Document:

<PAGE>

                                                                     Exhibit 4.3

                                                                  EXECUTION COPY

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

                                MEDAREX, INC.,

                                  AS ISSUER,

                                      TO

                           WILMINGTON TRUST COMPANY,

                        a national banking association,

                                  AS TRUSTEE

                              ___________________

                                   INDENTURE

                           DATED AS OF JUNE 26, 2001

                              ___________________

                 Up to $201,250,000 Aggregate Principal Amount

                 4.50% CONVERTIBLE SUBORDINATED NOTES DUE 2006

--------------------------------------------------------------------------------
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                 Page
                                                                                                                 ----
<S>                                                                                                              <C>
RECITALS OF THE COMPANY.....................................................................................        1

ARTICLE I           DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION.................................        1
     SECTION 1.1             Definitions....................................................................        1
     SECTION 1.2             Compliance Certificates and Opinions...........................................       10
     SECTION 1.3             Form of Documents Delivered to the Trustee.....................................       11
     SECTION 1.4             Acts of Holders of Securities..................................................       12
     SECTION 1.5             Notices, Etc., to Trustee and Company..........................................       14
     SECTION 1.6             Notice to Holders of Securities; Waiver........................................       14
     SECTION 1.7             Effect of Headings and Table of Contents.......................................       15
     SECTION 1.8             Successors and Assigns.........................................................       15
     SECTION 1.9             Separability Clause............................................................       15
     SECTION 1.10            Benefits of Indenture..........................................................       15
     SECTION 1.11            Governing Law..................................................................       15
     SECTION 1.12            Legal Holidays.................................................................       16
     SECTION 1.13            Conflict with Trust Indenture Act..............................................       16

ARTICLE II          SECURITY FORMS..........................................................................       16
     SECTION 2.1             Form Generally.................................................................       16
     SECTION 2.2             Form of Security...............................................................       17
     SECTION 2.3             Form of Certificate of Authentication..........................................       27
     SECTION 2.4             Form of Conversion Notice......................................................       27
     SECTION 2.5             Form of Election of Holder to Require Repurchase...............................       29

ARTICLE III         THE SECURITIES..........................................................................       30
     SECTION 3.1             Title and Terms................................................................       30
     SECTION 3.2             Denominations..................................................................       31
     SECTION 3.3             Execution, Authentication, Delivery and Dating.................................       31
     SECTION 3.4             Global Securities; Temporary Securities........................................       32
     SECTION 3.5             Registration, Registration of Transfer and Exchange............................       34
     SECTION 3.6             Mutilated, Destroyed, Lost or Stolen Securities................................       35
     SECTION 3.7             Payment of Interest; Interest Rights Preserved.................................       36
     SECTION 3.8             Persons Deemed Owners..........................................................       37
     SECTION 3.9             Cancellation...................................................................       37
     SECTION 3.10            Computation of Interest........................................................       37
     SECTION 3.11            CUSIP Numbers..................................................................       38
</TABLE>

                                      -i-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                                 Page
                                                                                                                 ----
<S>                                                                                                              <C>
ARTICLE IV          SATISFACTION AND DISCHARGE..............................................................       38
     SECTION 4.1             Satisfaction and Discharge of Indenture........................................       38
     SECTION 4.2             Application of Trust Money.....................................................       39

ARTICLE V           REMEDIES................................................................................       40
     SECTION 5.1             Events of Default..............................................................       40
     SECTION 5.2             Acceleration of Maturity; Rescission and Annulment.............................       41
     SECTION 5.3             Collection of Indebtedness and Suits for Enforcement by Trustee................       42
     SECTION 5.4             Trustee May File Proofs of Claim...............................................       43
     SECTION 5.5             Trustee May Enforce Claims Without Possession of Securities....................       44
     SECTION 5.6             Application of Money Collected.................................................       44
     SECTION 5.7             Limitation on Suits............................................................       45
     SECTION 5.8             Unconditional Right of Holders to Receive Principal, Premium and Interest
                             and to Convert.................................................................       45
     SECTION 5.9             Restoration of Rights and Remedies.............................................       46
     SECTION 5.10            Rights and Remedies Cumulative.................................................       46
     SECTION 5.11            Delay or Omission Not Waiver...................................................       46
     SECTION 5.12            Control by Holders of Securities...............................................       46
     SECTION 5.13            Waiver of Past Defaults........................................................       47
     SECTION 5.14            Undertaking for Costs..........................................................       47

ARTICLE VI          THE TRUSTEE.............................................................................       48
     SECTION 6.1             Certain Duties and Responsibilities............................................       48
     SECTION 6.2             Notice of Defaults.............................................................       49
     SECTION 6.3             Certain Rights of Trustee......................................................       49
     SECTION 6.4             Not Responsible for Recitals or Issuance of Securities.........................       51
     SECTION 6.5             May Hold Securities, Act as Trustee Under Other Indentures.....................       51
     SECTION 6.6             Money Held in Trust............................................................       51
     SECTION 6.7             Compensation and Reimbursement.................................................       51
     SECTION 6.8             Corporate Trustee Required; Eligibility........................................       52
     SECTION 6.9             Resignation and Removal; Appointment of Successor..............................       53
     SECTION 6.10            Acceptance of Appointment by Successor.........................................       54
     SECTION 6.11            Merger, Conversion, Consolidation or Succession to Business....................       55
     SECTION 6.12            Authenticating Agents..........................................................       55
     SECTION 6.13            Disqualification; Conflicting Interests........................................       56
     SECTION 6.14            Preferential Collection of Claims Against Company..............................       56
</TABLE>

                                     -ii-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                                 Page
                                                                                                                 ----
<S>                                                                                                              <C>
ARTICLE VII         CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE....................................       57
     SECTION 7.1             Company May Consolidate, Etc., Only on Certain Terms...........................       57
     SECTION 7.2             Successor Substituted..........................................................       58

ARTICLE VIII        SUPPLEMENTAL INDENTURES.................................................................       58
     SECTION 8.1             Supplemental Indentures Without Consent of Holders of Securities...............       58
     SECTION 8.2             Supplemental Indentures with Consent of Holders of Securities..................       59
     SECTION 8.3             Execution of Supplemental Indentures...........................................       60
     SECTION 8.4             Effect of Supplemental Indentures..............................................       60
     SECTION 8.5             Reference in Securities to Supplemental Indentures.............................       61
     SECTION 8.6             Notice of Supplemental Indentures..............................................       61

ARTICLE IX          COVENANTS...............................................................................       61
     SECTION 9.1             Payment of Principal, Premium and Interest.....................................       61
     SECTION 9.2             Maintenance of Offices or Agencies.............................................       61
     SECTION 9.3             Money for Security Payments To Be Held in Trust................................       62
     SECTION 9.4             Existence......................................................................       63
     SECTION 9.5             Maintenance of Properties......................................................       64
     SECTION 9.6             Payment of Taxes and Other Claims..............................................       64
     SECTION 9.7             Statement by Officers as to Default............................................       64
     SECTION 9.8             Waiver of Certain Covenants....................................................       65

ARTICLE X           REDEMPTION OF SECURITIES................................................................       65
     SECTION  10.1           Right of Redemption............................................................       65
     SECTION  10.2           Applicability of Article.......................................................       65
     SECTION  10.3           Election to Redeem; Notice to Trustee..........................................       65
     SECTION  10.4           Selection by Trustee of Securities To Be Redeemed..............................       66
     SECTION  10.5           Notice of Redemption...........................................................       66
     SECTION  10.6           Deposit of Redemption Price or Make-Whole Payment..............................       68
     SECTION  10.7           Securities Payable on Redemption Date..........................................       68
     SECTION  10.8           Securities Redeemed in Part....................................................       69
     SECTION  10.9           Conversion Arrangement on Call for Redemption..................................       70
     SECTION  10.10          Conditions to the Company's Election to Pay the Make-Whole Payment in
                             Common Stock...................................................................       71
</TABLE>

                                     -iii-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                                 Page
                                                                                                                 ----
<S>                                                                                                              <C>
ARTICLE XI          CONVERSION OF SECURITIES................................................................       72
     SECTION 11.1            Conversion Privilege and Conversion Rate.......................................       72
     SECTION 11.2            Exercise of Conversion Privilege...............................................       72
     SECTION 11.3            Fractions of Shares............................................................       73
     SECTION 11.4            Adjustment of Conversion Rate..................................................       74
     SECTION 11.5            Notice of Adjustments of Conversion Rate.......................................       79
     SECTION 11.6            Notice of Certain Corporate Action.............................................       79
     SECTION 11.7            Company to Reserve Common Stock................................................       81
     SECTION 11.8            Taxes on Conversions...........................................................       81
     SECTION 11.9            Covenant as to Common Stock....................................................       81
     SECTION 11.10           Cancellation of Converted Securities...........................................       81
     SECTION 11.11           Provision in Case of Consolidation, Merger or Sale of Assets...................       81
     SECTION 11.12           Responsibility of Trustee for Conversion Provisions............................       82

ARTICLE XII         SUBORDINATION OF SECURITIES.............................................................       83
     SECTION 12.1            Securities Subordinate to Senior Debt..........................................       83
     SECTION 12.2            No Payments in Certain Circumstances; Payment Over of Proceeds Upon
                             Dissolution, Etc...............................................................       83
     SECTION 12.3            Trustee to Effectuate Subordination............................................       86
     SECTION 12.4            No Waiver of Subordination Provisions..........................................       86
     SECTION 12.5            Notice to Trustee..............................................................       86
     SECTION 12.6            Reliance on Judicial Order or Certificate of Liquidating Agent.................       87
     SECTION 12.7            Trustee Not Fiduciary for Holders of Senior Debt...............................       87
     SECTION 12.8            Reliance by Holders of Senior Debt on Subordination Provisions.................       88
     SECTION 12.9            Rights of Trustee as Holder of Senior Debt; Preservation of Trustee's Rights...       88
     SECTION 12.10           Article Applicable to Paying Agents............................................       88
     SECTION 12.11           Certain Conversions and Repurchases Deemed Payment.............................       89

