium, if any,
     make-whole amount, if any, and interest on the Debt Securities of the
     series, if any, shall be payable, where the Holders of the Debt Securities
     may surrender Debt Securities for conversion, transfer or exchange, and
     where notices or demands to or upon the Company in respect of the Debt
     Securities and this Indenture may be served;

          (6) any provisions relating to the issuance of the Debt Securities of
     the series at an Original Issue Discount;

          (7) the price or prices at which, the period or periods within which
     and the terms and conditions upon which the Debt Securities of the series
     may be redeemed, in whole or in part, at the option of the Company,
     pursuant to any sinking fund or otherwise (including, without limitation,
     the form or method of payment thereof if other than in cash);

          (8) the obligation, if any, of the Company to redeem, purchase or
     repay the Debt Securities of the series pursuant to any mandatory
     redemption, sinking fund or analogous provisions or at the option of a
     Holder of Debt Securities thereof and the price or prices at which and the
     period or periods within which and the terms and conditions upon which the
     Debt Securities of the series shall be redeemed, purchased or repaid, in
     whole or in part, pursuant to such obligation (including, without
     limitation, the form or method of payment thereof if other than in cash),
     and any provisions for the remarketing of such Debt Securities;

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

                                       7

<PAGE>

          (10) if other than the Principal Amount thereof, the portion of the
     Principal Amount of the Debt Securities of the series which shall be
     payable upon declaration of acceleration of the maturity thereof pursuant
     to Section 7.1 or provable in bankruptcy pursuant to Section 7.2, or, if
     applicable, which is convertible or exchangeable in accordance with the
     provisions of such Debt Securities or the resolution of the Board of
     Directors or the supplemental indenture pursuant to which such Debt
     Securities are issued;

          (11) any Events of Default with respect to the Debt Securities of a
     particular series, in lieu of or in addition to those set forth herein and
     the remedies therefor;

          (12) the obligations, if any, of the Company to permit the conversion
     or exchange of the Debt Securities of such series into Common Shares or
     other Capital Stock or property, or combination thereof, and the terms and
     conditions upon which such conversion shall be effected (including, without
     limitation, the initial conversion or exchange price or rate, the
     conversion or exchange period, the provisions for conversion or exchange
     price or rate adjustments and any other provision relative to such
     obligation) and any limitations on the ownership or transferability of the
     securities or property into which Holders of such Debt Securities may
     convert or exchange such Debt Securities;

          (13) any trustees, authenticating or paying agents, transfer agents or
     registrars or any other agents with respect to the Debt Securities of such
     series;

          (14) the currency or currency units, including composite currencies,
     in which the Debt Securities of the series shall be denominated if other
     than the currency of the United States of America, and, if so, whether the
     Debt Securities of the series may be satisfied and discharged other than as
     provided in Article VI;

          (15) if other than the currency or currency units in which the Debt
     Securities of that series are denominated, the coin or currency in which
     payment of the Principal of, premium, if any, make-whole amount, if any, or
     interest on the Debt Securities of such series shall be payable (and the
     manner in which the equivalent of the Principal Amount thereof in the
     currency of the United States of America is to be determined for any
     purpose, including for the determination of the Principal Amount
     outstanding);

          (16) if the Principal of, premium, if any, make-whole amount, if any,
     or interest on the Debt Securities of the series is to be payable, at the
     election of the Company or a Holder of Debt Securities thereof, in a coin
     or currency other than that in which the Debt Securities are denominated or
     stated, the period or periods within which, and the terms and conditions
     upon which, such election may be made and the time and manner of, and
     identity of the exchange rate agent with responsibility for, determining
     the exchange rate between the currency or currencies in which the Debt
     Securities are denominated or stated to be payable and the currency or
     currencies in which the Debt Securities will be payable;

          (17) if the amount of payments of Principal of, premium, if any,
     make-whole amount, if any, and interest on the Debt Securities of the
     series may be determined with reference to an index, the manner in which
     such amounts shall be determined;

                                       8

<PAGE>

          (18) whether and under what circumstances the Company will pay
     additional amounts on the Debt Securities of the series held by a person
     who is not a United States of America Person in respect of any tax,
     assessment or governmental charge withheld or deducted and, if so, whether
     the Company will have the option to redeem such Debt Securities rather than
     pay such additional amounts;

          (19) if receipt of certain certificates or other documents or
     satisfaction of other conditions will be necessary for any purpose,
     including, without limitation, as a condition to the issuance of the Debt
     Securities of such series in definitive form (whether upon original issue
     or upon exchange of a temporary Debt Security of such series), the form and
     terms of such certificates, documents or conditions;

          (20) any other affirmative or negative covenants with respect to the
     Debt Securities of such series;

          (21) whether the Debt Securities of such series shall be issued in
     whole or in part in the form of one or more Global Securities and in such
     case, (i) the Depositary for such Global Securities or Debt Securities,
     which Depositary must be a clearing agency registered under the Exchange
     Act, (ii) the circumstances under which any such Global Security may be
     exchanged for Debt Securities registered in the name of, and under which
     any transfer of such Global Securities may be registered in the name of,
     any Person other than such Depositary or its nominee, if other than as set
     forth in Section 2.13 and (iii) any other provisions regarding such Global
     Securities which provisions may be in addition to or in lieu of, in whole
     or in part, the provisions of Section 2.13;

          (22) whether the Debt Securities are defeasible; and

          (23) any other terms of a particular series and any other provisions
     expressing or referring to the terms and conditions upon which the Debt
     Securities of the series are to be issued under the Indenture, which terms
     and provisions are not in conflict with the provisions of this Indenture;
     provided, however, that the addition to or subtraction from or variation of
     Articles IV, V, VI, VII, and X (and Section 1.1, insofar as it relates to
     the definition of certain terms as used in such Articles) with regard to
     the Debt Securities of a particular series shall not be deemed to
     constitute a conflict with the provisions of those Articles.

          All Debt Securities of any one series shall be substantially identical
except as to denomination and except as may otherwise be provided in or pursuant
to such resolution of the Board of Directors or in any such indenture
supplemental hereto. Not all Debt Securities of any one series need be issued at
the same time, and, unless otherwise so provided, a series may be reopened for
issuances of additional Debt Securities of such series.

          If any of the terms of the Debt Securities of a series are established
by action taken pursuant to a resolution of the Board of Directors, a Certified
Resolution shall be delivered to the Trustee with an Officers' Certificate
setting forth the terms of the Debt Securities of such series. With respect to
Debt Securities of a series that are not to be issued at one time, such
resolution of the Board of Directors or action may provide general terms or
parameters for Debt Securities of the series and provide either that the
specific terms of particular Debt Securities of

                                       9

<PAGE>

the series shall be specified in a Company Order or that such terms shall be
determined by the Company or its agents in accordance with a Company Order as
contemplated by the proviso clause of Section 2.5.

          SECTION 2.3 DENOMINATIONS. The Debt Securities of each series shall be
registered Debt Securities without coupons, in such denominations as shall be
specified as contemplated by Section 2.2. In the absence of any such provisions
with respect to the Debt Securities of any series, the Debt Securities of such
series shall be issuable in denominations of $1,000 or of any integral multiple
of $1,000.

          SECTION 2.4 EXECUTION AND AUTHENTICATION. The Debt Securities shall be
executed on behalf of the Company by at least one Officer of the Company, whose
signature may be manual or by facsimile. In case any Officer of the Company who
shall have signed any of the Debt Securities shall cease to be such Officer
before the Debt Securities so signed shall actually have been authenticated and
delivered by the Trustee or the Authenticating Agent or disposed of by the
Company, such Debt Securities nevertheless may be authenticated, issued and
delivered or disposed of with the same force and effect as though the person who
signed such Debt Securities had not ceased to be such Officer of the Company;
and any such Debt Security may be signed on behalf of the Company by such
person, as at the actual date of the execution of such Debt Security, shall be
the proper Officer of the Company, although at the date of such Debt Security or
the date of execution of this Indenture any such person was not such Officer.

          No Debt Security of any series shall be entitled to the benefits
hereof or shall be or become valid or obligatory for any purpose unless there
shall appear on the Debt Security a certificate of authentication, substantially
in the form hereinbefore recited, manually executed by the Trustee for such
series or an Authenticating Agent; and such certificate on any series of Debt
Securities issued by the Company shall be conclusive evidence that it has been
duly authenticated and delivered hereunder.

          If the form or forms or terms of the Debt Securities of any series
have been established in or pursuant to one or more resolutions of the Board of
Directors or indentures supplemental hereto as permitted by Sections 2.1 and
2.2, in authenticating such Debt Securities, and accepting the additional
responsibilities under this Indenture in relation to such Debt Securities, the
Trustee and the Authenticating Agent shall be entitled to receive, and (subject
to Section 11.2) shall be fully protected in conclusively relying upon, a
Certified Resolution or Resolutions delivered to the Trustee and the
Authenticating Agent to have been duly adopted by the Board of Directors of the
Company, and to be in full force and effect on the date of such certification,
and an Opinion of Counsel stating:

          (1) if the form or forms of such Debt Securities have been established
     by or pursuant to a resolution of the Board of Directors or indenture
     supplemental hereto, that such form or forms have been established in
     conformity with the provisions of this Indenture;

          (2) if the terms of such Debt Securities have been established by or
     pursuant to a resolution of the Board of Directors or indenture
     supplemental hereto, that such terms have been established in conformity
     with the provisions of this Indenture;

                                       10
<PAGE>

          (3) that such Debt Securities, when authenticated and delivered by the
     Trustee or an Authenticating Agent and issued by the Company in the manner
     and subject to any conditions specified in such Opinion of Counsel, will
     constitute valid and binding obligations of the Company, enforceable in
     accordance with their terms, subject to bankruptcy, insolvency, fraudulent
     conveyance, reorganization and other laws of general applicability relating
     to or affecting the enforcement of creditors' rights and to general equity
     principles (or such other similar matters as in the opinion of such counsel
     shall not materially adversely affect such enforceability); and

          (4) that the issuance and authentication of such Debt Securities to be
     issued will not violate, result in a breach or constitute a default or,
     with the giving of notice or the passage of time or both, would not
     constitute a default, under the articles of incorporation or code of
     regulations of the Company or result in such a default or violation.

          If all the Debt Securities of a series are not to be originally issued
at one time, the resolution of the Board of Directors or supplemental indenture,
the Certified Resolution or supplemental indenture, the Officers' Certificate,
the Company Order and any other documents otherwise required pursuant to
Sections 2.1, 2.2, 3.7 and this Section shall be delivered at or prior to the
time of authentication of each Debt Security of such series.

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

          With respect to Debt Securities of a series which are not all issued
at one time, the Trustee and the Authenticating Agent may conclusively rely, as
to the authorization by the Company of any such Debt Securities, the form and
terms thereof and the legality, validity, binding effect and enforceability
thereof, upon the Opinion of Counsel, Officers' Certificate and other documents
delivered pursuant to Sections 2.1, 2.2, 3.7 and this Section, as applicable, at
or prior to the time of the first authentication of Debt Securities of such
series unless and until such opinion, certificate or other documents have been
superseded or revoked in a writing delivered to the Trustee. In connection with
the authentication and delivery of Debt Securities of a series which are not all
issued at one time, the Trustee and the Authenticating Agent shall be entitled
to assume that the Company's instructions to authenticate and deliver such Debt
Securities do not violate any rules, regulations or orders of any governmental
agency or commission having jurisdiction over the Company.

          SECTION 2.5 ISSUE OF DEBT SECURITIES. The Trustee and the
Authenticating Agent, forthwith upon the execution and delivery of this
Indenture and from time to time thereafter, upon the execution and delivery to
it of Debt Securities of any series by the Company as herein provided, and
without any further action on the part of the Company, shall authenticate such
Debt Securities up to a maximum amount, if any, designated for such series
pursuant to Section 2.2 and deliver them to or upon the receipt of a Company
Order; provided, however, that if not all the Debt Securities of a series are to
be issued at one time and if the resolution of the Board of Directors or
indenture supplemental hereto establishing such series as

                                       11

<PAGE>

contemplated by Sections 2.1 and 2.2 shall so permit, such Company Order may set
forth procedures acceptable to the Trustee for the issuance of such Debt
Securities and for determining the form or forms or terms of particular Debt
Securities of such series including, but not limited to, interest rate, if any,
maturity date, date of issuance and date from which interest, if any, shall
accrue.

          SECTION 2.6 TRANSFER OF DEBT SECURITIES. The transfer of any series of
Debt Securities may be registered by the registered owner thereof, in person or
by his attorney duly authorized in writing, at the office or agency of the
Company to be maintained by it as provided in Section 4.2, by delivering such
Debt Security for cancellation, accompanied by delivery of a duly executed
instrument of transfer, in form approved by the Company and satisfactory to the
Trustee or its designee, and thereupon the Company shall execute in the name of
the transferee or transferees, and the Trustee or the Authenticating Agent shall
authenticate and deliver, a new Debt Security or Debt Securities of the same
series and of like form for the same aggregate Principal Amount.

          SECTION 2.7 PERSONS DEEMED OWNERS. Prior to due presentation of any
series of Debt Securities for registration of transfer, the person in whose name
a Debt Security of any series shall be registered on books kept for such purpose
in accordance with Section 4.2 shall be deemed the absolute owner thereof for
all purposes of this Indenture, whether or not such Debt Security is overdue,
and neither the Company, the Trustee nor any Paying Agent or conversion agent
nor any series of Debt Securities registrar shall be affected by notice to the
contrary. Subject to the provisions of Section 2.12, payment of or on account of
the Principal, premium, if any, make-whole amount, if any, and interest shall be
made only to or upon the order in writing of such registered owner thereof, but
such registration may be changed as above provided. All such payments shall be
valid and effectual to satisfy and discharge the liability upon such Debt
Security to the extent of the sum or sums so paid.

          SECTION 2.8 TEMPORARY FORM. Until Debt Securities of any series in
definitive form are ready for delivery, the Company may execute and, upon
receipt of a Company Order, the Trustee or the Authenticating Agent shall
authenticate and deliver, in lieu thereof and subject to the same conditions,
one or more printed Debt Securities in temporary form, substantially of the
tenor of Debt Securities of the same series, without a recital of specific
redemption prices and with such other appropriate omissions, variations and
insertions, all as may be determined by the Board of Directors. Until exchanged
for Debt Securities of the same series in definitive form such Debt Securities
in temporary form shall be entitled to the benefits of this Indenture. The
Company shall, without unreasonable delay after the issue of Debt Securities in
temporary form, prepare, execute and deliver definitive Debt Securities of the
same series to the Trustee, and upon the presentation and surrender of Debt
Securities in temporary form, the Trustee or the Authenticating Agent shall
authenticate and deliver, in exchange therefor, Debt Securities of the same
series in definitive form for the same aggregate Principal Amount as the Debt
Securities in temporary form surrendered. Such exchange shall be made by the
Company at its own expense and without any charge therefor.

          SECTION 2.9 MUTILATED, DESTROYED, LOST OR STOLEN DEBT SECURITIES. Upon
receipt by the Company, the Trustee and the Authenticating Agent of evidence
satisfactory to them that any Debt Security of any series has been mutilated,
destroyed, lost or stolen, and upon receipt of an indemnity bond from the Holder
(and in case of a destroyed, lost or stolen

                                       12

<PAGE>

Debt Security, proof of ownership) that is sufficient in the judgment of the
Trustee and the Company to protect the Company, Trustee, Authenticating Agent or
any other agent from any loss that any of them may suffer if a Debt Security is
replaced, the Company shall, in the case of a mutilated Debt Security, and may
in the case of a lost, stolen or destroyed Debt Security, execute, and thereupon
the Trustee or the Authenticating Agent shall authenticate and deliver, a new
Debt Security of the same series of like tenor bearing a serial number not
contemporaneously outstanding (bearing such notation, if any, as may be required
by the rules of any securities exchange upon which the Debt Securities of the
same series are listed or are to be listed), in exchange and substitution for,
and upon surrender and cancellation of, the mutilated Debt Security, or in lieu
of and in substitution for the Debt Security so destroyed, lost or stolen; or,
if any mutilated, destroyed, lost or stolen Debt Security of any series shall
have matured or be about to mature, instead of issuing a new Debt Security, the
Company, upon written notice to the Trustee or the Authenticating Agent, may pay
the same without surrender of the destroyed, lost or stolen Debt Security. The
Company may require payment of the expenses which may be incurred by the Company
or any agent thereof and the charges and expenses of the Trustee and the
Authenticating Agent in the premises. Any series of Debt Securities issued under
the provisions of this Section 2.9 in lieu of any series of Debt Securities
alleged to have been destroyed, lost or stolen shall constitute an additional
contractual obligation of the Company, whether or not the Debt Security alleged
to have been destroyed, lost or stolen shall be found at any time, and shall be
equally and proportionately entitled to the benefits of this Indenture with all
other Debt Securities of the same series issued under this Indenture.

          All Debt Securities shall be held and owned upon the express condition
that the foregoing provisions are exclusive with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Debt Securities, and shall
preclude, to the extent lawful, any and all other rights or remedies,
notwithstanding any law or statute existing or hereafter enacted to the contrary
with respect to the replacement or payment of negotiable instruments or other
securities without their surrender.

          SECTION 2.10 EXCHANGES OF DEBT SECURITIES. Debt Securities of any
series may, upon surrender thereof as hereinafter provided in this Section 2.10,
be exchanged for one or more Debt Securities of the same series of the same
aggregate Principal Amount, in authorized denominations. The Debt Securities to
be exchanged shall be surrendered at the office or agency of the Company to be
maintained by it as provided in Section 4.2, accompanied by duly executed
instruments of transfer in a form acceptable to the Company, the Trustee and the
registrar, and the Company shall execute and the Trustee or the Authenticating
Agent shall authenticate and deliver, in exchange therefor, the Debt Security or
Debt Securities of the same series, bearing numbers not contemporaneously
outstanding, which the Holder of Debt Securities making the exchange shall be
entitled to receive. Every exchange of Debt Securities of any series shall be
effected in such manner as may be prescribed by the Company with the approval of
the Trustee and registrar, and as may be necessary to comply with the
regulations of any securities exchange upon which Debt Securities of such series
are listed or are to be listed or to conform to usage in respect thereof.

          Upon every exchange or registration of transfer of Debt Securities, no
service charge shall be made but the Company may require the payment of any
taxes or other

                                       13

<PAGE>

governmental charges required to be paid with respect to such exchange or
registration, as a condition precedent to the exercise of the privilege of such
exchange or registration.

          All Debt Securities executed, authenticated and delivered in exchange
or upon registration of transfer shall be the valid obligations of the Company,
evidencing the same debt as the Debt Securities surrendered, and shall be
entitled to the benefits of this Indenture to the same extent as the Debt
Securities in exchange for which they were authenticated and delivered.

          The Company shall not be required to make exchanges or registrations
of transfer under any provision of this Article II of: (a) the Debt Securities
of any series for the period of 15 days next preceding the date of any
designation of Debt Securities of such series to be redeemed, as provided in
Article V, (b) any series of Debt Securities or portion thereof called or to be
called for redemption or (c) any series of Debt Securities between a record date
for such series and the next succeeding interest payment date for such series.

          SECTION 2.11 CANCELLATION OF SURRENDERED DEBT SECURITIES. All Debt
Securities of any series surrendered for the purpose of payment, exchange,
conversion or cancellation shall, if surrendered to the Company or any Paying
Agent or conversion agent, be delivered to the Trustee or its designee and
cancelled by it, or, if surrendered to the Trustee or its designee, shall be
cancelled by it, and no Debt Securities shall be issued in lieu thereof except
as expressly permitted by any of the provisions of this Indenture or as
otherwise provided in the resolution of the Board of Directors or indenture
supplemental hereto establishing such series as contemplated by Section 2.2. All
Debt Securities of any series surrendered for the purpose of redemption or
credit against any sinking fund shall similarly be delivered to the Trustee or
its designee for cancellation, and no Debt Securities shall be issued in lieu
thereof except Debt Securities of the same series in the case of redemption of a
Debt Security in part only. If the Company shall acquire any of the Debt
Securities, such acquisition shall not operate as a redemption or satisfaction
of the indebtedness represented by such Debt Securities unless and until the
same are delivered to the Trustee or its designee for cancellation. Unless
otherwise directed in writing by the Company, the Trustee or its designee shall
dispose of cancelled Debt Securities in accordance with its customary procedures
(subject to any record retention requirement of the Exchange Act). Certification
of the destruction of all canceled Debt Securities shall be delivered to the
Company.

          SECTION 2.12 PAYMENT OF INTEREST; DEFAULTED INTEREST. Interest (except
defaulted interest) on the Debt Securities of any series which is payable on any
interest payment date shall be paid to the persons who are Holders of Debt
Securities of such series at the close of business on the record date specified
for that purpose as contemplated by Section 2.2. At the option of the Company,
payment of interest on any series of Debt Securities may be made by check mailed
to the Holder's registered address.

          If the Company defaults in a payment of interest on the Debt
Securities of any series, it shall pay the defaulted interest to the persons who
are Holders of Debt Securities of such series at the close of business on a
subsequent special record date. The Company shall fix the record date (which
shall be not less than ten days prior to the date of payment of such defaulted
interest) and payment date. At least 15 days before the record date, the Company
(or, upon the written request of the Company, the Trustee in the name and at the
expense of the Company) shall mail to each Holder of Debt Securities of such
series a notice that states the

                                       14

<PAGE>

record date, the payment date and the amount of defaulted interest to be paid.
The Company shall notify the Trustee in writing of the amount of defaulted
interest proposed to be paid on each Debt Security of such series and the date
of the proposed payment, and at the same time the Company shall deposit with the
Trustee or any Paying Agent for such series an amount of money in immediately
available funds by 10:00 a.m., New York City time, on the payment date equal to
the aggregate amount proposed to be paid in respect of such defaulted interest
or shall make arrangements satisfactory to any Paying Agent for such series for
such deposit prior to the date of the proposed payment. The Company may pay
defaulted interest in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Debt Security may be
listed, and upon 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 payment shall be deemed practicable by the Trustee.

          SECTION 2.13 GLOBAL SECURITIES; DEPOSITARY. For the purpose of this
Section, the term "Agent Member" means a member of, or participant in, a
Depositary; the term "Depositary" means, with respect to Debt Securities
issuable or issued in whole or in part in the form of one or more Global
Securities, the entity designated as Depositary by the Company pursuant to
Section 2.2 and any and all successors thereto appointed as depositary
hereunder, and, if at any time there is more than one such person, "Depositary"
as used with respect to the Debt Securities means the respective Depositary with
respect to a particular series of Debt Securities; and the term "Global
Security" means a global certificate evidencing all or part of the series of
Debt Securities as shall be specified herein, issued to the Depositary for the
series or such portion of the series, and registered in the name of such
Depositary or its nominee. The Global Security may provide that it shall
represent the aggregate amount of Outstanding Debt Securities from time to time
endorsed thereon which may from time to time be reduced to reflect exchanges.
Any endorsement to reflect the amount, or any increase or decrease in the
amount, of Outstanding Debt Securities shall be made by the Trustee.

          Notwithstanding Section 2.10, except as otherwise specified as
contemplated by Section 2.2, hereof, any Global Security shall be exchangeable
only as provided in this paragraph. A Global Security shall be exchangeable
pursuant to this Section 2.13 if (i) the Depositary notifies the Company that it
is unwilling or unable to continue as Depositary for such Global Security or if
at any time the Depositary ceases to be a clearing agency registered under the
Exchange Act and, in either case, a successor Depositary is not appointed by the
Company within 120 days after the date of such notice from the Depositary, (ii)
the Company in its sole discretion determines that all Global Securities of any
series then outstanding under this Indenture shall be exchangeable for
definitive Debt Securities of such series in registered form or (iii) an Event
of Default with respect to the Debt Securities of the series represented by such
Global Security has occurred and is continuing. Any Global Security of such
series exchangeable pursuant to the preceding sentence shall be exchangeable for
definitive Debt Securities of such series in registered form, bearing interest
(if any) at the same rate or pursuant to the same formula, having the same date
of issuance, redemption, conversion (if any) and other provisions, and of
differing denominations aggregating a like amount. Such definitive Debt
Securities of such series shall be registered in the names of the owners of the
beneficial interests in such Global Securities of such series as such names are
from time to time provided by the relevant participants in the Depositary
holding such Global Securities (as such participants are identified from time to
time by such Depositary).

                                       15

<PAGE>

          No Global Security may be transferred except as a whole by a nominee
of the Depositary to the Depositary or another nominee of the Depositary or by
the Depositary or any such nominee to a successor of the Depositary or a nominee
of such successor. Except as provided above, owners solely of beneficial
interests in a Global Security shall not be entitled to receive physical
delivery of Debt Securities of such series in definitive form and will not be
considered the Holders of Debt Securities thereof for any purpose under this
Indenture.

          Any Global Security that is exchangeable pursuant to the preceding
paragraph shall be exchangeable for Debt Securities of such series in authorized
denominations and registered in such names as the Depositary that is the Holder
of Debt Securities of such Global Securities of such series shall direct.

          The Agent Members shall have no rights under this Indenture with
respect to any Global Security held on their behalf by a Depositary, and such
Depositary may be treated by the Company, the Trustee, and any agent of the
Company or the Trustee as the owner of such Global Security for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the
Company, the Trustee, or any agent of the Company or the Trustee from giving
effect to any written certification, proxy or other authorization furnished by a
Depositary or impair, as between a Depositary and its Agent Members, the
operation of customary practices governing the exercise of the rights of a
Holder of a Debt Security of any series, including without limitation the
granting of proxies or other authorization of participants to give or take any
request, demand, authorization, direction, notice, consent, waiver or other
action which a Holder of Debt Securities is entitled to give or take under this
Indenture. Neither the Trustee nor any of its agents shall have any
responsibility for actions taken or not taken by the Depositary.

          The Trustee shall not be required to authenticate Global Securities
until it has received documentation as required by Section 2.4.

          SECTION 2.14 CUSIP NUMBERS. The Company in issuing the Debt Securities
may use "CUSIP" numbers (if then generally in use), and, if so, the Trustee
shall use "CUSIP" numbers 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 Debt Securities
or as contained in any notice of a redemption and that reliance may be placed
only on the other identification numbers printed on the Debt Securities, and any
such redemption shall not be affected by any defect in or omission of such
numbers. The Company will promptly notify the Trustee in writing of any change
in the "CUSIP" numbers.

                                   ARTICLE III
                            MISCELLANEOUS PROVISIONS

          SECTION 3.1 LIMITATION OF RIGHTS. Nothing in this Indenture or the
Debt Securities, express or implied, is intended or shall be construed to confer
upon, or to give to, any Person, other than the parties hereto, their successors
and assigns, and the Holders of the Debt Securities, any right, remedy or claim
under or by reason of this Indenture or any provision hereof; and the provisions
of this Indenture are for the exclusive benefit of the parties hereto, their
successors and assigns, and the Holders of the Debt Securities.

                                       16

<PAGE>

          SECTION 3.2 OUTSTANDING DEBT SECURITIES. For all purposes of this
Indenture, in determining whether the Holders of a required percentage or the
required proportion of Principal Amount of Debt Securities of one or more series
has concurred in any request, waiver, vote, direction or consent, Debt
Securities owned or held by or for the account or for the benefit of the Company
or any other obligor under this Indenture or any Affiliate of the Company or an
Affiliate of such other obligor shall be disregarded and deemed not Outstanding,
except that, for the purposes of determining whether the Trustee shall be
protected in conclusively relying on any such request, waiver, direction or
consent, only Debt Securities which the Trustee actually knows to be so owned or
held shall be so disregarded. Debt Securities so owned which have been pledged
in good faith to secure an obligation may be regarded as Outstanding for all
such purposes, if the Trustee receives an Officers' Certificate stating that
said Debt Securities have been so pledged, that the pledgee is entitled to vote
with respect to such Debt Securities and that the pledgee is not the Company or
any other obligor on the Debt Securities, an Affiliate of the Company or an
Affiliate of such other obligor. In case of a dispute as to such right, any
decision by the Trustee taken upon the advice of counsel shall be conclusive,
and, subject to the provisions of Section 11.1 of this Indenture, shall afford
full protection to the Trustee.

          SECTION 3.3 SEVERABILITY; TRUST INDENTURE ACT CONTROLS. In case any
one or more of the provisions contained in this Indenture or in the Debt
Securities of any series shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision of this Indenture, but this Indenture shall
be construed as if such invalid, illegal or unenforceable provisions had never
been contained herein.

          If any provision of this Indenture limits, qualifies or conflicts with
any other provision of this Indenture which is required to be included in an
indenture qualified under the Trust Indenture Act, such provision which is so
required to be included shall control. If any provisions of this Indenture
modifies or excludes any provisions of the Trust Indenture Act that may be so
modified or excluded, the latter provision shall be deemed to apply to this
Indenture as so modified or excluded, as the case may be.

          SECTION 3.4 COMPANY RELEASE. Whenever by the terms of this Indenture
the Company shall be required to do or not to do anything so long as any of the
Debt Securities shall be Outstanding of any series, the Company shall,
notwithstanding any such provision, not be required to comply with such
provision with respect to such series if it shall be entitled to have this
Indenture satisfied and discharged pursuant to the provisions hereof, even
though in either case the Holders of any of the Debt Securities of such series
shall have failed to present and surrender such Debt Securities for payment
pursuant to the terms of this Indenture.

          SECTION 3.5 DATE OF EXECUTION. Although this Indenture, for
convenience and for the purpose of reference, is dated as of the date first
above written, the actual date of execution by the Company and by the Trustee is
as indicated by their respective acknowledgements hereto annexed.

          SECTION 3.6 EXECUTION OF DOCUMENTS. Unless otherwise expressly
provided, any order, notice, request, demand, certificate or statement of the
Company required or

                                       17

<PAGE>

permitted to be made or given under any provision hereof shall be sufficiently
executed if signed by at least one Officer of the Company.

          SECTION 3.7 OFFICERS' CERTIFICATE AND OPINION OF COUNSEL. Upon any
application, demand or request by the Company to the Trustee to take any action
under any of the provisions of this Indenture, the Company shall furnish to the
Trustee an Officers' Certificate stating that, in the opinion of the signers,
all conditions precedent and covenants, if any, provided for in this Indenture
relating to the proposed action have been satisfied, and an Opinion of Counsel
stating that in the opinion of such counsel all such conditions precedent and
covenants have been satisfied.

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

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

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

          SECTION 3.8 NOTICES AND DEMANDS. All notices to or demands upon the
Trustee shall be in writing and may be served or presented at the principal
office of the Trustee. Any notice to or demand upon the Company shall be deemed
to have been sufficiently given or served by the Trustee or the Holders of Debt
Securities, for all purposes, by being mailed by first class mail (registered or
certified, return receipt requested), by facsimile transmission or delivered by
overnight air courier guaranteeing next day delivery, addressed to the Company,
attention of the General Counsel, 23000 Euclid Avenue, Cleveland, Ohio 44117,
Facsimile No.: (216) 692-6877, with a copy to Jones Day, Attention: Christopher
M. Kelly, Esq., North Point,

                                       18

<PAGE>

901 Lakeside Avenue, Cleveland, Ohio 44114, Facsimile No.: (216) 579-0212, or at
such other address or to such other counsel, as may be filed in writing by the
Company with the Trustee.

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

          In case by reason of the suspension of regular mail and facsimile
service or by reason of any other cause it shall be impracticable to give such
notice to Holders of Debt Securities by mail or facsimile, then any manner of
giving such notice as shall be acceptable to the Trustee shall constitute a
sufficient notification for every purpose hereunder. In any case where notice to
Holders of Debt Securities is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular Holder of a
Debt Security shall affect the sufficiency of such notice with respect to other
Holders of Debt Securities.

          SECTION 3.9 SUCCESSORS AND ASSIGNS. All the covenants, promises and
agreements in this Indenture contained by or on behalf of the Company or by or
on behalf of the Trustee shall bind and inure to the benefit of their respective
successors and assigns, whether so expressed or not.

          SECTION 3.10 HEADINGS. The descriptive headings of the several
Articles of this Indenture are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.

          SECTION 3.11 GOVERNING LAW. THIS INDENTURE AND EACH DEBT SECURITY
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAW OF THE
STATE OF NEW YORK, BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

          SECTION 3.12 COUNTERPARTS. This Indenture may be simultaneously
executed in any number of counterparts, each of which when so executed and
delivered shall be an original, but such counterparts shall together constitute
but one and the same instrument. Wells Fargo Bank, N.A., as Trustee, hereby
accepts the trusts in this Indenture declared and provided upon the terms and
conditions hereinbefore set forth.

                                   ARTICLE IV
                            COVENANTS OF THE COMPANY

          The Company covenants and agrees as follows:

          SECTION 4.1 PAYMENT OF PRINCIPAL AND INTEREST. The Company will for
the benefit of each series of Debt Securities duly and punctually pay or cause
to be paid the Principal of, premium, if any, make-whole amount, if any, and
interest on the Debt Securities of

                                       19

<PAGE>

such series at the times and place and in the manner specified in this Indenture
and in the Debt Securities of such series. At the option of the Company,
interest on the Debt Securities shall be payable without presentation of such
Debt Securities by a check to the registered Holder. Any payment of Principal
and any premium or make-whole amount or interest required to be made on an
interest payment date, redemption date or at maturity which is not a Business
Day need not be made on such date, but may be made on the next succeeding
Business Day with the same force and effect as if made on such interest payment
date, redemption date or at maturity, as the case may be, and no interest shall
accrue for the period from and after such interest payment date, redemption date
or maturity.

          SECTION 4.2 MAINTENANCE OF OFFICE OR AGENCY. So long as any of the
Debt Securities of any series remain unpaid, the Company will at all times keep
an office or agency (which may be an office of the Trustee or an Affiliate of
the Trustee, registrar or co-registrar) where Debt Securities of such series may
be presented for registration of transfer and exchange as in this Indenture
provided, where notices and demands with respect to the Debt Securities and this
Indenture may be served and where the Debt Securities may be presented for
payment or, for Debt Securities of each series that is convertible, for
conversion. The Company shall give the Trustee written notice of the location
thereof and any change in the location thereof. In case the Company shall fail
to maintain such office or agency, presentations may be made and notices and
demands may be served at the principal office of the Trustee.

          The Company may also from time to time designate one or more other
offices or agencies where the Debt Securities may be presented or surrendered
for any or all such purposes and may from time to time rescind such
designations. 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.

          The Company shall keep, at said office or agency, a register or
registers in which, subject to such reasonable regulations as it may prescribe,
the Company shall register or cause to be registered Debt Securities of each
series and shall register or cause to be registered the transfer or exchange of
Debt Securities of each series as in Article II provided. Such register or
registers shall be in written form in the English language or any other form
capable of being converted into written form within a reasonable time. At all
reasonable times, such register or registers shall be open for inspection by the
Trustee.

          SECTION 4.3 CORPORATE EXISTENCE. Subject to Article X hereof, the
Company will do or cause to be done all things necessary to preserve and keep in
full force and effect its corporate existence and the 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 the Company
shall determine that the preservation thereof is no longer desirable in the
conduct of the business and its subsidiaries as a whole and that the loss
thereof is not adverse in any material respect to the Holders of Debt
Securities.

          SECTION 4.4 RESTRICTIONS ON MERGERS, SALES AND CONSOLIDATIONS. So long
as any of the Debt Securities remain unpaid, the Company will not (i)
consolidate or merge with or into another Person (whether or not the Company is
the surviving corporation) or (ii) sell, convey or lease all or substantially
all of its property to any other corporation, partnership or limited liability
company except (a) to the extent expressly permitted pursuant to the terms of

                                       20
<PAGE>

any supplemental indenture governing any series of the Debt Securities and (b)
as otherwise permitted in Article X hereof.

          SECTION 4.5 FURTHER ASSURANCES. From time to time whenever requested
by the Trustee, the Company will execute and deliver such further instruments
and assurances and do such further acts as may be reasonably necessary or proper
to carry out more effectually the purposes of this Indenture or to secure the
rights and remedies hereunder of the Holders of the Debt Securities of any
series.

          SECTION 4.6 REPORTS.

          (a) So long as any Debt Securities are outstanding, the Company will
     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, however, 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 will be filed with the
     Trustee within 15 calendar days after the same is so required to be filed
     with the Commission.

          (b) Delivery of such reports, information and documents to the Trustee
     is for informational purposes only and the Trustee's receipt of such shall
     not constitute constructive notice of any information contained therein or
     determinable from information contained therein, including the Company's
     compliance with any of its covenants hereunder (as to which the Trustee is
     entitled to conclusively rely exclusively on Officers' Certificates).

          (c) So long as any Debt Securities are outstanding, the Company will
     furnish or cause to be furnished to the Trustee, at least seven Business
     Days before each interest payment date (but in no event less frequently
     than every six months) with respect to Debt Securities of any series, and
     at such other times as the Trustee may request in writing, within 30 days
     after receipt by the Company of any such request, a list in such form as
     the Trustee may reasonably require containing all information in the
     possession or control of the Company or of any Paying Agent, other than the
     Trustee, as to the names and addresses of the Holders of Debt Securities of
     such series obtained since the date as of which the next previous list, if
     any, was furnished; provided, however, that so long as the Trustee is Debt
     Security registrar for such series, no such list need be furnished. Any
     such list may be dated as of a date not more than 15 days prior to the time
     such information is furnished or caused to be furnished, and need not
     include information received after such date (excluding from any such list
     names and addresses received by the Trustee in its capacity as Debt
     Security registrar).