ARTICLE XIII        REPURCHASE OF SECURITIES AT THE OPTION OF THE HOLDER UPON A CHANGE IN CONTROL...........       89
     SECTION 13.1            Right to Require Repurchase....................................................       89
     SECTION 13.2            Conditions to the Company's Election to Pay the Repurchase Price in Common
                             Stock..........................................................................       90
     SECTION 13.3            Notices; Method of Exercising Repurchase Right, Etc............................       91
     SECTION 13.4            Certain Definitions............................................................       94
</TABLE>

                                     -iv-
<PAGE>

<TABLE>
<CAPTION>
                                                                                                                 Page
                                                                                                                 ----
<S>                                                                                                              <C>
ARTICLE XIV         HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY; NON-RECOURSE..........................       96
     SECTION 14.1            Company to Furnish Trustee Names and Addresses of Holders......................       96
     SECTION 14.2            Preservation of Information....................................................       96
     SECTION 14.3            No Recourse Against Others.....................................................       97
     SECTION 14.4            Reports by Trustee.............................................................       97
     SECTION 14.5            Reports by Company.............................................................       97

ARTICLE XV          IMMUNITY................................................................................       98
     SECTION 15.1            Personal Immunity of Incorporators, Shareholders, Directors and Officers.......       98
     SIGNATURES
</TABLE>

                                      -v-
<PAGE>

     SUBORDINATED DEBT INDENTURE, dated as of June 26, 2001, between Medarex,
Inc., a corporation duly organized and existing under the laws of the State of
New Jersey, having its principal office at 707 State Road #206, Princeton, NJ
08540 (herein called the "Company"), and Wilmington Trust Company, a national
banking association, as Trustee hereunder (herein called the "Trustee").

                            RECITALS OF THE COMPANY

     The Company has duly authorized the creation of an issue of its 4.50%
Convertible Subordinated Notes due 2006 (herein called the "Securities") of
substantially the tenor and amount hereinafter set forth, and to provide
therefor the Company has duly authorized the execution and delivery of this
Indenture.

     All things necessary to make the Securities, when the Securities are
executed by the Company and authenticated and delivered hereunder, the valid
obligations of the Company, and to make this Indenture a valid agreement of the
Company, in accordance with their and its terms, have been done. Further, all
things necessary to duly authorize the issuance of the Common Stock of the
Company issuable upon the conversion of the Securities, and to duly reserve for
issuance the number of shares of Common Stock issuable upon such conversion,
have been done.

                  NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

                                   ARTICLE I

                       DEFINITIONS AND OTHER PROVISIONS
                            OF GENERAL APPLICATION

SECTION 1.1     Definitions.
                -----------

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

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

     (2)    all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with generally accepted accounting principles in
the United States, and,
<PAGE>

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

     (3)     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.

     "Act," when used with respect to any Holder of a Security, has the meaning
specified in Section 1.4.
             -----------

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

     "Agent Member" means any member of, or participant in, the Depositary.

     "Applicable Procedures" means, with respect to any transfer or transaction
involving a Global Security or beneficial interest therein, the rules and
procedures of the Depositary for such Security, to the extent applicable to such
transaction and as in effect from time to time.

     "Authenticating Agent" means any Person authorized pursuant to Section 6.12
                                                                    ------------
to act on behalf of the Trustee to authenticate Securities.

     "Authorized Newspaper" means a newspaper in the English language,
customarily published on each Monday, Tuesday, Wednesday, Thursday and Friday,
whether or not published on Saturdays, Sundays or holidays, and of general
circulation in a Place of Payment.

     "Board of Directors" means either the board of directors of the Company or
any duly authorized committee of that board.

     "Board Resolution" means a resolution duly adopted by the Board of
Directors, a copy of which, 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, shall have been
delivered to the Trustee.

     "Business Day," when used with respect to any Place of Payment, Place of
Conversion, New York, New York or any other place, as the case may be, means
each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which
banking institutions in such Place of Payment, Place of Conversion or other
place, as the case may be, are authorized or obligated

                                      -2-
<PAGE>

by law or executive order to close; provided, however, that a day on which
                                    --------  -------
banking institutions in New York, New York are authorized or obligated by law or
executive order to close shall not be a Business Day for purposes of Section
                                                                     -------
10.6.
----

     "Change in Control" has the meaning specified in Section 13.4(b).
                                                      ---------------

     "Closing Price Per Share" means, with respect to the Common Stock, for any
day, (i) the last reported sale price regular way on The Nasdaq National Market,
or if no sale occurred on such date, the average of the reported closing bid and
asked prices regular way, or, (ii) if the Common Stock is not quoted on The
Nasdaq National Market, the last reported sale price regular way per share or,
in case no such reported sale takes place on such day, the average of the
reported closing bid and asked prices regular way, in either case, on the
principal national securities exchange on which the Common Stock is listed or
admitted to trading, or (iii) if the Common Stock is not quoted on the Nasdaq
National Market or listed or admitted to trading on any national securities
exchange, the average of the closing bid prices in the over-the-counter market
as furnished by any New York Stock Exchange member firm selected from time to
time by the Company for that purpose.

     "Code" has the meaning specified in Section 2.1.
                                         -----------

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

     "Common Stock" means the common stock, par value $0.01 per share, of the
Company authorized at the date of this instrument as originally executed or as
such stock may be constituted from time to time. Subject to the provisions of

Section 11.11, shares issuable on conversion or repurchase of Securities shall
-------------
include only shares of Common Stock or shares of any class or classes of common
stock resulting from any reclassification or reclassifications thereof;

provided, however, that if at any time there shall be more than one such
--------  -------
resulting class, the shares so issuable on conversion of Securities shall
include shares of all such classes, and the shares of each such class then so
issuable shall be substantially in the proportion which the total number of
shares of each such class resulting from all such reclassifications bears to the
total number of shares of all such classes resulting from all such
reclassifications.

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

     "Company Notice" has the meaning specified in Section 13.3.
                                                   ------------

                                      -3-
<PAGE>

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

     "Constituent Person" has the meaning specified in Section 11.11.
                                                       -------------

     "Conversion Agent" means any Person authorized by the Company to convert
Securities in accordance with Article Eleven.  The Company has initially
                              --------------
appointed the Trustee as its Conversion Agent.

     "Conversion Price" has the meaning specified in Section 11.4(10).
                                                     ----------------

     "Conversion Rate" has the meaning specified in Section 11.1.
                                                    ------------

     "Corporate Trust Office" means the office of the Trustee at which at any
particular time its corporate trust business shall be principally administered
(which at the date of this Indenture is located at Rodney Square North, 1100
North Market Street, Wilmington, Delaware 19890).

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

     "Defaulted Interest" has the meaning specified in Section 3.7.
                                                       -----------

     "Depositary" means, with respect to any Securities, a clearing agency that
is registered as such under the Exchange Act and is designated by the Company to
act as Depositary for such Securities (or any successor securities clearing
agency so registered) as contemplated by Section 3.4.
                                         -----------

     "Designated Senior Debt" means any Senior Debt in which the instrument
creating or evidencing the same or the assumption or guarantee thereof (or
related agreements or documents to which the Company is a party) expressly
provides that such indebtedness shall be "Designated Senior Debt" for purposes
of this Indenture (provided that such instrument, agreement or other document
may place limitations and conditions on the right of such Senior Debt to
exercise the rights of Designated Senior Debt).

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

     "DTC" means The Depository Trust Company, a New York corporation.

                                      -4-
<PAGE>

     "Event of Default" has the meaning specified in Section 5.1.
                                                     -----------

     "Exchange Act" means the United States Securities Exchange Act of 1934 (or
any successor statute), as amended from time to time.

     "Global Security" means a Security that is registered in the Security
Register in the name of a Depositary or a nominee thereof.

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

     "Indenture" means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more indentures supplemental
hereto entered into pursuant to the applicable provisions hereof, including, for
all purposes of this instrument and any such supplemental indenture, the
provisions of the Trust Indenture Act that are deemed to be a part of and govern
this instrument and any such supplemental indenture, respectively.

     "Interest Payment Date" means the Stated Maturity for any installment of
interest on the Securities thereof.

     "Make-Whole Payment" has the meaning specified in Section 2.2.
                                                       -----------

     "Maturity," when used with respect to any Security, means the date on which
the principal of such Security becomes due and payable as therein or herein
provided, whether at the Stated Maturity or by declaration of acceleration, call
for redemption, exercise of the repurchase right set forth in Article Thirteen
                                                              ----------------
or otherwise.

     "Non-electing Share" has the meaning specified in Section 11.11.
                                                       -------------

     "Notice Date" has the meaning specified in Section 2.2.
                                                -----------

     "Notice of Default" has the meaning specified in Section 5.1.
                                                      -----------

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

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

     "Optional Redemption" has the meaning specified in Section 2.2.
                                                        -----------

                                      -5-
<PAGE>

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

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

          (ii)  Securities for the payment or redemption of which money in the
     necessary amount has been theretofore deposited with the Trustee or any
     Paying Agent (other than the Company) in trust or set aside and segregated
     in trust by the Company (if the Company shall act as its own Paying Agent)
     for the Holders of such Securities, provided that if such Securities are to
                                         --------
     be redeemed, notice of such redemption has been duly given pursuant to this
     Indenture or irrevocable instructions have been given to the Trustee to
     give such notice; and

          (iii) Securities which have been paid pursuant to Section 3.6 or
                                                            ------------
     in exchange for or in lieu of which other Securities have been
     authenticated and delivered pursuant to this Indenture, other than any such
     Securities in respect of which there shall have been presented to the
     Trustee proof satisfactory to it that such Securities are held by a bona
     fide purchaser in whose hands such Securities are valid obligations of the
     Company;

provided, however, that in determining whether the Holders of the requisite
--------  -------
aggregate principal amount of Outstanding Securities are present at a meeting of
Holders of Securities for quorum purposes or have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Securities owned
by the Company or any other obligor upon the Securities or any Affiliate of the
Company or such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected
in relying upon any such determination as to the presence of a quorum or upon
any such request, demand, authorization, direction, notice, consent or waiver,
only Securities which a Responsible Officer of the Trustee actually knows to be
so owned shall be so disregarded. Securities so owned which have been pledged in
good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee's right so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon the
Securities or any Affiliate of the Company or such other obligor.