          SECTION 4.7 COMPLIANCE CERTIFICATE. Within 120 days after the end of
each fiscal year subsequent to the date of this Indenture, the Company will file
with the Trustee an Officers' Certificate as to his or her knowledge of the
Company's compliance with all conditions and covenants under this Indenture and
if an Event of Default has occurred, specify such Event of Default and the
nature and status thereof, of which such signer may have

                                       21

<PAGE>

knowledge. For purposes of this paragraph, such compliance shall be determined
without regard to any period of grace or requirement of notice provided under
this Indenture.

          SECTION 4.8 DUTIES OF PAYING AGENT. The Company will cause each Paying
Agent for the Debt Securities of any series other than the Trustee to execute
and deliver to the Trustee an instrument in which such agent shall agree with
the Trustee:

          (a) that it will hold all sums held by it as such agent for the
     payment of the Principal of, premium, if any, make-whole amount, if any, or
     interest on the Debt Securities of such series (whether such sums have been
     paid to it by the Company or by any other obligor on the Debt Securities of
     such series) in trust for the benefit of the Holders of the Debt Securities
     of such series;

          (b) that it will give the Trustee written notice of any failure by the
     Company (or by any other obligor on the Debt Securities of such series) to
     make any payment of the Principal of, premium, if any, make-whole amount,
     if any, or interest on the Debt Securities of such series when the same
     shall be due and payable; and

          (c) that it will, at any time during the continuance of any Event of
     Default with respect to such series, upon the written request of the
     Trustee, forthwith pay to the Trustee all sums so held in trust by such
     Paying Agent.

          If the Company acts as its own Paying Agent for the Debt Securities of
any series, it will, on or before each due date of the Principal of, premium, if
any, make-whole amount, if any, or interest on the Debt Securities of such
series, set aside and segregate and hold in trust for the benefit of the Holders
of the Debt Securities of such series a sum sufficient to pay such Principal,
premium, if any, make-whole amount, if any, or interest and will notify the
Trustee, in writing, of such action or any failure to take such action.

          Whenever the Company shall have one or more Paying Agents for any
series of Debt Securities, it will, on or before each due date of the Principal
of, premium, if any, make-whole amount, if any, or interest on any Debt
Securities of such series, deposit with the Paying Agent or Agents for the Debt
Securities of such series a sum, by 10:00 a.m., New York City time, in
immediately available funds on the payment date, sufficient to pay the
Principal, premium, if any, make-whole amount, if any, or interest so becoming
due with respect to the Debt Securities of such series, and (unless such paying
agent is the Trustee) the Company will promptly notify the Trustee in writing of
any failure so to act.

          The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture with respect to the Debt Securities
of one or more series or for any other purpose, pay, or by Company Order direct
any Paying Agent for such series 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
payment.

          Anything in this Section 4.8 to the contrary notwithstanding, the
agreement to hold sums in trust as provided in this Section 4.8 shall be subject
to the provisions of Section 6.3.

                                       22

<PAGE>

          SECTION 4.9 CALCULATION OF ORIGINAL ISSUE DISCOUNT. The Company shall
file with the Trustee within 20 days following the end of each calendar year (i)
a written notice specifying the amount of original issue discount (including
daily rates and accrual periods) accrued on Outstanding Debt Securities as of
the end of such year and (ii) such other specific information relating to such
original issue discount as may then be relevant under the Code.

                                   ARTICLE V
                   REDEMPTION OF DEBT SECURITIES; SINKING FUND

          SECTION 5.1 APPLICABILITY OF ARTICLE. Debt Securities of any series
which are redeemable before their stated maturity at the election of the Company
or through the operation of any sinking fund for the retirement of Debt
Securities of such series shall be redeemable in accordance with their terms
established pursuant to Section 2.2 and (except as otherwise established
pursuant to Section 2.2 for Debt Securities of such series) in accordance with
this Article.

          SECTION 5.2 NOTICES OF REDEMPTION TO TRUSTEE -- DEPOSIT OF CASH (OR
OTHER FORM OF PAYMENT) -- SELECTION OF DEBT SECURITIES TO BE REDEEMED. Not less
than 30 days (or such lesser number of days as the Trustee shall approve) nor
more than 60 days (or such greater number of days as the Trustee shall approve)
prior to the date fixed by the Company for the redemption at the option of the
Company of any Debt Securities of any series which are subject to redemption or
portions thereof, the Company shall give written notice, by delivering a Company
Order to the Trustee, stating the aggregate Principal Amount of Debt Securities
of such series which the Company elects to redeem, the redemption price at which
such Debt Securities are to be redeemed and the date and place fixed for
redemption. On or before 10:00 a.m., New York City time, of the date fixed for
redemption, the Company shall deposit with the Trustee or the Paying Agent money
in immediately available funds on such redemption date (or other form of payment
if permitted by the terms of such Debt Securities) in an amount sufficient to
redeem on the date fixed for redemption all the Debt Securities of such series
or portions thereof to be redeemed, other than any Debt Securities of such
series called for redemption on such date which have been converted prior to the
date of such deposit, at the appropriate redemption price, together with any
accrued interest to the date fixed for redemption. If less than all the Debt
Securities then Outstanding of such series are to be redeemed, the Trustee shall
select, substantially pro rata or by lot, in such manner as it shall deem
appropriate and fair, in its sole discretion, the numbers of the Debt Securities
to be redeemed as a whole or in part except: (1) if the Debt Securities are
listed on any national securities exchange, in compliance with the requirements
of the principal national securities exchange on which the Debt Securities are
listed; or (2) if otherwise required by law or to comply with the rules of the
Depositary. The Trustee shall thereafter promptly notify the Company in writing
of the numbers of the Debt Securities to be redeemed; provided, however, that
Debt Securities of such series registered in the name of the Company shall be
excluded from any such selection for redemption until all Debt Securities of
such series not so registered shall have been previously selected for
redemption. For the purpose of such selection in case of redemption of less than
all of the Debt Securities of any series, the Trustee and the Company shall have
the option to treat as Outstanding Debt Securities any Debt Securities of such
series which are surrendered for conversion after the fifteenth day immediately
preceding the mailing of the notice of such

                                       23

<PAGE>

redemption, and need not treat as Outstanding Debt Securities any Debt
Securities authenticated and delivered during such period in exchange for the
unconverted portion of any Debt Securities converted in part during such period.
In case any series of Debt Securities shall be redeemed in part only, the notice
of redemption shall specify the Principal Amount thereof to be redeemed and
shall state that, upon surrender thereof for redemption, a new Debt Security or
new Debt Securities of the same series of an aggregate Principal Amount equal to
the unredeemed portion of such Debt Security will be issued in lieu thereof; and
in such case the Company shall execute and the Trustee or the Authenticating
Agent shall authenticate and deliver such new Debt Security or Debt Securities
of such series to or upon the written order of the Holder of Debt Securities, at
the expense of the Company. Provisions of this Indenture that apply to Debt
Securities called for redemption also apply to portions of Debt Securities
called for redemption.

          Upon or after the receipt of such notice, the Trustee, in the name of
the Company and as its agent, shall mail by first-class mail, postage prepaid,
to each registered Holder of a Debt Security to be redeemed in whole or in part
at his last address appearing on the registration books of the Debt Securities
registrar, a notice of redemption. Such notice of redemption shall identify the
Debt Securities to be so redeemed in whole or in part and whether such Debt
Securities are to be redeemed in whole or in part and shall state: (i) the date
fixed for redemption; (ii) the redemption price at which Debt Securities are to
be redeemed and method of payment, if other than in cash; (iii) if applicable,
the current conversion price or rate; (iv) if applicable, that the right of the
Holder of Debt Securities to convert Debt Securities called for redemption shall
terminate at the close of business on the date fixed for redemption (or such
other day as may be specified as contemplated by Section 2.2 for Debt Securities
of any series); (v) if applicable, that Holders of Debt Securities who want to
convert Debt Securities called for redemption must satisfy the requirements for
conversion contained in such Debt Securities; (vi) the name and address of the
Paying Agent; (vii) that Debt Securities called for redemption must be
surrendered to the Paying Agent to collect the redemption price; (viii) that,
unless the Company defaults in making such redemption payment, interest, if any,
accrued to the date fixed for redemption will be paid as specified in said
notice and that on and after said date interest thereon shall cease to accrue;
(ix) the provision of the Debt Security or this Indenture under which the
redemption is being made; (x) that the Company so elects to redeem such Debt
Securities or portions thereof at the place or places specified in such notice;
and (xi) that no representation is made as to the correctness or accuracy of the
CUSIP number, if any, listed in such notice or printed on the Debt Security.
Such notice shall be mailed not later than the thirtieth, and not earlier than
the sixtieth, day before the date fixed for redemption. Any notice which is
mailed in the manner herein provided shall be conclusively presumed to have been
duly given, whether or not the Holder receives such notice; and failure duly to
give such notice by mail, or any defect in such notice, to the Holder of any
series of Debt Securities designated for redemption as a whole or in part shall
not affect the validity of the proceedings for the redemption of any other Debt
Security.

          The Company shall pay to the Trustee the cost of mailing notices of
redemption and any other necessary expenses incurred by the Trustee in
connection therewith.

          SECTION 5.3 EFFECT OF NOTICE OF REDEMPTION. The notice of election to
redeem having been mailed as hereinbefore provided, the Debt Securities or
portions thereof called for redemption shall become due and payable on the
redemption date at the applicable

                                       24

<PAGE>

redemption price, together with interest accrued to the date fixed for
redemption, at the place or places specified in such notice, and if cash (or
other form of payment if permitted by the terms of such Debt Securities) in the
amount necessary to redeem such Debt Securities or portions thereof has been
deposited with the Trustee, interest on such Debt Securities or portions thereof
shall cease to accrue from and after the date fixed for redemption (unless the
Company shall default in the payment of the redemption price, plus accrued
interest, if any) and the right to convert such Debt Securities or portions
thereof, if the terms of such Debt Securities provide for conversion pursuant to
Section 2.2, shall terminate at the close of business on the date fixed for
redemption or such other day as may be specified as contemplated by Section 2.2
for Debt Securities of such series. The respective registered Holders of Debt
Securities or portions thereof so called for redemption shall be entitled to
receive payment of the applicable redemption price, together with interest
accrued to the date fixed for redemption on or after the date fixed for
redemption (unless the Company shall default in the payment of the redemption
price, plus accrued interest, if any), upon presentation and surrender at the
place or places of payment specified in such notice. Notwithstanding the
foregoing, if the record date for payment of interest is on or prior to the
redemption date, such interest shall be payable to the persons who are Holders
of such Debt Securities on such record date according to the terms of such Debt
Securities and Section 2.12.

          If any series of Debt Securities called for redemption pursuant to
Section 5.1 is converted or exchanged pursuant to the conversion or exchange
provisions of such Debt Security or the resolution of the Board of Directors or
the supplemental indenture pursuant to which such Debt Security is issued, if
any, any monies deposited with the Trustee for the purpose of paying or
redeeming any such Debt Security shall be promptly paid to the Company.

          SECTION 5.4 CREDITS AGAINST SINKING FUND. Against any one or more
sinking fund payments, if any, to be made pursuant to the terms of the Debt
Securities of any series providing for a sinking fund, the Company may elect, by
delivery of an Officers' Certificate to the Trustee, at least 45 days prior to
the sinking fund payment date (or such shorter period as may be acceptable to
the Trustee or is otherwise specified as contemplated by Section 2.2 for Debt
Securities of any series), to take credit for any Debt Securities of such series
or portions thereof acquired or redeemed by the Company, pursuant to the terms
of such Debt Securities or through the application of permitted optional sinking
fund payments pursuant to the terms of such Debt Securities, which have not
previously been used by the Company for the purposes permitted in this Section
5.4 and for any Debt Securities which have been converted pursuant to the terms
of such Debt Securities. Such Debt Securities shall be received and credited for
such purpose by the Trustee at the redemption price specified in such Debt
Securities for redemption through operation of the sinking fund and the amount
of such sinking fund payment shall be reduced accordingly. Upon any such
election the Company shall receive credit against such sinking fund payments
required to be made in the order in which they are to be made. Any series of
Debt Securities for which credit is elected to be taken which shall not
theretofore have been delivered to the Trustee for cancellation shall at the
time of such election be delivered to the Trustee for cancellation by the
Trustee.

          SECTION 5.5 REDEMPTION THROUGH SINKING FUND. Each sinking fund
payment, if any, made under the terms of the Debt Securities of any series
established pursuant to Section 2.2 shall be applied to the redemption of Debt
Securities of such series on the date for redemption specified in the Debt
Securities of such series next succeeding such sinking fund

                                       25

<PAGE>

payment date; provided, however, if at any time the amount of cash to be paid
into the sinking fund for such series on the next succeeding sinking fund
payment date, together with any unused balance of any preceding sinking fund
payment or payments for such series, shall not exceed in the aggregate $100,000,
the Trustee, unless requested by the Company, shall not give notice of the
redemption of Debt Securities of such series through the operation of the
sinking fund on the succeeding date for redemption specified in the Debt
Securities of such series. At least 45 days (or such lesser number of days as
the Trustee shall approve) prior to the date on which a sinking fund payment
with respect to the Debt Securities of any series is due, the Company shall give
written notice to the Trustee of the Principal Amount of Debt Securities of such
series registered in the name of the Company (which shall be excluded from such
redemption) and the Trustee shall select, substantially pro rata or by lot, in
such manner as it shall deem appropriate and fair, the Principal Amount of Debt
Securities of such series to be redeemed in accordance with the terms of the
Debt Securities of such series after allowance for any credit elected under
Section 5.4 and shall, in the name and at the expense of the Company and as its
agent, give notice of such redemption, all in the manner provided for in Section
5.2, except that such notice shall state that the Debt Securities of such series
are being redeemed for the sinking fund. The notice of redemption having been
mailed as hereinbefore provided, the Debt Securities or portions thereof called
for redemption shall become due and payable on the next succeeding date for
redemption specified in the Debt Securities of such series at the sinking fund
redemption price thereof, all in the manner and with the effect provided for in
Section 5.3.

          Any sinking fund payment not so required to be applied to the
redemption of Debt Securities of any series on the date for redemption specified
in the Debt Securities of such series next succeeding any sinking fund payment
date may, at the direction of the Company as evidenced by a Company Order, be
applied by the Trustee prior to the 45th day preceding the next following
sinking fund payment date for such series, in such manner and from time to time,
in such amount as the Company may direct the Trustee in writing, so far as such
moneys shall be adequate, to the purchase for the sinking fund of Debt
Securities of such series or portions thereof, in the open market, from the
Company or otherwise, at prices (exclusive of accrued interest and brokerage
commissions) not in excess of the sinking fund redemption price for such series.
The Company agrees to pay to the Trustee, upon request, accrued interest and
brokerage commissions paid by the Trustee with respect to any Debt Securities of
such series so purchased by the Trustee and such accrued interest and brokerage
commissions shall not be charged against the sinking fund for such series.

          Any unused balance of sinking fund moneys with respect to Debt
Securities of any series remaining in the hands of the Trustee on the 45th day
preceding the sinking fund payment date for such series in any year shall be
added to any sinking fund payment for such series to be made in cash in such
year, and together with such payment, if any, shall be applied to the redemption
or purchase of Debt Securities of such series in accordance with the provisions
of this Section 5.5, provided that any sinking fund moneys so remaining in the
hands of the Trustee after the date specified in the Debt Securities of such
series and not utilized in the purchase of Debt Securities of such series as
provided in this Section 5.5 shall be applied by the Trustee to the payment of
Debt Securities at maturity.

          SECTION 5.6 DEBT SECURITIES NO LONGER OUTSTANDING AFTER NOTICE TO
TRUSTEE AND DEPOSIT OF CASH. If the Company, having given notice to the Trustee
as provided in

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<PAGE>

Section 5.1 or 5.2, shall have deposited with the Trustee or the Paying Agent,
for the benefit of the Holders of any Debt Securities of any series or portions
thereof called for redemption in whole or in part cash or other form of payment
if permitted by the terms of such Debt Securities (which amount shall be
immediately due and payable to the Holders of such Debt Securities or portions
thereof) in the amount necessary so to redeem all such Debt Securities or
portions thereof on the date fixed for redemption and provision satisfactory to
the Trustee shall have been made for the giving of notice of such redemption,
such Debt Securities, or portions thereof, shall thereupon, for all purposes of
this Indenture, be deemed to be no longer Outstanding, and the Holders thereof
shall be entitled to no rights thereunder or hereunder, except the right to
receive payment of the applicable redemption price, together with interest
accrued to the date fixed for redemption, on or after the date fixed for
redemption of such Debt Securities or portions thereof and the right to convert
such Debt Securities or portions thereof, if the terms of such Debt Securities
provide for convertibility pursuant to Section 2.2, at or prior to the close of
business on the date fixed for redemption.

          SECTION 5.7 CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION. In
connection with any redemption of Debt Securities, the Company may arrange for
the purchase and conversion of any Debt Securities called for redemption by an
agreement with one or more investment bankers or other purchasers to purchase
such Debt Securities by paying to the Trustee or the Paying Agent in trust for
the Holders of Debt Securities, on or before 10:00 a.m., New York City time, on
the redemption date, an amount no less than the redemption price, together with
interest, if any, accrued to the redemption date of such Debt Securities, in
immediately available funds. Notwithstanding anything to the contrary contained
in this Article V, the obligation of the Company to pay the redemption price of
such Debt Securities, including all accrued interest, if any, shall be deemed to
be satisfied and discharged to the extent such amount is so paid by such
purchasers. If such an agreement is entered into, any Debt Securities not duly
surrendered for conversion by the Holders thereof may, at the option of the
Company, be deemed, to the fullest extent permitted by law, acquired by such
purchasers from such Holders and surrendered by such purchasers for conversion,
all as of immediately prior to the close of business on the last day on which
Debt Securities of such series called for redemption may be converted in
accordance with this Indenture and the terms of such Debt Securities, subject to
payment of the above amount aforesaid. The Trustee or the Paying Agent shall
hold and pay to the Holders of Debt Securities whose Debt Securities are
selected for redemption any such amount paid to it in the same manner as it
would moneys deposited with it by the Company for the redemption of Debt
Securities. Without the Trustee's and the Paying Agent's prior written consent,
no arrangement between the Company and such purchasers for the purchase and
conversion of any Debt Securities shall increase or otherwise affect any of the
powers, duties, responsibilities or obligations of the Trustee as set forth in
this Indenture, and the Company agrees to indemnify the Trustee from, and hold
it harmless against, any loss, liability or expense arising out of or in
connection with any such arrangement for the purchase and conversion of any Debt
Securities between the Company and such purchasers, including the costs and
expenses incurred by the Trustee and the Paying Agent in the defense of any
claim or liability arising out of or in connection with the exercise or
performance of any of its powers, duties, responsibilities or obligations under
this Indenture.

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<PAGE>

                                   ARTICLE VI
                     SATISFACTION AND DISCHARGE OF INDENTURE

          SECTION 6.1 SATISFACTION AND DISCHARGE. If (a) all Debt Securities of
any series theretofore authenticated (other than any such Debt Securities which
shall have been destroyed, lost or stolen and in lieu of or in substitution for
which other such Debt Securities shall have been authenticated and delivered or
Debt Securities for whose payment money (or other form of payment if permitted
by the terms of such Debt Securities) has theretofore been held in trust and
thereafter repaid to the Company, as provided in Section 6.3) have been
delivered to the Trustee for cancellation and not theretofore cancelled, or (b)
the Company shall irrevocably deposit (subject to Section 6.3) with the Trustee
or Paying Agent as trust funds the entire amount in cash or U.S. Government
Obligations, or combination thereof, sufficient to pay at maturity or upon
redemption all of the Debt Securities of such series (other than any Debt
Securities which shall have been destroyed, lost or stolen and in lieu of or in
substitution for which other Debt Securities shall have been authenticated and
delivered or Debt Securities for whose payment money (or other form of payment
if permitted by the terms of such Debt Securities) has theretofore been held in
trust and thereafter repaid to the Company, as provided in Section 6.3) not
theretofore paid, surrendered or delivered to the Trustee for cancellation,
including the principal, premium, if any, make-whole amount, if any, and
interest due or to become due to such date of maturity or redemption date, as
the case may be, and if in either case the Company shall also pay or cause to be
paid all other sums payable hereunder by the Company and the Company shall
deliver to the Trustee an Officers' Certificate and an Opinion of Counsel, each
stating that in the opinion of the signers all conditions precedent to the
satisfaction and discharge of this Indenture with respect to the Debt Securities
of such series have been complied with (and, in the event that such deposit
shall be made more than one year prior to the maturity of the Debt Securities of
such series, such Opinion of Counsel shall also state that such deposit will not
result in an obligation of the Company, the Trustee or the trust fund created by
such deposit to register as an investment company under the Investment Company
Act of 1940, as amended) and an Officers' Certificate (upon which the Trustee
may conclusively rely) stating that the cash, if any, and U.S. Government
Obligations, if any, or combination thereof, deposited as set forth above are
sufficient to pay at maturity or upon redemption all of the Debt Securities of
such series as set forth above, then, except with respect to the remaining
rights of conversion of any Debt Securities the terms of which provide for
conversion or to rights of exchange or registration of transfer or of the
Company's right of optional redemption of any Debt Securities of such series,
this Indenture shall cease to be of further effect with respect to the Debt
Securities of such series, and the Trustee, on demand of and at the cost and
expense of the Company, shall execute proper instruments acknowledging
satisfaction of and discharging this Indenture with respect to the Debt
Securities of such series. Notwithstanding the satisfaction and discharge of
this Indenture with respect to the Debt Securities of such series, the
obligations of the Company to the Trustee under Section 11.2 shall survive, and
if moneys or U.S. Government Obligations, or combination thereof, shall have
been irrevocably deposited with the Trustee or Paying Agent pursuant to clause
(b) of this Section, the obligations of the Trustee under Section 6.2 and the
first paragraph of Section 6.3 shall survive.

          In order to have money available on a payment date to pay the
Principal of, premium, if any, make-whole amount, if any, or interest, if any,
on the Debt Securities, the U.S. Government Obligations shall be payable as to
Principal or interest on or before such payment

                                       28

<PAGE>

date in such amounts as will provide the necessary money. Such U.S. Government
Obligations shall not be callable at the issuer's option.

          SECTION 6.2 APPLICATION OF TRUST MONEY. Subject to the provisions
hereinafter contained in this Article VI, any moneys or U.S. Government
Obligations (or other form of payments if permitted by the terms of such Debt
Security) which at any time shall be deposited by the Company, or on its behalf
with the Trustee or Paying Agent, for the purpose of paying or redeeming any of
the Debt Securities of any series shall be held in trust and applied by the
Trustee to the payment to the Holders of the particular Debt Securities for the
payment or redemption of which such moneys (or other form of payments if
permitted by the terms of such Debt Security) have been deposited, of all sums
due and to become due thereon for Principal, premium, if any, make-whole amount,
if any, and interest, upon presentation and surrender of such Debt Securities at
the office or agency of the Company maintained as provided in this Indenture.
Neither the Company nor the Trustee (except as provided in Section 11.2) nor any
Paying Agent shall be required to pay interest on any moneys so deposited.

          SECTION 6.3 REPAYMENT OF MONEYS. Any moneys or U.S. Government
Obligations deposited with the Trustee or any Paying Agent remaining unclaimed
by the Holders of Debt Securities for two years after the date upon which the
Principal of or interest on such Debt Securities shall have become due and
payable, shall (unless otherwise required by mandatory provisions of applicable
escheat or abandoned or unclaimed property law) be repaid to the Company by the
Trustee or Paying Agent and such Holders shall (unless otherwise required by
mandatory provisions of applicable escheat or abandoned or unclaimed property
law) thereafter be entitled to look to the Company only for payment thereof;
provided, however, that, before being required to make any such payment to the
Company, the Trustee or Paying Agent shall, at the expense and written direction
of the Company, cause to be published once, in an Authorized Newspaper, a notice
that such moneys remain unclaimed and that, after the date set forth in said
notice, the balance of such moneys then unclaimed will be returned to the
Company.

          Upon satisfaction and discharge of this Indenture, all moneys then
held by any Paying Agent other than the Trustee hereunder shall, upon demand of
the Company, be repaid to it and thereupon such Paying Agent shall be released
from all further liability with respect to such moneys.

          The Trustee or any Paying Agent shall deliver or pay to the Company
from time to time upon a request in writing by the Company any moneys or U.S.
Government Obligations (or the principal or interest on such U.S. Government
Obligations) held by it as provided in Section 6.1 which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof to the Trustee, are then in excess of the amount
thereof which then would have been required to be deposited for the purpose for
which such money or U.S. Government Obligations were deposited or received.

                                  ARTICLE VII
                              REMEDIES UPON DEFAULT

          SECTION 7.1 EVENTS OF DEFAULT. The following events are hereby defined
for all purposes of this Indenture (except where the term is otherwise defined
for specific purposes) as Events of Default with respect to Debt Securities of a
particular series, unless it is

                                       29

<PAGE>

either inapplicable to a particular series or is specifically deleted or
modified as contemplated by Section 2.2 for the Debt Securities of such series,
in addition to any other events as may be defined as Events of Default pursuant
to Section 2.2 for the Debt Securities of such series:

          (a) Failure of the Company to pay or provide for payment of the
     Principal of, premium, if any, or make-whole amount, if any, on any of the
     Debt Securities of such series, when and as the same shall become due and
     payable, whether at maturity thereof, by call for redemption, through any
     mandatory sinking fund, by redemption at the option of the Holder of any
     series of Debt Securities pursuant to the terms of such Debt Security, by
     declaration of acceleration or otherwise; or

          (b) Failure of the Company to pay or provide for payment of any
     installment of interest on any of the Debt Securities of such series, when
     and as the same shall become due and payable, which failure shall have
     continued for a period of 30 days; or

          (c) Failure of the Company to perform or observe any other of the
     covenants or agreements on the part of the Company in this Indenture or in
     the Debt Securities of such series (other than a covenant or agreement
     which has expressly been included in this Indenture solely for the benefit
     of Debt Securities of any series other than that series or is expressly
     made inapplicable to the Debt Securities of such series pursuant to Section
     2.2), which failure shall have continued for a period of 60 days after
     written notice to the Company by the Trustee hereunder or to the Company
     and to the Trustee from the Holders of not less than 25% of the aggregate
     Principal Amount of Debt Securities then Outstanding of such series under
     this Indenture specifying such Event of Default or failure and requesting
     that it be remedied and stating that such notice is a notice of an event
     which, if continued for 60 days after such written notice, will become an
     Event of Default;

          (d) The Company or any Significant Subsidiary:

               (1) commences a voluntary case under any Bankruptcy Law,

               (2) consents to the entry of an order for relief against it in an
          involuntary case,

               (3) consents to the appointment of a custodian of it or for all
          or substantially all of its property,

               (4) makes a general assignment for the benefit of its creditors,
          or

               (5) admits in writing to its inability to pay its debts generally
          as they become due;

          (e) A court of competent jurisdiction enters an order or decree under
     any Bankruptcy Law that:

               (i) is for relief in an involuntary case against the Company or
          any Significant Subsidiary;

                                       30
<PAGE>

               (ii) appoints a custodian of the Company or any Significant
          Subsidiary or for all or substantially all of the property of any of
          the foregoing; or

               (iii) orders the liquidation of the Company or any Significant
          Subsidiaries;

               (iv) and such order or decree remains unstayed and in effect for
          90 consecutive days;

          (f) The failure to pay at final maturity (giving effect to any
     applicable grace periods and any extensions thereof) the stated Principal
     Amount of any indebtedness of the Company or any subsidiary of the Company,
     or the acceleration of the final stated maturity of any such Indebtedness
     (which acceleration is not rescinded, annulled or otherwise cured within 30
     days of receipt by the Company or such subsidiary of notice of any such
     acceleration) if the aggregate Principal Amount of such indebtedness,
     together with the Principal Amount of any other such indebtedness in
     default for failure to pay principal at final stated maturity or which has
     been accelerated (in each case with respect to which the 30-day period
     described above has elapsed), aggregates $10.0 million or more at any time;

          (g) One or more judgments in an aggregate amount in excess of $10.0
     million (net of any amounts covered by insurance as to which the insurer
     has acknowledged coverage) shall have been rendered against the Company or
     any of its subsidiaries and such judgments remain undischarged, unpaid or
     unstayed for a period of 60 days after such judgment or judgments become
     final and non-appealable; or

          (h) Any other Event of Default provided in the supplemental indenture
     or resolution of the Board of Directors under which such series of Debt
     Securities is issued or in the form of Debt Security for such series.

          If one or more Events of Default (other than an Event of Default
specified in clauses (d) or (e) of the immediately preceding paragraph) shall
occur and be continuing with respect to Debt Securities then Outstanding of any
series, then, and in each and every such case, either the Trustee, by notice in
writing to the Company, or the Holders of not less than 25% in aggregate
Principal Amount of the Debt Securities then Outstanding of such series, by
notice in writing to the Company and to the Trustee, may declare the Principal
Amount (or, if the Debt Securities of such series are Original Issue Discount
Securities, such portion of the Principal Amount as may be specified in the
terms of the Debt Securities of such series) of all Debt Securities of such
series and/or such other amount or amounts as the Debt Securities or
supplemental indenture with respect to such series may provide, if not already
due and payable, to be immediately due and payable; and upon any such
declaration all Debt Securities of such series shall become and be immediately
due and payable, anything in this Indenture or in any of the Debt Securities of
such series contained to the contrary notwithstanding; and if an Event of
Default specified in clause (d) or (e) of the immediately preceding paragraph
shall occur and be continuing with respect to Debt Securities then Outstanding
of any series, then all unpaid Principal of (or, if the Debt Securities of such
series are Original Issue Discount Securities, such portion of the Principal
Amount as may be specified in the terms of the Debt Securities of such series)
of all Debt Securities of such series and/or such other amount or amounts as the
Debt

                                       31

<PAGE>

Securities or supplemental indenture with respect to such series may provide, if
not already due and payable, shall ipso facto become and be immediately due and
payable (without any declaration or other act on the part of the Trustee or any
Holder of such Debt Securities). The provisions of the immediately preceding
sentence, however, are subject to the condition that if, at any time after the
Principal of (and/or such other specified amount on) the Debt Securities of such
series shall so become due and payable, and before any judgment or decree for
the payment of the moneys due shall have been obtained or entered as hereinafter
provided, the Company shall pay or shall deposit with the Trustee a sum
sufficient to pay all matured installments of interest upon all the Debt
Securities of such series and the Principal of (and/or such other specified
amount), premium, if any, and make-whole amount, if any, on any and all Debt
Securities of such series which shall have become due otherwise than by
acceleration, with interest on such Principal (and/or such other specified
amount), premium, if any, and make-whole amount, if any, and (to the extent that
payment of such interest is enforceable under applicable law) on any overdue
installment of interest, at the rate specified in the Debt Securities of such
series (or, if no such rate is specified, at the rate borne by the Debt
Securities of such series), to the date of such payment or deposit, and the
compensation and expenses of the Trustee, and any and all defaults under this
Indenture with respect to the Debt Securities of such series, other than the
nonpayment of Principal of (and/or such other specified amount), premium, if
any, or make-whole amount, if any, and accrued interest on Debt Securities of
such series which shall have become due by acceleration, shall have been
remedied, then and in every such case the Trustee shall, upon written request or
consent of the Holders of a majority in aggregate Principal Amount of the Debt
Securities then Outstanding of such series delivered to the Company and to the
Trustee, waive such default and its consequences and rescind or annul such
declaration and its consequences, but no such waiver, rescission or annulment
shall extend to or affect any subsequent default, or impair any right consequent
thereon.

          For all purposes under this Indenture, if the portion of the Principal
Amount as may be specified in the terms of any Original Issue Discount
Securities shall have been accelerated and declared due and payable pursuant to
the provisions hereof, then, from and after such declaration, unless such
declaration has been rescinded and annulled, payment of such portion of the
Principal Amount thereof, together with interest, if any, thereon and all other
amounts owing thereunder, shall constitute payment in full of such Original
Issue Discount Securities.

          SECTION 7.2 ACCELERATION. In case the Company shall commit an Event of
Default with respect to the Debt Securities of any series described in Section
7.1(a) or (b), then, upon demand of the Trustee, the Company shall pay to the
Trustee, for the benefit of the Holders of the Debt Securities then Outstanding
of such series, the whole amount which then shall have become due on all such
Debt Securities of such series for Principal, premium, if any, make-whole
amount, if any, and interest, with interest on the overdue Principal, premium,
if any, and make-whole amount, if any, and (to the extent that payment of such
interest is enforceable under applicable law) upon overdue installments of
interest, at the rate specified in the Debt Securities of such series (or, if no
such rate is specified, at the rate borne by the Debt Securities of such
series), and in addition thereto, such additional amount as shall be sufficient
to cover the costs and expenses of collection, including the compensation,
expenses, liabilities, disbursements and advances of the Trustee, any
predecessor Trustee, their agents and counsel. In case the Company shall pay the
same in accordance with the provisions of this Section 7.2 and, prior to

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<PAGE>

such payment neither the Trustee nor the Holders of the Debt Securities then
Outstanding of such series shall have taken any steps to begin enforcing their
rights under this Indenture and so long as no additional Event of Default with
respect to the Debt Securities of such series shall have occurred, from and
after such payment, the Event of Default giving rise to the demand by the
Trustee pursuant to this Section 7.2 shall be deemed to be no longer continuing
and shall be deemed to have thereupon been remedied, cured or waived without
further action upon the part of either the Trustee or any of the Holders of Debt
Securities. In case the Company shall fail to pay the same forthwith upon such
demand, the Trustee, in its own name and as trustee of an express trust, may
institute any judicial proceedings at law or in equity for the collection of the
sums so due and unpaid and may prosecute such proceedings to judgment or final
decree, and may enforce the same against the Company or any other obligor upon
the Debt Securities of such series and collect the moneys adjudged or decreed to
be payable in the manner provided by law out of the property of the Company or
any other obligor upon the Debt Securities of such series, wherever situated.
The right of the Trustee to recover such judgment shall not be affected by the
exercise of any other right, power or remedy for the enforcement of the
provisions of this Indenture.

          In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor upon the Debt
Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the Principal of any Debt
Securities shall then be due and payable as therein expressed or by declaration
of acceleration or otherwise and irrespective of whether the Trustee shall have
made any demand on the Company for the payment of overdue Principal or interest)
shall be entitled and empowered to file and prove a claim for the whole amount
of principal, premium, if any, make-whole amount, if any, and interest owing and
unpaid in respect of the Debt Securities of any series for which it serves as
Trustee and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, any predecessor Trustee, their agents and counsel) and of the Holders
of Debt Securities of such series allowed in such judicial proceeding, and to
receive payment of or on account of such claims and to distribute the same after
the deduction of its charges and expenses; and any receiver, assignee, trustee,
liquidator, sequestrator (or other similar official) in any judicial proceeding
is hereby irrevocably authorized and instructed by each of the Holders of Debt
Securities of such series to make such payments to the Trustee, and, in the
event that the Trustee shall consent to the making of such payments directly to
the Holders of Debt Securities of such series, to pay to the Trustee any amount
due it or any predecessor Trustee, for compensation and expenses, including
counsel fees incurred up to the date of such distribution. Nothing contained in
this Indenture shall be deemed to give to the Trustee any right to accept or
consent to any plan of reorganization, arrangement, adjustment or composition
affecting the Holders of Debt Securities or the rights of any Holder of Debt
Securities, or to authorize the Trustee to vote in respect of the claim of any
Holder of Debt Securities in any such proceeding.