     "Paying Agent" means any Person authorized by the Company to pay the
principal of, and premium, if any (including the Make-Whole Payment, if
applicable), or interest on any Securities on behalf of the Company and, except
as otherwise specifically set forth herein, such term shall include the Company
if it shall act as its own Paying Agent. The Company has initially appointed the
Trustee as its Paying Agent.

                                      -6-
<PAGE>

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

     "Place of Conversion" has the meaning specified in Section 3.1.
                                                        -----------

     "Place of Payment" has the meaning specified in Section 3.1.
                                                     -----------

     "Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 3.6 in exchange for or in lieu of a
                                  -----------
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.

     "Press Release" shall mean any press release issued by the Company and
disseminated through Reuters Business News Services and Bloomberg Business News.

     "Provisional Redemption" has the meaning specified in Section 2.2.
                                                           -----------

     "Record Date" means any Regular Record Date or Special Record Date.

     "Record Date Period" means the period from the close of business of any
Regular Record Date next preceding any Interest Payment Date to the opening of
business on such Interest Payment Date.

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

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

     "Registered Securities" has the meaning specified in Section 2.1.
                                                          -----------

     "Regular Record Date" for interest payable in respect of any Security on
any Interest Payment Date means the January 1 or July 1 (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date.

     "Repurchase Date" has the meaning specified in Section 13.1.
                                                    ------------

     "Repurchase Price" has the meaning specified in Section 13.1.
                                                     ------------

                                      -7-
<PAGE>

     "Responsible Officer," when used with respect to the Trustee, means any
Officer within the Corporate Trust Office of the Trustee, including, without
limitation, any vice president, assistant vice president, assistant treasurer,
corporate trust officer or other employee of the Trustee customarily performing
functions similar to those performed by any of the above designated officers,
and also means, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his knowledge and familiarity
with the particular subject.

     "Securities" has the meaning ascribed to it in the first paragraph hereof
under the caption "Recitals of the Company."

     "Securities Act" means the United States Securities Act of 1933 (or any
successor statute), as amended from time to time.

     "Security Register" and "Security Registrar" have the respective meanings
specified in Section 3.5.
             -----------

     "Senior Debt" means the principal of (and premium, if any) and interest
(including all interest accruing subsequent to the commencement of any
bankruptcy or similar proceeding, whether or not a claim for post-petition
interest is allowable as a claim in any such proceeding) on, and all fees and
other amounts payable in connection with, the following, whether absolute or
contingent, secured or unsecured, due or to become due, outstanding on the date
of this Indenture or thereafter created, incurred or assumed: (a) indebtedness
of the Company evidenced by credit or loan agreements, notes, bonds, debentures,
or other similar instrument, (b) all obligations of the Company for money
borrowed, (c) obligations of the Company as lessee under leases required to be
capitalized on the balance sheet of the lessee under generally accepted
accounting principles, except for obligations of the Company as lessee under any
facility leases, (d) obligations of the Company under interest rate and currency
swaps, caps, floors, collars, hedge agreements, forward contracts, or similar
agreements or arrangements intended to protect the Company against fluctuations
in interest or currency exchange rates or commodity prices, (e) all obligations
with respect to letters of credit, bank guarantees, bankers' acceptances and
similar facilities issued for the account of the Company and all reimbursement
obligations of the Company with respect to the foregoing, (f) all obligations of
the Company issued or assumed as the deferred purchase price of any business,
property, assets (including intangibles) or services (but excluding trade
accounts payable that constitute liabilities arising in the ordinary course of
business), (g) all obligations of the type referred to in clauses (a) through
(f) above of another Person and all dividends of another Person, the payment of
which, in either case, the Company has assumed or guaranteed, or for which the
Company is responsible or liable, directly or indirectly, jointly or severally,
as obligor, guarantor or otherwise, or which is secured by a lien on property of
the Company, and (h) renewals, extensions, modifications, replacements,
restatements and refundings of, or any indebtedness or obligation issued in
exchange for, any such indebtedness or obligation described in clauses (a)
through (g) of this paragraph; provided,
                               --------

                                      -8-
<PAGE>

however, that Senior Debt shall not include the Securities or any such
-------
indebtedness or obligation if the terms of such indebtedness or obligation (or
the terms of the instrument under which, or pursuant to which it is issued)
expressly provides that such indebtedness or obligation is not superior in right
of payment to the Securities; and provided, further, that Senior Debt shall not
                                  --------  -------
include any indebtedness or obligation owed by the Company to any direct or
indirect Subsidiary.

     "Significant Subsidiary" means, with respect to any Person, a Subsidiary of
such Person that would constitute a "significant subsidiary" as such term is
defined under Rule 1-02 of Regulation S-X of the Commission.

     "Special Record Date" for the payment of any Defaulted Interest means a
date fixed by the Company pursuant to Section 3.7.
                                      -----------

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

     "Subsidiary" means a corporation more than 50% of the outstanding voting
stock of which is owned, directly or indirectly, by the Company or by one or
more other Subsidiaries, or by the Company and one or more other Subsidiaries.
For the purposes of this definition, "voting stock" means stock or other similar
interests in the corporation which ordinarily has or have voting power for the
election of directors, or persons performing similar functions, whether at all
times or only so long as no senior class of stock or other interests has or have
such voting power by reason of any contingency.

     "Successor Security" of any particular Security means every Security issued
after, and evidencing all or a portion of the same debt as that evidenced by,
such particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 3.6 in exchange for or in lieu of a
                                  -----------
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.

     "Time of Delivery" means 9:30 a.m. New York City time on June 26, 2001.

     "Trading Days" means (i) if the Common Stock is listed or admitted for
trading on any national securities exchange, days on which such national
securities exchange is open for business; (ii) if the Common Stock is quoted on
The Nasdaq National Market or any other system of automated dissemination of
quotations of securities prices, days on which trades may be effected through
such system; or (iii) if the Common Stock is not listed or admitted for trading
on any national securities exchange or quoted on The Nasdaq National Market or
any other system of automated dissemination of quotation of securities prices,
days on which the Common

                                      -9-
<PAGE>

Stock is traded regular way in the over-the-counter market and for which a
closing bid and a closing asked price for the Common Stock are available.

     "Trigger Event" shall have the meaning set forth in Section 11.4(7).
                                                         ---------------

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

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

     "United States" means the United States of America (including the States
and the District of Columbia), its territories, its possessions and other areas
subject to its jurisdiction (its "possessions" including Puerto Rico, the U.S.
Virgin Islands, Guam, American Samoa, Wake Island and the Northern Mariana
Islands).

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

SECTION 1.2      Compliance Certificates and Opinions.
                 ------------------------------------

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

     Every certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (including certificates provided for in

Section 9.7) shall include:
-----------

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

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

                                      -10-
<PAGE>

     (3)    a statement that, in the opinion of such individual, he has made
such examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and

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

SECTION 1.3     Form of Documents Delivered to the Trustee.
                ------------------------------------------

     In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.

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

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

SECTION 1.4     Acts of Holders of Securities.
                -----------------------------

     (a)     Any request, demand, authorization, direction, notice, consent,
waiver or other action provided or permitted by this Indenture to be given or
taken by Holders of Securities may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or
by an agent or proxy duly appointed in writing by such Holders. Such action
shall become effective when such instrument or instruments is delivered to the
Trustee and, where it is hereby expressly required, to the Company. The Trustee
shall promptly deliver to the Company copies of all such instruments delivered
to the Trustee. Such instrument or instruments (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the "Act" of the
Holders of Securities signing such instrument or instruments.

                                      -11-
<PAGE>

Proof of execution of any such instrument or of a writing appointing any such
agent or proxy, or of the holding by any Person of a Security, shall be
sufficient for any purpose of this Indenture and (subject to Section 6.1)
                                                             -----------
conclusive in favor of the Trustee and the Company if made in the manner
provided in this Section.

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

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

     (d)    The fact and date of execution of any such instrument or writing and
the authority of the Person executing the same may also be proved in any other
manner which the Trustee deems sufficient; and the Trustee may in any instance
require further proof with respect to any of the matters referred to in this
Section 1.4.
-----------

     (e)    The Company may set any day as the record date for the purpose of
determining the Holders entitled to give or take any request, demand,
authorization, direction, notice, consent, waiver or other action, or to vote on
any action, authorized or permitted by this Indenture to be given or taken by
Holders. Promptly and in any case not later than ten days after setting a record
date, the Company shall notify the Trustee and the Holders of such record date.
If not set by the Company prior to the first solicitation of a Holder made by
any Person in respect of any such action, or, in the case of any such vote,
prior to such vote, the record date for any such action or vote shall be the
30th day (or, if later, the date of the most recent list of Holders required to
be provided pursuant to Section 14.1) prior to such first solicitation or vote,
                        ------------
as the case may be. With regard to any record date, the Holders on such date (or
their duly appointed agents or proxies), and only such Persons, shall be
entitled to give or take, or vote on, the relevant action, whether or not such
Holders remain Holders after such record date. Notwithstanding the foregoing,
the Company shall not set a record date for, and the provisions of this
paragraph shall not apply with respect to, any notice, declaration or direction
referred to in the next paragraph.

     Upon receipt by the Trustee from any Holder of (i) any notice of default or
breach referred to in Section 5.1(4), if such default or breach has occurred and
                      --------------
is continuing and the Trustee shall not have given such a notice to the Company,
(ii) any declaration of acceleration referred to in Section 5.2, if an Event of
                                                    -----------
Default has occurred and is continuing and the Trustee shall not have given such
a declaration to the Company, or (iii) any direction referred to in Section
                                                                    -------
5.12, if the Trustee shall not have taken the action specified in such
----
direction, then, with

                                      -12-
<PAGE>

respect to clauses (ii) and (iii), a record date shall automatically and without
any action by the Company or the Trustee be set for determining the Holders
entitled to join in such declaration or direction, which record date shall be
the close of business on the tenth day (or, if such day is not a Business Day,
the first Business Day thereafter) following the day on which the Trustee
receives such declaration or direction, and, with respect to clause (i) the
Trustee may set any day as a record date for the purpose of determining the
Holders entitled to join in such notice of default. Promptly after such receipt
by the Trustee of any such declaration or direction referred to in clause (ii)
or (iii), and promptly after setting any record date with respect to clause (i),
and as soon as practicable thereafter, the Trustee shall notify the Company and
the Holders of any such record date so fixed. The Holders on such record date
(or their duly appointed agents or proxies), and only such Persons, shall be
entitled to join in such notice, declaration or direction, whether or not such
Holders remain Holders after such record date; provided that, unless such
                                               --------
notice, declaration or direction shall have become effective by virtue of
Holders of the requisite principal amount of Securities on such record date (or
their duly appointed agents or proxies) having joined therein on or prior to the
180th day after such record date, such notice, declaration or direction shall
automatically and without any action by any Person be cancelled and of no
further effect. Nothing in this paragraph shall be construed to prevent a Holder
(or a duly appointed agent or proxy thereof) from giving, before or after the
expiration of such 180 day period, a notice, declaration or direction contrary
to or different from, or, after the expiration of such period, identical to, the
notice, declaration or direction to which such record date relates, in which
event a new record date in respect thereof shall be set pursuant to this
paragraph. In addition, nothing in this paragraph shall be construed to render
ineffective any notice, declaration or direction of the type referred to in this
paragraph given at any time to the Trustee and the Company by Holders (or their
duly appointed agents or proxies) of the requisite principal amount of
Securities on the date such notice, declaration or direction is so given.

     (f)    Except as provided in Sections 5.12 and 5.13, any request, demand,
                                  -------------     ----
authorization, direction, notice, consent, election, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and
the Holder of every Security issued upon the registration of transfer thereof or
in exchange therefor or in lieu thereof in respect of anything done, omitted or
suffered to be done by the Trustee or the Company in reliance thereon, whether
or not notation of such action is made upon such Security.

SECTION 1.5     Notices, Etc., to Trustee and Company.
                -------------------------------------

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

     (1)     the Trustee by any Holder of Securities or by the Company shall be
sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Trustee and

                                      -13-
<PAGE>

received at its Corporate Trust Office, Attention: Medarex, Inc. - 4.50%
Convertible Subordinated Notes due 2006, and shall be deemed given when
received.

     (2)    the Company by the Trustee or by any Holder of Securities shall be
sufficient for every purpose hereunder (unless otherwise herein expressly
provided) if in writing, mailed, first-class postage prepaid, or telecopied and
confirmed by mail, first-class postage prepaid, or delivered by hand or
overnight courier, addressed to the Company at 707 State Road #206, Princeton,
New Jersey 08540, or at any other address previously furnished in writing to the
Trustee by the Company, and shall be deemed given when received.

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

SECTION 1.6     Notice to Holders of Securities; Waiver.
                ---------------------------------------

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

     Neither the failure to mail such notice, nor any defect in any notice so
mailed, to any particular Holder of a Security shall affect the sufficiency of
such notice with respect to other Holders of Securities. In case by reason of
the suspension of regular mail service or by reason of any other cause it shall
be impracticable to give such notice by mail, then such notification to Holders
of Securities as shall be made with the approval of the Trustee, which approval
shall not be unreasonably withheld, shall constitute a sufficient notification
to such Holders for every purpose hereunder.

     Such notice shall be deemed to have been given when such notice is mailed.

     Where this Indenture provides for notice in any manner, such notice may be
waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Holders of Securities shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

                                      -14-
<PAGE>

SECTION 1.7    Effect of Headings and Table of Contents.
               ----------------------------------------

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

SECTION 1.8    Successors and Assigns.
               ----------------------

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

SECTION 1.9    Separability Clause.
               -------------------

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

SECTION 1.10   Benefits of Indenture.
               ---------------------

     Except as provided in the next sentence, nothing in this Indenture or in
the Securities, express or implied, shall give to any Person, other than the
parties hereto and their successors and assigns hereunder and the Holders of
Securities, any benefit or legal or equitable right, remedy or claim under this
Indenture.  The provisions of Article Twelve are intended to be for the benefit
                              --------------
of, and shall be enforceable directly by, the holders of Senior Debt, except as
otherwise provided in Section 12.3.

SECTION 1.11   Governing Law.
               -------------

     THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, THE UNITED STATES OF AMERICA.

SECTION 1.12   Legal Holidays.
               --------------

     In any case where any Interest Payment Date, Redemption Date, Repurchase
Date or Stated Maturity of any Security or the last day on which a Holder of a
Security has a right to convert his Security shall not be a Business Day, then
(notwithstanding any other provision of this Indenture or of the Securities)
payment of principal of, premium, if any (including the Make-Whole Payment, if
any), or interest on, or the payment of the Repurchase Price (whether the same
is payable in cash or in shares of Common Stock) with respect to, or delivery
for conversion of, such Security need not be made on or by such day, but may be
made on or by the next succeeding Business Day with the same force and effect as
if made on the Interest Payment Date, Redemption Date or Repurchase Date, or at
the Stated Maturity or by such last day for

                                      -15-
<PAGE>

conversion; provided, however, that in the case that payment is made on such
            --------  -------
succeeding Business Day, no interest shall accrue on the amount so payable for
the period from and after such Interest Payment Date, Redemption Date,
Repurchase Date, Stated Maturity or last day for conversion, as the case may be.

SECTION 1.13   Conflict with Trust Indenture Act.
               ---------------------------------

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

                                  ARTICLE II

                                SECURITY FORMS

SECTION 2.1    Form Generally.
               --------------

     The Securities shall be in substantially the form set forth in this
Article, with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture, and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any
securities exchange or the Internal Revenue Code of 1986, as amended, and
regulations thereunder (the "Code"), or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their
execution thereof.  All Securities shall be issued in registered form, as
opposed to bearer form, and shall sometimes be referred to as "Registered
Securities".

     The Trustee's certificates of authentication shall be in substantially the
form set forth in Section 2.3.
                  -----------

     Conversion notices shall be in substantially the form set forth in Section
                                                                        -------
2.4.
---

     Repurchase notices shall be substantially in the form set forth in Section
                                                                        -------
2.5.
---

     The Securities shall be printed, lithographed, typewritten or engraved or
produced by any combination of these methods on steel engraved borders if so
required by any securities exchange upon which the Securities may be listed, or
may be produced in any other manner permitted by the rules of any such
securities exchange, or, if the Securities are not listed on a securities
exchange, in any other manner approved by the Company, all as determined by the
officers executing such Securities, as evidenced by their execution thereof.

                                      -16-
<PAGE>

     Upon their original issuance, Securities shall be issued in the form of one
or more Global Securities without interest coupons and shall be registered in
the name of DTC, as Depositary, or its nominee and deposited with the Trustee,
as custodian for DTC, for credit by DTC to the respective accounts of beneficial
owners of the Securities represented thereby (or such other accounts as they may
direct).  Such Global Security, together with its Successor Securities which are
Global Securities, are collectively herein called the "Restricted Global
Security."

SECTION 2.2    Form of Security.
               ----------------

                                [FORM OF FACE]

     [THE FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF EACH GLOBAL SECURITY:

     THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A
NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND
ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY FOR ALL PURPOSES.]

     [THE FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF EACH GLOBAL SECURITY FOR
WHICH THE DEPOSITORY TRUST COMPANY IS TO BE THE DEPOSITARY:

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]

                                      -17-
<PAGE>

                                 MEDAREX, INC.

                 4.50% Convertible Subordinated Notes due 2006

No. _______________                                              U.S.$ _______

CUSIP No. 583916 AA 9

     Medarex, Inc., a corporation duly organized and existing under the laws of
the State of New Jersey (herein called the "Company," which term includes any
successor Person to the Company under the Indenture referred to on the reverse
hereof), for value received, hereby promises to pay to _______________, or
registered assigns, the principal sum of _______________ United States Dollars
(U.S.$ ______) (which principal amount may from time to time be decreased by
adjustments made on the records of the Trustee hereinafter referred to in
accordance with the Indenture) on July 1, 2006 and to pay interest thereon, from
June 26, 2001, or from the most recent Interest Payment Date (as defined below)
to which interest has been paid or duly provided for, semi-annually in arrears
on January 1 and July 1 in each year (each, an "Interest Payment Date"),
commencing January 1, 2002, at the rate of 4.50% per annum, until the principal
hereof is due, and at the rate of 4.50% per annum on any overdue principal and
premium, if any, and, to the extent permitted by law, on any overdue interest.
The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in the Indenture, be paid to the Person
in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the December 15 or June 15 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date.  Except as
otherwise provided in the Indenture, any such interest not so punctually paid or
duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Company, notice whereof shall be given to Holders of Securities
not less than 10 days prior to such Special Record Date, or be paid at any time
in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in the
Indenture.  Payments of principal shall be made upon the surrender of this
Security at the option of the Holder at the Corporate Trust Office of the
Trustee, in such coin or currency of the United States of America as at the time
of payment shall be legal tender for the payment of public and private debts, or
at such other offices or agencies as the Company may designate, by United States
Dollar check drawn on, or wire transfer to, a United States Dollar account (such
a wire transfer to be made only to a Holder of an aggregate principal amount of
Securities in excess of U.S.$2,000,000, and only if such Holder shall have
furnished wire instructions in writing to the Trustee no later than 15 days
prior to the relevant payment date) maintained by the payee with a bank in the
Borough of Manhattan, The City of New York. Payment of interest on this Security

                                      -18-
<PAGE>

may be made by United States Dollar check drawn on a bank in the Borough of
Manhattan, The City of New York mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register, or, upon written
application by the Holder to the Security Registrar setting forth wire
instructions not later than the relevant Record Date, by wire transfer to a
United States Dollar account (such a wire transfer to be made only to a Holder
of an aggregate principal amount of Securities in excess of U.S.$2,000,000 and
only if such Holder shall have furnished wire instructions in writing to the
Trustee no later than 15 days prior to the relevant payment date) maintained by
the payee with a bank in the Borough of Manhattan, The City of New York.