          Any moneys or property received by the Trustee under this Section 7.2
shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such moneys or property on account
of Principal, premium, if any, make-whole amount, if any, or interest, upon
presentation of the several Debt Securities of the series in

                                       33

<PAGE>

respect of which such moneys were received, and stamping thereon the payment, if
only partially paid, and upon surrender thereof if fully paid:

          First: To the payment of costs and expenses of collections, and
     compensation to the Trustee, its agents, attorneys and counsel, and all
     advances made and expenses and liabilities incurred by the Trustee, except
     as a result of its negligence or bad faith and all other amounts owing to
     the Trustee or any predecessor Trustee pursuant to Section 11.2 hereof;

          Second: In case the Principal of the Outstanding Debt Securities in
     respect of which such moneys were received shall not have become due and be
     unpaid, to the payment of interest on such Debt Securities, in the order of
     the maturity of the installments of such interest, with interest (so far as
     may be lawful) upon the overdue installments of interest at the rate
     specified in such Debt Securities (or, if no such rate is specified, at the
     rate borne by the Debt Securities of such series), such payments to be made
     ratably to the persons entitled thereto;

          Third: In case the Principal of the Outstanding Debt Securities in
     respect of which such moneys were received and/or such other amount or
     amounts as the Debt Securities or supplemental indenture with respect to
     such series shall provide, shall have become due, by declaration or
     otherwise, to the payment of the whole amount then owing and unpaid upon
     such Debt Securities for Principal (and/or such other specified amount),
     premium, if any, make-whole amount, if any, and interest, with interest on
     the overdue Principal (and/or such other specified amount), premium, if
     any, make-whole amount, if any, and (so far as may be lawful) upon overdue
     installments of interest, at the rate specified in such Debt Securities
     (or, if no such rate is specified, at the rate borne by the Debt Securities
     of such series), and in case such moneys shall be insufficient to pay in
     full the whole amount so due and unpaid upon such Debt Securities, then to
     the payment of such Principal (and/or such other specified amount),
     premium, if any, make-whole amount, if any, and interest, with interest on
     the overdue Principal (and/or such other specified amount), premium, if
     any, make-whole amount, if any, and (so far as may be lawful) upon overdue
     installments of interest, at the rate specified in such Debt Securities
     (or, if no such rate is specified, at the rate borne by the Debt Securities
     of such series), without preference or priority of Principal (and/or such
     other specified amount), premium, if any, and make-whole amount, if any,
     over interest, or of interest over Principal (and/or specified amount),
     premium, if any, make-whole amount, if any, or of any installment of
     interest over any other installment of interest, or of any such Debt
     Security over any other such Debt Security, ratably to the aggregate of
     such Principal (and/or such other specified amount), premium, if any,
     make-whole amount, if any, and accrued and unpaid interest; and

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

          SECTION 7.3 TRUSTEE MAY ENFORCE RIGHTS OF ACTION WITHOUT POSSESSION OF
DEBT SECURITIES. All rights of action under this Indenture or any of the Debt
Securities Outstanding of any series hereunder enforceable by the Trustee may be
enforced by the Trustee

                                       34

<PAGE>

without the possession of any of the Debt Securities or the production thereof
at the trial or other proceedings relative thereto, and any such suit or
proceeding instituted by the Trustee shall be brought for the ratable benefit of
the Holders of the Debt Securities with respect to which the rights are being
exercised, subject to the provisions of this Indenture.

          SECTION 7.4 DELAYS OR OMISSIONS NOT TO IMPAIR ANY RIGHTS OR POWERS
ACCRUING UPON DEFAULT. No delay or omission of the Trustee or of the Holders of
Debt Securities to exercise any rights or powers accruing upon any default which
shall not have been remedied shall impair any such right or power, or shall be
construed to be a waiver of any such default or acquiescence therein; and every
power and remedy given by this Article VII to the Trustee and the Holders of the
Debt Securities of any series may be exercised from time to time and as often as
may be deemed expedient by the Trustee or by the Holders of the Debt Securities
of such series.

          Provided the Debt Securities of any series shall not then be due and
payable by reason of a declaration pursuant to Section 7.1 hereof, the Holders
of at least a majority in aggregate Principal Amount of the Debt Securities of
such series then Outstanding may on behalf of the Holders of all of the Debt
Securities of such series waive by written notice any past default hereunder and
its consequences, except a default in the payment of interest on or principal,
premium, if any, and make-whole amount, if any, of any of the Debt Securities of
such series. In the case of any such waiver, the Company, the Trustee and the
Holders of the Debt Securities of such series shall be restored to their former
positions and rights hereunder, respectively; but no such waiver shall extend to
any subsequent or other default or impair any right consequent thereon.

          SECTION 7.5 HOLDERS OF AT LEAST A MAJORITY MAY DIRECT EXERCISE OF
REMEDIES. The Holders of at least a majority in aggregate Principal Amount of
the Debt Securities then Outstanding of any series shall have the right, by an
instrument in writing executed and delivered to the Trustee, to direct the time,
method and place of conducting any proceedings for any remedy available to the
Trustee, or of exercising any power or trust conferred upon the Trustee under
this Indenture, with respect to the Debt Securities of such series; provided,
however, that subject to the provisions of Section 11.1 of this Indenture, the
Trustee shall have the right to decline to follow any such direction if the
Trustee, being advised by counsel, determines that the action or proceedings so
directed may not lawfully be taken or if the Trustee in good faith shall, by
Responsible Officers, determine that the action or proceedings so directed would
involve the Trustee in personal liability, or would be unduly prejudicial to the
Holders of the Debt Securities of such series not joining in such direction, it
being understood that the Trustee (subject to Section 11.1) shall have no duty
to ascertain whether or not such actions or forebearances are unduly prejudicial
to such Holders, and the Trustee may take any other action deemed proper by the
Trustee which is not inconsistent with such direction.

          SECTION 7.6 LIMITATION ON SUITS BY HOLDERS OF DEBT SECURITIES. No
Holder of any Debt Security of any series shall have the right to institute any
suit, action or proceeding, in equity or at law for the execution of any trust
or power hereof, or for the enforcement of any other remedy under or upon this
Indenture or the Debt Securities of such series, unless (1) Holder gives the
Trustee written notice that an Event of Default is continuing, (2) the Holders
of a majority in aggregate Principal Amount of the Debt Securities then
Outstanding of such series shall have made written request upon the Trustee and
shall have

                                       35

<PAGE>

afforded to it a reasonable opportunity either to proceed to exercise the powers
hereinbefore granted or to institute such suit, action or proceeding in its own
name, as Trustee hereunder, (3) shall have offered to the Trustee indemnity
satisfactory to the Trustee against the costs, expenses and liabilities to be
incurred therein or thereby, (4) the Trustee shall have not complied with such
request for 60 days after its receipt of such request and (5) no direction
inconsistent with such request shall have been given to the Trustee pursuant to
Section 7.6; it being understood and intended that no one or more Holders of
Debt Securities of any series shall have any right under this Indenture or under
the Debt Securities, by his or their action, to enforce any right hereunder
except in the manner herein provided, and that all proceedings hereunder, at law
or in equity, shall be instituted, had and maintained in the manner herein
provided and for the ratable benefit of all Holders of the Debt Securities of
such series. Notwithstanding any provision of this Indenture to the contrary,
the right, which is absolute and unconditional, of any Holder of Debt Securities
to receive the payment of the Principal of, premium, if any, make-whole amount,
if any, and interest on his Debt Securities at and after the respective due
dates (including maturity by call for redemption, through any sinking fund,
declaration unless annulled pursuant to Section 7.1 hereof, or otherwise), of
such Principal, premium, if any, make-whole amount, if any, or interest, or the
right, which is also absolute and unconditional, of any Holder of Debt
Securities to require exchange or conversion of his Debt Securities pursuant to
the terms thereof if the terms of such Debt Securities provide for
exchangeability or convertibility, or the right to institute suit for the
enforcement of any such payment at or after such due dates or of such right to
exchange or convert, shall not be impaired or affected without the consent of
such Holder, and the obligation of the Company, which is also absolute and
unconditional, to pay the Principal of, premium, if any, make-whole amount, if
any, and interest on each of the Debt Securities to the respective Holders
thereof at the times and places in the Debt Securities expressed shall not be
impaired or affected.

          Notwithstanding anything to the contrary contained in this Section
7.7, the parties to this Indenture and the Holders of Debt Securities agree as
follows:

          Any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Trustee for any action taken, suffered or omitted by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of
such suit, and such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by
such party litigant; provided, however, that the provisions of this paragraph
shall not apply to any suit instituted, directly or through an agent or agents,
by the Trustee, to any suit instituted by any Holder of Debt Securities of any
series, or group of Holders of Debt Securities of any series, holding in the
aggregate more than 10% in aggregate Principal Amount of the Debt Securities
then Outstanding of such series or to any suit instituted by any Holder of Debt
Securities of any series for the enforcement of the payment of the Principal of,
premium, if any, make-whole amount, if any, or interest on, any Debt Security of
such series at or after the respective due dates of such principal, premium, if
any, make-whole amount, if any, or interest expressed in his Debt Security of
such series.

          SECTION 7.7 NO COMPANY DEBT SECURITIES TO BE DEEMED OUTSTANDING. No
Debt Securities owned or held by, for the account of or for the benefit of the
Company to be deemed Outstanding for purpose of payment or distribution. No Debt
Securities owned or held

                                       36

<PAGE>

by, for the account of or for the benefit of the Company or any Affiliate of the
Company (other than Debt Securities pledged in good faith which would be deemed
Outstanding under the provisions of Section 3.2) shall be deemed Outstanding for
the purpose of any payment or distribution provided for in this Article VII.

          SECTION 7.8 DISCONTINUANCE OR ABANDONMENT OF PROCEEDINGS. If the
Trustee shall have proceeded to enforce any right under this Indenture with
respect to the Debt Securities of any series, and such proceedings shall have
been discontinued or abandoned because of waiver, or for any other reason, or
shall have been determined adversely to the Trustee, then, and in any such case,
the Company, the Trustee and the Holders of Debt Securities of such series shall
each be restored to their former positions and rights hereunder, and all rights,
remedies and powers of the Trustee shall continue as though no such proceeding
had been taken.

          SECTION 7.9 STATEMENT BY OFFICERS AS TO DEFAULT. The Company shall
deliver to the Trustee promptly upon any Officer becoming aware of the
occurrence of any 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 proposes to take with respect thereto.

                                  ARTICLE VIII
                EVIDENCE OF ACTION BY HOLDERS OF DEBT SECURITIES

          SECTION 8.1 EVIDENCE OF ACTION BY HOLDERS OF DEBT SECURITIES. Any
demand, request, consent, proxy or other instrument which this Indenture may
require or permit to be signed and executed by the Holders of Debt Securities of
any series may be in any number of concurrent instruments of similar tenor, and
may be signed or executed by such Holders of Debt Securities in person or by an
attorney duly authorized in writing. Proof of the execution of any such demand,
request, consent, proxy or other instrument, or of a writing appointing any such
attorney, shall be sufficient for any purpose of this Indenture if made in the
following manner: the fact and date of the execution by any person of such
demand, request, consent, proxy or other instrument or writing may be proved by
the certificate of any notary public, or other officer authorized to take
acknowledgments of deeds to be recorded in any state or country, that the person
signing such request or other instrument or writing acknowledged to him the
execution thereof, or by an affidavit of a witness of such execution. Where such
execution is by an officer of a corporation or association or a member of a
partnership on behalf of such corporation, association or partnership, or by a
trustee or other fiduciary, such certificate or affidavit shall also constitute
sufficient proof of his authority. The Trustee may nevertheless in its
discretion accept such other proof or require further proof of any matter
referred to in this Section 8.1 as it shall deem reasonable. The ownership of
Debt Securities shall be proved by the registry books or by a certificate of the
registrar thereof.

          The Trustee shall not be bound to recognize any person as a Holder of
Debt Securities of any series unless and until his title to the Debt Securities
of such series held by him is proved in the manner in this Article VIII
provided.

          Any demand, request, discretion, waiver, consent, vote or other action
of the Holder of any series of Debt Securities shall be conclusive and shall
bind all future Holders of the same Debt Security and of any series of Debt
Securities issued in exchange or substitution

                                       37

<PAGE>

therefor irrespective of whether or not any notation in regard thereto is made
upon such Debt Security. Any such Holder, however, may revoke the consent as to
his Debt Security or portion thereof. Such revocation shall be effective only if
the Trustee receives the written notice of revocation before the date the
amendment, supplement, waiver or other action becomes effective. An amendment,
supplement, waiver or other action shall become effective on receipt by the
Trustee of written consents from the Holders of Debt Securities of the requisite
percentage in aggregate Principal Amount of the Outstanding Debt Securities of
the relevant series. After an amendment, supplement, waiver or other action
becomes effective, it shall bind every Holder of Debt Securities of each series
of Debt Securities so affected.

          The Company or the Trustee, as applicable, may set a date for the
purpose of determining the Holders of Debt Securities entitled to consent, vote
or take any other action referred to in this Section 8.1, which date shall be
not less than 10 days nor more than 60 days prior to the taking of the consent,
vote or other action.

                                   ARTICLE IX
                IMMUNITY OF SHAREHOLDERS, OFFICERS AND DIRECTORS

          SECTION 9.1 IMMUNITY OF SHAREHOLDERS, OFFICERS, DIRECTORS AND
EMPLOYEES. No past, present or future director, Officer, employee, incorporator,
agent, Affiliate or shareholder of the Company, as such, shall have any
liability for any obligations of the Company under the Debt Securities or this
Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder of Debt Securities by accepting a
Debt Security waives and releases all such liabilities. The waiver and release
are part of the consideration for issuance of the Debt Securities. The waiver
may not be effective to waive liabilities under the federal securities laws.

                                   ARTICLE X
                      MERGER, CONSOLIDATION, SALE OR LEASE

          SECTION 10.1 CONSOLIDATION, MERGER, SALE, TRANSFER OR LEASE. Nothing
in this Indenture or in the Debt Securities shall prevent any consolidation or
merger of the Company with or into any other corporation, partnership or limited
liability company, or any consolidation or merger of any other corporation,
partnership or limited liability company with or into the Company, or any sale,
assignment, conveyance, transfer, lease or other disposition of all or
substantially all of the property and assets of the Company to any other
corporation, partnership or limited liability company lawfully entitled to
acquire the same; provided, however, and the Company hereby covenants and
agrees, that any consolidation or merger of the Company with or into any other
corporation, partnership or limited liability company or the sale, assignment,
conveyance, transfer, lease or other disposition of all or substantially all of
the property and assets of the Company and its subsidiaries on a consolidated
basis shall be upon the condition that (a) the due and punctual payment of the
Principal of, premium, if any, make-whole amount, if any, and interest on all
the Debt Securities according to their tenor, and the due and punctual
performance and observance of all the terms, covenants and conditions of this
Indenture to be kept or performed by the Company shall, by a supplemental
indenture hereto complying with the provisions of Section 12.1, executed and
delivered to the Trustee, be expressly assumed by the corporation, partnership
or limited liability company (other than the Company) formed by or resulting
from any such consolidation or merger, or which shall have received the
delivery,

                                       38

<PAGE>

transfer, assignment, conveyance or lease of all or substantially all of the
property and assets of the Company and its subsidiaries on a consolidated basis,
just as fully and effectually as if such successor corporation, partnership or
limited liability company had been an original party hereto; and (b) the Company
or such successor corporation, partnership or limited liability company, as the
case may be, shall not, immediately after such consolidation, merger, sale,
transfer, assignment, conveyance, lease or other disposition, be in default in
the performance of any such covenant or condition. Thereafter, unless otherwise
specified pursuant to Section 2.2 for the Debt Securities of any series, all
obligations of the predecessor corporation, partnership or limited liability
company under the Debt Securities of such series shall terminate. In the event
of any such sale, assignment, conveyance, transfer, lease or other disposition,
the predecessor entity may be dissolved, wound up and liquidated at any time
thereafter.

          Every such successor corporation, partnership or limited liability
company, upon executing a supplemental indenture hereto as provided in this
Section 10.1 in form satisfactory to the Trustee, shall succeed to and be
substituted for the Company with the same effect as if it had been named herein
as the Company; and any order, certificate or resolution of the Board or
officers of the Company provided for in this Indenture may be made by like
officials of such successor corporation, partnership or limited liability
company. Such successor corporation, partnership or limited liability company
may thereupon cause to be signed, either in its own name or in the name of the
Company, with such suitable reference, if any, to such consolidation, merger,
sale, transfer, assignment, conveyance, lease or other disposition as may be
required by the Trustee, any or all of the Debt Securities which shall not
theretofore have been signed by the Company and authenticated by the Trustee or
any Authenticating Agent; and upon the written order of such successor
corporation, partnership or limited liability company in lieu of the Company,
signed by not less than two Officers of such successor corporation, partnership
or limited liability company, and subject to all the terms, conditions and
restrictions herein prescribed with respect to the authentication and delivery
of the Debt Securities, the Trustee or any Authenticating Agent shall
authenticate and deliver any and all Debt Securities which shall have been
previously signed by the proper Officers of the Company and delivered to the
Trustee or any Authenticating Agent for authentication and any of such Debt
Securities which such successor corporation, partnership or limited liability
company shall thereafter, in accordance with the provisions of this Indenture,
cause to be signed and delivered to the Trustee or any Authenticating Agent for
such purpose. All Debt Securities of any series so authenticated and delivered
shall in all respects have the same rank as the Debt Securities of such series
theretofore or thereafter authenticated and delivered in accordance with the
terms of this Indenture.

          Notwithstanding the foregoing, this Section 10.1 shall not apply in
the event, and to the extent, that any such consolidation, merger, sale,
assignment, conveyance, transfer, lease or other disposition described above is
expressly permitted pursuant to the terms of any Board Resolution or
supplemental indenture governing any series of Debt Securities, provided that
the Company complies with all conditions set forth in such supplemental
indenture for any such consolidation, merger, sale, assignment, conveyance,
transfer, lease or other disposition.

          SECTION 10.2 TRUSTEE MAY RELY UPON OPINION OF COUNSEL. The Trustee
shall receive, subject to the provisions of Section 11.1 of this Indenture, and
be fully protected in relying in good faith upon an Officers' Certificate and
Opinion of Counsel as conclusive

                                       39

<PAGE>

evidence that any supplemental indenture executed under the foregoing Section
10.1 complies with the foregoing conditions and provisions of this Article X.

                                   ARTICLE XI
                             CONCERNING THE TRUSTEE

          SECTION 11.1 CERTAIN DUTIES AND RESPONSIBILITIES.

          (a) Except during the continuance of an Event of Default,

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

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

          (b) In case an Event of Default has occurred and is continuing, the
     Trustee shall exercise such of the rights and powers vested in it by this
     Indenture, and use the same degree of care and skill in their exercise, as
     a prudent person would exercise or use under the circumstances in the
     conduct of his or her own affairs.

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

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

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

               (3) the Trustee shall not be liable with respect to any action
          taken or omitted to be taken by it in good faith in accordance with
          the direction of the Holders of a majority in principal amount of the
          Outstanding Securities of any series, determined as provided in
          Sections 7.5 and 7.6, relating to the time, method and place of
          conducting any proceeding for any remedy available to the Trustee, or
          exercising any trust or power conferred upon the Trustee, under this
          Indenture with respect to the Securities of such series; and

               (4) no provision of this Indenture shall require the Trustee to
          expend or risk its own funds or otherwise incur any financial
          liability in the performance

                                       40
<PAGE>

          of any of its duties hereunder, or in the exercise of any of its
          rights or powers, if it shall have reasonable grounds for believing
          that repayment of such funds or adequate indemnity against such risk
          or liability is not reasonably assured to it.

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

          (e) Subject to the limitations set forth above in Section 11.1:

               (i) the Trustee may conclusively rely and shall be protected in
          acting or refraining from action upon any resolution, certificate,
          opinion, notice, consent, request, order, appraisal, report, bond or
          other paper or document believed by it to be genuine and to have been
          signed or presented by the proper party or parties;

               (ii) before the Trustee acts or refrains from acting, the Trustee
          may consult with counsel of its selection and the 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 accordance with such
          advice or Opinion of Counsel;

               (iii) whenever in the administration of the trusts of this
          Indenture, prior to an Event of Default hereunder and after the curing
          or waiving of all Events of Default which may have occurred, the
          Trustee shall deem it necessary or desirable that a matter be proved
          or established prior to taking, suffering or omitting any action
          hereunder, such matter (unless other evidence in respect thereof be
          herein specifically prescribed) may be deemed to be conclusively
          proved and established by an Officers' Certificate delivered to the
          Trustee, and such certificate shall be full warrant to the Trustee for
          any action taken, suffered or omitted by it under the provisions of
          this Indenture upon the faith thereof;

               (iv) the Trustee shall be under no obligation to exercise any of
          the trusts or powers hereof at the request, order or direction of any
          of the Holders of Debt Securities, pursuant to the provisions of this
          Indenture, unless such Holders of Debt Securities shall have offered
          to the Trustee indemnity satisfactory to the Trustee against all the
          costs, expenses and liabilities which might be incurred therein;

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

               (vi) 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

                                       41

<PAGE>

          inquiry or investigation, it shall be entitled to examine the books,
          records and premises of the Company, personally or by agent or
          attorney at the sole cost of the Company and shall incur no liability
          or additional liability of any kind by reason of such inquiry or
          investigation.

               (vii) the Trustee shall not be required to give any bond or
          surety in respect of the performance of its powers and duties
          hereunder;

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

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

               (x) in no event shall the Trustee be responsible or liable for
          special, indirect, or consequential loss or damage of any kind
          whatsoever (including, but not limited to, loss of profit)
          irrespective of whether the Trustee has been advised of the likelihood
          of such loss or damage and regardless of the form of action;

               (xi) the Trustee shall not be deemed to have notice of any
          Default or Event of Default unless a Responsible Officer of the
          Trustee has actual knowledge thereof or unless written notice of any
          event which is in fact such a default is received by the Trustee at
          the principal trust office of the Trustee, and such notice references
          the Debt Securities and this Indenture;

               (xii) the rights, privileges, protections, immunities and
          benefits given to the Trustee, including, without limitation, its
          right to be indemnified, are extended to, and shall be enforceable by,
          the Trustee in each of its capacities hereunder, and each agent,
          custodian and other person employed to act hereunder; and

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

          SECTION 11.2 COMPENSATION AND INDEMNITIES. The Company agrees:

          (1) to pay to the Trustee from time to time such compensation as the
     Company and the Trustee shall from time to time agree in writing 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);

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<PAGE>

          (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 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 each of the Trustee or any predecessor Trustee and
     their agents for, and to hold them harmless against, any and all loss,
     damage, claims, liability or expense 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
     (whether asserted by the Company, or any Holder or any other Person) or
     liability in connection with the exercise or performance of any of its
     powers or duties hereunder, or in connection with enforcing the provisions
     of this Section, except to the extent that such loss, damage, claim,
     liability or expense is due to its own negligence or bad faith.

          If any property other than cash shall at any time be subject to a lien
in favor of the Holders of Debt Securities, the Trustee, if and to the extent
authorized by a receivership or bankruptcy court of competent jurisdiction or by
the supplemental instrument subjecting such property to such lien, shall be
entitled to make advances for the purpose of preserving such property or of
discharging tax liens or other prior liens or encumbrances thereon. The
obligations of the Company under this Section 11.2 to compensate the Trustee and
to indemnify, pay or reimburse the Trustee or any predecessor Trustee for
expenses, disbursements and advances shall constitute additional indebtedness
hereunder and shall survive the resignation or removal of the Trustee, the
termination of this Indenture, and the satisfaction and discharge or any other
termination pursuant to any Bankruptcy Law hereof. Such additional indebtedness
shall be secured by a lien prior to that of the Debt Securities of all series
with respect to which the Trustee acts as Trustee upon all property and funds
held or collected by the Trustee as such, except funds held in trust for the
benefit of the Holders of particular Debt Securities.

          The Trustee shall not be accountable for the use or application by the
Company of any Debt Securities authenticated and delivered hereunder or of the
proceeds of such Debt Securities, or for the use or application of any moneys
paid over by the Trustee in accordance with any provision of this Indenture, or
for the use or application of any moneys received by any Paying Agent other than
the Trustee.

          All moneys received by the Trustee in trust under or pursuant to any
provision of this Indenture shall constitute trust funds for the purposes for
which they were paid or were held, but need not be segregated in any manner from
any other moneys and may be deposited by the Trustee, under such conditions as
may be prescribed by law, in its general banking department, and the Trustee
shall not be liable for any interest thereon, except as otherwise agreed with
the Company.

          The parties hereto, and the Holders of Debt Securities by their
acceptance of their Debt Securities, hereby agree, that when the Trustee incurs
expenses and renders services after an Event of Default specified in Section
7.1(d) or 7.1(e) occurs, such expenses and the compensation for such services
are intended by the Holders of the Debt Securities and Company to constitute
expenses of administration under any Bankruptcy Law.

                                       43

<PAGE>

          SECTION 11.3 NOTICE OF DEFAULT. The Trustee shall give to the Holders
of Debt Securities of any series notice of the happening of all defaults with
respect to the Debt Securities of such series known to it, within 90 days after
the occurrence thereof unless such defaults shall have been cured before the
giving of such notice; provided, however, that, except in the case of a default
resulting from the failure to make any payment of Principal of, premium, if any,
make-whole amount, if any, or interest on the Debt Securities of any series, or
in the payment of any mandatory sinking fund installment with respect to the
Debt Securities of such series, the Trustee may withhold the giving of such
notice if and so long as the board of directors, the executive committee or a
trust committee of directors and/or Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the interest of the
Holders of Debt Securities of such series. For the purpose of this Section 11.3,
the term "default" means any event which is, or after notice or lapse of time or
both would become, an Event of Default. Such notice shall be given to the
Holders of Debt Securities of such series in the manner and to the extent
provided in subsection (c) of Section 11.10.

          SECTION 11.4 CONFLICTING INTERESTS. The Trustee in its individual or
any other capacity may become the owner or pledgee of Debt Securities and may
otherwise deal with the Company or any Affiliate of the Company with the same
rights it would have if it were not Trustee. However, in the event that the
Trustee acquires any conflicting interest it must eliminate such conflict within
90 days, apply to the Commission for permission to continue as Trustee (if this
Indenture has been qualified under the Trust Indenture Act and to the extent
permitted by Trust Indenture Act Section 3.10(b)) or resign. Any agent may do
the same with like rights and duties.

          SECTION 11.5 ELIGIBILITY OF TRUSTEE. There shall at all times be a
corporate Trustee under this Indenture which shall be a bank or trust company
organized and doing business under the laws of the United States or of any State
or the District of Columbia and having a combined capital and surplus of not
less than $100,000,000 which is authorized under the laws of its jurisdiction of
incorporation to exercise corporate trust powers and is subject to supervision
or examination by Federal, State or District of Columbia authority. If the
Trustee publishes reports of condition at least annually, pursuant to law or to
the requirements of the aforesaid supervising or examining authority, the
combined capital of the Trustee shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published

          SECTION 11.6 RESIGNATION OR REMOVAL OF TRUSTEE.

          (a) Subject to the limitations contained in subsection (d) of this
     Section 11.6, the Trustee may resign and be discharged from the trust
     hereby created with respect to the Debt Securities of one or more series by
     giving notice thereof to the Company. Upon receiving such notice of
     resignation, the Company shall promptly appoint a successor Trustee or
     Trustees (it being understood that any such successor Trustee may be
     appointed with respect to the Debt Securities of one or more or all of such
     series with respect to which the resigning Trustee has resigned and that at
     any time there shall be only one Trustee with respect to the Debt
     Securities of any particular series) by written instrument, in duplicate,
     executed by order of the Board of Directors, one copy of which instrument
     shall be delivered to the resigning Trustee and one copy to the successor
     Trustee. If no successor Trustee shall have been so appointed and have
     accepted

                                       44

<PAGE>

     appointment within 60 days after the mailing of such notice of resignation,
     the resigning Trustee, the Company or the Holders of at least 10% in
     aggregate Principal Amount of any series of Debt Securities then
     outstanding may, petition any court of competent jurisdiction for the
     appointment of a successor Trustee, or any Holder of Debt Securities of
     such series who has been a bona fide Holder of a Debt Security or Debt
     Securities of such series for at least six months may on behalf of himself
     and all others similarly situated, petition any such court for the
     appointment of a successor Trustee. Such court may thereupon, after such
     notice, if any, as it may deem proper and prescribe, appoint a successor
     Trustee.

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

               (1) the Trustee shall fail to comply with the provisions of
          Section 11.4 with respect to the Debt Securities of any series after
          written request therefor by the Company or by any Holder of Debt
          Securities of such series who has been a bona fide Holder of a Debt
          Security or Debt Securities of such series for at least six months; or

               (2) the Trustee shall cease to be eligible in accordance with the
          provisions of Section 11.5 with respect to the Debt Securities of any
          series and shall fail to resign after written request therefor by the
          Company or by any such Holder of Debt Securities; 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

     then, in any such case, the Company may remove the Trustee with respect to
     all Debt Securities of such series and appoint a duly qualified successor
     Trustee by written instrument, in duplicate, executed by order of the Board
     of Directors of the Company, one copy of which instrument shall be
     delivered to the Trustee so removed and one copy to the successor Trustee
     so appointed, or, subject to the provisions of Section 7.7, any Holder of
     Debt Securities who has been a bona fide Holder of a Debt Security or Debt
     Securities 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 removal of the Trustee with respect to all Debt
     Securities of such series and the appointment of a successor Trustee. Such
     court may thereupon after such notice, if any, as it may deem proper and
     prescribe, remove the Trustee and appoint a duly qualified successor
     Trustee with respect to the Debt Securities of such series.

          (c) The Holders of at least a majority in aggregate Principal Amount
     of the Debt Securities then Outstanding of any series may at any time
     remove the Trustee and appoint a duly qualified successor Trustee with
     respect to such series by delivery to the Trustee so removed, to the
     successor Trustee and to the Company of the evidence provided for in
     Section 8.1 of the action in that regard taken by Holders of Debt
     Securities.

                                       45

<PAGE>

          (d) Any resignation or removal of the Trustee and any appointment of a
     duly qualified successor Trustee pursuant to any of the provisions of this
     Section shall become effective only upon acceptance of appointment by the
     successor Trustee as provided in Section 11.7.

          SECTION 11.7 ACCEPTANCE BY SUCCESSOR TRUSTEE.

          (a) In case of the appointment hereunder of a successor Trustee with
     respect to all Debt Securities, every duly qualified successor Trustee so
     appointed under any of the methods herein provided shall execute,
     acknowledge and deliver to its predecessor Trustee and to the Company an
     instrument in writing accepting such appointment hereunder and thereupon
     such successor Trustee, without any further act, deed or conveyance, shall
     become fully vested with the rights, powers, trusts, duties and obligations
     of its predecessor in the trust hereunder with like effect as if originally
     named as Trustee herein. The predecessor Trustee shall, nevertheless, at
     the written request of the successor Trustee, pay over to the successor
     Trustee all moneys at the time held by it herein; and the Company and the
     predecessor Trustee upon payment or provision therefor of any amounts then
     due the predecessor Trustee pursuant to the provisions of Section 11.2,
     shall execute and deliver such instruments and do such other things as may
     reasonably be required for more fully and certainly vesting and confirming
     in the successor Trustee all such rights, powers, trusts, duties and
     obligations.

          (b) In case of the appointment hereunder of a successor Trustee with
     respect to the Debt Securities of one or more (but not all) series, the
     Company, the predecessor Trustee and each successor Trustee with respect to
     the Debt Securities of such series shall execute and deliver an indenture
     supplemental hereto wherein each successor Trustee shall accept such
     appointment and which (i) 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
     predecessor Trustee with respect to the Debt Securities of such series to
     which the appointment of such successor Trustee relates, (ii) if the
     predecessor Trustee is not retiring with respect to all Debt Securities of
     such series, shall contain such provisions as shall be deemed necessary or
     desirable to confirm that all the rights, powers, trusts and duties of the
     predecessor Trustee with respect to the Debt Securities of such series as
     to which the predecessor Trustee is not retiring shall continue to be
     vested in the predecessor Trustee, and (iii) 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 predecessor
     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
     predecessor Trustee with respect to the Debt Securities of such series to
     which the appointment of such successor Trustee relates; but, on request of
     the Company or any successor Trustee, such predecessor Trustee upon payment
     of its charges shall duly

                                       46

<PAGE>

     assign, transfer and deliver to such successor Trustee all property and
     money held by such predecessor Trustee hereunder with respect to the Debt
     Securities of such series to which the appointment of such successor
     Trustee relates. Upon request of any such successor Trustee, the Company
     shall execute any and all instruments for more fully and certainly vesting
     in and confirming to such successor Trustee all such rights, powers and
     trusts referred to in this subsection (b) of this Section.

          SECTION 11.8 SUCCESSOR TO TRUSTEE BY MERGER OR CONSOLIDATION, ETC. Any
corporation or national banking association into which the Trustee may be
merged, or with which it may be consolidated, or to which the Trustee transfers
all or substantially all of its corporate trust assets, or any corporation or
national banking association resulting from any merger or consolidation or
conversion to which the Trustee shall be a party, shall be the successor Trustee
under this Indenture without the execution or filing of any instruments or any
further act on the part of any of the parties hereto.

          SECTION 11.9 PREFERENTIAL COLLECTION OF CLAIMS. If and when the
Trustee shall be or become a creditor of the Company (or any other obligor upon
the Debt Securities), the Trustee shall be subject to the provisions of the
Trust Indenture Act regarding the collection of claims against the Company (or
any such other obligor). A Trustee who has resigned or been removed shall be
subject to the Trust Indenture Act Section 311(a) to the extent indicated
therein.

          SECTION 11.10 REPORTS BY TRUSTEE.

          (a) 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. If required by Section 313(a) of the Trust Indenture Act, the
     Trustee shall, within 60 days after each [_______] following the date of
     the initial issuance of Debt Securities under this Indenture, and for so
     long as any Debt Securities remain outstanding, deliver to Holders a brief
     report, dated as of such reporting date, which complies with the provisions
     of such Section 313(a) (but if no event described in Trust Indenture Act
     Section 313(a) has occurred within the twelve months preceding the
     reporting date, no report need be transmitted). The Trustee also will
     comply with Trust Indenture Act Section 313(b)(2). The Trustee will also
     transmit by mail all reports as required by Trust Indenture Act Section
     313(c).

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

          SECTION 11.11 PRESERVATION OF INFORMATION. The Trustee shall preserve,
in as current a form as is reasonably practicable, all information furnished it
pursuant to Section 4.6(d) hereof or received by it as Debt Security registrar
hereunder. The Trustee may destroy such information upon receipt of new
information updating information previously furnished.

                                       47

<PAGE>

          SECTION 11.12 TRUSTEE MAY HOLD DEBT SECURITIES AND OTHERWISE DEAL WITH
COMPANY. The Trustee, the Debt Security registrar, any Paying Agent or any other
agent of the Company in its individual or any other capacity may buy, own, hold
and sell any of the Debt Securities or any other evidences of indebtedness or
other securities, whether heretofore or hereafter created or issued, of the
Company or any subsidiary or Affiliate of the Company with the same rights it
would have if it were not Trustee, Debt Security registrar, Paying Agent or such
other agent; and subject to the provisions of this Article XI, the Trustee may
engage or be interested in any financial or other transaction with the Company
or any subsidiary or Affiliate of the Company, including, without limitation,
secured and unsecured loans to the Company or any subsidiary or Affiliate of the
Company; and may maintain any and all other general banking and business
relations with the Company and any subsidiary or Affiliate of the Company with
like effect and in the same manner and to the same extent as if the Trustee were
not a party to this Indenture; and no implied covenant shall be read into this
Indenture against the Trustee in respect of any such matters.

          SECTION 11.13 TRUSTEE MAY COMPLY WITH ANY RULE, REGULATION OR ORDER OF
THE COMMISSION. The Trustee may comply in good faith with any rule, regulation
or order of the Commission made pursuant to the terms and provisions of the
Trust Indenture Act and shall be fully protected in so doing notwithstanding
that such rule, regulation or order may thereafter be amended or rescinded or
determined by judicial or other authority to be invalid for any reason, but
nothing herein contained shall require the Trustee to take any action or omit to
take any action in accordance with such rule, regulation or order, except as is
in this Indenture otherwise required.

          SECTION 11.14 APPOINTMENT OF AUTHENTICATING AGENT. The Trustee may
appoint an Authenticating Agent or Agents with respect to one or more series of
Debt Securities which shall be authorized to act on behalf of the Trustee to
authenticate Debt Securities of such series issued upon exchange, registration
of transfer or partial redemption or partial conversion thereof, and if the
Trustee is required to appoint one or more Authenticating Agents with respect to
any series of Debt Securities, to authenticate Debt Securities of such series
and to take such other actions as are specified in Sections 2.4, 2.8, 2.11 and
5.2, and Debt 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 Debt 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 (except in respect of original issue and
Section 2.9). Each Authenticating Agent shall be acceptable to the Company and
shall at all times be a corporation organized and doing business under the laws
of the United States of America, any State thereof or the District of Columbia,
authorized under such laws to act as Authenticating Agent, having a combined
capital and surplus of not less than $1,000,000 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 11.14, 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

                                       48

<PAGE>

Section 11.14, such Authenticating Agent shall resign immediately in the manner
and with the effect specified in this Section 11.14.

          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 such Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section 11.14, without the execution or filing of any paper or any
further act on the part of the Trustee or such 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 or
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 11.14, the Trustee may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall provide
notice to the Holders of the Debt Securities of the series as to which the
Authenticating Agent will serve as provided in Section 3.8. 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 11.14.

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

          If all of the Debt Securities of a series may not be originally issued
at one time, and if the Trustee does not have an office capable of
authenticating Debt Securities upon original issuance located where the Company
wishes to have Debt Securities of such series authenticated upon original
issuance, the Trustee, if so requested by the Company in writing (which writing
need not comply with Section 3.7 and need not be accompanied by an Opinion of
Counsel), shall appoint in accordance with this Section 11.14 an Authenticating
Agent having an office in a place designated by the Company with respect to such
series of Debt Securities.

          SECTION 11.15 TRUSTEE NOT RESPONSIBLE FOR RECITALS, DISPOSITION OF
DEBT SECURITIES OR APPLICATION OF PROCEEDS THEREOF. The recitals contained
herein and in the Debt Securities, except the Trustee's certificates of
authentication, shall be taken as the statements of the Issuer, and the Trustee
assumes no responsibility for the correctness of the same. The Trustee makes no
representation as to the validity or sufficiency of this Indenture or of the
Debt Securities. The Trustee shall not be accountable for the use or application
by the Issuer of any of the Debt Securities or of the proceeds thereof.

          SECTION 11.16 CALCULATIONS IN RESPECT OF DEBT SECURITIES. The Company
will be responsible for making calculations called for under the Debt
Securities. These calculations include, but are not limited to, determination of
make-whole amounts, if any, premiums, if any, Original Issue Discount, if any,
and conversion rates and adjustments, if any. The Company will make the
calculations in good faith and, absent manifest error, its calculations

                                       49

<PAGE>

will be final and binding on the Holders of the Debt Securities. The Company
will provide a schedule of its calculations to the Trustee when applicable, and
the Trustee is entitled to rely conclusively on the accuracy of the Company's
calculations without independent verification.

                                   ARTICLE XII
                             SUPPLEMENTAL INDENTURES

          SECTION 12.1 SUPPLEMENTAL INDENTURES FOR SPECIAL PURPOSES. Without the
consent of any of the Holders of Debt Securities, the Company, when authorized
by resolution of its Board of Directors, and, upon receipt of an Opinion of
Counsel stating that the execution of such supplemental indenture is authorized
or permitted by this Indenture, is duly authorized by all necessary corporate
action, constitutes the valid and binding obligation of the Company and is in
compliance with applicable law, the Trustee from time to time and at any time,
subject to the conditions and restrictions in this Indenture contained, may
enter into an indenture or supplemental indentures in form satisfactory to the
Trustee, which thereafter shall form a part hereof, for any one or more of the
following purposes:

          (a) to add to the covenants and agreements of the Company in this
     Indenture contained, other covenants and agreements thereafter to be
     observed for the benefit of the Holders of all or any series of Debt
     Securities (and if such covenants and agreements are to be for the benefit
     of less than all series of Debt Securities, stating that such covenants and
     agreements are expressly being included solely for the benefit of such
     series) or to surrender any right or power herein reserved to or conferred
     upon the Company; or

          (b) to cure any ambiguity or to cure, correct or supplement any defect
     or inconsistent provision contained in this Indenture or in any
     supplemental indenture; or

          (c) to make such provisions in regard to matters or questions arising
     under this Indenture which may be necessary or desirable, or otherwise
     change this Indenture in any manner which shall not adversely affect the
     interests of the Holders of Debt Securities of any series; or

          (d) to evidence the succession of another Person to the Company, or
     successive successions, and the assumption by the successor Person of the
     covenants, agreements and obligations of the Company pursuant to Article X
     and to provide for the adjustment of conversion or exchange rights with
     respect to any Debt Securities, provided that such adjustment is made in
     accordance with the provisions of such Debt Securities or the resolution of
     the Board of Directors or the supplemental indenture pursuant to which such
     Debt Securities were issued; or

          (e) to establish the form or terms of the Debt Securities of any
     series as permitted by Sections 2.1 and 2.2; or

          (f) to change or eliminate any of the provisions of this Indenture,
     provided that, except as otherwise contemplated by Section 2.2(11), any
     such change or elimination shall become effective only when there is no
     Debt Security outstanding of any series created prior thereto which is
     entitled to the benefit of such provision; or

                                       50

<PAGE>

          (g) to add or change any of the provisions of this Indenture to such
     extent as shall be necessary to provide for uncertificated Debt Securities
     in addition to certificated Debt Securities (so long as any
     "registration-required obligation" within the meaning of Section 163(f)(2)
     of the Code is in registered form for purposes of the Code); or

          (h) to amend or supplement any provision contained herein, which was
     required to be contained herein in order for this Indenture to be qualified
     under the Trust Indenture Act, if the Trust Indenture Act or regulations
     thereunder change what is so required to be included in qualified
     indentures, in any manner not inconsistent with what then may be required
     for such qualification; or

          (i) to add any additional Events of Default (and if such Events of
     Default are to be applicable to less than all series of Debt Securities,
     stating that such Events of Default are expressly being included solely to
     be applicable to such series); or

          (j) to convey, transfer, assign, mortgage or pledge to the Trustee as
     security for the Debt Securities of one or more series any property or
     assets; or

          (k) to add to or change any of the provisions of this Indenture as
     contemplated in Section 11.7(b);

and the Company hereby covenants that it will fully perform all the requirements
of any such supplemental indenture which may be in effect from time to time.
Nothing in this Article XII contained shall affect or limit the right or
obligation of the Company to execute and deliver to the Trustee any instrument
of further assurance or other instrument which elsewhere in this Indenture it is
provided shall be delivered to the Trustee.

          The Trustee shall join with the Company in the execution of any such
supplemental indenture, make any further appropriate agreements and stipulations
which may be therein contained and accept the conveyance, transfer, assignment,
mortgage or pledge of any property thereunder, but the Trustee shall not be
obligated to enter into any such supplemental indenture which adversely affects
the Trustee's own rights, duties or immunities under this Indenture or
otherwise.

          Any supplemental indenture authorized by the provisions of this
Section 12.1 may be executed by the Company and the Trustee without the consent
of the Holders of any of the Debt Securities at the time Outstanding,
notwithstanding any of the provisions of Section 12.2.

          SECTION 12.2 AMENDMENTS WITH CONSENT OF HOLDERS. With the consent
(evidenced as provided in Section 8.1) of the Holders of at least a majority in
aggregate Principal Amount of the Debt Securities at the time Outstanding of
each series affected by such supplement, the Company, when authorized by a
resolution of its Board of Directors, and the Trustee may from time to time and
at any time enter into an indenture or supplemental indentures for the purpose
of adding any provision to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying in
any manner the rights of the Holders of such series of the Debt Securities;
provided, however, that no such supplemental indenture shall (i) extend the time
or times of payment of the Principal of, premium, if any, make-whole amount, if
any, or the interest on, any series of Debt Securities, or

                                       51

<PAGE>

reduce the Principal Amount of, premium, if any, make-whole amount, if any, or
the rate of interest on, any series of Debt Securities (and/or such other amount
or amounts as any Debt Securities or supplemental indentures with respect
thereto may provide to be due and payable upon declaration of acceleration of
the maturity thereof pursuant to Section 7.1) or change the currency of payment
of Principal of, premium, if any, make-whole amount, if any, or interest on, any
series of Debt Securities or reduce any amount payable on redemption thereof or
alter or impair the right to convert the same at the rate and upon the terms
provided in the Indenture or alter or impair the right to require redemption at
the option of the Holder, without the consent of the Holder of each Debt
Security so affected, or (ii) reduce the percentage of Debt Securities of any
series, the vote or consent of the Holders of which is required for such
modifications and alterations, without the consent of the Holders of all Debt
Securities then Outstanding of such series under the Indenture. Notwithstanding
the foregoing, no consent of the Holders of any series of Debt Securities shall
be necessary to permit the execution of a supplemental indenture to provide for
the adjustment of conversion or exchange rights with respect to any Debt
Securities, provided that such adjustment is made in accordance with the
provisions of such Debt Securities or the resolution of the Board of Directors
or the supplemental indenture pursuant to which such Debt Securities were
issued.

          Upon the request of the Company, accompanied by a Certified Resolution
authorizing the execution of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of Holders of Debt Securities
as aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee's
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may, in its discretion, but shall not be obligated, to enter
into such supplemental indenture.

          It shall not be necessary for the consent of the Holders of Debt
Securities under this Section 12.2 to approve the particular form of any
proposed supplemental indenture, but is shall be sufficient if such consent
shall approve the substance thereof.

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

          SECTION 12.3 EFFECT OF SUPPLEMENTAL INDENTURES. Upon the execution of
any supplemental indenture pursuant to the provisions of this Article XII, this
Indenture shall be and be deemed to be modified and amended in accordance
therewith and the respective rights, limitations of rights, obligations, duties
and immunities under this Indenture of the Trustee, the Company and the Holders
of Debt Securities shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and all
the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

          The Trustee, subject to the provisions of Section 11.1, may receive an
Opinion of Counsel as conclusive evidence that any such supplemental indenture
complies with the provisions of this Article XII.

                                       52

<PAGE>

          SECTION 12.4 SUPPLEMENTAL INDENTURES TO CONFORM TO TRUST INDENTURE
ACT. Any supplemental indenture executed and delivered pursuant to the
provisions of this Article XII shall conform in all respects to the requirements
of the Trust Indenture Act as then in effect.

          SECTION 12.5 NOTATION ON OR EXCHANGE OF DEBT SECURITIES. If an
amendment, supplement or waiver changes the terms of a Debt Security of any
series, the Trustee may require the Holder of the Debt Security to deliver it to
the Trustee. The Trustee may place an appropriate notation on the Debt Security
about the amendment, supplement or waiver and return it to the Holder. The
Trustee may place an appropriate notation about an amendment, supplement or
waiver on any Debt Security thereafter authenticated. Alternatively, if the
Company or the Trustee so determines, the Company in exchange for the Debt
Security of any series may issue and the Trustee shall authenticate a new Debt
Security of such series that reflects the changed terms.

          Failure to make the appropriate notation or issue a new Debt Security
will not affect the validity and effect of such amendment, supplement or waiver.

          SECTION 12.6 REVOCATION AND EFFECT OF CONSENTS. Until an amendment,
supplement or waiver becomes effective, a consent to it by a Holder of a Debt
Security is a continuing consent by the Holder and every subsequent Holder of a
Debt Security or portion of a Debt Security that evidences the same debt as the
consenting Holder's Debt Security, even if notation of the consent is not made
on any Debt Security. However, any such Holder of a Debt Security or subsequent
Holder of a Debt Security may revoke the consent as to its Debt Security if the
Trustee receives written notice of revocation before the date the amendment,
supplement or waiver becomes effective. An amendment, supplement or waiver
becomes effective in accordance with its terms.

                                       53

<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.

                                        PARK-OHIO HOLDINGS CORP.

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

                                        WELLS FARGO BANK, N.A., as Trustee

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

                                       54================================================================================

                                RIGHTS AGREEMENT

                           QUEST RESOURCE CORPORATION

                                       and

                                 UMB BANK, n.a.,
                                  Rights Agent

                            Dated as of May 31, 2006

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

<PAGE>

<TABLE>
<CAPTION>
                                TABLE OF CONTENTS
                                                                                          Page

<S>            <C>                                                                           <C>
Section 1.     Certain Definitions...........................................................1
Section 2.     Appointment of Rights Agent...................................................3
Section 3.     Issue of Rights Certificates..................................................3
Section 4.     Form of Rights Certificates...................................................3
Section 5.     Countersignature and Registration.............................................3
Section 6.     Transfer, Split Up, Combination and Exchange of Rights Certificates;
               Mutilated, Destroyed, Lost or Stolen Rights Certificates......................3
Section 7.     Exercise of Rights; Purchase Price; Expiration Date of Rights.................3
Section 8.     Cancellation and Destruction of Rights Certificates...........................3
Section 9.     Reservation and Availability of Capital Stock.................................3
Section 10.    Securities Record Date........................................................3
Section 11.    Adjustment of Purchase Price, Number and Kind of Shares
               or Number of Rights...........................................................3
Section 12.    Certificate of Adjusted Purchase Price or Number of Shares....................3
Section 13.    Consolidation, Merger or Sale or Transfer of Assets or Earning Power..........3
Section 14.    Fractional Rights and Fractional Shares.......................................3
Section 15.    Rights of Action..............................................................3
Section 16.    Agreement of Rights Holders...................................................3
Section 17.    Rights Certificate Holder Not Deemed a Stockholder............................3
Section 18.    Concerning the Rights Agent...................................................3
Section 19.    Merger or Consolidation or Change of Name of Rights Agent.....................3
Section 20.    Duties of Rights Agent........................................................3
Section 21.    Change of Rights Agent........................................................3
Section 22.    Issuance of New Rights Certificates...........................................3
Section 23.    Redemption and Termination; Three-Year Independent Director Evaluation........3
Section 24.    Exchange......................................................................3
Section 25.    Notice of Certain Events......................................................3
Section 26.    Notices.......................................................................3
Section 27.    Supplements and Amendments....................................................3
Section 28.    Successors....................................................................3
Section 29.    Determinations and Actions by the Board of Directors, Etc.....................3
Section 30.    Benefits of this Agreement....................................................3
Section 31.    Severability..................................................................3
Section 32.    Governing Law.................................................................3
Section 33.    Counterparts..................................................................3
Section 34.    Descriptive Headings..........................................................3
</TABLE>

EXHIBIT A -- Form of Certificate of Designation, Preferences and Rights
EXHIBIT B -- Form of Rights Certificate
EXHIBIT C -- Form of Summary of Rights

                                        i

                                RIGHTS AGREEMENT
                                ----------------

      RIGHTS AGREEMENT, dated as of May 31, 2006 (the "Agreement"), between
Quest Resource Corporation, a Nevada corporation (the "Company"), and UMB Bank,
n.a., a national banking organization, as Rights Agent (the "Rights Agent").

      WHEREAS, on May 31, 2006 (the "Rights Dividend Declaration Date"), the
Board of Directors of the Company authorized the issuance of, and declared a
dividend payable in, one right for each share of Common Stock of the Company
outstanding at the close of business on June 15, 2006 (the "Record Date"), each
such right initially representing the right to purchase one one-thousandth of a
share of Preferred Stock of the Company having the rights, powers and
preferences set forth in the form of Certificate of Designation, Preferences and
Rights attached hereto as Exhibit A, upon the terms and subject to the
conditions hereinafter set forth (individually, a "Right" and collectively, the
"Rights");

      WHEREAS, the Board of Directors of the Company further authorized the
issuance of one (as such number may hereinafter be adjusted pursuant to the
provisions of Section 11(q) hereof) Right for each share of Common Stock issued
between the Record Date (whether originally issued or delivered from the
Company's treasury) and the Distribution Date, and, in certain circumstances
provided in Section 22 of this Agreement, after the Distribution Date; and

      WHEREAS, on May 31, 2006, the Board of Directors adopted and approved a
Rights Agreement, dated as of May 31, 2006 (the "Rights Agreement"), in the form
hereof;

      NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein set forth, the parties hereby agree as follows:

     Section 1. Certain Definitions. For purposes of this Agreement, the
following terms have the meanings indicated:

          (a) "Acquiring Person" shall mean collectively any Person who or
     which, together with all Affiliates and Associates of such Person, shall be
     the Beneficial Owner of 15% or more of the shares of Common Stock then
     outstanding (other than as a result of a Permitted Offer) or was such a
     Beneficial Owner at any time after the date hereof, whether or not such
     Person together with all Affiliates or Associates of such Person continues
     to be the Beneficial Owner of 15% or more of the then outstanding Common
     Stock. Notwithstanding the foregoing, (A) the term "Acquiring Person" shall
     not include (i) the Company, (ii) any Subsidiary of the Company, (iii) any
     employee benefit plan of the Company or of any Subsidiary of the Company,
     (iv) any Person or entity organized, appointed or established by the
     Company for or pursuant to the terms of any such plan (including, without
     limitation, any trust or other entity organized, appointed, established or
     holding common stock for or pursuant to the terms of any such plan), or (v)
     any Person together with all Affiliates and Associates of such Person who
     or which becomes the Beneficial Owner of 15% or more of the then
     outstanding shares of Common Stock as a result of the acquisition of Common
     Stock directly from the Company (each of (i) through (v), an "Exempted
     Person"); (B) no Person shall become an "Acquiring Person" as a result of
     an acquisition of Common Stock by the Company which, by

                                       1
<PAGE>

     reducing the number of such shares then outstanding, increases the
     proportionate number of shares beneficially owned by such Person together
     with all Affiliates and Associates of such Person to 15% or more of the
     outstanding Common Stock, except that if such Person, after such share
     purchases by the Company, becomes the Beneficial Owner of additional shares
     of Common Stock constituting 1% or more of the then outstanding shares of
     Common Stock other than pursuant to a Permitted Offer, such Person shall be
     deemed to be an "Acquiring Person"; and (C) if the Board of Directors of
     the Company determines in good faith that a Person, together with all
     Affiliates and Associates of such Person, who would otherwise be an
     "Acquiring Person" has become such inadvertently, and such Person, together
     with all Affiliates and Associates of such Person, divests as promptly as
     practicable a sufficient number of shares of Common Stock so that such
     Person, together with all Affiliates and Associates of such Person, would
     no longer be an Acquiring Person, then such Person shall not be deemed to
     be an "Acquiring Person." The term "outstanding," when used with reference
     to a Person's Beneficial Ownership of securities of the Company, shall mean
     the number of such securities then issued and outstanding together with the
     number of such securities not then actually issued and outstanding which
     such Person would be deemed to beneficially own hereunder.

          (b) "Act" shall mean the Securities Act of 1933, as amended and in
     effect on the date hereof.

          (c) "Adjustment Shares" shall have the meaning set forth in Section
     11(a)(ii) of this Agreement.

          (d) "Affiliate" shall have the meaning set forth in Rule 12b-2 of the
     General Rules and Regulations under the Exchange Act as amended and in
     effect on the date hereof.

          (e) "Associate" of a Person shall mean (i) with respect to a
     corporation (other than the Company or a majority-owned Subsidiary of the
     Company), any officer or director thereof or of any Subsidiary (as such
     term is hereinafter defined) thereof, or any Beneficial Owner (as such term
     is hereinafter defined) of 10% or more of any class of equity security
     thereof, (ii) with respect to an association, joint venture or other
     unincorporated organization, any officer or director thereof or of a
     Subsidiary thereof or any Beneficial Owner of 10% or more ownership
     interest therein, (iii) with respect to a partnership, any general partner
     thereof or any limited partner thereof who is, directly or indirectly, the
     Beneficial Owner of a 10% or greater ownership interest therein, (iv) with
     respect to a limited liability company, any officer, director or manager
     thereof or of a Subsidiary thereof or any member thereof who is, directly
     or indirectly, the Beneficial Owner of a 10% or greater ownership interest
     therein, (v) with respect to a business trust, any officer or trustee
     thereof or of any Subsidiary thereof, (vi) with respect to any other trust
     or an estate, any trustee, executor or similar fiduciary or any Person who
     has a 10% or greater interest as a beneficiary in the income from or
     principal of such trust or estate, (vii) with respect to a natural person,
     any relative or spouse of such person, or any relative of such spouse, who
     has the same home as such person or who is a director or officer of the
     registrant or any of its parents or subsidiaries, and (viii) any Affiliate
     of such Person.

                                       2
<PAGE>

          (f) A Person shall be deemed the "Beneficial Owner" of, and shall be
     deemed to "beneficially own," any securities:

               (i) which such Person or any of such Person's Affiliates or
          Associates, directly or indirectly, has the right or obligation to
          acquire (whether such right or obligation is exercisable immediately
          or only after the passage of time or the fulfillment of a condition or
          any or all of the foregoing) pursuant to any agreement, arrangement or
          understanding (whether or not in writing) or upon the exercise of
          conversion rights, exchange rights, other rights (other than the
          Rights), warrants or options, or otherwise; provided, however, that a
          Person shall not be deemed the "Beneficial Owner" of, or to
          beneficially own," (A) securities tendered pursuant to a tender or
          exchange offer made by or on behalf of such Person or any of such
          Person's Affiliates or Associates until such tendered securities are
          accepted for purchase or exchange, or (B) securities issuable upon
          exercise of Rights at any time prior to the occurrence of a Triggering
          Event, or (C) securities issuable upon exercise of Rights from and
          after the occurrence of a Triggering Event which Rights were acquired
          by such Person or any of such Person's Affiliates or Associates prior
          to the Distribution Date or pursuant to Section 3(a) or Section 22
          hereof ("Original Rights") or pursuant to Section 11(i) hereof in
          connection with an adjustment made with respect to any Original
          Rights;

               (ii) which such Person or any of such Person's Affiliates or
          Associates, directly or indirectly, has the right to vote or dispose
          of or has "beneficial ownership" of (as determined pursuant to Rule
          13d-3 of the General Rules and Regulations under the Exchange Act as
          amended and in effect on the date hereof), including pursuant to any
          agreement, arrangement or understanding, whether or not in writing;
          provided, however, that a Person shall not be deemed the "Beneficial
          Owner" of, or to "beneficially own," any security under this
          subparagraph (ii) as a result of an agreement, arrangement or
          understanding to vote such security if such agreement, arrangement or
          understanding: (A) arises solely from a revocable proxy or consent
          given in response to a public proxy or consent solicitation made
          pursuant to, and in accordance with, the applicable provisions of the
          rules and regulations under the Exchange Act as amended and as in
          effect on the date hereof, and (B) is not also then reportable by such
          Person on Schedule 13D under the Exchange Act (or any comparable or
          successor report, other than by reference to a proxy or consent
          solicitation being conducted by such Person); or

               (iii) which are beneficially owned, directly or indirectly, by
          any other Person (or any Affiliate or Associate thereof) with which
          such Person (or any of such Person's Affiliates or Associates) has any
          agreement, arrangement or understanding (whether or not in writing),
          for the purpose of acquiring, holding, voting (except pursuant to a
          revocable proxy as described in the proviso to subparagraph (ii) of
          this paragraph (f)) or disposing of any voting securities of the
          Company;

                                       3
<PAGE>

          provided, however, that nothing in this paragraph (f) shall cause a
          person engaged in business as an underwriter of securities to be the
          "Beneficial Owner" of, or to "beneficially own," any securities
          acquired through such person's participation in good faith in a bona
          fide firm commitment underwriting until the expiration of forty days
          after the date of such acquisition. Notwithstanding anything in this
          definition of Beneficial Owner to the contrary, a Person who, prior to
          the Distribution Date, is a member of the Board of Directors or an
          officer of the Company or who is an Affiliate or Associate of a member
          of the Board of Directors or officer of the Company (each, an
          "Excluded Person") shall not be deemed to "beneficially own" shares of
          Common Stock held by another Excluded Person solely by reason of any
          agreement, arrangement or understanding, written or otherwise, entered
          into in opposition to any transaction or in support of a Permitted
          Offer.

               (g) "Board of Directors" shall mean the Board of Directors of the
          Company as constituted from time to time.

               (h) "Business Day" shall mean any day other than a Saturday,
          Sunday or a day on which banking institutions in the States of
          Oklahoma, New York or location of Right Agent are authorized or
          obligated by law or executive order to close.

               (i) "Close of business" on any given date shall mean 5:00 p.m.,
          New York City time, on such date; provided, however, that if such date
          is not a Business Day it shall mean 5:00 p.m., New York City time, on
          the next succeeding Business Day.

               (j) "Common Stock" shall mean the common stock, par value $0.001
          per share, of the Company (or in the event of a subdivision,
          combination or reclassification with respect to such shares of Common
          Stock, the shares of Common Stock resulting from such subdivision,
          combination or reclassification), except, subject to the proviso in
          Section 13(b) of this Agreement, that "Common Stock" when used with
          reference to any Person other than the Company (A) which shall be
          organized in corporate form, shall mean the capital stock or other
          equity security or equity interest with the greatest voting power to
          control the management of such Person or, if such other Person is a
          Subsidiary of another Person, the Person or Persons which ultimately
          control such first-mentioned Person, or (B) which shall not be
          organized in corporate form, shall mean units of beneficial interest
          which shall represent the right to participate in profits, losses,
          deductions and credits of such Person and which shall be entitled to
          exercise the greatest voting power to direct the management of such
          Person, or if such other Person is a Subsidiary of another Person, the
          Person or Persons which ultimately control such first-mentioned
          Person.

               (k) "Common Stock Equivalents" shall have the meaning set forth
          in Section 11(a)(iii) of this Agreement.

               (l) "Company" shall have the meaning set forth in the
          introductory paragraph of this Agreement.

               (m) "Current Market Price" shall have the meaning set forth in
          Section 11(d).

                                       4
<PAGE>

               (n) "Current Value" shall have the meaning set forth in Section
          11(a)(iii) of this Agreement.

               (o) "Distribution Date" shall have the meaning set forth in
          Section 3(a) of this Agreement.

               (p) "Equivalent preferred stock" shall have the meaning set forth
          in Section 11(b) of this Agreement.

               (q) "Exchange Act" shall mean the Securities Exchange Act of
          1934, as amended and in effect on the date hereof.

               (r) "Exchange Ratio" shall have the meaning set forth in Section
          24(a) hereof.

               (s) "Excluded Person" shall have the meaning set forth in Section
          1(f) of this Agreement.

               (t) "Exempted Person" shall have the meaning set forth in Section
          1(a) of this Agreement.

               (u) "Expiration Date" shall have the meaning set forth in Section
          7(a) of this Agreement.

               (v) "Final Expiration Date" shall have the meaning set forth in
          Section 7(a) of this Agreement.

               (w) "Interested Stockholder" shall mean any Acquiring Person or
          any Affiliate or Associate of an Acquiring Person or any other Person
          in which such Acquiring Person, Affiliate or Associate has an
          interest, or any other Person acting directly or indirectly on behalf
          of or in concert with any such Acquiring Person, Affiliate or
          Associate.

               (x) "NASDAQ" shall mean the National Association of Securities
          Dealers Automated Quotation System.

               (y) "Original Rights" shall have the meaning set forth in Section
          1(f)(i) of this Agreement.

               (z) "Permitted Offer" shall mean an acquisition of shares of
          Common Stock pursuant to a tender offer or an exchange offer for all
          outstanding shares of Common Stock that meets all of the following
          requirements:

                    (i) the consideration of the offer is cash or publicly
               traded securities and, in the case of a cash offer, is
               fully-financed;

                    (ii) such offer remains open for at least 60 calendar days
               from the date it commenced (within the meaning of Rule 14d-2(a),
               as in effect on the date hereof, under the Exchange Act);

                                       5
<PAGE>

                    (iii) on or prior to the date such offer is commenced
               (within the meaning of Rule 14d-2(a), as in effect on the date
               hereof, under the Exchange Act), the Person on whose behalf such
               offer is being made has, and has provided to the Company, firm
               written commitments from responsible financial institutions,
               which have been accepted by such Person (or one of its
               Affiliates), to provide, subject only to customary terms and
               conditions, funds for such offer which, when added to the amount
               of cash and cash equivalents which such Person then has available
               and has irrevocably committed in writing to the Company to
               utilize for purposes of such offer, will be sufficient to pay for
               all shares of Common Stock then outstanding and all related
               expenses;

                    (iv) shares representing at least a majority of the Common
               Stock then outstanding as of the day immediately prior to the
               date of commencement of such offer (within the meaning of Rule
               14d-2(a), as in effect on the date hereof, under the Exchange
               Act), but excluding therefrom any shares of Common Stock
               beneficially owned immediately prior to such offer by the Person
               on whose behalf such offer is being made and such Person's
               Affiliates and Associates, are tendered and purchased pursuant to
               such offer;

                    (v) prior to or on the date that such offer is commenced
               (within the meaning of Rule 14d-2(a), as currently in effect,
               under the Exchange Act), the Person on whose behalf such offer is
               being made makes an irrevocable written commitment to the Company
               (A) to consummate a transaction or transactions promptly upon the
               completion of such offer in which the consideration in such
               transaction or transactions is fully-financed cash or
               publicly-traded securities and whereby all shares of Common Stock
               not purchased in such offer will be acquired at the same price
               per share of Common Stock paid in such offer, provided that the
               Board of Directors shall have granted any approvals required to
               enable such Person to consummate such transaction or transactions
               following consummation of such offer without obtaining the vote
               of any other stockholder, (B) that such Person will not make any
               amendment to the original offer which reduces the per share price
               offered (other than a reduction to reflect any dividend declared
               by the Company after the commencement of such offer or any
               material change in the capital structure of the Company initiated
               by the Company after the commencement of such offer, whether by
               way of recapitalization, reorganization, repurchase or
               otherwise), changes the form of consideration offered, reduces
               the number of shares being sought or which is in any other
               respect materially adverse to the holders of Common Stock (other
               than the Person on whose behalf such Offer is being made and such
               Person's Affiliates and Associates); and

                    (vi) such offer is at a price and on other terms determined
               by at least a majority of the members of the Board of Directors,
               after receiving an opinion from one or more nationally recognized
               investment banking firms selected by the Board of Directors that
               the price offered is fair, from a financial point of view, to be
               (A) fair (taking into account all factors which the Board of
               Directors may deem relevant, including, without limitation, the
               Company's long-term prospects and prices which could reasonably
               be achieved if the Company or its assets were sold

                                       6
<PAGE>

               on an orderly basis designed to realize maximum value) to
               stockholders (other than the Person or any Affiliate or Associate
               hereof on whose behalf the offer is being made) and (B) otherwise
               in the best interests of the Company and its stockholders (other
               than the Person or any Affiliate or Associate thereof on whose
               behalf the offer is being made) taking into account all factors
               that the Board of Directors may deem relevant; provided, however,
               that (1) such determination is made by the Board of Directors
               prior to the purchase of shares under such tender offer or
               exchange offer, and (2) a majority of the members of the Board of
               Directors are independent (within the meaning of Rule 4200 of the
               NASDAQ Stock Market rules (or any successor rule) and under
               applicable Nevada case law) and disinterested (each such member
               is neither an Acquiring Person or a Person on whose behalf the
               tender offer for Common Stock is being made, nor an Affiliate,
               Associate, nominee or representative of an Acquiring Person or a
               Person on whose behalf the tender offer for Common Stock is being
               made).

               (aa) "Person" shall mean any individual, firm, corporation,
          partnership, limited liability company, trust or other entity, and
          shall include any successor (by merger or otherwise) thereof or
          thereto.

               (bb) "Preferred Stock" shall mean shares of Series B Junior
          Participating Preferred Stock, par value $0.001 per share, of the
          Company (or in the event of a subdivision, combination or
          reclassification with respect to such shares of Preferred Stock, the
          shares of Preferred Stock resulting from such subdivision, combination
          or reclassification), and, to the extent that there is not a
          sufficient number of shares of Series B Junior Participating Preferred
          Stock authorized to permit the full exercise of the Rights, any other
          series of preferred stock of the Company designated for such purpose
          containing terms substantially similar to the terms of the Series B
          Junior Participating Preferred Stock.

               (cc) "Principal Party" shall have the meaning set forth in
          Section 13(b) of this Agreement.

               (dd) "Purchase Price" shall have the meaning set forth in Section
          4(a) of this Agreement.

               (ee) "Record Date" shall have the meaning set forth in the first
          "WHEREAS" clause at the beginning of this Agreement.

               (ff) "Redemption Date" shall have the meaning set forth in
          Section 7(a) of this Agreement.

               (gg) "Redemption Price" shall have the meaning set forth in
          Section 23 of this Agreement.

               (hh) "Rights" shall have the meaning set forth in the first
          "WHEREAS" clause at the beginning of this Agreement.

                                       7
<PAGE>

               (ii) "Rights Agent" shall have the meaning set forth in the
          introductory paragraph of this Agreement.

               (jj) "Rights Certificates" shall have the meaning set forth in
          Section 3(a) of this Agreement.

               (kk) "Rights Dividend Declaration Date" shall have the meaning
          set forth in the first "WHEREAS" clause at the beginning of this
          Agreement.

               (ll) "Section 11(a)(ii) Event" shall have the meaning set forth
          in Section 11(a)(ii) of this Agreement.

               (mm) "Section 11(a)(ii) Trigger Date" shall have the meaning set
          forth in Section 11(a)(iii) of this Agreement.

               (nn) "Section 13 Event" shall mean any event described in clauses
          (x), (y) or (z) of Section 13(a) of this Agreement.

               (oo) "Spread" shall have the meaning set forth in Section
          11(a)(iii) of this Agreement.

               (pp) "Stock Acquisition Date" shall mean the earlier of the date
          of (i) the public announcement (which, for purposes of this
          definition, shall include, without limitation, a report filed under
          the Exchange Act) by the Company or an Acquiring Person that an
          Acquiring Person has become such or (ii) the public disclosure of
          facts by the Company or an Acquiring Person indicating that an
          Acquiring Person has become an Acquiring Person, which date may occur
          prior to the Record Date; provided, however, that if such Person is
          determined not to have become an Acquiring Person pursuant to Section
          1(a)(C) hereof, then no Stock Acquisition Date shall be deemed to have
          occurred.

               (qq) "Subsidiary" shall mean, with reference to any Person, any
          corporation or other Person of which an amount of voting securities
          sufficient to elect at least a majority of the directors or others
          having similar authority over such corporation or other Person is
          beneficially owned, directly or indirectly, by such first-named
          Person, or otherwise controlled by such first-named Person.

               (rr) "Substitution Period" shall have the meaning set forth in
          Section 11(a)(iii) of this Agreement.

               (ss) "Summary of Rights" shall have the meaning set forth in
          Section 3(b) of this Agreement.

               (tt) "Trading Day" shall have the meaning set forth in Section
          11(d)(i) of this Agreement.

               (uu) "Transaction" shall mean any merger, consolidation or sale
          of assets or earning power described in Section 13(a) hereof or any
          acquisition of Common Stock

                                       8
<PAGE>

          which, without regard to any required approval of the Company, would
          result in a Person becoming an Acquiring Person.

               (vv) "Triggering Event" shall mean any Section 11(a)(ii) Event or
          any Section 13 Event.

               (ww) "Vote" shall mean, with respect to any entity, the ability
          to cast a vote at a stockholders', members' or comparable meeting of
          such entity with respect to the election of directors, managers or
          other members of such entity's governing body, or the ability to cast
          a general partnership or comparable vote.

               (xx) "Voting Power" shall mean, with respect to any entity as at
          any date, the aggregate number of Votes outstanding as at such date in
          respect of such entity.

               (yy) "Voting Securities" shall mean the Common Stock and any
          other securities of the Company the holders of which are ordinarily,
          in the absence of contingencies, entitled to Vote, even though the
          right to such Vote has been suspended by the happening of such a
          contingency.

               (zz) "Voting Stock" shall mean (i) the Common Stock of the
          Company and (ii) any other shares of capital stock of the Company
          entitled to vote generally in the election of directors. For purposes
          of this Agreement, Voting Stock shall include securities of the type
          referred to in clauses (i) and (ii) above that trade on a "when
          issued" basis on a national securities exchange or an inter-dealer
          quotation system. For purposes of this Agreement, a stated percentage
          of the Voting Stock shall mean a number of shares of the Voting Stock
          as shall equal in voting power that stated percentage of the total
          voting power of the then outstanding shares of Voting Stock in the
          election of a majority of the Board of Directors or in respect of any
          merger, consolidation, sale of all or substantially all of the
          Company's assets, liquidation, dissolution or winding up.

     Section 2. Appointment of Rights Agent. The Company hereby appoints the
Rights Agent to act as agent for the Company in accordance with the terms and
conditions hereof, and the Rights Agent hereby accepts such appointment. The
Company may from time to time appoint such co-Rights Agents as it may deem
necessary or desirable. The Rights Agent shall have no duty to supervise, and in
no event shall be liable for, the acts or omissions of any such co-Rights Agent.

      Section 3. Issue of Rights Certificates.
                 ----------------------------

          (a) Until the earlier of (i) the Close of business on the tenth
     Business Day after the Stock Acquisition Date (or, if the tenth Business
     Day after the Stock Acquisition Date occurs before the Record Date, the
     close of business on the Record Date), or (ii) the Close of business on the
     tenth Business Day (or such later date as the Board of Directors shall
     determine) after the date of the earlier of commencement by any Person
     (other than an Exempted Person) of, or the first public announcement of the
     intention of any Person (other than an Exempted Person) to commence, a
     tender or exchange offer (other than a Permitted Offer) the consummation of
     which would result in any Person becoming an Acquiring Person (including
     any such date which is on or after the date of this Agreement

                                       9
<PAGE>

     and prior to the issuance of the Rights) (the earlier of (i) and (ii) being
     herein referred to as the "Distribution Date"), (x) the Rights will be
     evidenced (subject to the provisions of Section 3(b) of this Agreement) by
     the certificates for the Common Stock registered in the names of the record
     holders of the Common Stock (which certificates for Common Stock shall be
     deemed also to be certificates for Rights) and not by separate
     certificates, and (y) the Rights will be transferable only in connection
     with the transfer of the underlying shares of Common Stock (including a
     transfer to the Company); provided, however, that if a tender or exchange
     offer is terminated prior to the occurrence of a Distribution Date, then no
     Distribution Date shall occur as a result of such tender or exchange offer.
     The Board of Directors may defer the date set forth in clause (ii) of the
     preceding sentence (with prompt written notice thereof to the Rights Agent)
     to a specified later date or to an unspecified later date, each to be
     determined by action of the Board of Directors. As soon as practicable
     after the Distribution Date, the Company shall prepare and execute, the
     Rights Agent will countersign, and the Company will send or cause to be
     sent (and the Rights Agent will, if requested and provided with all
     necessary information, send) by first-class, insured, postage prepaid mail,
     to each record holder of the Common Stock as of the close of business on
     the Distribution Date, at the address of such holder shown on the registry
     books for the Common Stock of the Company, one or more rights certificates,
     in substantially the form of Exhibit B hereto (the "Rights Certificates"),
     evidencing one Right for each share of Common Stock so held, subject to
     adjustment as provided herein. In the event that an adjustment in the
     number of Rights per share of Common Stock has been made pursuant to
     Section 11(q) hereof, at the time of distribution of the Rights
     Certificates, the Company shall make the necessary and appropriate rounding
     adjustments (in accordance with Section 14(a) hereof) so that Rights
     Certificates representing only whole numbers of Rights are distributed and
     cash is paid in lieu of any fractional Rights. As of and after the
     Distribution Date, the Rights will be evidenced solely by such Rights
     Certificates and may be transferred by the transfer of the Rights
     Certificate as permitted hereby, separately and apart from any transfer of
     one or more shares of Common Stock.