     Except as specifically provided herein and in the Indenture, the Company
shall not be required to make any payment with respect to any tax, assessment or
other governmental charge imposed by any government or any political subdivision
or taxing authority thereof or therein.

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

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

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

                         MEDAREX, INC.

                         By: __________________________________
                             Name:
                             Title:

                                      -19-
<PAGE>

                               [FORM OF REVERSE]

     This Security is one of a duly authorized issue of securities of the
Company designated as its 4.50% Convertible Subordinated Notes due 2006 (herein
called the "Securities"), limited in aggregate principal amount not to exceed
U.S.$175,000,000 as such amount may be increased, but not by an amount in excess
of $26,250,000, solely as a result of the exercise of the underwriters' over-
allotment option granted by the Company under the underwriting agreement, dated
June 21, 2001, among the Company, Goldman, Sachs & Co., Credit Suisse First
Boston Corporation, J.P. Morgan Securities Inc., Morgan Stanley & Co.
Incorporated, Bear Stearns & Co., Inc. and Dain Rauscher Incorporated (the
"Underwriters") to the several Underwriters, issued and to be issued under an
Indenture, dated as of June 26, 2001  (herein called the "Indenture"), between
the Company and Wilmington Trust Company, a national banking association, as
Trustee (herein called the "Trustee," which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee, the
holders of Senior Debt and the Holders of the Securities and of the terms upon
which the Securities are, and are to be, authenticated and delivered.  As
provided in the Indenture and subject to certain limitations therein set forth,
Securities are exchangeable for a like aggregate principal amount of Securities
of any authorized denominations as requested by the Holder surrendering the same
upon surrender of the Security or Securities to be exchanged, at the Corporate
Trust Office of the Trustee.  The Trustee upon such surrender by the Holder will
issue the new Securities in the requested denominations.

     No sinking fund is provided for the Securities.

     The Securities are subject to provisional redemption by the Company
("Provisional Redemption"), in whole or in part, at any time prior to July 1,
2004, upon notice as set forth in Section 10.5 of the Indenture, at a Redemption
Price equal to the principal amount of the Securities to be redeemed plus
accrued and unpaid interest, if any, to the Redemption Date if the Closing Price
of the Common Stock shall have exceeded 150% of the Conversion Price then in
effect for at least 20 Trading Days in any consecutive 30-day Trading Day period
ending on the Trading Day prior to the date mailing of the notice of Provisional
Redemption pursuant to Section 10.5 of the Indenture (the "Notice Date").  Upon
any such Provisional Redemption, the Company shall make an additional payment
(the "Make-Whole Payment") in cash or, at the election of the Company upon
satisfaction of the conditions in Section 10.10 of the Indenture, in Common
Stock, as specified in the notice of redemption, with respect to the Securities
called for redemption to holders on the Notice Date in an amount equal to $135
per $1,000 aggregate principal amount of Security, less the amount of any
interest actually paid or accrued and unpaid on such Security prior to the
Notice Date.  The Make-Whole Payment will not be reduced by the amount of
interest accrued and unpaid prior to the Notice Date in the case of a Security
converted into Common Stock after the Notice Date.  The Company shall make the
Make-Whole Payment on all Securities called for Provisional Redemption,
including any Securities converted into

                                      -20-
<PAGE>

Common Stock pursuant to the terms of the Indenture after the Notice Date and
prior to the Redemption Date. For purposes of this paragraph, the payments made
in Common Stock will be determined by the Company and each share of Common Stock
to be delivered shall be valued at an amount equal to 95% of the average of the
Closing Price Per Share of the Common Stock for the five consecutive Trading
Days immediately preceding and including the third Trading Day prior to the
Redemption Date.

     The Securities are also subject to redemption at the option of the Company
("Optional Redemption") at any time on or after July 1, 2004, in whole or in
part, upon not less than 30 nor more than 60 days' notice to the Holders prior
to the Redemption Date at the following Redemption Prices (expressed as
percentages of the principal amount) for the twelve-month period beginning on
July 1 of the following years:

<TABLE>
<CAPTION>
                         Year           Redemption Price
                        ------          -----------------
                   <S>                  <C>
                   2004.............          101.8%
                   2005.............          100.9%
</TABLE>

and at a Redemption Price equal to 100% of the principal amount on and after
July 1, 2006, together, in each case, with accrued interest to the Redemption
Date; provided, however, that interest installments on Securities whose Stated
      --------  -------
Maturity is on or prior to such Redemption Date will be payable to the Holders
of such Securities, or one or more Predecessor Securities, of record at the
close of business on the relevant Record Dates referred to on the face hereof,
all as provided in the Indenture.

     In the event of a redemption of the Securities, the Company will not be
required (a) to register the transfer or exchange of Securities for a period of
15 days immediately preceding the date notice is given identifying the serial
numbers of the Securities called for such redemption or (b) to register the
transfer or exchange of any Security, or portion thereof, called for redemption.

     Notice to the Holders will be given not less than 30 nor more than 60 days
prior to the Redemption Date as provided in the Indenture.

     In any case where the due date for the payment of the principal of,
premium, if any, (including the Make-Whole Payment, if any) or interest, on any
Security or the last day on which a Holder of a Security has a right to convert
his Security shall be a day on which banking institutions at such Place of
Payment or Place of Conversion are authorized or obligated by law or executive
order to close, then payment of principal, premium, if any (including the Make-
Whole Payment, if any), or interest, or delivery for conversion of such Security
need not be made on or by such date but may be made on or by the next succeeding
day at such place which is not a day on which such banking institutions are
authorized or obligated by law or executive order to close, with the same force
and effect as if made on the date for such payment or the date fixed for

                                      -21-
<PAGE>

redemption or repurchase, or by such last day for conversion, and no interest
shall accrue on the amount so payable for the period after such date.

     Subject to and upon compliance with the provisions of the Indenture, the
Holder of this Security is entitled, at his option, at any time following the
original issue date of the Securities and on or before the close of business on
July 1, 2006, or in case this Security or a portion hereof is called for
redemption or the Holder hereof has exercised its right to require the Company
to repurchase this Security or such portion hereof, then in respect of this
Security until and including, but (unless the Company defaults in making the
payment due upon redemption or repurchase, as the case may be) not after, the
close of business on the Business Day immediately preceding the Redemption Date
or the Repurchase Date, as the case may be, to convert this Security (or any
portion of the principal amount hereof that is an integral multiple of
U.S.$1,000, provided that the unconverted portion of such principal amount is
            --------
U.S.$1,000 or any integral multiple of U.S.$1,000 in excess thereof) into fully
paid and nonassessable shares of Common Stock of the Company at an initial
Conversion Rate of 34.6789 shares of Common Stock for each U.S.$1,000 principal
amount of Securities (or at the current adjusted Conversion Rate if an
adjustment has been made as provided in the Indenture) by surrender of this
Security, duly endorsed or assigned to the Company or in blank and, in case such
surrender shall be made during the period from the close of business on any
Regular Record Date next preceding any Interest Payment Date to the opening of
business on such Interest Payment Date (except if this Security has been called
for redemption on a Redemption Date or is repurchasable on a Repurchase Date
occurring, in either case, during such period and is surrendered for such
conversion during such period), also accompanied by payment in New York Clearing
House or other funds acceptable to the Company of an amount equal to the
interest otherwise payable on such Interest Payment Date on the principal amount
of this Security then being converted, and also the conversion notice hereon
duly executed, to the Company at the Corporate Trust Office of the Trustee, or
at such other office or agency of the Company, subject to any laws or
regulations applicable thereto and subject to the right of the Company to
terminate the appointment of any Conversion Agent (as defined below) as may be
designated by it for such purpose in the Borough of Manhattan, The City of New
York, or at such other offices or agencies as the Company may designate (each a
"Conversion Agent"), provided, that if this Security or portion hereof has been
                     --------
called for redemption on a Redemption Date or is repurchasable on a Repurchase
Date occurring, in either case, during the period from the close of business on
any Regular Record Date next preceding any Interest Payment Date to the opening
of business on such succeeding Interest Payment Date and is surrendered for
conversion during such period, then the Holder of this Security shall not be
required to pay such interest upon surrender of this Security for conversion.
Subject to the provisions of the preceding sentence and, in the case of a
conversion after the close of business on the Regular Record Date next preceding
any Interest Payment Date and on or before the close of business on such
Interest Payment Date, to the right of the Holder of this Security (or any
Predecessor Security) of record as of such Regular Record Date to receive the
related installment of interest to the extent and under the circumstances
provided in the Indenture, no cash payment or adjustment is to be made on
conversion for interest accrued

                                      -22-
<PAGE>

hereon from the Interest Payment Date next preceding the day of conversion, or
for dividends on the Common Stock issued on conversion hereof. The Company shall
thereafter deliver to the Holder the fixed number of shares of Common Stock
(together with any cash adjustment, as provided in the Indenture) into which
this Security is convertible and such delivery will be deemed to satisfy the
Company's obligation to pay the principal amount of this Security. No fractions
of shares or scrip representing fractions of shares will be issued on
conversion, but instead of any fractional interest (calculated to the nearest
1/100th of a share) the Company shall pay a cash adjustment as provided in the
Indenture. The Conversion Rate is subject to adjustment as provided in the
Indenture. In addition, the Indenture provides that in case of certain
consolidations or mergers to which the Company is a party or the conveyance,
transfer, sale or lease of all or substantially all of the property and assets
of the Company, the Indenture shall be amended, without the consent of any
Holders of Securities, so that this Security, if then Outstanding, will be
convertible thereafter, during the period this Security shall be convertible as
specified above, only into the kind and amount of securities, cash and other
property receivable upon such consolidation, merger, conveyance, transfer, sale
or lease by a holder of the number of shares of Common Stock of the Company into
which this Security could have been converted immediately prior to such
consolidation, merger, conveyance, transfer, sale or lease (assuming such holder
of Common Stock is not a Constituent Person, failed to exercise any rights of
election and received per share the kind and amount received per share by a
plurality of Non-electing Shares. No adjustment in the Conversion Rate will be
made until such adjustment would require an increase or decrease of at least one
percent of such rate, provided that any adjustment that would otherwise be made
                      --------
will be carried forward and taken into account in the computation of any
subsequent adjustment.