          (b) As promptly as practicable following the Record Date, the Company
     will send a copy of a Summary of Rights, in substantially the form attached
     hereto as Exhibit C (the "Summary of Rights"), by first-class, postage
     prepaid mail, to each record holder of the Common Stock as of the close of
     business on the Record Date, at the address of such holder shown on the
     records of the transfer agent. With respect to certificates for the Common
     Stock outstanding as of the Record Date, until the Distribution Date, the
     Rights will be evidenced by such certificates for the Common Stock and the
     record holders of the Common Stock shall also be the record holders of the
     associated Rights. Until the earlier of the Distribution Date or the
     Expiration Date, the transfer of any certificates representing shares of
     Common Stock in respect of which Rights have been issued shall also
     constitute the transfer of the Rights associated with such shares of Common
     Stock.

          (c) The Company shall promptly notify the Rights Agent in writing upon
     the occurrence of the Distribution Date and, if such notification is given
     orally, the Company shall confirm same in writing on or prior to the
     Business Day next following. Until such notice is received by the Rights
     Agent, the Rights Agent may presume conclusively for all purposes that the
     Distribution Date has not occurred.

                                       10
<PAGE>

          (d) Rights shall be issued in respect of all shares of Common Stock
     which are issued (whether originally issued or from the Company's treasury)
     after the Record Date but prior to the earlier of the Distribution Date or
     the Expiration Date, and, in certain circumstances provided in Section 22
     of this Agreement, after the Distribution Date. Certificates representing
     such shares of Common Stock shall also be deemed to be certificates for
     Rights and shall bear the following legend:

          This certificate also evidences and entitles the holder hereof to
          certain Rights as set forth in the Rights Agreement between Quest
          Resource Corporation (the "Company") and UMB Bank, n.a., a national
          banking organization (the "Rights Agent"), dated as of May 31, 2006,
          as it may be amended from time to time (the "Rights Agreement"), the
          terms of which are hereby incorporated herein by reference and a copy
          of which is on file at the principal offices of the Company. Under
          certain circumstances, as set forth in the Rights Agreement, such
          Rights will be evidenced by separate certificates and will no longer
          be evidenced by this certificate. The Company will mail to the holder
          of this certificate a copy of the Rights Agreement, as in effect on
          the date of mailing, without charge, promptly after receipt of a
          written request therefor. Under certain circumstances set forth in the
          Rights Agreement, Rights issued to, or Beneficially Owned or held by,
          any Person who is, was or becomes an Acquiring Person or any Affiliate
          or Associate thereof (as such terms are defined in the Rights
          Agreement), whether currently Beneficially Owned or held by or on
          behalf of such Person or by any subsequent holder, may become null and
          void.

     With respect to such certificates containing the foregoing legend, until
     the earlier of the Distribution Date or the Expiration Date, the Rights
     associated with the Common Stock represented by such certificates shall be
     evidenced by such certificates alone and record holders of Common Stock
     shall also be the record holders of the associated Rights, and the transfer
     of any of such certificates shall also constitute the transfer of the
     Rights associated with the Common Stock represented by such certificates.
     In the event the Company purchases or acquires any Common Stock after the
     Record Date but prior to the Distribution Date, any Rights associated with
     such Common Stock shall be deemed canceled and retired so that the Company
     shall not be entitled to exercise any Rights associated with the Common
     Stock which are no longer outstanding. Notwithstanding this paragraph (d),
     the omission of a legend shall not affect the enforceability of any part of
     this Rights Agreement or the rights of any holder of the Rights.

          (e) In addition, in connection with the issuance or sale of shares of
     Common Stock following the Distribution Date and prior to the Expiration
     Date, the Company (i) shall, with respect to shares of Common Stock so
     issued or sold (x) pursuant to the exercise of stock options or under any
     employee plan or arrangement or (y) upon the exercise, conversion or
     exchange of other securities issued by the Company prior to the
     Distribution Date and (ii) may, in any other case, if deemed necessary or
     appropriate by the Board of Directors of the Company, issue Rights
     Certificates representing the appropriate number of Rights in connection
     with such issuance or sale; provided that no

                                       11
<PAGE>

     such Rights Certificate shall be issued if, and to the extent that, (i) the
     Company shall be advised by counsel that such issuance would create a
     significant risk of material adverse tax consequences to the Company or the
     Person to whom such Rights Certificate would be issued or (ii) appropriate
     adjustment shall otherwise have been made in lieu of the issuance thereof.

     Section 4. Form of Rights Certificates.
                ---------------------------

          (a) The Rights Certificates (and the forms of election to purchase and
     of assignment to be printed on the reverse thereof) shall each be
     substantially in the form set forth in Exhibit B hereto and may have such
     marks of identification or designation and such legends, summaries or
     endorsements printed thereon as the Company may deem appropriate (but which
     do not affect the rights, duties or immunities of the Rights Agent) and as
     are not inconsistent with the provisions of this Agreement, or as may be
     required to comply with any applicable law or with any rule or regulation
     made pursuant thereto, or with any rule or regulation of any stock exchange
     or inter-dealer quotation system or transactor reporting system on which or
     with whom the Rights may from time to time be listed or quoted, or to
     conform to usage or otherwise. Subject to the provisions of Section 11 and
     Section 22 hereof, the Rights Certificates, whenever distributed, shall
     entitle the record holders thereof to purchase such number of one
     one-thousandths of a share of Preferred Stock as shall be set forth therein
     at the price set forth therein (such exercise price per one one-thousandth
     of a share, the "Purchase Price"), but the amount and the type of
     securities purchasable upon the exercise of each Right and the Purchase
     Price thereof shall be subject to adjustment as provided herein.

          (b) Any Rights Certificate issued pursuant to Section 3(a) or Section
     22 hereof that represents Rights beneficially owned by: (i) an Acquiring
     Person or any Associate or Affiliate of an Acquiring Person, (ii) a
     transferee of an Acquiring Person (or of any such Associate or Affiliate)
     who becomes a transferee after the Acquiring Person becomes such, or (iii)
     a transferee of an Acquiring Person (or of any such Associate or Affiliate)
     who becomes a transferee prior to or concurrently with the Acquiring Person
     becoming such and receives such Rights pursuant to either (A) a transfer
     (whether or not for consideration) from the Acquiring Person to holders of
     equity interests in such Acquiring Person or to any Person with whom such
     Acquiring Person has any continuing agreement, arrangement or understanding
     regarding the transferred Rights or (B) a transfer which the Board of
     Directors of the Company has determined is part of a plan, arrangement or
     understanding which has as a primary purpose or effect avoidance of Section
     7(e) hereof, and any Rights Certificate issued pursuant to Section 6 or
     Section 11 hereof upon transfer, exchange, replacement or adjustment of any
     other Rights Certificate referred to in this sentence, shall contain (to
     the extent the Rights Agent has notice thereof and to the extent feasible)
     the following legend:

               The Rights represented by this Rights Certificate are or were
          beneficially owned by a Person who was or became an Acquiring Person
          or an Affiliate or Associate of an Acquiring Person (as such terms are
          defined in the Rights Agreement). Accordingly, this Rights Certificate
          and the Rights represented hereby may become, or may have already

                                       12
<PAGE>

          become, null and void in the circumstances specified in Section 7(e)
          of such Agreement.

          The provisions of Section 7(e) of this Agreement shall be operative
     whether or not the foregoing legend is contained in any such Rights
     Certificate.

     Section 5. Countersignature and Registration.
                ---------------------------------

          (a) The Rights Certificates shall be executed on behalf of the Company
     by its Chairman of the Board, its Chief Executive Officer, its President,
     its Chief Financial Officer or any Executive Vice President, either
     manually or by facsimile signature, and shall have affixed thereto the
     Company's seal or a facsimile thereof which shall be attested by the
     Secretary or an Assistant Secretary of the Company, either manually or by
     facsimile signature. The Rights Certificates shall be countersigned by an
     authorized signatory of the Rights Agent, either manually or by facsimile
     signature, and shall not be valid for any purpose unless so countersigned.
     In case any officer of the Company who shall have signed any of the Rights
     Certificates shall cease to be such officer of the Company before
     countersignature by the Rights Agent and issuance and delivery by the
     Company, such Rights Certificates, nevertheless, may be countersigned by an
     authorized signatory of the Rights Agent and issued and delivered by the
     Company with the same force and effect as though the person who signed such
     Rights Certificates had not ceased to be such officer of the Company. Any
     Rights Certificates may be signed on behalf of the Company by any person
     who, at the actual date of the execution of such Rights Certificate, shall
     be a proper officer of the Company to sign such Rights Certificate,
     although at the date of the execution of this Rights Agreement any such
     person was not such an officer.

          (b) Following the Distribution Date and receipt by the Rights Agent of
     notice to that effect and all other relevant information referred to in
     Section 3(a), the Rights Agent will keep or cause to be kept, at its office
     designated for such purpose, books for registration and transfer of the
     Rights Certificates issued hereunder. Such books shall show the names and
     addresses of the respective record holders of the Rights Certificates, the
     number of Rights evidenced on its face by each of the Rights Certificates
     and the date of each of the Rights Certificates. The Company and Rights
     Agent may deem and treat the person in whose name any Rights Certificate
     (or prior to the Distribution Date, the associated Common Stock
     Certificate) is recorded on the books for the registration and transfer of
     Rights (or, the Common Stock) as the absolute owner thereof, for all
     purposes whatsoever, and neither the Company nor the Rights Agent shall be
     affected by any notice to the contrary.

      Section 6. Transfer, Split Up, Combination and Exchange of Rights
                 ------------------------------------------------------
                 Certificates; Mutilated, Destroyed, Lost or Stolen
                 --------------------------------------------------
                 Rights Certificates.
                 -------------------

          (a) Subject to the provisions of Section 4(b), Section 7(e), Section
     7(f), Section 11, Section 14, Section 23 and Section 24 hereof, at any time
     after the Close of business on the Distribution Date, and at or prior to
     the Close of business on the Expiration Date, any Rights Certificate or
     Certificates (other than Rights Certificates

                                       13
<PAGE>

     representing Rights that have become null and void pursuant to Section 7(e)
     or that have been exchanged pursuant to Section 24 hereof) may be
     transferred, split up, combined or exchanged for another Rights Certificate
     or Certificates, entitling the record holder to purchase a like number of
     one one-thousandths of a share of Preferred Stock (or, following a
     Triggering Event, Common Stock, other securities, cash or other assets, as
     the case may be) as the Rights Certificate or Certificates surrendered then
     entitled such holder (or former holder in the case of a transfer) to
     purchase. Any record holder desiring to transfer, split up, combine or
     exchange any Rights Certificate or Certificates shall make such request in
     writing in a form acceptable and delivered to the Rights Agent, and shall
     surrender the Rights Certificate or Certificates to be split up, combined
     or exchanged at the office of the Rights Agent designated for such purpose.
     Neither the Rights Agent nor the Company shall be obligated to take any
     action whatsoever with respect to the transfer of any such surrendered
     Rights Certificate or Rights Certificates until the record holder shall
     have (i) properly completed and signed the certificate contained in the
     form of assignment on the reverse side of such Rights Certificate or Rights
     Certificates, (ii) provided such additional evidence of the identity of the
     Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates
     thereof, or of the Rights evidenced thereby, as the Company or the Rights
     Agent shall reasonably request, and (iii) paid a sum sufficient to cover
     any tax or charge that may be imposed in connection with any transfer,
     split up, combination or exchange of Rights Certificates as required by
     Section 9(e) hereof. Thereupon, the Rights Agent shall, subject to Section
     4(b), Section 7(e), Section 7(f), Section 11, Section 14, Section 23 and
     Section 24 hereof, countersign and deliver to the Person entitled thereto a
     Rights Certificate or Rights Certificates, as the case may be, as so
     requested. The Company or the Rights Agent may require payment by the
     record holder of a Rights Certificate of a sum sufficient to cover any
     applicable tax or governmental charge that may be imposed in connection
     with any transfer, split up, combination or exchange of Rights
     Certificates, and the Company and the Rights Agent shall have no duty or
     obligation under this Section unless and until it is satisfied that all
     such taxes and/or governmental charges have been paid.

          (b) Subject to the provisions of Section 4(b), Section 7(e), Section
     7(f), Section 11, Section 14, Section 23 and Section 24 hereof, upon
     receipt by the Company and the Rights Agent of evidence reasonably
     satisfactory to them of the loss, theft, destruction or mutilation of a
     Rights Certificate, and, in case of loss, theft or destruction, of
     indemnity or security to the Rights Agent and the Company satisfactory to
     the Rights Agent and the Company and reimbursement to the Company and the
     Rights Agent of all reasonable expenses incidental thereto, and upon
     surrender to the Rights Agent and cancellation of the Rights Certificate,
     if mutilated, the Company will execute and deliver a new Rights Certificate
     of like tenor to the Rights Agent for countersignature and delivery to the
     record holder in lieu of the Rights Certificate so lost, stolen, destroyed
     or mutilated.

     Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights.
                -------------------------------------------------------------

          (a) Subject to Section 7(e), Section 7(f) and Section 14 hereof, the
     record holder of any Rights Certificate may exercise the Rights evidenced
     thereby (except as otherwise provided herein including, without limitation,
     the restrictions on exercisability

                                       14
<PAGE>

     set forth in Section 9(c), Section 11(a)(ii), Section 11(a)(iii), Section
     23(a) and Section 24(b) hereof) in whole or in part at any time after the
     Distribution Date upon surrender of the Rights Certificate, with the form
     of election to purchase and the certificate on the reverse side thereof
     duly executed, to the Rights Agent at the office of the Rights Agent
     designated for such purpose, along with a signature guarantee and such
     other and further documentation as the Rights Agent may reasonably request,
     together with payment of the aggregate Purchase Price with respect to the
     total number of one one-thousandths of a share of Preferred Stock (or,
     following the occurrence of a Triggering Event, Common Stock or other
     securities, cash or other assets, as the case may be) as to which such
     surrendered Rights are then exercisable, at or prior to the earlier of (i)
     the Close of business on May 31, 2016 (the "Final Expiration Date"), (ii)
     the time at which the Rights are redeemed as provided in Section 23 hereof
     (the "Redemption Date"), (iii) the time at which such Rights are exchanged
     as provided in Section 24 hereof, or (iv) the consummation of a transaction
     contemplated by Section 13(d) hereof (the earliest of (i), (ii), (iii) and
     (iv) being herein referred to as the "Expiration Date").

          (b) The Purchase Price for each one one-thousandth of a share of
     Preferred Stock pursuant to the exercise of a Right shall initially be
     $75.00, and shall be subject to adjustment from time to time as provided in
     Sections 11 and 13(a) hereof and shall be payable in accordance with
     paragraph (c) below.

          (c) Upon receipt of a Rights Certificate representing exercisable
     Rights, with the form of election to purchase and the certificate duly
     executed and properly completed, accompanied by payment, with respect to
     each Right so exercised, of the Purchase Price per one one-thousandth of a
     share of Preferred Stock (or other shares, securities, cash or other
     assets, as the case may be) to be purchased as set forth below and an
     amount equal to any tax or charge required to be paid by the holder of such
     Rights Certificate in accordance with Section 9 hereof, the Rights Agent
     shall, subject to Section 20(k) hereof, thereupon promptly (i) (A)
     requisition from any transfer agent of the shares of Preferred Stock (or
     make available, if the Rights Agent is the transfer agent for such shares)
     certificates for the total number of one one-thousandths of a share of
     Preferred Stock to be purchased, and the Company hereby irrevocably
     authorizes its transfer agent to comply with all such requests, or (B) if
     the Company shall have elected to deposit the total number of shares of
     Preferred Stock issuable upon exercise of the Rights hereunder with a
     depositary agent, requisition from the depositary agent depositary receipts
     representing such number of one one-thousandths of a share of Preferred
     Stock as are to be purchased (in which case certificates for the shares of
     Preferred Stock represented by such receipts shall be deposited by the
     transfer agent with the depositary agent) and the Company will direct the
     depositary agent to comply with such request, (ii) when appropriate,
     requisition from the Company the amount of cash, if any, to be paid in lieu
     of fractional shares in accordance with Section 14 hereof, (iii) after
     receipt of such certificates or depositary receipts, cause the same to be
     delivered to or upon the order of the record holder of such Rights
     Certificate, registered in such name or names as may be designated by such
     holder, and (iv) when appropriate, after receipt thereof, deliver such
     cash, if any, to or upon the order of the record holder of such Rights
     Certificate. The payment of the Purchase Price (as such amount may be
     reduced pursuant to Section 11(a)(iii) hereof) shall be made in cash or by
     certified bank check or bank draft payable

                                       15
<PAGE>

     to the order of the Company, in each case in lawful money of the United
     States of America. In the event that the Company is obligated to issue
     other securities (including Common Stock) of the Company, pay cash and/or
     distribute other property pursuant to Section 11(a) hereof, the Company
     will make all arrangements necessary so that such other securities, cash
     and/or other property are available for distribution by the Rights Agent,
     if and when necessary to comply with this Agreement. The Company reserves
     the right to require, prior to the occurrence of a Triggering Event that,
     upon any exercise of Rights, a number of Rights be exercised so that only
     whole shares of Preferred Stock would be issued.

          (d) In case the record holder of any Rights Certificate shall exercise
     less than all the Rights evidenced thereby, a new Rights Certificate
     evidencing Rights equivalent to the Rights remaining exercisable and
     unexercised shall be issued by the Rights Agent and delivered to, or upon
     the order of, the record holder of such Rights Certificate, registered in
     such name or names as may be designated by such holder, subject to the
     provisions of Section 14 hereof.

          (e) Notwithstanding anything in this Agreement to the contrary, from
     and after the first occurrence of a Section 11(a)(ii) Event, any Rights
     beneficially owned by (i) an Acquiring Person or an Affiliate or Associate
     of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any
     such Associate or Affiliate) who becomes a transferee after the Acquiring
     Person becomes such, or (iii) a transferee of an Acquiring Person (or of
     any such Associate or Affiliate) who becomes a transferee prior to or
     concurrently with the Acquiring Person becoming such and receives such
     Rights pursuant to either (A) a transfer (whether or not for consideration)
     from the Acquiring Person to holders of equity interests in such Acquiring
     Person or to any Person with whom the Acquiring Person has any continuing
     agreement, arrangement or understanding regarding the transferred Rights or
     (B) a transfer which the Board of Directors has determined is part of a
     plan, arrangement or understanding which has the purpose or effect the
     avoidance of this Section 7(e), shall become null and void without any
     further action, and any record holder of such Rights shall have no rights
     whatsoever with respect to such Rights, whether under any provision of this
     Agreement or otherwise. The Company shall use all reasonable efforts to
     ensure that the provisions of this Section 7(e) and Section 4(b) hereof are
     complied with, but neither the Rights Agent nor the Company shall have any
     liability to any record holder of Rights Certificates or any other Person
     as a result of the Company's failure to make any determinations with
     respect to an Acquiring Person or its Affiliates, Associates or transferees
     hereunder. The Company or the Rights Agent may require (or cause any
     transfer agent of the Company to require) any Person who submits a Rights
     Certificate (or a certificate representing shares of Common Stock that
     evidences, or but for the provisions of this Section 7(e) would evidence,
     Rights) for transfer on the registry books or to exercise the Rights
     represented thereby to establish to the satisfaction of the Company in its
     sole discretion that such Rights have not become null and void pursuant to
     the provisions of this Section 7(e).

          (f) Notwithstanding anything in this Agreement to the contrary,
     neither the Rights Agent nor the Company shall be obligated to undertake
     any action with respect to a record holder upon the occurrence of any
     purported exercise as set forth in this Section

                                       16
<PAGE>

     7 unless such holder shall have (i) properly completed and duly executed
     the certificate contained in the form of election to purchase set forth on
     the reverse side of the Rights Certificate surrendered for such exercise,
     and (ii) provided such additional evidence of the identity of the
     Beneficial Owner (or former Beneficial Owner), or Affiliates or Associates
     thereof, or any transferee referred to in clause (ii) or (iii) of Section
     7(e) hereof, or of the Rights evidenced thereby, in any such case, as the
     Company or the Rights Agent shall reasonably request.

     Section 8. Cancellation and Destruction of Rights Certificates. All Rights
Certificates surrendered for the purpose of exercise, transfer, split up,
combination or exchange shall, if surrendered to the Company or any of its
agents, be delivered to the Rights Agent for cancellation or in canceled form,
or, if surrendered to the Rights Agent, shall be canceled by it, and no Rights
Certificates shall be issued in lieu thereof except as expressly permitted by
any of the provisions of this Agreement. The Company shall deliver to the Rights
Agent for cancellation and retirement, and the Rights Agent shall so cancel and
retire, any other Rights Certificate purchased or acquired by the Company
otherwise than upon the exercise thereof. The Rights Agent shall deliver all
cancelled Rights Certificates to the Company, or shall, at the written request
of the Company, destroy such canceled Rights Certificates in accordance with
applicable law and regulations, and in such case shall deliver a certificate of
destruction to the Company.

     Section 9. Reservation and Availability of Capital Stock.
                ---------------------------------------------

          (a) The Company covenants and agrees that it will cause to be reserved
     and kept available out of its authorized and unissued shares of Preferred
     Stock (and, following the occurrence of a Triggering Event, out of its
     authorized and unissued shares of Common Stock and/or other securities or
     out of its authorized and issued shares held in its treasury), the number
     of shares of Preferred Stock (and, following the occurrence of a Triggering
     Event, Common Stock and/or other securities) that, as provided in this
     Agreement, including Section 11(a)(iii) hereof, will be sufficient to
     permit the exercise in full of all outstanding Rights in accordance with
     this Agreement.

          (b) So long as the shares of Preferred Stock (and, following the
     occurrence of a Triggering Event, Common Stock and/or other securities)
     issuable and deliverable upon the exercise of the Rights may be listed on
     any national securities exchange or national automated quotation system,
     the Company shall use its best efforts to cause, from and after such time
     as the Rights become exercisable (but only to the extent that it is
     reasonably likely that the Rights will be exercised), all shares reserved
     for such issuance to be listed on such exchange or authorized to be quoted
     on such quotation system upon official notice of issuance upon such
     exercise.

          (c) If then required by applicable law, the Company shall use its best
     efforts to (i) file, as soon as practicable following the earliest date
     after the first occurrence of a Section 11(a)(ii) Event on which the
     consideration to be delivered by the Company upon exercise of the Rights
     has been determined in accordance with Section 11(a)(iii) hereof, a
     registration statement under the Act with respect to the securities
     purchasable upon exercise of the Rights on an appropriate form, (ii) cause
     such registration statement to

                                       17
<PAGE>

     become effective as soon as practicable after such filing, and (iii) cause
     such registration statement to remain effective (with a prospectus at all
     times meeting the requirements of the Act) until the earlier of (A) the
     date as of which the Rights are no longer exercisable for such securities,
     (B) the Expiration Date or (C) the date the Company receives an opinion of
     counsel to the effect that the maintenance of such registration statement
     in effect is no longer necessary. If then required by applicable law, the
     Company will also take such action as may be appropriate under, or to
     ensure compliance with, the securities or "blue sky" laws of the various
     states in connection with the exercisability of the Rights. The Company may
     temporarily suspend, for a period of time not to exceed one hundred twenty
     (120) days after the date set forth in clause (i) of the first sentence of
     this Section 9(c), the exercisability of the Rights in order to prepare and
     file such registration statement and permit it to become effective or to
     comply with such blue sky laws. Upon any such suspension, the Company shall
     make a public announcement, and shall give simultaneous written notice to
     the Rights Agent, stating that the exercisability of the Rights has been
     temporarily suspended, as well as a public announcement, and simultaneous
     written notice to the Rights Agent, at such time as the suspension is no
     longer in effect. In addition, if the Company shall determine that a
     registration statement is required following the Distribution Date, the
     Company may temporarily suspend the exercisability of the Rights until such
     time as a registration statement has been declared effective, and shall
     provide the Rights Agent with written notice of such suspension.
     Notwithstanding any provision of this Agreement to the contrary, the Rights
     shall not be exercisable in any jurisdiction if the requisite qualification
     in such jurisdiction shall not have been obtained, the exercise thereof
     shall not be permitted under applicable law or a registration statement
     shall not have been declared effective.

          (d) The Company covenants and agrees that it will take all such action
     as may be necessary to ensure that all one one-thousandths of a share of
     Preferred Stock (and, following the occurrence of a Triggering Event,
     Common Stock and/or other securities, as the case may be) delivered upon
     exercise of Rights shall, at the time of delivery of the certificates for
     such shares, Common Stock, or other securities, as the case may be (subject
     to payment of the Purchase Price), be duly and validly authorized and
     issued, and fully paid and nonassessable including, without limitation,
     effecting such changes to the accounts of the Company as may be necessary
     to accomplish the foregoing purposes.

          (e) The Company further covenants and agrees that it will pay when due
     and payable any and all taxes and governmental charges which may be payable
     in respect of the issuance or delivery of the Rights Certificates and of
     any certificates for a number of one one-thousandths of a share of
     Preferred Stock (or Common Stock or other securities, as the case may be)
     upon the exercise of the Rights. The Company shall not, however, be
     required to pay any tax or charge which may be payable in respect of any
     transfer or delivery of Rights Certificates to a Person other than, or the
     issuance or delivery of certificates or depositary receipts for a number of
     one one-thousandths of a share of Preferred Stock (or Common Stock and/or
     other securities, as the case may be) in respect of a name other than that
     of, the record holder of the Rights Certificates evidencing Rights
     surrendered for exercise or to issue or deliver any certificates for a
     number of one one-thousandths of a share of Preferred Stock (or, following
     the occurrence of a Triggering Event, Common Stock or other securities, as
     the case may be) in a name other

                                       18
<PAGE>

     than that of the record holder upon the exercise of any Rights until such
     tax or charge shall have been paid (any such tax or charge being payable by
     the holder of such Rights Certificate at the time of surrender) or until it
     has been established to the Company's or the Rights Agent's satisfaction
     that no such tax or charge is due.

     Section 10. Securities Record Date. Each person in whose name any
certificate for a number of one one-thousandths of a share of Preferred Stock
(or Common Stock and/or other securities, as the case may be) is issued upon the
exercise of Rights shall for all purposes be deemed to have become the holder of
record of such fractional shares of Preferred Stock (or Common Stock and/or
other securities, as the case may be) represented thereby on, and such
certificate shall be dated, the date upon which the Rights Certificate
evidencing such Rights was duly surrendered and payment of the Purchase Price
(and all applicable taxes or charges) was made; provided, however, that if the
date of such surrender and payment is a date upon which the Preferred Stock (or
Common Stock and/or other securities, as the case may be) transfer books of the
Company are closed, such Person shall be deemed to have become the record holder
of such shares (fractional or otherwise) on, and such certificate shall be
dated, the next succeeding Business Day on which the Preferred Stock (or Common
Stock and/or other securities, as the case may be) transfer books of the Company
are open. Prior to the exercise of the Rights evidenced thereby, the record
holder of a Rights Certificate shall not be entitled to any rights of a
stockholder of the Company with respect to shares for which the Rights shall be
exercisable, including, without limitation, the right to vote, to receive
dividends or other distributions or to exercise any preemptive rights, and shall
not be entitled to receive any notice of any proceedings of the Company, except
as provided herein.

     Section 11. Adjustment of Purchase Price, Number and Kind of Shares or
Number of Rights. The Purchase Price, the number and kind of shares covered by
each Right and the number of Rights outstanding are subject to adjustment from
time to time as provided in this Section 11.

           (a) (i) In the event the Company shall at any time after the date of
      this Agreement (A) declare a dividend on the Preferred Stock payable in
      shares of Preferred Stock, (B) subdivide the outstanding Preferred Stock,
      (C) combine the outstanding Preferred Stock into a smaller number of
      shares, or (D) issue any shares of its capital stock in a reclassification
      of the Preferred Stock (including any such reclassification in connection
      with a consolidation or merger in which the Company is the continuing or
      surviving corporation), except as otherwise provided in this Section 11(a)
      and Section 7(e) hereof, the Purchase Price in effect at the time of the
      record date for such dividend or of the effective date of such
      subdivision, combination or reclassification, and the number and kind of
      shares of Preferred Stock or capital stock, as the case may be, issuable
      on such date, shall be proportionately adjusted so that the record holder
      of any Right exercised after such time shall be entitled to receive, upon
      payment of the Purchase Price then in effect, the aggregate number and
      kind of shares of Preferred Stock or capital stock, as the case may be,
      which, if such Right had been exercised immediately prior to such date and
      at a time when the Preferred Stock transfer books of the Company were
      open, he would have owned upon such exercise and been entitled to receive
      by virtue of such dividend, subdivision, combination or reclassification.
      If an event occurs which would require an adjustment under both this
      Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for
      in this Section 11(a)(i)

                                       19
<PAGE>

     shall be in addition to, and shall be made prior to, any adjustment
     required pursuant to Section 11(a)(ii) hereof.

          (ii) Subject to Section 24 hereof, in the event any Person, alone or
     together with its Affiliates and Associates, shall, at any time after the
     Rights Dividend Declaration Date, become an Acquiring Person (such an event
     being referred to herein as a "Section 11(a)(ii) Event"), then, promptly
     following the occurrence of such Section 11(a)(ii) Event, proper provision
     shall be made by the Company so that each holder of a Right (except as
     provided below and in Section 7(e) hereof) shall, for a period of sixty
     (60) days after the later of any such Section 11(a)(ii) Event and the
     effective date of an appropriate registration statement pursuant to Section
     9 hereof, have the right to receive, upon exercise thereof at the then
     current Purchase Price in accordance with the terms of this Agreement, in
     lieu of fractional interests in shares of Preferred Stock, such number of
     shares of Common Stock of the Company as shall equal the result obtained by
     (x) multiplying the then current Purchase Price by the then number of one
     one-thousandths of a share of Preferred Stock for which a Right was
     exercisable immediately prior to the first occurrence of a Section
     11(a)(ii) Event at issue, and (y) dividing that product (which, following
     such first occurrence, shall thereafter be referred to as the "Purchase
     Price" for each Right and for all purposes of this Agreement) by 50% of the
     Current Market Price (determined pursuant to Section 11(d) hereof) per
     share of Common Stock on the date of such first occurrence (such number of
     shares being referred to as the "Adjustment Shares"); provided, however,
     that if the transaction that would otherwise give rise to the foregoing
     adjustment is also subject to the provisions of Section 13 hereof, then
     only the provisions of Section 13 hereof shall apply and no adjustment
     shall be made pursuant to this Section 11(a)(ii); and provided, further,
     that such sixty (60) day period shall not be deemed to run (A) during any
     period in which the exercise of the Rights or the fulfillment by the
     Company or the Rights Agent of its or their obligations under this
     Agreement shall be enjoined or otherwise prohibited in full or in part by
     any court or other governmental agency or body, or (B) as to any other
     period during which exercise of the Rights is permitted to be suspended
     under this Agreement, including, without limitation, Section 11(a)(iii),
     during the time period with respect to which such authority has been
     exercised. The Company shall give the Rights Agent written notice of the
     identity of any such Acquiring Person, Associate or Affiliate, or the
     nominee of any of the foregoing, and the Rights Agent may rely on such
     notice in carrying out its duties under this Agreement and shall be deemed
     not to have any knowledge of the identity of any such Acquiring Person,
     Associate or Affiliate, or the nominee of any of the foregoing unless and
     until it shall have received such notice.

          (iii)Subject to such limitations existing as of the date hereof as are
     necessary to prevent a default under any agreement to which the Company is
     a party, in the event that the number of shares of Common Stock which are
     authorized by the Company's articles of incorporation but not outstanding
     or reserved for issuance for purposes other than upon exercise of the
     Rights are not sufficient to permit the exercise in full of the Rights in
     accordance with the foregoing subparagraph (ii) of this Section 11(a), the
     Company, acting by resolution of its Board of Directors shall (A) determine
     the excess of (x) the value of the Adjustment Shares issuable upon the
     exercise of a Right determined as set forth below (the "Current Value"),
     over (y) the Purchase Price (such

                                       20
<PAGE>

     excess, the "Spread"), and (B) with respect to each Right (subject to
     Section 7(e) hereof), make adequate provision to substitute for the
     Adjustment Shares, upon the exercise of a Right and payment of the
     applicable Purchase Price, (1) cash, (2) a reduction in the Purchase Price,
     (3) Common Stock or other equity securities of the Company (including,
     without limitation, shares or units of shares of preferred stock, such as
     the Preferred Stock, which the Board of Directors has deemed to have
     essentially the same value or economic rights as shares of Common Stock
     (such shares of preferred stock or other equity securities being referred
     to as "Common Stock Equivalents")), (4) debt securities of the Company, (5)
     other assets, or (6) any combination of the foregoing, having an aggregate
     value equal to the Current Value (less the amount of any reduction in the
     Purchase Price), where such aggregate value has been determined by the
     Board of Directors based upon the advice of a nationally recognized
     investment banking firm selected by the Board of Directors; provided,
     however, that if the Company shall not have made adequate provision to
     deliver value pursuant to clause (B) above within thirty (30) days
     following the date on which the Company's right of redemption pursuant to
     Section 23(a) expires (such date being referred to herein as the "Section
     11(a)(ii) Trigger Date"), then the Company shall be obligated to deliver,
     upon the surrender for exercise of a Right and without requiring payment of
     the Purchase Price (other than an amount equal to the par value of the
     shares of Common Stock to be issued), shares of Common Stock (to the extent
     available) and then, if necessary, cash, which shares and/or cash have an
     aggregate value equal to the Spread. If the Board of Directors determines
     in good faith that it is likely that sufficient additional shares of Common
     Stock could be authorized for issuance upon exercise in full of the Rights,
     the thirty (30) day period set forth above may be extended to the extent
     necessary, but not more than ninety (90) days after the Section 11(a)(ii)
     Trigger Date, in order that the Company may seek stockholder approval for
     the authorization of such additional shares (such thirty (30) day period,
     as it may be extended, is herein called the "Substitution Period"). To the
     extent that action is to be taken pursuant to the first and/or second
     sentences of this Section 11(a)(iii), the Company (1) shall provide,
     subject to Section 7(e) hereof, that such action shall apply uniformly to
     all outstanding Rights, and (2) may suspend the exercisability of the
     Rights until the expiration of the Substitution Period in order to seek
     such stockholder approval for such authorization of additional shares
     and/or to decide the appropriate form of distribution to be made pursuant
     to such first sentence and to determine the value thereof. In the event of
     any such suspension, the Company shall make a public announcement and shall
     give simultaneous written notice to the Rights Agent stating that the
     exercisability of the Rights has been temporarily suspended, as well as a
     public announcement, and simultaneous written notice to the Rights Agent,
     at such time as the suspension is no longer in effect. For purposes of this
     Section 11(a)(iii), the Current Value of each Adjustment Share shall be the
     Current Market Price per share of the Common Stock on the Section 11(a)(ii)
     Trigger Date, and the per share or per unit value of any Common Stock
     Equivalent shall be deemed to equal the Current Market Price per share of
     the Common Stock on such date.

          (b) In case the Company shall fix a record date for the issuance of
     rights, options or warrants to all record holders of Preferred Stock
     entitling them to subscribe for or purchase (for a period expiring within
     forty-five (45) calendar days after such record date) Preferred Stock (or
     shares having the same rights, privileges and preferences as the

                                       21
<PAGE>

     shares of Preferred Stock ("equivalent preferred stock")) or securities
     convertible into Preferred Stock or equivalent preferred stock at a price
     per share of Preferred Stock or per share of equivalent preferred stock (or
     having a conversion price per share, if a security convertible into
     Preferred Stock or equivalent preferred stock) less than the Current Market
     Price per share of Preferred Stock on such record date, the Purchase Price
     to be in effect after such record date shall be determined by multiplying
     the Purchase Price in effect immediately prior to such record date by a
     fraction, the numerator of which shall be the number of shares of Preferred
     Stock and equivalent preferred stock outstanding on such record date, plus
     the number of shares of Preferred Stock and equivalent preferred stock
     which the aggregate offering price of the total number of shares of
     Preferred Stock and/or equivalent preferred stock so to be offered (and/or
     the aggregate initial conversion price of the convertible securities so to
     be offered) would purchase at such Current Market Price, and the
     denominator of which shall be the number of shares of Preferred Stock and
     equivalent preferred stock outstanding on such record date, plus the number
     of additional shares of Preferred Stock and/or equivalent preferred stock
     to be offered for subscription or purchase (or into which the convertible
     securities so to be offered are initially convertible). In case such
     subscription price may be paid by delivery of consideration part or all of
     which may be in a form other than cash, the value of such consideration
     shall be as determined in good faith by the Board of Directors, whose
     determination shall be described in a statement filed with the Rights Agent
     and shall be binding on the Rights Agent and the holders of the Rights.
     Shares of Preferred Stock and equivalent preferred stock owned by or held
     for the account of the Company shall not be deemed outstanding for the
     purpose of any such computation. Such adjustment shall be made successively
     whenever such a record date is fixed, and in the event that such rights or
     warrants are not so issued, the Purchase Price shall be adjusted to be the
     Purchase Price which would then be in effect if such record date had not
     been fixed.

          (c) In case the Company shall fix a record date for a distribution to
     all record holders of Preferred Stock (including any such distribution made
     in connection with a consolidation or merger in which the Company is the
     continuing or surviving corporation) of evidences of indebtedness, cash
     (other than a regular quarterly cash dividend out of the earnings or
     retained earnings of the Company), assets (other than a dividend payable in
     Preferred Stock, but including any dividend payable in stock other than
     Preferred Stock) or subscription rights or warrants (excluding those
     referred to in Section 11(b) hereof), the Purchase Price to be in effect
     after such record date shall be determined by multiplying the Purchase
     Price in effect immediately prior to such record date by a fraction, the
     numerator of which shall be the Current Market Price (as determined
     pursuant to Section 11(d) hereof) per share of Preferred Stock on such
     record date, less the fair market value (as determined in good faith by the
     Board of Directors, whose determination shall be described in a statement
     filed with the Rights Agent and shall be binding on the Rights Agent and
     the holders of the Rights) of the portion of the cash, assets or evidences
     of indebtedness so to be distributed or of such subscription rights or
     warrants applicable to a share of Preferred Stock and the denominator of
     which shall be such Current Market Price per share of Preferred Stock. Such
     adjustments shall be made successively whenever such a record date is
     fixed, and in the event that such

                                       22
<PAGE>

     distribution is not so made, the Purchase Price shall be adjusted to be the
     Purchase Price which would have been in effect if such record date had not
     been fixed.

          (d) (i) For the purpose of any computation hereunder, other than
     computations made pursuant to Section 11(a)(iii) hereof, the "Current
     Market Price" per share of Common Stock on any date shall be deemed to be
     the average of the daily closing prices per share of such Common Stock for
     the thirty (30) consecutive Trading Days immediately prior to but not
     including such date, and for purposes of computations made pursuant to
     Section 11(a)(iii) hereof, the Current Market Price per share of Common
     Stock on any date shall be deemed to be the average of the daily closing
     prices per share of such Common Stock for the ten (10) consecutive Trading
     Days immediately following but not including such date; provided, however,
     that in the event that the Current Market Price per share of the Common
     Stock is determined during a period following the announcement by the
     issuer of such Common Stock of (A) a dividend or distribution on such
     Common Stock payable in shares of such Common Stock or securities
     convertible into shares of such Common Stock (other than the Rights), or
     (B) any subdivision, combination or reclassification of such Common Stock,
     and the ex-dividend or ex-distribution date for such dividend or
     distribution, or the record date for such subdivision, combination or
     reclassification shall not have occurred prior to the commencement of the
     requisite thirty (30) Trading Day or ten (10) Trading Day period, as set
     forth above, then, and in each such case, the Current Market Price shall be
     properly adjusted to reflect the current market per share equivalent. The
     closing price for each day shall be the last sale price, regular way, or,
     in case no such sale takes place on such day, the average of the closing
     bid and asked prices, regular way, in either case as reported in the
     principal consolidated transaction reporting system with respect to
     securities listed or admitted to trading on the NASDAQ or, if the shares of
     Common Stock are not listed or admitted to trading on the NASDAQ, as
     reported in the principal consolidated transaction reporting system with
     respect to securities listed on the principal national securities exchange
     on which the shares of Common Stock are listed or admitted to trading or,
     if the shares of Common Stock are not listed or admitted to trading on any
     national securities exchange, the last sale price, regular way, or, if such
     last sale price is not reported, the average of the high bid and low asked
     prices in the over-the-counter market, as reported by NASDAQ or such other
     system then in use, or, if on any such date the shares of Common Stock are
     not quoted by any such organization, the average of the closing bid and
     asked prices as furnished by a professional market maker making a market in
     the Common Stock selected by the Board of Directors. If on any such date no
     market maker is making a market in the Common Stock, the fair value of such
     shares on such date as determined in good faith by the Board of Directors
     shall be used. The term "Trading Day" shall mean a day on which the
     principal national securities exchange on which the shares of Common Stock
     are listed or admitted to trading is open for the transaction of business
     or, if the shares of Common Stock are not listed or admitted to trading on
     any national securities exchange, a Business Day. If the Common Stock is
     not publicly held or not so listed or traded, Current Market Price per
     share shall mean the fair value per share as determined in good faith by
     the Board of Directors, whose determination shall be described in a
     statement filed with the Rights Agent and shall be conclusive for all
     purposes.

                                       23
<PAGE>

                (ii) For the purpose of any computation hereunder, the Current
      Market Price per share of Preferred Stock shall be determined in the same
      manner as set forth above for the Common Stock in clause (i) of this
      Section 11(d) (other than the last sentence thereof). If the Current
      Market Price per share of Preferred Stock cannot be determined in the
      manner provided above or if the Preferred Stock is not publicly held or
      listed or traded in a manner described in clause (i) of this Section
      11(d), the Current Market Price per share of Preferred Stock shall be
      conclusively deemed to be an amount equal to 1000 (as such number may be
      appropriately adjusted for such events as stock splits, stock dividends
      and recapitalizations with respect to the Common Stock occurring after the
      date of this Agreement) multiplied by the Current Market Price per share
      of the Common Stock. If neither the Common Stock nor the Preferred Stock
      is publicly held or so listed or traded, Current Market Price per share of
      the Preferred Stock shall mean the fair value per share as determined in
      good faith by the Board of Directors, whose determination shall be
      described in a statement filed with the Rights Agent and shall be
      conclusive for all purposes. For all purposes of this Agreement, the
      Current Market Price of one one-thousandth of a share of Preferred Stock
      shall be equal to the Current Market Price of one share of Preferred Stock
      divided by 1000.

           (e) Anything herein to the contrary notwithstanding, no adjustment in
      the Purchase Price shall be required unless such adjustment would require
      an increase or decrease of at least one percent (1%) in the Purchase
      Price; provided, however, that any adjustments which by reason of this
      Section 11(e) are not required to be made shall be carried forward and
      taken into account in any subsequent adjustment. All calculations under
      this Section 11 shall be made to the nearest cent or to the nearest
      hundred-thousandth of a share of Common Stock or other share or
      one-millionth of a share of Preferred Stock, as the case may be.
      Notwithstanding the first sentence of this Section 11(e), any adjustment
      required by this Section 11 shall be made no later than the earlier of (i)
      three (3) years from the date of the transaction which mandates such
      adjustment, or (ii) the Expiration Date.

           (f) If as a result of an adjustment made pursuant to Section
      11(a)(ii) or Section 13(a) hereof, the holder of any Right thereafter
      exercised shall become entitled to receive any shares of capital stock
      other than Preferred Stock, thereafter the number of such other shares so
      receivable upon exercise of any Right and the Purchase Price thereof shall
      be subject to adjustment from time to time in a manner and on terms as
      nearly equivalent as practicable to the provisions with respect to the
      Preferred Stock contained in Sections 11(a), (b), (c), (e), (g), (h), (i),
      (j), (k) and (m), and the provisions of Sections 7, 9, 10, 13 and 14
      hereof with respect to the Preferred Stock shall apply on like terms to
      any such other shares.

           (g) All Rights originally issued by the Company subsequent to any
      adjustment made to the Purchase Price hereunder shall evidence the right
      to purchase, at the adjusted Purchase Price, the number of one
      one-thousandths of a share of Preferred Stock purchasable from time to
      time hereunder upon exercise of the Rights, all subject to further
      adjustment as provided herein.

                                       24
<PAGE>

           (h) Unless the Company shall have exercised its election as provided
      in Section 11(i), upon each adjustment of the Purchase Price as a result
      of the calculations made in Sections 11(b) and (c), each Right outstanding
      immediately prior to the making of such adjustment shall thereafter
      evidence the right to purchase, at the adjusted Purchase Price, that
      number of one one-thousandths of a share of Preferred Stock (calculated to
      the nearest one- millionth) obtained by (i) multiplying (x) the number of
      one one-thousandths of a share covered by a Right immediately prior to
      this adjustment, by (y) the Purchase Price in effect immediately prior to
      such adjustment of the Purchase Price, and (ii) dividing the product so
      obtained by the Purchase Price in effect immediately after such adjustment
      of the Purchase Price.

           (i) The Company may elect on or after the date of any adjustment of
      the Purchase Price to adjust the number of Rights, in lieu of any
      adjustment in the number of one one-thousandths of a share of Preferred
      Stock purchasable upon the exercise of a Right. Each of the Rights
      outstanding after the adjustment in the number of Rights shall be
      exercisable for the number of one one-thousandths of a share of Preferred
      Stock for which a Right was exercisable immediately prior to such
      adjustment. Each Right held of record prior to such adjustment of the
      number of Rights shall become that number of Rights (calculated to the
      nearest one-millionth) obtained by dividing the Purchase Price in effect
      immediately prior to adjustment of the Purchase Price by the Purchase
      Price in effect immediately after adjustment of the Purchase Price. The
      Company shall make a public announcement and shall give simultaneous
      written notice to the Rights Agent of its election to adjust the number of
      Rights, indicating the record date for the adjustment, and, if known at
      the time, the amount of the adjustment to be made. This record date may be
      the date on which the Purchase Price is adjusted or any day thereafter,
      but, if the Rights Certificates have been issued, shall be at least ten
      (10) days later than the date of the public announcement. If Rights
      Certificates have been issued, upon each adjustment of the number of
      Rights pursuant to this Section 11(i), the Company shall, as promptly as
      practicable, cause to be distributed to holders of Rights Certificates on
      such record date Rights Certificates evidencing, subject to Section 14
      hereof, the additional Rights to which such holders shall be entitled as a
      result of such adjustment, or, at the option of the Company, shall cause
      to be distributed to such holders in substitution and replacement for the
      Rights Certificates held by such holders prior to the date of adjustment,
      and upon surrender thereof, if required by the Company, new Rights
      Certificates evidencing all the Rights to which such holders shall be
      entitled after such adjustment. Rights Certificates so to be distributed
      shall be issued, executed and countersigned in the manner provided for
      herein (and may bear, at the option of the Company, the adjusted Purchase
      Price) and shall be registered in the names of the holders of record of
      Rights Certificates on the record date specified in the public
      announcement.

           (j) Irrespective of any adjustment or change in the Purchase Price or
      the number by one one-thousandths of a share of Preferred Stock issuable
      upon the exercise of the Rights, the Rights Certificates theretofore and
      thereafter issued may continue to express the Purchase Price per one
      one-thousandths of a share and the number of one one-thousandths of a
      share which were expressed in the initial Rights Certificates issued
      hereunder.

                                       25
<PAGE>

           (k) Before taking any action that would cause an adjustment reducing
      the Purchase Price below the then par value, if any, of the number of one
      one-thousandths of a share of Preferred Stock, or the par value, if any,
      of any shares of any other capital stock issuable upon exercise of the
      Rights, the Company shall take any corporate action which may, in the
      opinion of its counsel, be necessary in order that the Company may validly
      and legally issue such number of fully paid and non-assessable one
      one-thousandths of a share of Preferred Stock (or such other shares) at
      such adjusted Purchase Price. If upon any exercise of the Rights, a holder
      is to receive a combination of Common Stock and Common Stock Equivalents,
      a portion of the consideration paid upon such exercise, equal to at least
      the then par value of a share of Common Stock, shall be allocated as the
      payment for each share of Common Stock so received.

           (l) In any case in which this Section 11 shall require that an
      adjustment in the Purchase Price be made effective as of a record date for
      a specified event, the Company may elect to defer (with prompt written
      notice thereof to the Rights Agent), until the occurrence of such event,
      the issuance to the record holder of any Right exercised after such record
      date the number of one one-thousandths of a share of Preferred Stock and
      other capital stock or securities of the Company, if any, issuable upon
      such exercise over and above the number of one one-thousandths of a share
      of Preferred Stock, and other capital stock or securities of the Company,
      if any, issuable upon such exercise on the basis of the Purchase Price in
      effect prior to such adjustment; provided, however, that the Company shall
      deliver to such holder a due bill or other appropriate instrument
      evidencing such holder's right to receive such additional shares
      (fractional or otherwise) or securities upon the occurrence of the event
      requiring such adjustment.

           (m) Anything in this Section 11 to the contrary notwithstanding, the
      Company shall be entitled to make such reductions in the Purchase Price,
      in addition to those adjustments expressly required by this Section 11, as
      and to the extent that in its good faith judgment the Board of Directors
      shall determine to be advisable in order that any (i) consolidation or
      subdivision of the Preferred Stock, (ii) issuance wholly for cash of any
      shares of Preferred Stock at less than the Current Market Price thereof,
      (iii) issuance wholly for cash of shares of Preferred Stock or securities
      which by their terms are convertible into or exchangeable for shares of
      Preferred Stock, (iv) stock dividends, or (v) issuance of rights, options
      or warrants referred to in this Section 11, hereafter made by the Company
      to holders of its Preferred Stock shall not be taxable to such holders.

           (n) The Company covenants and agrees that it shall not, at any time
      after the Distribution Date and so long as the Rights have not been
      redeemed pursuant to Section 23 hereof or exchanged pursuant to Section 24
      hereof, (i) consolidate with any other Person (other than a Subsidiary of
      the Company in a transaction which complies with Section 11(p) hereof),
      (ii) merge with or into any other Person (other than a Subsidiary of the
      Company in a transaction which complies with Section 11(p) hereof), or
      (iii) sell or transfer (or permit any Subsidiary to sell or transfer), in
      one transaction, or a series of related transactions, assets or earning
      power aggregating more than 50% of the assets or earning power of the
      Company and its Subsidiaries (taken as a whole) to any other Person or
      Persons (other than the Company and/or any of its Subsidiaries in one or
      more transactions each of which complies with Section 11(p) hereof), if
      (x) at the time of or

                                       26
<PAGE>

     immediately after such consolidation, merger or sale there are any articles
     of incorporation or bylaw provisions or any rights, warrants or other
     instruments or securities outstanding or agreements in effect or other
     actions taken which would substantially diminish or otherwise eliminate the
     benefits intended to be afforded by the Rights or (y) prior to,
     simultaneously with or immediately after such consolidation, merger or
     sale, the stockholders of the Person who constitutes, or would constitute,
     the Principal Party for purposes of Section 13(a) hereof shall have
     received a distribution of Rights previously owned by such Person or any of
     its Affiliates and Associates, and (z) the form or nature of organization
     of the Principal Party would preclude or limit the exercise of Rights or
     otherwise diminish or substantially limit the benefits intended to be
     afforded by the Rights.

          (o) The Company shall not consummate any such consolidation, merger,
     sale or transfer unless prior thereto the Company and such other person
     shall have executed and delivered to the Rights Agent a supplemental
     agreement evidencing compliance with this Section 11(n).

          (p) The Company covenants and agrees that, after the Distribution
     Date, it will not, except as permitted by Section 23, Section 24 or Section
     27 hereof, take (or permit any Subsidiary to take) any action if at the
     time such action is taken it is reasonably foreseeable that such action
     will diminish substantially or otherwise eliminate the benefits intended to
     be afforded by the Rights.

          (q) Anything in this Agreement to the contrary notwithstanding, in the
     event that the Company shall at any time after the Rights Dividend
     Declaration Date and prior to the Distribution Date (i) declare or pay any
     dividend on the outstanding shares of Common Stock payable in shares of
     Common Stock, (ii) subdivide or split the outstanding shares of Common
     Stock into a greater number of shares, or (iii) combine or consolidate the
     outstanding shares of Common Stock into a smaller number of shares or
     effect a reverse split of the outstanding shares of Common Stock, then, and
     in each such event, the number of Rights associated with each share of
     Common Stock then outstanding, or issued or delivered thereafter but prior
     to the Distribution Date, shall be proportionately adjusted so that the
     number of Rights thereafter associated with each share of Common Stock
     following any such event shall equal the result obtained by multiplying the
     number of Rights associated with each share of Common Stock immediately
     prior to such event by a fraction the numerator of which shall be the total
     number of shares of Common Stock outstanding immediately prior to the
     occurrence of the event and the denominator of which shall be the total
     number of shares of Common Stock outstanding immediately following the
     occurrence of such event. Right to adjust preferred stock in lieu of
     adjusting number of Rights is not a big deal.

     Section 12. Certificate of Adjusted Purchase Price or Number of Shares.
Whenever an adjustment is made or any event affecting the Rights or their
exercisability (including without limitation an event which causes the Rights to
become null and void) occurs as provided in Section 11 and Section 13 hereof,
the Company shall (a) promptly prepare a certificate setting forth such
adjustment or describing such event, and a brief, reasonably detailed statement
of the facts, computations and methodology accounting for such adjustment, (b)

                                       27
<PAGE>

promptly file with the Rights Agent, and with each transfer agent for the
Preferred Stock and the Common Stock, a copy of such certificate, and (c) mail a
brief summary thereof to each record holder of a Rights Certificate (or, if
prior to the Distribution Date, to each record holder of a certificate
representing shares of Common Stock) in accordance with Section 26 hereof. The
Rights Agent shall be fully protected in relying on any such certificate and on
any adjustment or statement therein contained and shall have no duty or
liability with respect to, and shall not be deemed to have knowledge of, any
adjustment or any such event unless and until it shall have received such
certificate.

     Section 13.   Consolidation, Merger or Sale or Transfer of
                   --------------------------------------------
                   Assets or Earning Power.
                   -----------------------

          (a) In the event that, following the Stock Acquisition Date (which for
     purposes of this Section 13(a) only shall also include the date of the
     first public announcement (including, without limitation, a report filed
     pursuant to Section 13(d) under the Exchange Act) that any Person (other
     than the Company, any Subsidiary of the Company, any employee benefit plan
     of the Company or of any Subsidiary of the Company, or any Person or entity
     organized, appointed or established by the Company for or pursuant to the
     terms of any such plan), together with any of such Person's Affiliates and
     Associates, has become the Beneficial Owner of 15% or more of the shares of
     Common Stock then outstanding pursuant to a Permitted Offer), directly or
     indirectly, (x) the Company shall consolidate with, or merge with and into,
     any other Person (other than a Subsidiary of the Company in a transaction
     which complies with Section 11(p) hereof), and the Company shall not be the
     continuing or surviving corporation of such consolidation or merger, (y)
     any Person (other than a Subsidiary of the Company in a transaction which
     complies with Section 11(p) hereof) shall consolidate with, or merge with
     or into, the Company, and the Company shall be the continuing or surviving
     corporation of such consolidation or merger and, in connection with such
     consolidation or merger, all or part of the outstanding shares of Common
     Stock shall be changed into or exchanged for stock or other securities of
     any other Person or cash or any other property, or (z) the Company shall
     sell or otherwise transfer (or one or more of its Subsidiaries shall sell
     or otherwise transfer), in one transaction or a series of related
     transactions, assets or earning power aggregating more than 50% of the
     assets or earning power of the Company and its Subsidiaries (taken as a
     whole) to any Person or Persons (other than the Company or any Subsidiary
     of the Company in one or more transactions each of which complies with
     Section 11(p) hereof), then, upon the first occurrence of such event
     (except as may be contemplated by Section 13(d) hereof), proper provision
     shall be made so that: (i) each holder of a Right, except as provided in
     Section 7(e) hereof, shall thereafter have the right to receive, upon the
     exercise thereof at the then current Purchase Price, in accordance with the
     terms of this Agreement, such number of validly authorized and issued,
     fully paid, non-assessable and freely tradeable shares of Common Stock of
     the Principal Party (as such term is hereinafter defined), not subject to
     any liens, encumbrances, rights of first refusal or other adverse claims,
     as shall be equal to the result obtained by (1) multiplying the then
     current Purchase Price by the number of one one-thousandths of a share of
     Preferred Stock for which a Right is exercisable immediately prior to the
     first occurrence of a Section 13 Event (or, if a Section 11(a)(ii) Event
     has occurred prior to the first occurrence of a Section 13 Event,
     multiplying the

                                       28
<PAGE>

     number of such one one-thousandths of a share for which a Right was
     exercisable immediately prior to the first occurrence of a Section
     11(a)(ii) Event by the Purchase Price in effect immediately prior to such
     first occurrence), and dividing that product (which, following the first
     occurrence of a Section 13 Event, shall be referred to as the "Purchase
     Price" for each Right and for all purposes of this Agreement) by (2) 50% of
     the Current Market Price (determined pursuant to Section 11(d)(i) hereof)
     per share of the Common Stock of such Principal Party on the date of
     consummation, provided that the Purchase Price and the number of shares of
     Common Stock of such Principal Party issuable upon exercise of each Right
     shall be further adjusted as provided in Section 11(f) of this Agreement to
     reflect any events occurring in respect of such Principal Party after the
     date of such Section 13 Event; (ii) such Principal Party shall thereafter
     be liable for, and shall assume, by virtue of such Section 13 Event, all
     the obligations and duties of the Company pursuant to this Agreement; (iii)
     the term "Company" shall thereafter be ------- deemed to refer to such
     Principal Party, it being specifically intended that the provisions of
     Section 11 hereof shall apply only to such Principal Party following the
     first occurrence of a Section 13 Event; (iv) such Principal Party shall
     take such steps (including, but not limited to, the reservation of a
     sufficient number of shares of its Common Stock) in connection with the
     consummation of any such transaction as may be necessary to assure that the
     provisions hereof shall thereafter be applicable, as nearly as reasonably
     may be, in relation to its shares of Common Stock thereafter deliverable
     upon the exercise of the Rights; and (v) the provisions of Section
     11(a)(ii) hereof shall be of no effect following the first occurrence of
     any Section 13 Event.

          (b) "Principal Party" shall mean

               (i) in the case of any transaction described in clause (x) or (y)
          of the first sentence of Section 13(a): (A) the Person that is the
          issuer of any securities into which shares of Common Stock of the
          Company are converted in such merger or consolidation, or if there is
          more than one such issuer, the issuer of the shares of Common Stock
          which has the greatest aggregate market value of shares outstanding,
          or (B) if no securities are so issued, (1) the Person that is the
          other party to the merger, if such Person survives said merger, or, if
          there is more than one such Person, the Person the shares of Common
          Stock of which has the greatest aggregate market value of shares
          outstanding or (2) if the Person that is the other party to the merger
          does not survive the merger, the Person that does survive the merger
          (including the Company if it survives) or (3) the Person resulting
          from the consolidation; and

               (ii) in the case of any transaction described in clause (z) of
          the first sentence of Section 13(a), the Person that is the party
          receiving the greatest portion of the assets or earning power
          transferred pursuant to such transaction or transactions or, if each
          Person that is a party to such transaction or transactions receives
          the same portion of the assets or earning power so transferred or if
          the Person receiving the greatest portion of the assets or earning
          power cannot be determined, whichever of such Persons as is the issuer
          of the shares of Common Stock having the greatest aggregate market
          value of shares outstanding;

                                       29
<PAGE>

      provided, however, that in any such case, (1) if the Common Stock of such
      Person is not at such time and has not been continuously over the
      preceding twelve (12) month period registered under Section 12 of the
      Exchange Act, and such Person is a direct or indirect Subsidiary of
      another Person the Common Stock of which is and has been so registered,
      "Principal Party" shall refer to such other Person; (2) in case such
      Person is a Subsidiary, directly or indirectly, of more than one Person,
      the Common Stocks of two or more of which are and have been so registered,
      "Principal Party" shall refer to whichever of such Persons is the issuer
      of the Common Stock having the greatest aggregate market value of shares
      outstanding; and (3) in case such Person is owned, directly or indirectly,
      by a joint venture formed by two or more Persons that are not owned,
      directly or indirectly, by the same Person, the rules set forth in (1) and
      (2) above shall apply to each of the chains of ownership having an
      interest in such joint venture as if such party were a "Subsidiary" of
      both or all of such joint venturers and the Principal Parties in each such
      chain shall bear the obligations set forth in this Section 13 in the same
      ratio as their direct or indirect interests in such Person bear to the
      total of such interests.

          (c) The Company shall not consummate any such consolidation, merger,
     sale or transfer unless the Principal Party covenants and agrees that it
     will cause to be reserved and kept available out of its authorized and
     unissued shares of Common Stock or out of its authorized and issued shares
     held in its treasury, the number of shares of its Common Stock that will be
     sufficient to permit the exercise in full of all outstanding Rights under
     this Section 13 and unless prior thereto the Company and such Principal
     Party shall have executed and delivered to the Rights Agent a supplemental
     agreement confirming that the requirements set forth in paragraphs (a) and
     (b) of this Section 13 shall be promptly performed in accordance with their
     terms and further providing that, as soon as practicable after executing
     such agreement pursuant to this Section 13, the Principal Party will:

               (i) prepare and file a registration statement under the Act, with
          respect to the Rights and the securities purchasable upon exercise of
          the Rights on an appropriate form, and will use its best efforts to
          cause such registration statement to (A) become effective as soon as
          practicable after such filing and (B) remain effective (with a
          prospectus at all times meeting the requirements of the Act) until the
          Expiration Date and similarly comply with applicable state securities
          laws;

               (ii) use its best efforts, if the shares of Common Stock of the
          Principal Party shall be listed or admitted to trading on a national
          securities exchange or NASDAQ to list or admit to trading (or continue
          the listing of) the Rights and the securities purchasable upon
          exercise of the Rights on such securities exchange or NASDAQ and, if
          the shares of Common Stock of the Principal Party shall not be listed
          or admitted to trading on a national securities exchange or NASDAQ, to
          cause the Rights and the securities purchasable upon exercise of the
          Rights to be eligible for trading in the over-the-counter market and
          reported by such other system then in use;

               (iii) deliver to record holders of the Rights historical
          financial statements for the Principal Party and each of its
          Affiliates which comply in all

                                       30
<PAGE>

          respects with the requirements for registration on Form 10 (or any
          successor form) under the Exchange Act; and

               (iv) obtain waivers of any rights of first refusal or preemptive
          rights in respect of the shares of Common Stock of the Principal Party
          subject to purchase upon exercise of outstanding Rights.

     The provisions of this Section 13 shall similarly apply to successive
     mergers or consolidations or sales or other transfers. In the event that a
     Section 13 Event shall occur at any time after the occurrence of a Section
     11(a)(ii) Event, the Rights which have not theretofore been exercised shall
     thereafter become exercisable in the manner described in Section 13(a). If,
     for any reason, the Rights cannot be exercised for Common Stock of the
     Company or such Principal Party, then a holder of Rights will have the
     right to exchange such Rights for cash from the Company or such Principal
     Party in an amount equal to the number of shares of such Common Stock such
     holder would otherwise be entitled to purchase times 50% of the then
     Current Market Price, as determined pursuant to Section 11(d)(i) hereof, of
     such stock of such Principal Party or the Company. If, for any reason,
     including, without limitation, such Principal Party is an individual,
     private partnership or private company, the foregoing formulation cannot be
     applied to determine the cash amount into which the Rights are
     exchangeable, then the Board of Directors, based upon advice from one or
     more nationally recognized investment banking firms, shall determine such
     amount reasonably and with utmost good faith to the holders of Rights. Any
     such determination shall be binding and final.

          (d) Notwithstanding anything in this Agreement to the contrary,
     Section 13 shall not be applicable to a transaction described in
     subparagraphs (x) and (y) of Section 13(a) if (i) such transaction is
     consummated with a Person or Persons who acquired shares of Common Stock
     pursuant to a Permitted Offer (or a wholly owned Subsidiary of any such
     Person or Persons), (ii) the price per share of Common Stock offered in
     such transaction is not less than the price per share of Common Stock paid
     to all record holders of shares of Common Stock whose shares were purchased
     pursuant to such Permitted Offer, and (iii) the form of consideration being
     offered to the remaining record holders of shares of Common Stock pursuant
     to such transaction is the same as the form of consideration paid pursuant
     to such Permitted Offer. Upon consummation of any such transaction
     contemplated by this Section 13(d), all Rights hereunder shall expire.

          (e) The Company shall not enter into any transaction of the kind
     referred to in this Section 13 if at the time of such transaction there are
     any rights, warrants, instruments or securities outstanding or any
     agreements or arrangements which, as a result of the consummation of such
     transaction, would substantially diminish or otherwise eliminate the
     benefits intended to be afforded by the Rights. Without limiting the
     generality of the preceding sentence, in case the Principal Party which is
     to be a party to a transaction of the kind referred to in this Section 13
     has a provision in any of its authorized securities or in its certificate
     or articles of incorporation or bylaws or other instrument governing its
     corporate affairs (or organizational affairs if organized other than in
     corporate form), which provision would have the effect of (i) causing such
     Principal Party to issue, in connection with, or as a consequence of, the
     consummation of

                                       31
<PAGE>

     a transaction of the kind referred to in this Section 13, Common Stock of
     such Principal Party at less than the then Current Market Price per share
     (determined pursuant to Section 11(d)(i)) or securities exercisable for or
     convertible into Common Stock of such Principal Party at less than such
     then Current Market Price per share (other than to holders of Rights
     pursuant to this Section 13) or (ii) providing for any special payment, tax
     or similar provisions in connection with the issuance of Common Stock of
     such Principal Party pursuant to the provisions of Section 13; then, in
     such event, the Company shall not consummate any such transaction unless
     prior thereto the provision in question of such Principal Party shall have
     been canceled, waived or amended so as to avoid any of the effects referred
     to in clauses (i) and (ii) of this paragraph, or the authorized securities
     shall have been redeemed, so that the applicable provision will have no
     effect in connection with, or as a consequence of, the consummation of the
     proposed transaction.

     Section 14.     Fractional Rights and Fractional Shares.
                     ---------------------------------------

          (a) The Company shall not be required to issue fractions of Rights,
     except prior to the Distribution Date as provided in Section 11(q) hereof,
     or to distribute Rights Certificates which evidence fractional Rights. In
     lieu of such fractional Rights, there shall be paid to the record holders
     of the Rights Certificates with regard to which such fractional Rights
     would otherwise be issuable, an amount in cash equal to the same fraction
     of the current market value of a whole Right. For purposes of this Section
     14(a), the current market value of a whole Right shall be the closing price
     of the Rights for the Trading Day immediately prior to the date on which
     such fractional Rights would have been otherwise issuable. The closing
     price of the Rights for any day shall be the last sale price, regular way,
     or, in case no such sale takes place on such day, the average of the
     closing bid and asked prices, regular way, in either case as reported in
     the principal consolidated transaction reporting system with respect to
     securities listed or admitted to trading on the NASDAQ or, if the Rights
     are not listed or admitted to trading on the NASDAQ, as reported in the
     principal consolidated transaction reporting system with respect to
     securities listed on the principal national securities exchange on which
     the Rights are listed or admitted to trading, or if the Rights are not
     listed or admitted to trading on any national securities exchange, the last
     sale price or, if such last sale price is not reported, the average of the
     high bid and low asked prices in the over-the-counter market, as reported
     by NASDAQ or such other system then in use or, if on any such date the
     Rights are not quoted by any such organization, the average of the closing
     bid and asked prices as furnished by a professional market maker making a
     market in the Rights selected by the Board of Directors. If on any such
     date no such market maker is making a market in the Rights, the fair value
     of the Rights on such date as determined in good faith by the Board of
     Directors shall be used.

          (b) The Company shall not be required to issue fractions of shares of
     Preferred Stock (other than, except as provided in Section 7(c), fractions
     which are integral multiples of one one-thousandth of a share of Preferred
     Stock) upon exercise of the Rights or to distribute certificates which
     evidence fractional shares of Preferred Stock (other than fractions which
     are integral multiples of one one-thousandth of a share of Preferred
     Stock). Fractions of shares of Preferred Stock in integral multiples of one
     one-

                                       32
<PAGE>

     thousandth of a share of Preferred Stock may, at the election of the
     Company, be evidenced by depositary receipts, pursuant to an appropriate
     agreement between the Company and a depositary selected by it; provided,
     however, that such agreement shall provide that the holders of such
     depositary receipts shall have the rights, privileges and preferences to
     which they are entitled as beneficial owners of the shares of Preferred
     Stock represented by such depositary receipts. In lieu of fractional shares
     of Preferred Stock that are not integral multiples of one one-thousandth of
     a share of Preferred Stock, the Company may pay to the record holders of
     Rights Certificates at the time such Rights are exercised as herein
     provided an amount in cash equal to the same fraction of the current market
     value of one one-thousandth of a share of Preferred Stock. For purposes of
     this Section 14(b), the current market value of one one-thousandth of a
     share of Preferred Stock shall be one one-thousandth of the closing price
     of a share of Preferred Stock (as determined pursuant to Section 11(d)(ii)
     hereof) for the Trading Day immediately prior to the date of such exercise.

          (c) Following the occurrence of a Triggering Event, the Company shall
     not be required to issue fractions of shares of Common Stock or distribute
     certificates which evidence fractional shares of Common Stock. In lieu of
     fractional shares of Common Stock the Company may pay to the record holders
     of Rights Certificates at the time such Rights are exercised as herein
     provided an amount in cash equal to the same fraction of the current market
     value of one share of Common Stock. For purposes of this Section 14(c), the
     current market value of one share of Common Stock shall be determined in a
     manner set forth in Section 11(d)(i) hereof for the Trading Day immediately
     prior to the date of such exercise.

          (d) The record holder of a Right by the acceptance of the Rights
     expressly waives his right to receive any fractional Rights or any
     fractional shares (other than, except as provided in Section 7(c),
     fractions which are integral multiples of one one-thousandth of a share of
     Preferred Stock) upon exercise of a Right or to receive any certificates
     which evidence such Rights or shares, except as permitted by this Section
     14.

          (e) Whenever a payment for fractional Rights or fractional shares is
     to be made by the Rights Agent, the Company shall (i) promptly prepare and
     deliver to the Rights Agent a certificate setting forth in reasonable
     detail the facts related to such payments and the prices and/or formulas
     utilized in calculating such payments, and (ii) provide sufficient monies
     to the Rights Agent in the form of fully collected funds to make such
     payments. The Rights Agent shall be fully protected in relying upon such a
     certificate and shall have no duty with respect to, and shall not be deemed
     to have knowledge of any payment for fractional Rights or fractional shares
     under any Section of this Agreement relating to the payment of fractional
     Rights or fractional shares unless and until the Rights Agent shall have
     received such a certificate and sufficient monies.

     Section 15. Rights of Action. All rights of action in respect of this
Agreement, excepting the rights of action given to the Rights Agent, are vested
in the respective record holders of the Rights Certificates (and, prior to the
Distribution Date, the record holders of the Common Stock); and any record
holder of any Rights Certificate (or, prior to the Distribution Date, of the
Common Stock), without the consent of the Rights Agent or of the record holder
of

                                       33
<PAGE>

any other Rights Certificate (or, prior to the Distribution Date, of the Common
Stock), may, in his own behalf and for his own benefit, enforce, and may
institute and maintain any suit, action or proceeding against the Company to
enforce, or otherwise act in respect of, his right to exercise the Rights
evidenced by such Rights Certificate in the manner provided in such Rights
Certificate and in this Agreement. Without limiting the foregoing or any
remedies available to the record holders of Rights, it is specifically
acknowledged that such holders of Rights would not have an adequate remedy at
law for any breach by the Company of this Agreement and shall be entitled to
specific performance of the obligations hereunder and injunctive relief against
actual or threatened violations by the Company of the obligations hereunder of
any Person subject to this Agreement. After a Triggering Event, holders of
Rights shall be entitled to reissue the reasonable costs and expenses, including
attorneys' fees, incurred by them to enforce the provisions of this Agreement.

     Section 16. Agreement of Rights Holders. Every holder of a Right, by
accepting the same, consents and agrees with the Company and the Rights Agent
and with every other holder of a Right that:

          (a) prior to the Distribution Date, the Rights will be transferable
     only in connection with the transfer of Common Stock;

          (b) after the Distribution Date, the Rights Certificates are
     transferable only on the transfer books of the Rights Agent if surrendered
     at the office of the Rights Agent designated for such purpose, duly
     endorsed or accompanied by a proper instrument of transfer and with the
     appropriate forms and certificates fully executed;

          (c) subject to Section 6(a) and Section 7(f) hereof, the Company and
     the Rights Agent may deem and treat the person in whose name a Rights
     Certificate (or, prior to the Distribution Date, the associated Common
     Stock certificate) is registered on the transfer books of the Rights Agent
     as the absolute owner thereof and of the Rights evidenced thereby
     (notwithstanding any notations of ownership or writing on the Rights
     Certificates or the associated Common Stock certificate made by anyone
     other than the Company or the Rights Agent) for all purposes whatsoever,
     and neither the Company nor the Rights Agent shall be required to be
     affected by any notice to the contrary;

          (d) notwithstanding anything in this Agreement to the contrary,
     neither the Company nor the Rights Agent shall have any liability to any
     holder of a Right or other Person as a result of its inability to perform
     any of its obligations under this Agreement by reason of any preliminary or
     permanent injunction or other order, judgment, decree or ruling (whether
     interlocutory or final) issued by a court or by a governmental, regulatory,
     self-regulatory or administrative agency or commission, or any statute,
     rule, regulation or executive order promulgated or enacted by any
     governmental authority, prohibiting or otherwise restraining performance of
     such obligations; provided, however, the -------- ------- Company must use
     its reasonable efforts to have any such injunction, order, judgment, decree
     or ruling lifted or otherwise overturned as soon as possible; and

          (e) Rights that become Beneficially Owned by the Persons specified in
     Section 7(e) hereof are automatically null and void pursuant to that
     Section.