     If a Change in Control occurs, the Holder of this Security, at the Holder's
option, shall have the right, in accordance with the provisions of the
Indenture, to require the Company to repurchase this Security (or any portion of
the principal amount hereof that is equal to U.S.$1,000 or any integral multiple
of U.S.$1,000) for cash at a Repurchase Price equal to 100% of the principal
amount thereof plus interest accrued to the Repurchase Date.  At the option of
the Company, the Repurchase Price may be paid in cash or, subject to the
conditions provided in the Indenture, by delivery of shares of Common Stock
having a fair market value equal to the Repurchase Price.  For purposes of this
paragraph, the fair market value of shares of Common Stock shall be determined
by the Company and shall be equal to 95% of the average of the Closing Price Per
Share for the five consecutive Trading Days immediately preceding and including
the third Trading Day prior to the Repurchase Date.  Whenever in this Security
there is a reference, in any context, to the principal of any Security as of any
time, such reference shall be deemed to include reference to the Repurchase
Price payable in respect of such Security to the extent that such Repurchase
Price is, was or would be so payable at such time, and express mention of the
Repurchase Price in any provision of this Security shall not be construed as
excluding the Repurchase Price so payable in those provisions of this Security
when such express mention is not made; provided, however, that, for the purposes
                                       --------  -------
of the second succeeding

                                      -23-
<PAGE>

paragraph, such reference shall be deemed to include reference to the Repurchase
Price only to the extent the Repurchase Price is payable in cash.

     [The following paragraph shall appear in each Security that is not a Global
Security:

     In the event of redemption, repurchase or conversion of this Security in
part only, a new Security or Securities for the unredeemed, unrepurchased or
unconverted portion hereof will be issued in the name of the Holder hereof.]

     [The following paragraph shall appear in each Global Security:

     In the event of a withdrawal of an interest in this Security resulting from
any redemption, repurchase or conversion of this Security in part only, the
Trustee, as custodian of the Depositary, shall make an adjustment on its records
to reflect such withdrawal in accordance with the Applicable Procedures.]

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

     If an Event of Default shall occur and be continuing, the principal of all
the Securities, together with accrued interest to the date of declaration, may
be declared due and payable in the manner and with the effect provided in the
Indenture.  Upon payment (i) of the amount of principal so declared due and
payable, together with accrued interest to the date of declaration, and (ii) of
interest on any overdue principal and, to the extent permitted by applicable
law, overdue interest, all of the Company's obligations in respect of the
payment of the principal of and interest on the Securities shall terminate.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities under the Indenture at
any time by the Company and the Trustee with the written consent of the Holders
of a majority in aggregate principal amount of the Securities at the time
Outstanding.  The Indenture also contains provisions permitting the Holders of
specified percentages in aggregate principal amount of the Securities at the
time Outstanding, on behalf of the Holders of all the Securities, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such

                                      -24-
<PAGE>

Holder and upon all future Holders of this Security and of any Security issued
in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Security or such other Security.

     As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default, the Holders of not less
than 25% in aggregate principal amount of the Outstanding Securities shall have
made written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and furnished the Trustee reasonable indemnity, and
shall have failed to institute any such proceeding, for 60 days after receipt of
such notice, request and furnishing of indemnity.  The foregoing shall not apply
to any suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof, premium, if any, or interest hereon on or after the
respective due dates expressed herein or for the enforcement of the right to
convert this Security as provided in the Indenture.

     No reference herein to the Indenture and no provision of this Security or
of the Indenture shall, as between the Company and any Holder, alter or impair
the obligation of the Company, which is absolute and unconditional, to pay the
principal of, premium, if any (including the Make-Whole Payment, if any), and
interest on this Security at the times, places and rate, and in the coin or
currency, herein prescribed or to convert this Security as provided in the
Indenture.

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of Securities is registrable on the Security Register upon
surrender of a Security for registration of transfer at the Corporate Trust
Office of the Trustee or at such other office or agency of the Company as may be
designated by it for such purpose in the Borough of Manhattan, The City of New
York, or at such other offices or agencies as the Company may designate, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder thereof or his attorney duly authorized in writing, and thereupon one or
more new Securities, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees by
the Security Registrar.  No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to recover any tax or other governmental charge payable in
connection therewith.

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

                                      -25-
<PAGE>

     Interest on the Securities shall be computed on the basis of a 360-day year
of twelve 30-day months.

     The Indenture and this Security shall be governed by and construed in
accordance with the laws of the State of New York, United States of America.

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

SECTION 2.3    Form of Certificate of Authentication.
               -------------------------------------

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

     Dated:    [Date of Authentication]

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

                         Wilmington Trust Company, as Trustee

                         By:  _________________________________
                                    Authorized Signatory

SECTION 2.4    Form of Conversion Notice.
               -------------------------

                               CONVERSION NOTICE

     The undersigned Holder of this Security hereby irrevocably exercises the
option to convert this Security, or any portion of the principal amount hereof
(which is an integral multiple of U.S.$1,000) below designated, into shares of
Common Stock in accordance with the terms of the Indenture referred to in this
Security, and directs that such shares, together with a check in payment for any
fractional share and any Securities representing any unconverted principal
amount hereof, be delivered to and be registered in the name of the undersigned
unless a different name has been indicated below. If shares of Common Stock or
Securities are to be registered in the name of a Person other than the
undersigned, the undersigned will pay all transfer taxes payable with respect
thereto. Any amount required to be paid by the undersigned on account of
interest accompanies this Security.

Dated: ___________________________

                                    ___________________________________
                                              Signature

                                      -26-
<PAGE>

NOTICE:   The Signature to the foregoing Notice must correspond to the name as
written upon the face of this Security in every particular, without alteration
or any change whatsoever.

<TABLE>
<S>                                                <C>
If shares or Securities are to be registered in    If only a portion of the Securities is to
the name of a Person other than the Holder,        be converted, please indicate:
please print such Person's name and address:

________________________________________________   1.  Principal amount to be converted:
                Name
                                                   U.S.$_______
________________________________________________
              Address                              2.  Principal amount and denomination
                                                   of Securities representing unconverted
________________________________________________   principal amount to be issued:
Social Security or other Taxpayer
Identification Number, if any                      Amount:  U.S.$_______

________________________________________________   Denominations:
                                                   U.S.$_______
                                                   (any integral multiple of U.S.$1,000)

                                                   ____________________________________
                                                                  Signature

                                                   Signature(s) must be guaranteed by an
                                                   Eligible Guarantor Institution with
                                                   membership in an approved signature
                                                   guarantee program pursuant to Rule 17Ad -
                                                   15 under the Securities Exchange Act of
                                                   1934.

                                                   ____________________________________
                                                               Signature Guaranteed
</TABLE>

SECTION 2.5    Form of Election of Holder to Require Repurchase.
               ------------------------------------------------

                   ELECTION OF HOLDER TO REQUIRE REPURCHASE

     1.   Pursuant to Section 13.1 of the Indenture, the undersigned hereby
                      ------------
elects to have this Security repurchased by the Company.

     2.   The undersigned hereby directs the Trustee or the Company to pay it or
_______________ an amount in cash or, at the Company's election, Common Stock
valued as

                                      -27-
<PAGE>

set forth in the Indenture, equal to 100% of the principal amount to be
repurchased (as set forth below), plus interest accrued to the Repurchase Date,
as provided in the Indenture.

                              Dated:    ________________________________

                                        Signature(s) must be guaranteed by an
                                        Eligible Guarantor Institution with
                                        membership in an approved signature
                                        guarantee program pursuant to Rule
                                        17Ad - 15 under the Securities Exchange
                                        Act of 1934.

                                        ___________________________
                                                 Signature

                                        Signature(s) must be guaranteed by an
                                        Eligible Guarantor Institution with
                                        membership in an approved signature
                                        guarantee program pursuant to Rule
                                        17Ad -15 under the Securities Exchange
                                        Act of 1934.

                                        ___________________________
                                                  Signature

Principal amount to be repurchased
(an amount of U.S. $1,000 or an integral
multiple of U.S.$1,000):

Remaining principal amount following such repurchase:

                                        ___________________________
                                                  Signature

NOTICE:  The Signature to the foregoing Election must correspond to the Name as
written upon the face of this Security in every particular, without alteration
or any change whatsoever.