                                       34
<PAGE>

     Section 17. Rights Certificate Holder Not Deemed a Stockholder. No holder,
as such, of any Rights Certificate shall be entitled to vote, receive dividends
or be deemed for any purpose the holder of the number of one one-thousandths of
a share of Preferred Stock or any other securities of the Company which may at
any time be issuable on the exercise of the Rights represented thereby, nor
shall anything contained herein or in any Rights Certificate be construed to
confer upon the holder of any Rights Certificate, as such, any of the rights of
a stockholder of the Company or any right to vote for the election of directors
or upon any matter submitted to stockholders at any meeting thereof, or to give
or withhold consent to any corporate action, or to receive notice of meetings or
other actions affecting stockholders (except as provided in Section 25 hereof),
or to receive dividends or subscription rights, or otherwise, until the Right or
Rights evidenced by such Rights Certificate shall have been exercised in
accordance with the provisions hereof.

     Section 18. Concerning the Rights Agent.
                 ---------------------------

          (a) The Company agrees to pay to the Rights Agent reasonable
     compensation as shall be agreed upon in writing between the Company and the
     Rights Agreement for all services rendered by it hereunder and, from time
     to time, on demand of the Rights Agent, its reasonable expenses and counsel
     fees and other disbursements incurred in the preparation, negotiation,
     execution, delivery, amendment and administration of this Agreement and the
     exercise and performance of its duties hereunder. The Company also agrees
     to indemnify the Rights Agent including its members, directors, officers,
     employees, shareholders and agents, for, and to hold it harmless against,
     any loss, liability, damage, judgment, fine, penalty, claim, demand,
     settlement, cost or expense (including, without limitation, the reasonable
     fees and expenses of legal counsel) incurred without gross negligence, bad
     faith or willful misconduct on the part of the Rights Agent (each as
     determined by a final, non-appealable order, judgment, decree or ruling of
     a court of competent jurisdiction), for any action taken, suffered or
     omitted by the Rights Agent in connection with the acceptance,
     administration, exercise and performance of its duties under this
     Agreement, including, without limitation, the costs and expenses of
     defending against and appealing any claim of liability arising therefrom,
     directly or indirectly. The provisions of this Section 18 and Section 20
     below shall survive the exercise or expiration of the Rights, the
     termination of this Agreement, or the resignation or removal of the Rights
     Agent. The costs and expenses incurred in enforcing this right of
     indemnification shall be paid by the Company.

          (b) The Rights Agent shall be authorized and protected and shall incur
     no liability for or in respect of any action taken, suffered or omitted by
     it in connection with its acceptance and administration of this Agreement
     and the exercise and performance of its duties hereunder, in reliance upon
     any Rights Certificate or certificate for Common Stock or for other
     securities of the Company, instrument of assignment or transfer, power of
     attorney, endorsement, affidavit, letter, notice, direction, consent,
     certificate, statement, or other paper or document believed by it to be
     genuine and to be signed, executed, and where necessary, verified,
     guaranteed or acknowledged, by the proper Person or Persons, or otherwise
     upon the advice of counsel as set forth in Section 20 hereof.

                                       35
<PAGE>

     Section 19.     Merger or Consolidation or Change of Name of
                     --------------------------------------------
                     Rights Agent.
                     ------------

          (a) Any Person into which the Rights Agent or any successor Rights
     Agent may be merged or with which it may be consolidated, or any Person
     resulting from any merger or consolidation to which the Rights Agent or any
     successor Rights Agent shall be a party, or any Person succeeding to the
     corporate trust or stock transfer business of the Rights Agent or any
     successor Rights Agent, shall be the successor to the Rights Agent under
     this Agreement without the execution or filing of any paper or any further
     act on the part of any of the parties hereto, provided, that such --------
     Person would be eligible for appointment as a successor Rights Agent under
     the provisions of Section 21 hereof. In case at the time such successor
     Rights Agent shall succeed to the agency created by this Agreement, any of
     the Rights Certificates shall have been countersigned but not delivered;
     any such successor Rights Agent may adopt the countersignature of a
     predecessor Rights Agent and deliver such Rights Certificates so
     countersigned; and in case at that time any of the Rights Certificates
     shall not have been countersigned, any successor Rights Agent may
     countersign such Rights Certificates either in the name of the predecessor
     Rights Agent or in the name of the successor Rights Agent; and in all such
     cases such Rights Certificates shall have the full force provided in the
     Rights Certificates and in this Agreement.

          (b) In case at any time the name of the Rights Agent shall be changed
     and at such time any of the Rights Certificates shall have been
     countersigned but not delivered, the Rights Agent may adopt the
     countersignature under its prior name and deliver Rights Certificates so
     countersigned; and in case at that time any of the Rights Certificates
     shall not have been countersigned, the Rights Agent may countersign such
     Rights Certificates either in its prior name or in its changed name; and in
     all such cases such Rights Certificates shall have the full force provided
     in the Rights Certificates and in this Agreement.

     Section 20. Rights and Duties of Rights Agent. The Rights Agent undertakes
to perform the duties and obligations expressly imposed by this Agreement, and
no implied duties or obligations, upon the following terms and conditions, by
all of which the Company and the holders of Rights Certificates, by their
acceptance thereof, shall be bound:

          (a) The Rights Agent may consult with legal counsel (who may be legal
     counsel for the Company or an employee of the Rights Agent), and the advice
     or opinion of such counsel shall be full and complete authorization and
     protection to the Rights Agent and the Rights Agent shall incur no
     liability for or in respect of any action taken, suffered or omitted by it
     and in accordance with such advice or opinion.

          (b) Whenever in the performance of its duties under this Agreement the
     Rights Agent shall deem it necessary or desirable that any fact or matter
     (including, without limitation, the identity of any Acquiring Person and
     the determination of "Current Market Price") be proved or established by
     the Company prior to taking, suffering or omitting to take any action
     hereunder, such fact or matter (unless other evidence in respect thereof be
     herein specifically prescribed) may be deemed to be conclusively proved and
     established by a certificate signed by the Chairman of the Board,

                                       36
<PAGE>

     any Vice Chairman, the President, any Vice President, the Treasurer, any
     Assistant Treasurer, the Secretary or any Assistant Secretary of the
     Company and delivered to the Rights Agent; and such certificate shall be
     full and complete authorization and protection to the Rights Agent and the
     Rights Agent shall incur no liability for or in respect of any action
     taken, suffered or omitted by it under the provisions of this Agreement in
     reliance upon such certificate.

          (c) The Rights Agent shall be liable hereunder to the Company and any
     other Person only for its own gross negligence, bad faith or willful
     misconduct (each as determined by a final, non-appealable order, judgment,
     decree or ruling of a court of competent jurisdiction). Anything to the
     contrary notwithstanding, in no event shall the Rights Agent be liable for
     special, punitive, indirect, consequential or incidental loss or damage of
     any kind whatsoever (including but not limited to lost profits), even if
     the Rights Agent has been advised of the likelihood of such loss or damage.
     Any liability of the Rights Agent under this Rights Agreement will be
     limited to the amount of fees paid by the Company to the Rights Agent.

          (d) The Rights Agent shall not be liable for or by reason of any of
     the statements of fact or recitals contained in this Agreement or in the
     Rights Certificates or be required to verify the same (except as to its
     countersignature on such Rights Certificates), but all such statements and
     recitals are and shall be deemed to have been made by the Company only.

          (e) The Rights Agent shall not have any liability or be under any
     responsibility in respect of the validity of this Agreement or the
     execution and delivery hereof (except the due execution hereof by the
     Rights Agent) or in respect of the validity or execution of any Rights
     Certificate (except its countersignature thereof); nor shall it be
     responsible for any breach by the Company of any covenant or condition
     contained in this Agreement or in any Rights Certificate; nor shall it be
     responsible for any adjustment required under the provisions of Section 11
     or Section 13 hereof or responsible for the manner, method or amount of any
     such adjustment or the ascertaining of the existence of facts that would
     require any such adjustment (except with respect to the exercise of Rights
     evidenced by Rights Certificates after actual notice of any such
     adjustment, upon which the Rights Agent may rely); nor shall it by any act
     hereunder be deemed to make any representation or warranty as to the
     authorization or reservation of any shares of Common Stock or Preferred
     Stock to be issued pursuant to this Agreement or any Rights Certificate or
     as to whether any shares of Common Stock, Preferred Stock or other
     securities, will when so issued, be validly authorized and issued, fully
     paid and nonassessable.

          (f) The Company agrees that it will perform, execute, acknowledge and
     deliver or cause to be performed, executed, acknowledged and delivered all
     such further and other acts, instruments and assurances as may reasonably
     be required by the Rights Agent for the carrying out or performing by the
     Rights Agent of the provisions of this Agreement.

                                       37
<PAGE>

          (g) The Rights Agent is hereby authorized and directed to accept
     instructions with respect to the performance of its duties hereunder from
     any one of the Chairman of the Board, any Vice Chairman, the President, any
     Vice President, the Secretary, any Assistant Secretary, the Treasurer or
     any Assistant Treasurer of the Company, and to apply to such officers for
     advice or instructions in connection with its duties, and such instructions
     shall be full authorization and protection to the Rights Agent and the
     Rights Agent shall not be liable for or in respect of any action taken,
     suffered or omitted by it in accordance with instructions of any such
     officer or for any delay in acting while waiting for those instructions.
     The Rights Agent shall be fully authorized and protected in relying upon
     the most recent instructions received by any such officer.

          (h) The Rights Agent and any stockholder, affiliate, director, officer
     or employee of the Rights Agent may buy, sell or deal in any of the Rights
     or other securities of the Company or become pecuniarily interested in any
     transaction in which the Company may be interested, or contract with or
     lend money to the Company or otherwise act as fully and freely as though
     the Rights Agent were not Rights Agent under this Agreement. Nothing herein
     shall preclude the Rights Agent or any such stockholder, affiliate,
     director, officer or employee from acting in any other capacity for the
     Company or for any other Person.

          (i) The Rights Agent may execute and exercise any of the rights or
     powers hereby vested in it or perform any duty hereunder either itself
     (through its directors, officers or employees) or by or through its
     attorneys or agents, and the Rights Agent shall not be answerable or
     accountable for any act, omission, default, neglect or misconduct of any
     such attorneys or agents or for any loss to the Company or any other Person
     resulting from any such act, omission, default, neglect or misconduct,
     absent gross negligence or bad faith (each as determined by a final,
     non-appealable order, judgment, decree or ruling of a court of competent
     jurisdiction) in the selection and continued employment thereof.

          (j) No provision of this Agreement shall require the Rights Agent 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 its
     rights if it believes that repayment of such funds or adequate
     indemnification against such risk or liability is not reasonably assured to
     it.

          (k) If, with respect to any Rights Certificate surrendered to the
     Rights Agent for exercise or transfer, the certificate attached to the form
     of assignment or form of election to purchase, as the case may be, has
     either not been completed or indicates an affirmative response to clause 1
     and/or 2 thereof, the Rights Agent shall not take any further action with
     respect to such requested exercise or transfer without first consulting
     with the Company.

          (l) The Rights Agent shall have no responsibility to the Company, any
     holders of Rights or any holders of shares of Common Stock for interest or
     earnings on any moneys held by the Rights Agent pursuant to this Agreement.

                                       38
<PAGE>

          (m) The Rights Agent shall not be required to take notice or be deemed
     to have notice of any event or condition hereunder, including, but not
     limited to, a Distribution Date, a Redemption Date, any adjustment of the
     Purchase Price of the Common Stock, and adjustment to the Purchase Price of
     the Preferred Stock, the existence of an Acquiring Person or any other
     event or condition that may require action by the Rights Agent, unless the
     Rights Agent shall be specifically notified in writing of such event or
     condition by the Company, and all notices or other instruments required by
     this Agreement to be delivered to the Rights Agent must, in order to be
     effective, be received by the Rights Agent as specified in Section 26
     hereof, and in the absence of such notice so delivered, the Rights Agent
     may conclusively assume no such event or condition exists.

     Section 21. Change of Rights Agent. The Rights Agent or any successor
Rights Agent may resign and be discharged from its duties under this Agreement
upon thirty (30) days' notice in writing, mailed to the Company and shall
provide notice thereof to each transfer agent of the Common Stock or Preferred
Stock known to the Rights Agent by registered or certified mail and to the
holders of the Rights Certificates in accordance with Section 26 hereof, or if
prior to the Distribution Date, to the holders of Rights through any filing made
by the Company pursuant to the Exchange Act. The Company may remove the Rights
Agent or any successor Rights Agent upon thirty (30) days' notice in writing,
mailed to the Rights Agent or successor Rights Agent, as the case may be, and
shall provide notice thereof to each transfer agent of the Common Stock and
Preferred Stock, by registered or certified mail, and to the holders of the
Rights Certificates in accordance with Section 26 hereof, or, if prior to the
Distribution Date, to the holders of Rights through any filing made by the
Company pursuant to the Exchange Act. If the Rights Agent shall resign or be
removed or shall otherwise become incapable of acting, the Company shall appoint
a successor to the Rights Agent. If the Company shall fail to make such
appointment within a period of thirty (30) days after giving notice of such
removal or after it has been notified in writing of such resignation or
incapacity by the resigning or incapacitated Rights Agent or by the record
holder of a Rights Certificate (who shall, with such notice, submit his Rights
Certificate for inspection by the Company), then the Company shall become the
Rights Agent until a successor Rights Agent has been appointed, and any record
holder of any Rights Certificate or the Rights Agent may apply to any court of
competent jurisdiction for the appointment of a new Rights Agent. Any successor
Rights Agent, whether appointed by the Company or by such a court, shall be (a)
a Person organized and doing business under the laws of the United States or of
the State of Oklahoma or the State of New York (or of any other state of the
United States so long as such corporation is authorized to do business as a
banking institution in the State of Oklahoma or the State of New York), in good
standing, and is subject to supervision or examination by federal or state
authority and which has at the time of its appointment as Rights Agent a
combined capital and surplus of at least $100,000,000 or (b) an Affiliate of a
Person described in clause (a). After appointment, the successor Rights Agent
shall be vested with the same powers, rights, duties and responsibilities as if
it had been originally named as Rights Agent without further act or deed; but
the predecessor Rights Agent shall deliver and transfer to the successor Rights
Agent any property at the time held by it hereunder, and execute and deliver any
further assurance, conveyance, act or deed necessary for the purpose. Not later
than the effective date of any such appointment, the Company shall file notice
thereof in writing with the predecessor Rights Agent and each transfer agent of
the Common Stock and the Preferred Stock, and mail a notice thereof in writing
to the registered holders of the

                                       39
<PAGE>

Rights Certificates in accordance with Section 26 hereof, or, if prior to the
Distribution Date, give notice to the holders of Rights through any filing made
by the Company pursuant to the Exchange Act. Failure to give any notice provided
for in this Section 21, however, or any defect therein, shall not affect the
legality or validity of the resignation or removal of the Rights Agent or the
appointment of the successor Rights Agent, as the case may be.

     Section 22. Issuance of New Rights Certificates. Notwithstanding any of the
provisions of this Agreement or of the Rights to the contrary, the Company may,
at its option, issue new Rights Certificates evidencing Rights in such form as
may be approved by its Board of Directors to reflect any adjustment or change in
the Purchase Price and the number or kind or class of shares or other securities
or property purchasable under the Rights Certificates made in accordance with
the provisions of this Agreement. In addition, in connection with the issuance
or sale of shares of Common Stock following the Distribution Date and prior to
the redemption or expiration of the Rights, the Company (a) shall, with respect
to shares of Common Stock so issued or sold pursuant to the exercise of stock
options or under any employee plan or arrangement, granted or awarded as of the
Distribution Date, or upon the exercise, conversion or exchange of securities
issued by the Company on or prior to the Distribution Date, and (b) may, in any
other case, if deemed necessary or appropriate by the Board of Directors, issue
Rights Certificates representing the appropriate number of Rights in connection
with such issuance or sale; provided, however, that (i) no such Rights
Certificates shall be issued and this sentence shall be null and void ab initio
if, and to the extent that, the Company shall be advised by counsel that such
issuance would create a significant risk of material adverse tax consequences to
the Company or the Person to whom such Rights Certificate would be issued, and
(ii) no such Rights Certificate shall be issued if, and to the extent that,
appropriate adjustment shall otherwise have been made in lieu of the issuance
thereof

     Section 23.     Redemption and Termination; Three-Year Independent
                     --------------------------------------------------
                     Director Evaluation.
                     -------------------

          (a) The Board of Directors, at its option, at any time prior to the
     earlier of (i) the close of business on the tenth Business Day following
     the Stock Acquisition Date (or, if the Stock Acquisition Date shall have
     occurred prior to the Record Date, the close of business on the tenth
     Business Day following the Record Date), or (ii) the time at which the
     Rights expire pursuant to this Agreement, redeem all but not less than all
     the then outstanding Rights at a redemption price of $0.001 per Right (such
     redemption price being hereinafter referred to as the "Redemption Price").
     Notwithstanding anything contained in this Agreement to the contrary, the
     Rights shall not be exercisable after the first occurrence of a Section
     11(a)(ii) Event until such time as the Company's right of redemption
     hereunder has expired. The Company may, at its option, pay the Redemption
     Price in cash, shares of Common Stock (based on the Current Market Price of
     the Common Stock at the time of redemption) or any other form of
     consideration deemed appropriate by the Board of Directors. The redemption
     of the Rights may be made effective at such time, on such basis and with
     such conditions as the Board of Directors in its sole discretion may
     establish.

          (b) Immediately upon the action of the Board of Directors ordering the
     redemption of the Rights pursuant to Section 23(a) (or at such later time
     as the Board of

                                       40
<PAGE>

     Directors may establish for the effectiveness of such redemption), notice
     of which shall have been provided to the Rights Agent, and without any
     further action and without any notice, the right to exercise the Rights
     will terminate and the only right thereafter of the holders of Rights shall
     be to receive the Redemption Price for each Right so held. Promptly after
     the action by the Board of Directors ordering the redemption of the Rights
     becoming effective, the Company shall provide notice of such redemption to
     the holders of the then outstanding Rights, with prompt written notice
     thereof to the Rights Agent, each in accordance with Section 26 hereof
     (provided that the failure to provide, or any defect in, such notice shall
     not affect the legality or validity of such redemption). Any notice which
     is provided in the manner herein provided shall be deemed given, whether or
     not the record holder receives the notice. Each such notice of redemption
     will state the method by which the payment of the Redemption Price will be
     made.

          (c) The Stockholder Rights Plan Committee of the Company's Board of
     Directors shall review this Agreement in order to consider whether the
     maintenance of this Rights Agreement continues to be in the best interests
     of the Company and its stockholders. Such committee shall conduct such
     review periodically when, as and in such manner as the committee deems
     appropriate, after giving due regard to all relevant circumstances;
     provided, however, that the committee shall take such action at least every
     three years. Following each such review, such committee will report its
     conclusions to the full Board of Directors of the Company, including any
     recommendation in light thereof as to whether this Agreement should be
     modified or the Rights should be redeemed. Such committee shall be
     comprised only of directors of the Company who shall have been determined
     by the Company's Board of Directors to be independent and disinterested
     (who are neither an Acquiring Person or a Person on whose behalf a tender
     offer or exchange offer for Common Stock is being made nor an Affiliate,
     Associate, nominee or representative of an Acquiring Person or a Person non
     whose behalf a tender offer or exchange for Common Stock is being made).
     Such committee shall be appointed by the Board of Directors of the Company
     and is authorized to retain such legal counsel, financial advisors and
     other advisors as the committee deems appropriate in order to assist the
     committee in carrying out its foregoing responsibilities under this
     Agreement.

     Section 24.   Exchange.
                   --------

          (a) The Board of Directors may, at its option, at any time after any
     Person becomes an Acquiring Person, exchange all or part of the then
     outstanding and exercisable Rights (which shall not include Rights that
     have become null and void pursuant to the provisions of Section 7(e)
     hereof) for shares of Common Stock at an exchange ratio of one share of
     Common Stock per Right, appropriately adjusted to reflect any stock split,
     stock dividend or similar transaction occurring after the date hereof (such
     exchange ratio being hereinafter referred to as the "Exchange Ratio"),
     provided that the shares of Common Stock so exchanged shall be of the same
     class or series which the holders of such Rights would have been entitled
     to receive upon the exercise thereof. Notwithstanding the foregoing, the
     Board of Directors shall not be empowered to effect such exchange at any
     time after any Person (other than an Exempted Person), together with all
     Affiliates and Associates of such Person, becomes the Beneficial Owner of

                                       41
<PAGE>

     Voting Securities of the Company then outstanding representing 50% or more
     of the Voting Power of the Company.

          (b) Immediately upon the action of the Board of Directors ordering the
     exchange of any Rights pursuant to Section 24(a) and without any further
     action and without any notice, the right to exercise such Rights shall
     terminate and the only right thereafter of the holders of such Rights shall
     be to receive that number of shares of Common Stock equal to the number of
     such Rights held by such holder multiplied by the Exchange Ratio, provided
     that the shares of Common Stock so exchanged shall be of the same class or
     series which the holder of such Rights would have been entitled to receive
     upon the exercise thereof. The Company shall promptly make a public
     announcement of any such exchange (with prompt written notice thereof to
     the Rights Agent); provided, however, that the failure to make, or any
     defect in, such public announcement shall not affect the legality or
     validity of such exchange. Promptly after the action of the Board of
     Directors ordering the exchange of the Rights becoming effective, the
     Company shall provide notice of such exchange to the holders of the then
     outstanding Rights in accordance with Section 26 hereof (provided that the
     failure to give, or any defect in, such notice shall not affect the
     validity of such exchange). Any notice which is mailed in the manner
     provided in Section 26 hereof shall be deemed given, whether or not the
     holder receives the notice. Each such notice of exchange will state the
     method by which the exchange of the shares of Common Stock for Rights will
     be effected and, in the event of any partial exchange, the number of Rights
     which will be exchanged. Any partial exchange shall be effected based on
     the number of Rights (other than Rights which have become null and void
     pursuant to the provisions of Section 7(e) hereof) held by each holder of
     Rights.

          (c) In the event that there shall not be authorized and unissued
     shares of the applicable class or series of Common Stock and/or authorized
     and issued shares of the applicable class or series of Common Stock held in
     its treasury sufficient to permit any exchange of Rights as contemplated in
     accordance with this Section 24, the Company shall take all such action as
     may be necessary to authorize additional shares of the applicable class or
     series of Common Stock for issuance upon exchange of the Rights. In the
     event the Company shall, after good faith effort, be unable to take all
     such action as may be necessary to authorize such additional shares of the
     applicable class or series of Common Stock, the Company shall substitute,
     for each share of such class or series of Common Stock that would otherwise
     be issuable upon exchange of a Right, a number of shares of the applicable
     series of Preferred Stock or fraction thereof (subject to Section 14(b)
     hereof) such that the Current Market Price per share of the applicable
     series of Preferred Stock multiplied by such number or fraction is equal to
     the Current Market Price per share of such class or series of Common Stock
     as of the date of issuance of such shares of such series of Preferred Stock
     or fraction thereof.

          (d) The Company shall not be required to issue fractions of shares of
     Common Stock or to distribute certificates which evidence fractional shares
     of Common Stock. In lieu of such fractional shares of Common Stock, the
     Company shall pay to the registered holders of the Rights Certificates with
     regard to which such fractional shares of Common Stock would otherwise be
     issuable an amount in cash equal to the same fraction

                                       42
<PAGE>

     of the Current Market Price per share of the applicable class or series of
     Common Stock as of the Trading Day immediately prior to the record date of
     exchange pursuant to this Section 24.

     Section 25.     Notice of Certain Events.
                     ------------------------

          (a) In case the Company shall propose, at any time after the
     Distribution Date, (i) to pay any dividend payable in stock of any class to
     the holders of Preferred Stock or to make any other distribution to the
     holders of Preferred Stock (other than a regular quarterly cash dividend
     out of earnings or retained earnings of the Company), or (ii) to offer to
     the holders of Preferred Stock rights or warrants to subscribe for or to
     purchase any additional shares of Preferred Stock or shares of stock of any
     class or any other securities, rights or options, or (iii) to effect any
     reclassification of its Preferred Stock (other than a reclassification
     involving only the subdivision of outstanding shares of Preferred Stock),
     or (iv) to effect any consolidation or merger into or with any other Person
     (other than a Subsidiary of the Company in a transaction which complies
     with Section 11(p) hereof), or to effect any sale or other transfer (or to
     permit one or more of its Subsidiaries to effect any sale or other
     transfer), in one transaction or a series of related transactions, of more
     than 50% of the assets or earning power of the Company and its Subsidiaries
     (taken as a whole) to any other Person or Persons (other than the Company
     and/or any of its Subsidiaries in one or more transactions each of which
     complies with Section 11(p) hereof), or (v) to effect the liquidation,
     dissolution or winding up of the Company, then, in each such case, the
     Company shall give to each holder of a Rights Certificate and to the Rights
     Agent, in accordance with Section 26 hereof, a notice of such proposed
     action, which shall specify the record date for the purposes of such stock
     dividend, distribution of rights or warrants, or the date on which such
     reclassification, consolidation, merger, sale, transfer, liquidation,
     dissolution, or winding up is to take place and the date of participation
     therein by the holders of the shares of Preferred Stock, if any such date
     is to be fixed, and such notice shall be so given in the case of any action
     covered by clause (i) or (ii) above at least ten (10) days prior to the
     record date for determining holders of the shares of Preferred Stock for
     purposes of such action, and in the case of any such other action, at least
     ten (10) days prior to the date of the taking of such proposed action or
     the date of participation therein by the holders of the shares of Preferred
     Stock whichever shall be the earlier.

          (b) In the event that a Section 11(a)(ii) Event shall occur, then in
     any such case (i) the Company shall as soon as practicable thereafter give
     to the Rights Agent and to each holder of a Rights Certificate, in
     accordance with Section 26 hereof, a notice of the occurrence of such
     event, which shall specify the event and the consequences of the event to
     holders of Rights under Section 11(a)(ii) hereof, and (ii) all references
     in the preceding paragraph to Preferred Stock shall be deemed thereafter to
     refer to Common Stock and/or, if appropriate, other securities of the
     Company.

     Section 26. Notices. Notices or demands authorized by this Agreement to be
given or made by the Rights Agent or by the holder of any Rights Certificate to
or on the Company shall be sufficiently given or made if sent by first-class
mail, postage prepaid, addressed (until another address is filed in writing with
the Rights Agent) or by facsimile transmission as follows:

                                       43
<PAGE>

                 Quest Resource Corporation
                 Corporate Office
                 9520 North May Avenue, Suite 300
                 Oklahoma City, Oklahoma  73120
                 Attention:  Chief Executive Officer
                 Facsimile No:  (405) 488-1156

Subject to the provisions of Section 21, any notice or demand authorized by this
Agreement to be given or made by the Company or by the holder of any Rights
Certificate to or on the Rights Agent shall be sufficiently given or made upon
receipt by the Rights Agent, if sent by registered or certified mail, postage
prepaid, addressed (until another address is filed in writing with the Company)
or by facsimile transmission as follows:

                 UMB Bank, n.a., as Rights Agent
                 2401 Grand Blvd.
                 Kansas City, MO  64108
                 Attention:  Corporate Trust Dept.
                 Facsimile No: (816) 860-3029

                 With a copy to:

                 UMB Bank, n.a., as Transfer Agent
                 928 Grand Blvd., 6th Floor
                 Kansas City, MO  64106
                 Attention:  Securities Transfer Dept.
                 Facsimile No: (816) 860-3029

Notices or demands authorized by this Agreement to be given or made by the
Company or the Rights Agent to the holder of any Rights Certificate (or, if
prior to the Distribution Date, to the holder of certificates representing
shares of Common Stock) shall be sufficiently given or made if sent by
first-class mail, postage prepaid, addressed to such holder at the address of
such holder as shown on the registry books of the Company as held and maintained
by the Rights Agent (or, if prior to the Distribution Date, on the registry
books of the transfer agent for the Common Stock of the Company).

     Section 27. Supplements and Amendments. Subject to the provisions of this
Section 27, for so long as the Rights are then redeemable, the Company may in
its sole and absolute discretion, and the Rights Agent shall if the Company so
directs, supplement or amend any provision of this Agreement without the
approval of any holders of the Rights. At any time when the Rights are no longer
redeemable, but subject to the provisions of this Section 27, the Company may,
and the Rights Agent shall if the Company so directs, supplement or amend this
Agreement without the approval of any holders of Rights Certificates in order to
(i) cure any ambiguity, (ii) correct or supplement any provision contained
herein which may be defective or inconsistent with any other provisions herein,
(iii) shorten or lengthen any time period hereunder, or (iv) change or
supplement the provisions hereunder in any manner which the Company may deem
necessary or desirable; provided that no such supplement or amendment adversely
affects the interests of the holders of Rights as such (other than an Acquiring
Person or an Affiliate or

                                       44
<PAGE>

Associate of an Acquiring Person) and no such amendment may cause the Rights
again to become redeemable or cause the Agreement again to become amendable
other than in accordance with this sentence. Upon the delivery of a certificate
from an appropriate officer of the Company and, if requested by the Right Agent,
an opinion of counsel, which states that the proposed supplement or amendment is
in compliance with the terms of this Section 27, the Rights Agent shall execute
such supplement or amendment; provided, however, that the Rights Agent may, but
shall not be obligated to, enter into any such supplement or amendment which
adversely affects the Rights Agent's own rights, duties, obligations or
immunities under this Agreement and the Rights Agent shall not be bound by
supplements or amendments not executed by it. Notwithstanding anything contained
in this Agreement to the contrary, no supplement or amendment shall be made
which changes the Redemption Price. Prior to the Distribution Date, the
interests of the holders of Rights shall be deemed coincident with the interests
of the holders of Common Stock.

     Section 28. Successors. All the covenants and provisions of this Agreement
by or for the benefit of the Company or the Rights Agent shall bind and inure to
the benefit of their respective successors and assigns hereunder.

     Section 29. Determinations and Actions by the Board of Directors, Etc. For
all purposes of this Agreement, any calculation of the number of shares of
Common Stock outstanding at any particular time, including for purposes of
determining the particular percentage of such outstanding shares of Common Stock
of which any Person is the Beneficial Owner, shall be made in accordance with
the last sentence of Rule 13d-3(d)(1)(i) of the General Rules and Regulations
under the Exchange Act as amended and in effect on the date hereof. The Board of
Directors, except as otherwise specifically provided for herein, shall have the
exclusive power and authority to administer this Agreement and to exercise all
rights and powers specifically granted to the Board of Directors or to the
Company, or as may be necessary or advisable in the administration of this
Agreement, including, without limitation, the right and power to (i) interpret
the provisions of this Agreement, and (ii) make all determinations deemed
necessary or advisable for the administration of this Agreement (including a
determination to redeem or not redeem the Rights or to amend the Agreement). All
such actions, calculations, interpretations and determinations (including, for
purposes of clause (y) below, all omissions with respect to the foregoing) which
are done or made by the Board of Directors in good faith, shall (x) be final,
conclusive and binding on the Company, the Rights Agent, the holders of the
Rights Certificates (and, prior to the Distribution Date, record holders of the
Common Stock) and all other parties, and (y) not subject the Board of Directors
to any liability to the holders of the Rights. The Rights Agent is entitled
always to assume the Company's Board of Directors acted in good faith and shall
be fully protected and incur no liability in reliance thereon.

     Section 30. Benefits of this Agreement. Nothing in this Agreement shall be
construed to give to any Person other than the Company, the Rights Agent and the
record holders of the Rights Certificates (and, prior to the Distribution Date,
record holders of the Common Stock) any legal or equitable right, remedy or
claim under this Agreement; but this Agreement shall be for the sole and
exclusive benefit of the Company, the Rights Agent and the record holders of the
Rights Certificates (and, prior to the Distribution Date, record holders of the
Common Stock).

                                       45
<PAGE>

     Section 31. Severability. If any term, provision, covenant or restriction
of this Agreement is held by a court of competent jurisdiction or other
authority to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions of this Agreement shall remain in full
force and effect and shall in no way be affected, impaired or invalidated;
provided, however, that notwithstanding anything in this Agreement to the
contrary, if any such term, provision, covenant or restriction is held by such
court or authority to be invalid, void or unenforceable and the Board of
Directors of the Company determines in its good faith judgment that severing the
invalid language from this Agreement would adversely affect the purpose or
effect of this Agreement, the right of redemption set forth in Section 23 hereof
shall be reinstated and shall not expire until the close of business on the
tenth Business Day (or such longer period of time as permitted pursuant to
Section 27 of this Agreement) following the date of such determination by the
Board of Directors. Without limiting the foregoing, if any provision requiring
that a determination be made by less than the entire Board of Directors (or at a
time or with the concurrence of a group of directors consisting of less than the
entire Board of Directors) is held by a court of competent jurisdiction or other
authority to be invalid, void or unenforceable, such determination shall then be
made by the Board of Directors in accordance with applicable law and the
Company's Certificate of Incorporation and Bylaws.

     Section 32. Governing Law. This Agreement, each Right and each Rights
Certificate issued hereunder shall be deemed to be a contract made under the
laws of the State of Nevada and for all purposes shall be governed by and
construed in accordance with the laws of such State applicable to contracts made
and to be performed entirely within such State; provided, however, that all
provisions regarding the rights, duties, obligations and immunities of the
Rights Agent shall be governed by and construed in accordance with the laws of
the State of New York applicable to contracts made and to be performed entirely
within such State.

     Section 33. Counterparts. This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one and
the same instrument.

     Section 34. Descriptive Headings. Descriptive headings of the several
Sections of this Agreement are inserted for convenience only and shall not
control or affect the meaning or construction of any of the provisions hereof.

                                       46
<PAGE>

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

                               QUEST RESOURCE CORPORATION

                               By:  /s/ Jerry Cash
                                    ------------------------------------
                                    Name:  Jerry Cash
                                    Title: Chairman of the Board and
                                          Chief Executive Officer

                               UMB BANK, n.a.,
                               as Rights Agent

                               By:  /s/ K. Scott Mathews
                                    ------------------------------------
                                    Name:  K. Scott Mathews
                                    Title: Vice President and Trust Officer

                                       47
<PAGE>
                                                                       EXHIBIT A
                                                                       ---------

                           CERTIFICATE OF DESIGNATIONS
                OF SERIES B JUNIOR PARTICIPATING PREFERRED STOCK
                                       of
                           QUEST RESOURCE CORPORATION

     Pursuant to Sections 78.195 and 78.1955 of the Nevada Revised Statutes

     Quest Resource Corporation, a Nevada corporation (the "Corporation"), in
accordance with the provisions of Sections 78.195 and 78.1955 the Nevada Revised
Statutes, DOES HEREBY CERTIFY:

     That pursuant to the authority conferred upon the Board of Directors by the
Articles of Incorporation, as amended, of the Corporation, the Board of
Directors on May 31, 2006, adopted the following resolution creating a series of
One Hundred Thousand (100,000) shares of Preferred Stock, par value $.001 per
share, designated as the Series B Junior Participating Preferred Stock
(hereinafter referred to as "Series B Preferred Stock"):

                         Designation of Preferred Stock

     RESOLVED, that pursuant to the authority vested in the Board of Directors
of this Corporation by the provisions of the Articles of Incorporation of the
Corporation, as amended, (the "Articles of Incorporation"), there is hereby
created a series of Preferred Stock 1 par value designated as Series B Preferred
Stock, consisting of One Hundred Thousand (100,000) shares of Series B Junior
Participating Preferred Stock, $0.001 par value per share, of the Corporation;
and

     FURTHER RESOLVED, that the Series B Preferred Stock shall have the powers,
preferences, rights, qualifications, limitations and restrictions set forth in
the Certificate of Designation of Series B Junior Participating Preferred Stock
("Certificate of Designation") which Certificate of Designation as follows:

     Section 1. Designation and Amount. The shares of such series shall be
designated as the Series B Junior Participating Preferred Stock (hereinafter
referred to as "Series B Preferred Stock") and the number of shares constituting
such series shall be One Hundred Thousand (100,000). Such number of shares may
be increased or decreased by resolution of the Board of Directors, provided that
no decrease shall reduce the number of shares of Series B Preferred Stock to a
number less than the number of shares outstanding plus the number of shares
reserved for issuance upon the exercise of outstanding rights to purchase or
convert into shares of Series B Preferred Stock.

     Section 2. Dividends and Distributions.
                ---------------------------

          (A) Subject to the prior and superior rights of the holders of any
     shares of any series of Preferred Stock ranking prior and superior to the
     shares of Series B Preferred Stock with respect

                                      A-1
<PAGE>

     to dividends, the holders of shares of Series B Preferred Stock, in
     preference to the holders of Common Stock, par value $0.001 per share (the
     "Common Stock"), of the Corporation and of any other class of stock ranking
     junior (either as to dividends or upon liquidation, dissolution or winding
     up) to the shares of Series B Preferred Stock, together with Common Stock
     ("Junior Stock"), shall be entitled to receive, when, as and if declared by
     the Board of Directors out of funds legally available for the purpose,
     dividends payable in cash in an amount per share (rounded to the nearest
     cent), equal to the product of the Series B Multiple (as defined below)
     times the aggregate per share amount of all other cash dividends, plus the
     product of the Series B Multiple times the aggregate per share amount
     (payable in cash, based upon the fair market value at the time the non-cash
     dividend or other distribution is declared as determined in good faith by
     the Board of Directors) of all non-cash dividends or other distributions
     other than a dividend payable in shares of Common Stock, or a subdivision
     of the outstanding shares of Common Stock (by reclassification or
     otherwise), declared (but not withdrawn) on the Common Stock.