                                      -28-
<PAGE>

                                  ARTICLE III

                                THE SECURITIES

SECTION 3.1    Title and Terms.
               ---------------

     The aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is limited to U.S.$175,000,000, as such amount
may be increased, but not by an amount in excess of $26,250,000, solely as a
result of the purchase of additional Securities pursuant to the underwriters'
over-allotment option granted by the Company under the underwriting agreement,
dated June 21, 2001 (the "Underwriting Agreement"), among the Company, Goldman,
Sachs & Co., Credit Suisse First Boston Corporation, J.P. Morgan Securities
Inc., Morgan Stanley & Co. Incorporated, Bear Stearns & Co., Inc. and Dain
Rauscher Incorporated (collectively, the "Underwriters"), to the several
Underwriters (referred to in the Underwriting Agreement and this Indenture as
the "Additional Securities") except for Securities authenticated and delivered
in exchange for, or in lieu of, other Securities pursuant to Section 3.4, 3.5,
                                                             -----------  ---
3.6, 8.5, 10.8, 11.2 or 13.3(e).
---  ---  ----  ----    -------

     The Securities shall be known and designated as the "4.50% Convertible
Subordinated Notes due 2006" of the Company.  Their Stated Maturity shall be
July 1, 2006 and they shall bear interest on their principal amount from the
date of the Time of Delivery, payable semi-annually in arrears on January 1 and
July 1 each year, commencing January 1, 2002, at the rate of 4.50% per annum
until the principal thereof is due and at the rate of 4.50% per annum on any
overdue principal and, to the extent permitted by law, on any overdue interest;
provided, however, that payments shall only be made on Business Days as provided
--------  -------
in Section 1.12.
   ------------

     Upon receipt by the Trustee of an Officers' Certificate stating that the
Underwriters have elected to purchase from the Company a specified aggregate
principal amount of Additional Securities not to exceed a total of $26,250,000
all such elections in accordance with this paragraph pursuant to the
Underwriting Agreement, the Trustee shall authenticate and make available for
delivery such specified aggregate principal amount of such Additional Securities
to or upon a Company Request, and such specified aggregate principal amount of
such Additional Securities shall be considered part of the original aggregate
principal amount of the Securities.

     The principal of, premium, if any (including the Make-Whole Payment, if
any), and interest on the Securities shall be payable as provided in the form of
Securities set forth in Section 2.2, and the Repurchase Price, whether payable
                        -----------
in cash or in shares of Common Stock, shall be payable at such places as are
identified in the Company Notice given pursuant to Section 13.3 (any city in
                                                   ------------
which any Paying Agent is located being herein called a "Place of Payment").

                                      -29-
<PAGE>

     The Securities shall be redeemable at the option of the Company, as
provided in Article Ten and shall be issued in the form of Securities set forth
            -----------
in Section 2.2.
   -----------

     The Securities shall be convertible as provided in Article Eleven (any city
                                                        --------------
in which any Conversion Agent is located being herein called a "Place of
Conversion").

     The Securities shall be subordinated in right of payment to Senior Debt of
the Company as provided in Article Twelve.
                           --------------

     The Securities shall be subject to repurchase by the Company at the option
of the Holders as provided in Article Thirteen.
                              ----------------

SECTION 3.2    Denominations.
               -------------

     The Securities shall be issuable only in registered form, without coupons,
in denominations of U.S.$1,000 and integral multiples thereof.

SECTION 3.3    Execution, Authentication, Delivery and Dating.
               ----------------------------------------------

     The Securities shall be executed on behalf of the Company by its Chairman
of the Board, its Vice Chairman of the Board, its Chief Executive Officer, its
President, its Chief Financial Officer or one of its Vice Presidents, under a
facsimile of its corporate seal reproduced thereon attested by its Secretary or
one of its Assistant Secretaries.  Any such signature may be manual or
facsimile.

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

     At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities executed by the Company to the
Trustee or to its order for authentication, together with a Company Order for
the authentication and delivery of such Securities, and the Trustee in
accordance with such Company Order shall authenticate and make available for
delivery such Securities as in this Indenture provided and not otherwise.

     Each Security shall be dated the date of its authentication.

     No Security shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature of an authorized

                                      -30-
<PAGE>

signatory, and such certificate upon any Security shall be conclusive evidence,
and the only evidence, that such Security has been duly authenticated and
delivered hereunder.

SECTION 3.4    Global Securities; Temporary Securities.
               ---------------------------------------

(A)  Global Securities

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

     (b)  Notwithstanding any other provision in this Indenture, no Global
Security may be exchanged in whole or in part for Securities registered, and no
transfer of a Global Security in whole or in part may be registered, in the name
of any Person other than the Depositary for such Global Security or a nominee
thereof unless (i) such Depositary (A) has notified the Company that it is
unwilling or unable to continue as Depositary for such Global Security or (B)
has ceased to be a clearing agency registered as such under the Exchange Act or
announces an intention permanently to cease business or does in fact do so or
(ii) there shall have occurred and be continuing an Event of Default with
respect to such Global Security.

     (c)  Every Security authenticated and delivered upon registration of
transfer of, or in exchange for or in lieu of, a Global Security or any portion
thereof, whether pursuant to this Article Three or otherwise, shall be
                                  -------------
authenticated and delivered in the form of, and shall be a registered Global
Security, unless such Security is registered in the name of a Person other than
the Depositary for such Global Security or a nominee thereof, in which case such
Security shall be authenticated and delivered in definitive, fully registered
form, without interest coupons.

     (d)  The Depositary or its nominee, as registered owner of a Global
Security, shall be the Holder of such Global Security for all purposes under the
Indenture and the Securities, and owners of beneficial interests in a Global
Security shall hold such interests pursuant to the Applicable Procedures.
Accordingly, any such owner's beneficial interest in a Global Security will be
shown only on, and the transfer of such interest shall be effected only through,
records maintained by the Depositary or its nominee or its Agent Members and
such owners of beneficial interests in a Global Security will not be considered
the owners or holders thereof.

     (e)   If any Global Security is to be cancelled in part as a result of the
redemption, repurchase or conversion of such security in part only, then the
principal amount thereof shall be reduced by an amount equal to the portion
thereof to be so cancelled by means of an appropriate adjustment made on the
records of the Trustee, as Security Registrar, whereupon the Trustee, in
accordance with the Applicable Procedures, shall instruct the Depositary or its
authorized

                                      -31-
<PAGE>

representative to make a corresponding adjustment to its records. The Trustee
shall be entitled to rely upon any order, direction or request of the Depositary
or its authorized representative which is given or made pursuant to this Article
                                                                         -------
Three if such order, direction or request is given or made in accordance with
-----
the Applicable Procedures.

(B)  Temporary Securities
     --------------------

     Pending the preparation of definitive Securities, the Company may execute,
and upon Company Order the Trustee shall authenticate and make available for
delivery, temporary Securities which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
evidenced by their execution of such Securities.

     If temporary Securities are issued, the Company will cause definitive
Securities to be prepared without unreasonable delay.  After the preparation of
definitive Securities, the temporary Securities shall be exchangeable for
definitive Securities upon surrender of the temporary Securities at any office
or agency of the Company designated pursuant to Section 9.2, without charge to
                                                -----------
the Holder.  Upon surrender for cancellation of any one or more temporary
Securities the Company shall execute and the Trustee shall authenticate and make
available for delivery in exchange therefor a like principal amount of
definitive Securities of authorized denominations.  Until so exchanged the
temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities.

SECTION 3.5    Registration, Registration of Transfer and Exchange.
               ---------------------------------------------------

     The Company shall cause to be kept at the Corporate Trust Office of the
Trustee a register (the register maintained in such office and in any other
office or agency of the Company designated pursuant to Section 9.2 being herein
                                                       -----------
sometimes collectively referred to as the "Security Register") in which, subject
to such reasonable regulations as it may prescribe and provide to the Trustee in
writing, the Company shall provide for the registration of Securities and of
transfers of Securities.  The Trustee is hereby appointed "Security Registrar"
for the purpose of registering Securities and transfers and exchanges of
Securities as herein provided.

     Upon surrender for registration of transfer of any Security at an office or
agency of the Company designated pursuant to Section 9.2 for such purpose, the
                                             -----------
Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Securities of
any authorized denominations and of a like aggregate principal amount and
bearing such restrictive legends as may be required by this Indenture.

                                      -32-
<PAGE>

     At the option of the Holder, and subject to the other provisions of this
Section 3.5, Securities may be exchanged for other Securities of any authorized
-----------
denomination and of a like aggregate principal amount, upon surrender of the
Securities to be exchanged at any such office or agency.  Whenever any
Securities are so surrendered for exchange, and subject to the other provisions
of this Section 3.5, the Company shall execute, and the Trustee shall
        -----------
authenticate and make available for delivery, the Securities which the Holder
making the exchange is entitled to receive.  Every Security presented or
surrendered for registration of transfer or for exchange shall (if so required
by the Company or the Security Registrar) be duly endorsed, or be accompanied by
a written instrument of transfer in form satisfactory to the Security Registrar
duly executed, by the Holder thereof or his attorney duly authorized in writing.

     All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
debt, and subject to the other provisions of this Section 3.5, entitled to the
                                                  -----------
same benefits under this Indenture, as the Securities surrendered upon such
registration of transfer or exchange.

     No service charge shall be made for any registration of transfer or
exchange of Securities except as provided in Section 3.6, but the Company may
                                             -----------
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Securities, other than exchanges pursuant to Section 3.4, 10.8, 11.2
                                                         -----------  ----  ----
or 13.3 (other than where the shares of Common Stock are to be issued or
   ----
delivered in a name other than that of the Holder of the Security) not involving
any transfer and other than any stamp and other duties, if any, which may be
imposed in connection with any such transfer or exchange by the United States or
any political subdivision thereof or therein, which shall be paid by the
Company.

     In the event of a redemption of the Securities, the Company will not be
required (a) to register the transfer of or exchange Securities for a period of
15 days immediately preceding the date notice is given identifying the serial
numbers of the Securities called for such redemption or (b) to register the
transfer of or exchange any Security, or portion thereof, called for redemption.

SECTION 3.6    Mutilated, Destroyed, Lost or Stolen Securities.
               -----------------------------------------------

     If any mutilated Security is surrendered to the Trustee, the Company shall
execute and the Trustee shall authenticate and make available for delivery in
exchange therefor a new Security of like tenor and principal amount and bearing
a number not contemporaneously outstanding.