          (B) As used herein, the "Series B Multiple" shall initially be 1,000.
     In the event the Corporation shall (i) declare any dividend on Common Stock
     payable in shares of Common Stock, (ii) subdivide the outstanding Common
     Stock, or (iii) combine the outstanding Common Stock into a smaller number
     of shares, then in each such case the Series B Multiple shall be adjusted
     by multiplying such amount by a fraction the numerator of which is the
     number of shares of Common Stock outstanding immediately after such event
     and the denominator of which is the number of shares of Common Stock that
     were outstanding immediately prior to such event.

          (C) The Board of Directors of the Corporation shall not declare a
     dividend or distribution on the Common Stock (other than a dividend payable
     in shares of Common Stock) unless it shall concurrently therewith declare a
     dividend or distribution on the Series B Preferred Stock. Payment of a
     dividend or distribution determined on the Series B Preferred Stock shall
     be in preference to payment of any dividend or distribution on the Common
     Stock or any Junior Stock.

          (D) The Board of Directors may fix a record date for the determination
     of holders of shares of Series B Preferred Stock entitled to receive
     payment of a dividend or distribution declared thereon, which record date
     shall be no more than thirty (30) days prior to the date fixed for the
     payment thereof.

                                      A-2
<PAGE>

     Section 3. Voting Rights. Except as otherwise provided herein or by law,
the holders of shares of Series B Preferred Stock shall have the following
voting rights:

          (A) Each share of Series B Preferred Stock shall entitle the holder
     thereof to a number of votes equal to the product of the Series B Multiple
     then in effect times the number of votes that each share of Common Stock
     entitles its holder to vote at such meeting of the stockholders of the
     Corporation.

          (B) The holders of shares of Series B Preferred Stock and the holders
     of shares of Common Stock and any other capital stock of the Corporation
     having general voting rights shall vote together as one class on all
     matters submitted to a vote of stockholders of the Corporation.

          (C) The holders of Series B Preferred Stock shall have no special
     voting rights and their consent shall not be required (except to the extent
     they are entitled to vote with holders of Common Stock as set forth herein)
     for taking any corporate action.

     Section 4.    Certain Restrictions.
                   --------------------

          (A) Whenever dividends or distributions payable on the Series B
     Preferred Stock as provided in Section 2 are in arrears, thereafter and
     until all accrued and unpaid dividends and distributions on shares of
     Series B Preferred Stock outstanding shall have been paid in full, the
     Corporation shall not:

               (i) declare or pay dividends (other than a dividend payable in
          shares of Common Stock) on, make any other distributions on, or redeem
          or purchase or otherwise acquire for consideration any shares of
          Junior Stock;

               (ii) declare or pay dividends on or make any other distributions
          on any shares of stock ranking on a parity (either as to dividends or
          upon liquidation, dissolution or winding up) with the Series B
          Preferred Stock ("Parity Stock"), except dividends paid ratably on the
          Series B Preferred Stock and all such Parity Stock on which dividends
          are payable or in arrears in proportion to the total amounts to which
          the holders of all such shares are then entitled;

               (iii) redeem or purchase or otherwise acquire for consideration
          shares of any Parity Stock, provided that the Corporation may at any
          time

                                      A-3
<PAGE>

          redeem, purchase or otherwise acquire shares of any such Parity Stock
          in exchange for shares of any Junior Stock; or

               (iv) purchase or otherwise acquire for consideration any shares
          of Series B Preferred Stock, or any shares of Parity Stock, except in
          accordance with a purchase offer made in writing or by publication (as
          determined by the Board of Directors) to all holders of such shares
          upon such terms as the Board of Directors, after consideration of the
          respective annual dividend rates and other relative rights and
          preferences of the respective series and classes, shall determine in
          good faith will result in fair and equitable treatment among the
          respective series or classes.

          (B) The Corporation shall not permit any subsidiary of the Corporation
     to purchase or otherwise acquire for consideration any shares of stock of
     the Corporation unless the Corporation could, under paragraph (A) of this
     Section 4, purchase or otherwise acquire such shares at such time and in
     such manner.

     Section 5. Reacquired Shares. Any shares of Series B Preferred Stock
purchased or otherwise acquired by the Corporation in any manner whatsoever
shall be retired and canceled promptly after the acquisition thereof. All such
shares shall upon their cancellation become authorized but unissued shares of
Preferred Stock and may be reissued as part of a new series of Preferred Stock
to be created by resolution or resolutions of the Board of Directors, subject to
the conditions and restrictions on issuance set forth herein, in the Articles of
Incorporation, in any other Certificate of Designation establishing a series of
Preferred Stock or any similar stock or as otherwise required by law.

     Section 6. Liquidation, Dissolution or Winding Up.
                --------------------------------------

          (A) In the event of any voluntary or involuntary liquidation,
     dissolution or winding up of the Corporation, the holders of the shares of
     the Series B Preferred Stock shall be entitled to receive, in preference to
     the holders of Junior Stock, the greater of (a) $1000 per share, plus
     accrued dividends to the date of distribution, whether or not earned or
     declared, or (b) an amount per share equal to the product of the Series B
     Multiple then in effect times the aggregate amount to be distributed per
     share to holders of Common Stock.

          (B) In the event of any voluntary or involuntary liquidation,
     dissolution or winding up of the Corporation, the holders of Parity Stock
     shall not receive any distributions except

                                      A-4
<PAGE>

     for distributions made ratably on the Series B Preferred Stock and all
     other such Parity stock in proportion to the total amounts to which the
     holders of all such shares are entitled upon such liquidation, dissolution
     or winding up.

     Section 7. Consolidation, Merger, Etc. In case the Corporation shall enter
into any consolidation, merger, combination or other transaction in which the
shares of Common Stock are exchanged for or changed into other stock or
securities, cash and/or any other property, then in any such case the shares of
the Series B Preferred Stock shall at the same time be similarly exchanged or
changed in an amount per share equal to the product of the Series B Multiple
then in effect times the aggregate amount of stock, securities, cash and/or any
other property (payable in kind), as the case may be, into which or for which
each share of Common Stock is changed or exchanged.

     Section 8. No Redemption. The shares of Series B Preferred Stock shall not
be redeemable.

     Section 9. Ranking. The Series B Preferred Stock shall rank junior to all
other series of the Corporation's Preferred Stock, or any similar stock that
specifically provides that it shall rank prior to the shares of Series B
Preferred Stock, as to the payment of dividends and the distribution of assets,
unless the terms of any such series shall provide otherwise. Nothing herein
shall preclude the Board of Directors from creating any series of Preferred
Stock or any similar stock ranking on a parity with or prior to the shares of
Series B Preferred Stock as to the payment of dividends or the distribution of
assets.

     Section 10. Fractional Shares. Series B Preferred Stock may be issued in
fractions of a share which shall entitle the holder, in proportion to such
holder's fractional shares, to exercise voting rights, receive dividends,
participate in distributions and to have the benefit of all other rights of
holders of Series B Preferred Stock.

     Section 11. Amendment. The Articles of Incorporation, as amended, including
this Certificate of Designation establishing the shares of the Series B
Preferred Stock, shall not be amended in any manner which would materially alter
or change the powers, preferences or special rights of the Series B Preferred
Stock so as to affect them adversely without the affirmative vote of the holders
of two-thirds or more of the outstanding shares of Series B Preferred Stock
voting separately as a class.

                                      A-5
<PAGE>

     IN WITNESS WHEREOF, this Certificate is executed on behalf of the
Corporation as of this 10th day of June, 2006.

                                 -----------------------------------------
                                 Jerry D. Cash, Chairman of the Board
                                 and Chief Executive Officer

                                      A-6
<PAGE>

                                                                       EXHIBIT B
                                                                       ---------

                           FORM OF RIGHTS CERTIFICATE

Certificate No. R-                                               ________ Rights

NOT EXERCISABLE  AFTER MAY 31, 2016 OR EARLIER IF REDEEMED BY THE COMPANY OR THE
OCCURRENCE OF A SECTION  11(a)(ii)  EVENT (AS DEFINED IN THE RIGHTS  AGREEMENT).
THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY, AT $.001 PER
RIGHT  ON  THE  TERMS  SET  FORTH  IN  THE  RIGHTS   AGREEMENT.   UNDER  CERTAIN
CIRCUMSTANCES,  RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN AFFILIATE
OR  ASSOCIATE  OF AN  ACQUIRING  PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS
AGREEMENT) AND ANY SUBSEQUENT  HOLDER OF SUCH RIGHTS SHALL BECOME NULL AND VOID.
THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY OWNED
BY A PERSON WHO WAS OR BECAME AN  ACQUIRING  PERSON OR AN AFFILIATE OR ASSOCIATE
OF AN ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS  AGREEMENT) OR A
SUBSEQUENT HOLDER OF SUCH RIGHTS.  ACCORDINGLY,  THIS RIGHTS CERTIFICATE AND THE
RIGHTS  REPRESENTED  HEREBY SHALL BECOME,  OR MAY ALREADY HAVE BECOME,  NULL AND
VOID IN THE  CIRCUMSTANCES  SPECIFIED IN SECTION 7(e) OF SUCH  AGREEMENT AND MAY
NOT BE TRANSFERRED TO ANY PERSON.*

                               RIGHTS CERTIFICATE

                           QUEST RESOURCE CORPORATION

           This  certifies  that  _____________________________,  or  registered
assigns,  is the registered owner of the number of Rights set forth above,  each
of which  entitles  the owner  thereof,  subject  to the terms,  provisions  and
conditions  of the Rights  Agreement,  dated as of May 31, 2006,  as it may from
time to time be supplemented or amended (the "Rights Agreement"),  between Quest
Resource Corporation,  a Nevada corporation (the "Company"), and UMB Bank, n.a.,
the Rights Agent (the "Rights Agent"),  to purchase from the Company at any time
prior to 5:00 P.M.  (New York City time) on May 31, 2016 (the "Final  Expiration
Date") at the office of the Rights Agent  designated  for such  purpose,  or its
successors as Rights Agent, one  one-thousandth  of a fully paid,  nonassessable
share of Series B Junior  Participating  Preferred Stock (the "Preferred Stock")
of the Company,  at a purchase price of $75.00 per one one-thousandth of a share
(the  "Purchase  Price"),   upon  presentation  and  surrender  of  this  Rights
Certificate  with the Form of Election to Purchase and related  Certificate duly
executed and properly  completed.  The number of Rights evidenced by this Rights
Certificate  (and the  number  of one  one-thousandth  of a share  which  may be
purchased  upon exercise  thereof) set forth above,  and the Purchase  Price per
share set forth  above,  are the number and  Purchase  Price as of May 31, 2006,
based on the  Preferred  Stock as  constituted  at such date. As provided in the
Rights Agreement, the Purchase Price, the number and kind of shares of Preferred
Stock or other  securities  of the Company or any other  Person (as such term is
defined in the Rights Agreement) or other property,  which may be purchased upon
the exercise of the Rights evidenced by this Rights Certificate, and the timing

                                      B-1
<PAGE>

of permitted  exercise,  are subject to  modification  and  adjustment  upon the
happening  of  certain  events  including  a  Triggering  Event (as such term is
defined in the Rights Agreement).

           Upon the  occurrence of a Section 11(a)(ii) Event  (as  such  term is
defined  in the  Rights  Agreement),  if the  Rights  evidenced  by this  Rights
Certificate are beneficially owned by (i) an Acquiring Person or an Affiliate or
Associate  of an  Acquiring  Person  (as such  terms are  defined  in the Rights
Agreement), (ii) a transferee of an Acquiring Person or of any such Associate or
Affiliate,  or  (iii)  under  certain  circumstances  specified  in  the  Rights
Agreement,  a  transferee  of a person  who,  after  such  transfer,  became  an
Acquiring  Person or an Affiliate or  Associate  of an  Acquiring  Person,  such
Rights shall become null and void and no holder hereof shall have any right with
respect to such Rights from and after the  occurrence of such Section  11(a)(ii)
Event.

           This  Rights  Certificate is subject to all of the terms,  provisions
and conditions of the Rights Agreement,  which terms,  provisions and conditions
are hereby  incorporated herein by reference and made a part hereof and to which
Rights Agreement  reference is hereby made for a full description of the rights,
limitations  of rights,  obligations,  duties and  immunities  hereunder  of the
Rights  Agent,  the Company and the  holders of the Rights  Certificates,  which
limitations of rights include the temporary  suspension of the exercisability of
such Rights under the specific  circumstances set forth in the Rights Agreement.
Copies of the Rights Agreement are on file at the above-mentioned  office of the
Rights Agent and are also available upon written request to the Rights Agent.

           This Rights Certificate,  with  or without other Rights Certificates,
upon  surrender at the office of the Rights Agent  designated  for such purpose,
may be exchanged for another Rights  Certificate or Rights  Certificates of like
tenor  and date  evidencing  Rights  entitling  the  holder to  purchase  a like
aggregate number of one  one-thousandths  of a share of Preferred Stock or other
securities  of the  Company or another  Person or other  property  as the Rights
evidenced by the Rights  Certificate or Rights  Certificates  surrendered  shall
have  entitled  such holder to  purchase.  If this Rights  Certificate  shall be
exercised in part, the holder shall be entitled to receive upon surrender hereof
another Rights Certificate or Rights Certificates for the number of whole Rights
not exercised.

           Subject  to  the  provisions  of  the  Rights  Agreement,  the Rights
evidenced by this  Certificate may be redeemed by the Company at its option at a
redemption  price of $0.001  per Right at any time  prior to the  earlier of the
close of business on (i) the tenth business day following the Stock  Acquisition
Date, and (ii) the Final Expiration Date. In addition, subject to the provisions
of the  Rights  Agreement,  each  Right  evidenced  by this  Certificate  may be
exchanged  by the  Company at its  option  for one share of Common  Stock of the
Company  (subject to adjustment  for any stock split,  stock dividend or similar
transaction)  following  the  Stock  Acquisition  Date and  prior to the time an
Acquiring  Person  owns  50%  or  more  of  the  shares  of  Common  Stock  then
outstanding.

           No fractional shares of  Preferred Stock  will  be  issued  upon  the
exercise of any Right or Rights evidenced hereby (other than fractions which are
integral  multiples of one  one-thousandth of a share of Preferred Stock,  which
may, at the election of the Company, be

                                      B-2
<PAGE>

evidenced by  depositary  receipts),  but in lieu thereof a cash payment will be
made, as provided in the Rights Agreement.

           No holder of this Rights Certificate,  as such,  shall be entitled to
vote or receive  dividends  or be deemed for any purpose the holder of shares of
Preferred Stock or of any other  securities of the Company which may at any time
be issuable on the exercise hereof,  nor shall anything  contained in the Rights
Agreement or herein be construed to confer upon the holder hereof,  as such, any
of the  rights  of a  stockholder  of the  Company  or any right to vote for the
election  of  directors  or upon any matter  submitted  to  stockholders  at any
meeting thereof,  or to give or withhold consent to any corporate  action, or to
receive notice of meetings or other actions  affecting  stockholders  (except as
provided  in the Rights  Agreement),  or to receive  dividends  or  subscription
rights,  or  otherwise,  until  the  Right or Rights  evidenced  by this  Rights
Certificate shall have been exercised as provided in the Rights Agreement.

           This Rights  Certificate  shall not  be valid or obligatory  for  any
purpose until it shall have been countersigned by the Rights Agent.

           WITNESS the facsimile signature of the proper officers of the Company
and its corporate seal.

Dated as of ____________ [20__].    QUEST RESOURCE CORPORATION

                                    By:
                                        ------------------------------------
                                        Name:
                                        Title:
ATTEST:

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

Countersigned:

-------------------------,
as Rights Agent

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

                                      B-3

<PAGE>

                  [Form of Reverse Side of Rights Certificate]

                               FORM OF ASSIGNMENT
                               ------------------

                (To be executed by the registered holder if such
               holder desires to transfer the Rights Certificate.)

      FOR VALUE RECEIVED _______________________________________________________
hereby sells, assigns and transfers unto _______________________________________
________________________________________________________________________________
                  (Please print name and address of transferee)
________________________________________________________________________________
this Rights  Certificate,  together with all right,  title and interest therein,
and does hereby irrevocably constitute and appoint _____________________________
Attorney,  to  transfer  the  within  Rights  Certificate  on the  books  of the
within-named Company, with full power of substitution.

Dated: _____________, ____
                                   ------------------------------------------
                                   Signature

Signature Guaranteed:

                                   Certificate
                                   -----------

           The undersigned hereby certifies by checking the appropriate boxes
that:

           (1)  this Rights Certificate  [ ] is [ ] is not being sold,  assigned
and transferred by or on behalf of a Person who is or was an Acquiring Person or
an Affiliate  or  Associate  of an  Acquiring  Person (as such terms are defined
pursuant to the Rights Agreement);

           (2)  after  due inquiry and to the best knowledge of the undersigned,
it [ ] did [ ] did not acquire the Rights  evidenced by this Rights  Certificate
from any Person who is, was or  subsequently  became an  Acquiring  Person or an
Affiliate or Associate of an Acquiring Person.

Dated: _____________, ____
                                   ------------------------------------------
                                   Signature
Signature Guaranteed:

                                      B-4

<PAGE>

                                     NOTICE
                                     ------

           The signature  to  the  foregoing  Assignment  and  Certificate  must
correspond  to the name as written upon the face of this Rights  Certificate  in
every particular, without alteration or enlargement or any change whatsoever.

                                      B-5

<PAGE>

                          FORM OF ELECTION TO PURCHASE
                          ----------------------------

                      (To be executed if holder desires to
             exercise Rights represented by the Rights Certificate.)

To:  QUEST RESOURCE CORPORATION:

           The undersigned hereby irrevocably elects to  exercise _______ Rights
represented by this Rights Certificate to purchase the shares of Preferred Stock
issuable  upon the  exercise  of the  Rights (or such  other  securities  of the
Company or of any other  Person  which may be issuable  upon the exercise of the
Rights) and requests that  certificates for such shares be issued in the name of
and delivered to:

Please insert social security
or taxpayer identification number
                                   --------------------------------------------

-------------------------------------------------------------------------------
                        (Please print name and address)

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

           If such number of  Rights shall  not be all  the Rights evidenced  by
this Rights Certificate, a new Rights Certificate for the balance of such Rights
shall be registered in the name of and delivered to:

Please insert social security
or taxpayer identification number
                                   --------------------------------------------

-------------------------------------------------------------------------------
                        (Please print name and address)

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

Dated: ______________, ____

                                  ---------------------------------------------
                                  Signature

Signature Guaranteed:

                                      B-6

<PAGE>

                                   Certificate
                                   -----------

           The undersigned hereby certifies by checking the appropriate boxes
that:

           (1)  the Rights evidenced by  this Rights Certificate [ ] are [ ] are
not  being  exercised  by or on behalf  of a Person  who is or was an  Acquiring
Person or an Affiliate  or  Associate of an Acquiring  Person (as such terms are
defined pursuant to the Rights Agreement);

           (2)  after due  inquiry and to the best knowledge of the undersigned,
it [ ] did [ ] did not acquire the Rights  evidenced by this Rights  Certificate
from any Person who is, was or became an  Acquiring  Person or an  Affiliate  or
Associate of an Acquiring Person.

Dated: ______________, ____

                                  ---------------------------------------------
                                  Signature

Signature Guaranteed:

                                     NOTICE
                                     ------

The signature to the foregoing Election to Purchase and Certificate must
correspond to the name as written upon the face of this Rights Certificate in
every particular, without alteration or enlargement or any change whatsoever.

                                      B-7
<PAGE>

                                                                       EXHIBIT C
                                                                       ---------

                  SUMMARY OF RIGHTS TO PURCHASE PREFERRED STOCK

Declaration of Rights Dividend
------------------------------

        On May 31, 2006, the Board of Directors of Quest Resource Corporation
(the "Company") declared a dividend distribution of one Right for each
outstanding share of Common Stock, $0.001 par value per share, of the Company
("Common Stock"). The dividend is payable on June 15, 2006 to shareholders of
record at the close of business on that date (the "Record Date"). Each Right
entitles the registered holder thereof to purchase from the Company at any time
following the Distribution Date (as defined below) a unit consisting of one
one-hundredth of a share (a "Unit") of Series B Junior Participating Preferred
Stock, $0.001 par value per share (the "Preferred Stock"), at a purchase price
of $75.00 per Unit (the "Purchase Price"), subject to adjustment as described
below. The Rights are not exercisable until the Distribution Date. The
description and terms of the Rights are set forth in a Rights Agreement dated
May 31, 2006 (the "Rights Agreement") between the Company and UMB Bank, n.a., as
Rights Agent.

        Rights will also be issued with respect to shares of Common Stock issued
by the Company or transferred from the Company's treasury after May 31, 2006 and
prior to the Distribution Date, and, under certain circumstances, Rights will be
issued with respect to shares of Common Stock issued or transferred by the
Company after the Distribution Date.

Rights Initially Attached to and Trade with Common Stock
--------------------------------------------------------

        Until the earlier of the Distribution Date or the date the Rights are
redeemed or expire:

        (1) the Rights will be evidenced by Common Stock certificates and no
separate Rights Certificates will be distributed,
        (2) the Rights will be transferable only in connection with the transfer
of the underlying shares of Common Stock,
        (3) the surrender for transfer of any Common Stock certificate (with or
without a copy of this Summary of Rights attached thereto) will also constitute
the transfer of the Rights associated with the shares of Common Stock
represented by such certificate, and
        (4) new Common Stock certificates issued after June 15, 2006 will
contain a notation incorporating the Rights Agreement by reference. Shareholders
will not be required to take any action in connection with the payment of the
Rights dividend on June 15, 2006.

When Rights Separate from Common Stock and Become Exercisable
-------------------------------------------------------------

        Initially, the Rights will be attached to all certificates representing
shares of Common Stock then outstanding, and no separate certificates evidencing
the Rights will be distributed. The Rights will separate from the Common Stock
and become exercisable on the Distribution Date. As soon as practicable after
the Distribution Date, Rights Certificates will be mailed to holders of record
of the Common Stock as of the close of business on the Distribution Date, and
thereafter the separate Rights Certificates will represent the Rights.

                                      C-1
<PAGE>

        The "Distribution Date" will occur upon the earlier of (1) twenty
business days after the Stock Acquisition Date (as defined below) or (2) twenty
business days (or such later date as the Board shall determine prior to such
time as there is an Acquiring Person) following the commencement of, or
announcement of an intention to make, a tender or exchange offer, the
consummation of which would result in a Person becoming an Acquiring Person (as
defined below).

        The "Stock Acquisition Date" means the earlier of (i) the date of the
first public announcement by the Company or an Acquiring Person that an
Acquiring Person has become such or (ii) the date on which the Company has
actual notice, direct or indirect, or otherwise determines that a Person has
become an Acquiring Person.

        Under the Rights Agreement, an "Acquiring Person" is a Person who,
together with all affiliates and associates of such Person, and without the
prior written approval of the Company, is the Beneficial Owner (as defined in
the Rights Agreement) of 15% or more of the outstanding shares of Common Stock
of the Company, subject to a number of exceptions set forth in the Rights
Agreement. The Rights Agreement exempts certain persons from the definition of
"Acquiring Person," including (1) person who acquire shares in a Permitted
Offer, (2) the Company or any subsidiary of the Company, and (3) any employee
benefit plan of the Company or any subsidiary and certain persons appointed
pursuant to the terms of any such plan. Under the Rights Agreement, a Person
shall not be an Acquiring Person if such Person acquires beneficial ownership of
15% or more of the outstanding shares of Common Stock pursuant to a Permitted
Offer, which is a cash tender offer for all of the outstanding shares of Common
Stock which meets certain conditions specified in the Rights Agreement. The
Rights Agreement also contains exceptions for Persons who inadvertently become
Acquiring Persons or who exceed the ownership limits as a result of repurchases
of stock by the Company, if certain conditions are satisfied.

Exercising Rights; Mailing Rights Certificates
----------------------------------------------

        In the event that, at any time following the Distribution Date, a person
becomes an Acquiring Person, except pursuant to a "Permitted Offer", each holder
of a Right will, for a sixty (60) day period (subject to extension under certain
circumstances) thereafter, have the right to receive, upon exercise of the
Right, Common Stock (or, in certain circumstances, cash, property or other
securities of the Company) having a value equal to two times the Purchase Price
of the Right. A "Permitted Offer" is a tender offer or exchange offer for (i)
all outstanding shares of Common Stock which remains open for at least sixty
(60) calendar days, the consideration offered is cash that is fully financed or
a publicly traded security, (ii) that is accepted by the holders of at least a
majority of the then outstanding shares but excluding therefrom any shares
beneficially owned by the Person for whose benefit the tender offer or exchange
offer is being made and its Affiliates and Associates, (iii) that follows an
irrevocable written commitment to the Company by the Person for whose benefit
the offer is made to consummate a transaction promptly upon the completion of
such offer in which the consideration offered is cash that is fully financed or
a publicly traded security and whereby all shares of Common Stock not purchased
in the offer shall be acquired at the same price per share as paid in such offer
and that such Person will not make any amendment to the original offer which
reduces the per share price offered or which is in any other respect materially
adverse to the holders of Common Stock (other than the Person on whose behalf
such offer is being made and such Person's Affiliates and Associates), (iv) that
is determined, prior to the purchase of shares pursuant to the tender offer or

                                      C-2
<PAGE>

exchange offer, by the Company's Board of Directors that the price and other
terms of that tender offer or exchange offer are fair (taking into account all
factors which the Board of Directors may deem relevant, including the Company's
long-term prospects and prices which could reasonably be achieved if the Company
or its assets were sold on an orderly basis designed to realize maximum value)
to stockholders (other than the Person on whose behalf the tender offer is being
made and its Affiliates and Associates) and is otherwise in the best interests
of the Company and its stockholders (other than the person on whose behalf the
tender offer or exchange offer is being made and its Affiliates and Associates)
taking into account all factors the Board of Directors may deem relevant, (v)
the Company's Board of Directors has received an opinion from one or more
nationally recognized investment banking firm selected by the Company's Board of
Directors that the price offered is fair from a financial point of view, and
(vi) the Company's Board of Directors has taken the action contemplated by
clause (iv) by at least a majority of directors who are independent (within the
meaning of Rule 4200 of the NASDAQ Stock Market rules and under applicable
Nevada case law) and disinterested (i.e., the directors are neither the
Acquiring Person or a Person on whose behalf the tender offer is being made, nor
an Affiliate, Associate, nominee or representative of the Acquiring Person or a
Person on whose behalf the tender offer is being made). However, at the option
of the Board of Directors of the Company, during such time as an Acquiring
Person Beneficially Owns an amount of stock less than 50% of the outstanding
Common Stock, the Company may exchange, in whole or in part, each right of each
holder (other than the Acquiring Person or the Acquiring Person's Affiliate or
Associates or their subsequent holders) for one share of Common Stock.
Notwithstanding any of the foregoing, following the occurrence of the event set
forth in this paragraph, all Rights that are, or (under certain circumstances
specified in the Rights Agreement) were, Beneficially Owned by any Acquiring
Person (or any Affiliate or Associate of an Acquiring Person) will be null and
void and nontransferable and any holder of any such Right (including any
purported transferee or subsequent holder) will be unable to exercise or
transfer any such right.

        An "Affiliate" of a Person (as such term is defined in the Rights
Agreement) is a Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with,
the Person specified. An "Associate" of a Person shall mean (i) with respect to
a corporation (other than the Company or a majority-owned Subsidiary of the
Company), any officer or director thereof or of any Subsidiary (generally a
Person as to whom another Person has the right to elect a majority of the
directors or others with similar authority) thereof, or any Beneficial Owner of
10% or more of any class of equity security thereof, (ii) with respect to an
association, joint venture or other unincorporated organization, any officer or
director thereof or of a Subsidiary thereof or any Beneficial Owner of 10% or
more ownership interest therein, (iii) with respect to a partnership, any
general partner thereof or any limited partner thereof who is, directly or
indirectly, the Beneficial Owner of a 10% or greater ownership interest therein,
(iv) with respect to a limited liability company, any officer, director or
manager thereof or of a Subsidiary thereof or any member thereof who is,
directly or indirectly, the Beneficial Owner of a 10% or greater ownership
interest therein, (v) with respect to a business trust, any officer or trustee
thereof or of any Subsidiary thereof, (vi) with respect to any other trust or an
estate, any trustee, a beneficiary in the income from or principal of such trust
or estate, (vii) with respect to a natural person, any relative or spouse of
such person, or any a relative of such spouse, who has the same home as such
person, and (viii) any Affiliate of such Person.

                                      C-3
<PAGE>

        As soon as practicable after the Distribution Date, Rights Certificates
will be mailed to holders of record of the Common Stock as of the close of
business on the Distribution Date and, thereafter, the separate Rights
Certificates alone will represent the Rights. Except in certain circumstances
specified in the Rights Agreement or as otherwise determined by the Board of
Directors, only shares of Common Stock issued prior to the Distribution Date
will be issued with Rights.

Adjustment of Rights upon Occurrence of a Triggering Event
----------------------------------------------------------

        In the event that a Person becomes an Acquiring Person, each holder of a
Right (except the Acquiring Person and certain other persons as described below)
will no longer have the right to purchase Units of Preferred Stock, but instead
will thereafter have the right to receive, upon exercise of the Right, shares of
Common Stock (or, in certain circumstances, cash, property or other securities
of the Company) having a Current Market Price (as defined in the Rights
Agreement) equal to two times the then current exercise price of the Right. For
example, at a Purchase Price of $75.00 per Right, each Right not owned by an
Acquiring Person would entitle its holder to purchase $150.00 worth of Common
Stock (or other consideration, as noted above) for $75.00. Assuming that the
Common Stock has a per share value of $15.00 at such time, the holder of each
valid Right would be entitled to purchase ten shares of Common Stock for $75.00.
Once a Person becomes an Acquiring Person, all Rights that are, or under certain
circumstances were, beneficially owned by such Acquiring Person (or certain
related parties) will be null and void.

        In the event that, at any time after the Stock Acquisition Date, (1) the
Company is acquired in a merger or other business combination transaction in
which the Company is not the surviving corporation (other than a merger which
follows a Permitted Offer and satisfies certain other requirements), or (2) 50%
or more of the Company's assets or earning power is sold or transferred, each
holder of a Right (except Rights which previously have been voided as set forth
above) shall thereafter have the right to receive, upon exercise, Common Stock
of the acquiring company having a Current Market Price equal to two times the
then current Purchase Price of the Right. The events set forth in this paragraph
and in the preceding paragraph which allow Rights to be exercised are referred
to individually as a "Triggering Event" and collectively as "Triggering Events."

Exchange of Rights
------------------

        At any time after any Person becomes an Acquiring Person, the Board of
Directors of the Company may, at its option, exchange the Rights (except Rights
which previously have been voided as set forth above), in whole or in part, at
an exchange ratio of one-hundredth of a share of Preferred Stock or one share of
Common Stock for each Right, subject to adjustment for any stock split, stock
dividend or similar transaction occurring after May 31, 2006. The Board of
Directors may not cause the exchange of Rights at any time after any Person,
together with such person's affiliates and associates, becomes the beneficial
owner of 50% or more of the shares of Common Stock then outstanding, with
certain exceptions.

                                      C-4
<PAGE>

Redemption of Rights
--------------------

        At any time prior to the close of business on the twentieth business day
after the Stock Acquisition Date, the Company may order that all Rights be
redeemed at a price of $.001 per Right (payable in cash, Common Stock or other
consideration deemed appropriate by the Board of Directors), subject to
adjustment for any stock split, stock dividend or similar transaction occurring
after May 31, 2006 (the "Redemption Price"). Immediately upon the effectiveness
of the action of the Board of Directors ordering redemption of the Rights, the
right to exercise the Rights will terminate and the holders of the Rights will
only be entitled to receive the Redemption Price for each Right so held.

Amendment of Rights
-------------------

        At any time and from time to time prior to the close of business on the
twentieth business day after the Stock Acquisition Date, the Company may amend
the Rights in any manner without the approval of any holders of Rights. At any
time and from time to time after the close of business on the twentieth business
day after the Stock Acquisition Date, the Company may supplement or amend the
Rights without the approval of any holders of the Rights, provided that no such
supplement or amendment adversely affects the interests of the holders of Rights
as such (other than an Acquiring Person or an affiliate or associate of an
Acquiring Person).

Terms of Preferred Stock
------------------------

        Each Unit of Preferred Stock (consisting of one one-hundredth of a share
of Preferred Stock) that is issuable upon exercise of the Rights after the
Distribution Date and prior to the occurrence of a Triggering Event is intended
to have approximately the same economic rights and voting power as a share of
Common Stock, and the value of a Unit of Preferred Stock should approximate the
value of one share of Common Stock. Each share of Preferred Stock will be
entitled to dividend payments equal to 1000 times the other cash dividends plus
1000 times the aggregate per share amount of all non-cash dividends (other than
a dividend payable in Common Stock) declared per share of Common Stock. In the
event of liquidation, the holders of shares of Preferred Stock will be entitled
to the greater of (a) a minimum preferential liquidation payment of $1000 per
share, or (b) 1000 times the aggregate amount to be distributed per share of
Common Stock. Each share of Preferred Stock will have 1000 votes, voting
together with, and on the same matters as, the Common Stock. In the event of any
merger, consolidation or other transaction in which shares of Common Stock are
exchanged for or changed into other stock, securities, cash and/or other
property, each share of Preferred Stock will be entitled to receive 1000 times
the amount received per share of Common Stock. These rights are protected by
customary anti-dilution provisions. Shares of Preferred Stock are not
redeemable. Pursuant to the Rights Agreement, the Company reserves the right to
require, prior to the occurrence of a Triggering Event, that upon any exercise
of Rights a number of Rights be exercised so that only whole shares of Preferred
Stock will be issued.

Adjustment of Rights and Securities Upon Certain Events
-------------------------------------------------------

        The Purchase Price payable, and the number of Units of Preferred Stock
or other securities or property issuable, upon exercise of the Rights are
subject to adjustment from time to time to

                                      C-5
<PAGE>

prevent dilution (1) in the event of a stock dividend on, or a subdivision,
combination or reclassification of, the Preferred Stock, or (2) upon the
distribution to holders of the Preferred Stock of certain rights, options,
warrants, evidences of indebtedness or assets (excluding regular quarterly cash
dividends). No adjustment in the Purchase Price will be required until
cumulative adjustments amount to at least 1% of the Purchase Price.

        The number of outstanding Rights attached to each share of Common Stock
and the number of Units of Preferred Stock purchasable upon exercise of a Right
are also subject to adjustment in the event of a stock split of the Common Stock
or a stock dividend on the Common Stock payable in shares of Common Stock or a
subdivision or combination of the shares of Common Stock, occurring prior to the
Distribution Date.

        The Company is not required to issue fractional Units; in lieu thereof,
the Company may pay cash for such fractional Units based on the market price of
the Preferred Stock on the last trading date prior to the date of issuance.

Rights Holder Not a Shareholder
-------------------------------

        Until a Right is exercised, the holder thereof, as such, will have no
rights as a shareholder of the Company, including, without limitation, the right
to vote or to receive dividends. The holders of Rights will be able to vote and
receive dividends on the Common Stock that they hold.

Tax Consequences
----------------

        While the current distribution of the Rights will not be taxable to
shareholders or to the Company, shareholders might, depending upon the
circumstances, realize taxable income in the event that the Rights become
severable from the Common Stock and will likely realize taxable income in the
event such Rights become exercisable for Common Stock of the acquiring company
as set forth above or are exchanged as provided above.

Expiration of Rights
--------------------

        The Rights will expire at the close of business on May 31, 2016, unless
the Company redeems or exchanges the Rights prior to such date, in each case as
described above.

Three-Year Independent Director Evaluation
------------------------------------------

        The Rights Agreement includes a "TIDE" (Three-year Independent Director
Evaluation) provision. Under the TIDE provision, the Board of Directors'
Stockholder Rights Plan Committee composed of independent (as defined above) and
disinterested (as defined above) directors will review the Rights Plan
periodically (at least every three years) in order to consider whether the
maintenance of the Rights Agreement continues to be in the best interests of the
Company and its stockholders. This committee will communicate its conclusions to
the full Board of Directors after each review, including any recommendation as
to whether the Rights Plan should be modified or the Rights should be redeemed.

                                      C-6
<PAGE>

Number of Rights to be Outstanding
----------------------------------

        As of May 31, 2006, there were 200,000,000 shares of Common Stock
authorized and approximately 22,072,383 shares issued and outstanding.
Approximately, 2.3 million shares have been reserved for issuance pursuant to
employee benefit plans and pursuant to warrants issued by the Company. Each
share of Common Stock outstanding at the close of business June 15, 2006 will
receive one Right. Rights will also be issued with respect to shares of Common
Stock issued or transferred by the Company after May 31, 2006 and prior to the
Distribution Date, and, under certain circumstances, Rights will be issued with
respect to shares of Common Stock issued or transferred by the Company after the
Distribution Date.

Rights Agreement

        This summary description of the Rights does not purport to be complete
and is qualified in its entirety by reference to the Rights Agreement and the
exhibits thereto, filed herewith as Exhibit 1, which is incorporated herein by
reference.

                                      C-7

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