     If there be delivered to the Company and to the Trustee:

     (1) evidence to their satisfaction of the destruction, loss or theft of any
Security, and

                                      -33-
<PAGE>

     (2) such security or indemnity as may be satisfactory to the Company and
the Trustee to save each of them and any agent of either of them harmless,

then, in the absence of actual notice to the Company or the Trustee that such
Security has been acquired by a bona fide purchaser, the Company shall execute
and the Trustee shall authenticate and make available for delivery, in lieu of
any such destroyed, lost or stolen Security, a new Security of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

     In case any such mutilated, destroyed, lost or stolen Security has become
or is about to become due and payable, the Company in its discretion, but
subject to any conversion rights, may, instead of issuing a new Security, pay
such Security, upon satisfaction of the conditions set forth in the preceding
paragraph.

     Upon the issuance of any new Security under this Section 3.6, the Company
                                                      -----------
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto (other than any
stamp and other duties, if any, which may be imposed in connection therewith by
the United States or any political subdivision thereof or therein, which shall
be paid by the Company) and any other expenses (including the fees and expenses
of the Trustee) connected therewith.

     Every new Security issued pursuant to this Section 3.6 in lieu of any
                                                -----------
mutilated, destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the mutilated,
destroyed, lost or stolen Security shall be at any time enforceable by anyone,
and such new Security shall be entitled to all the benefits of this Indenture
equally and proportionately with any and all other Securities duly issued
hereunder.

     The provisions of this Section 3.6 are exclusive and shall preclude (to the
                            -----------
extent lawful) all other rights and remedies of any Holder with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities.

SECTION 3.7    Payment of Interest; Interest Rights Preserved.
               ----------------------------------------------

     Subject to the last paragraph of this Section, interest on any Security
which is payable, and is punctually paid or duly provided for, on any Interest
Payment Date shall be paid to the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest.

     Any interest on any Security which is payable, but is not punctually paid
or duly provided for, on any Interest Payment Date (herein called "Defaulted
Interest") shall forthwith cease to be payable to the Holder on the relevant
Regular Record Date by virtue of having been such Holder,

                                      -34-
<PAGE>

and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:

     (1)  The Company may elect to make payment of any Defaulted Interest to the
Persons in whose names the Securities (or their respective Predecessor
Securities) are registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest, which shall be fixed in the following
manner.  The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Security, the date of the
proposed payment and the Special Record Date, and at the same time the Company
shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this Clause
provided.  The Special Record Date for the payment of such Defaulted Interest
shall be not more than 15 days and not less than 10 days prior to the date of
the proposed payment and not less than 12 days after the receipt by the Trustee
of the notice of the proposed payment.  The Trustee, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be mailed, first-
class postage prepaid, to each Holder at such Holder's address as it appears in
the Security Register, not less than 10 days prior to such Special Record Date.
Notice of the proposed payment of such Defaulted Interest and the Special Record
Date therefor having been so mailed, such Defaulted Interest shall be paid to
the Persons in whose names the Securities (or their respective Predecessor
Securities) are registered at the close of business on such Special Record Date
and shall no longer be payable pursuant to the following Clause (2).

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

     Subject to the foregoing and following provisions of this Section and
Section 3.5, each Security delivered under this Indenture upon registration of
-----------
transfer of or in exchange for or in lieu of any other Security shall carry the
rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.

     Interest on any Security which is converted in accordance with Section 11.2
                                                                    ------------
during a Record Date Period shall be payable in accordance with the provisions
of Section 11.2.
   ------------

                                      -35-
<PAGE>

SECTION 3.8    Persons Deemed Owners.
               ---------------------

     Prior to due presentment of a Security for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name such Security is registered as the owner of such Security
for the purpose of receiving payment of principal of, premium, if any (including
the Make-Whole Payment, if any), and (subject to Section 3.7) interest on such
                                                 -----------
Security and for all other purposes whatsoever, whether or not such Security be
overdue, and neither the Company, the Trustee nor any agent of the Company or
the Trustee shall be affected by notice to the contrary.

SECTION 3.9    Cancellation.
               ------------

     All Securities surrendered for payment, redemption, repurchase,
registration of transfer or exchange or conversion shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee.  All Securities so
delivered to the Trustee shall be canceled promptly by the Trustee.  No
Securities shall be authenticated in lieu of or in exchange for any Securities
canceled as provided in this Section 3.9.  The Trustee shall destroy all
                             -----------
canceled Securities in accordance with its customary practices in effect from
time to time and shall deliver a certificate of such destruction to the Company.

SECTION 3.10   Computation of Interest.
               -----------------------

     Interest on the Securities shall be computed on the basis of a 360-day year
of twelve 30-day months.

SECTION 3.11   CUSIP Numbers.
               -------------

     The Company in issuing Securities may use "CUSIP" numbers (if then
generally in use) in addition to serial numbers; the Trustee shall use such
CUSIP numbers in addition to serial numbers in notices of redemption and
repurchase as a convenience to Holders; provided that any such notice may state
                                        ---------
that no representation is made as to the correctness of such CUSIP numbers
either as printed on the Securities or as contained in any notice of a
redemption or repurchase and that reliance may be placed only on the serial or
other identification numbers printed on the Securities, and any such redemption
or repurchase shall not be affected by any defect in or omission of such CUSIP
numbers.  The Company shall promptly notify the Trustee in writing of any change
in any such CUSIP number.

                                      -36-
<PAGE>

                                  ARTICLE IV

                          SATISFACTION AND DISCHARGE

SECTION 4.1    Satisfaction and Discharge of Indenture.
               ---------------------------------------

     This Indenture shall upon Company Request cease to be of further effect
(except as to any surviving rights of conversion, or registration of transfer or
exchange, or replacement of Securities herein expressly provided for and the
Company's obligations to the Trustee pursuant to Section 6.7), and the Trustee,
                                                 -----------
at the expense of the Company, shall execute proper instruments in form and
substance satisfactory to the Trustee acknowledging satisfaction and discharge
of this Indenture, when

     (1)  either

          (A) all Securities theretofore authenticated and delivered (other than
(i) Securities which have been destroyed, lost or stolen and which have been
replaced or paid as provided in Section 3.6 and (ii) Securities for whose
                                -----------
payment money has theretofore been deposited in trust or segregated and held in
trust by the Company and thereafter repaid to the Company or discharged from
such trust, as provided in Section 9.3) have been delivered to the Trustee for
                           -----------
cancellation; or

          (B) all such Securities not theretofore delivered to the Trustee or
its agent for cancellation (other than Securities referred to in clauses (i) and
(ii) of clause (1)(A) above)

              (i)   have become due and payable, or

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

              (iii) are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of redemption
by the Trustee in the name, and at the expense, of the Company, and the Company,
in the case of clause (i), (ii) or (iii) of this Clause 1(B), has deposited or
caused to be deposited with the Trustee as trust funds (immediately available to
the Holders in the case of clause (i)) in trust for the purpose an amount
sufficient to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal, premium,
if any (including the Make-Whole Payment, if any), and interest to the date of
such deposit (in the case of Securities which have become due and payable) or to
the Stated Maturity or Redemption Date, as the case may be;

                                      -37-
<PAGE>

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

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

     Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 6.7, the obligations of
                                                -----------
the Company to any Authenticating Agent under Section 6.12, the obligations of
                                              ------------
the Trustee under Section 4.2 and the last paragraph of Section 9.3 and the
                  -----------                           -----------
obligations of the Company and the Trustee under Section 3.5 and Article Eleven
                                                 -----------     --------------
shall survive.  Funds held in trust pursuant to this Section are not subject to
the provisions of Article Twelve.
                  --------------

SECTION 4.2    Application of Trust Money.
               --------------------------

     Subject to the provisions of the last paragraph of Section 9.3, all money
                                                        -----------
deposited with the Trustee pursuant to Section 4.1 shall be held in trust and
                                       -----------
applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent), to the Persons entitled
thereto, of the principal, premium, if any (including the Make-Whole Payment, if
any), and interest for whose payment such money has been deposited with the
Trustee.

     All moneys deposited with the Trustee pursuant to Section 4.1 (and held by
                                                       -----------
it or any Paying Agent) for the payment of Securities subsequently converted
shall be returned to the Company upon Company Request.

                                   ARTICLE V

                                   REMEDIES

SECTION 5.1    Events of Default.
               -----------------

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

     (1)  default in the payment of the principal of or premium, if any
(including the Make-Whole Payment, if any), on any Security at its Maturity,
whether or not the such payment is prohibited by the subordination provisions of
this Indenture; or

                                      -38-
<PAGE>

     (2)  default in the payment of any interest upon any Security when it
becomes due and payable, and continuance of such default for a period of 30
days, whether or not the such payment is prohibited by the subordination
provisions of this Indenture; or

     (3)  failure by the Company to give the Company Notice, if required, in
accordance with Section 13.3; or
                ------------

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

     (5)  a default in the payment when due (after expiration of any applicable
grace period) under any bond, debenture, note or other evidence of any
indebtedness for money borrowed by the Company or any Subsidiary of the Company
or under any mortgage, indenture or instrument under which there may be issued
or by which there may be secured or evidenced any indebtedness for money
borrowed by the Company or any Subsidiary of the Company of a principal amount
in excess of U.S. $10 million, whether such indebtedness now exists or shall
hereafter be created, or a default under any bond, debenture, note or other
evidence of indebtedness for money borrowed by the Company or any Subsidiary of
the Company or under any mortgage, indenture or instrument under which there may
be issued or by which there may be secured or evidenced any indebtedness for
money borrowed by the Company or any Subsidiary of the Company resulting in the
acceleration of such indebtedness in excess of U.S. $10 million, if the
indebtedness is not discharged, or the acceleration is not annulled, within 30
days after written notice to the Company by the Trustee or the holders of at
least 25% in aggregate principal amount of the outstanding notes; or

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

                                      -39-
<PAGE>

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

SECTION 5.2    Acceleration of Maturity; Rescission and Annulment.
               --------------------------------------------------

     If an Event of Default (other than an Event of Default specified in Section
                                                                         -------
5.1(6) or 5.1(7)) occurs and is continuing, then in every such case the Trustee
------    ------
or the Holders of not less than 25% in principal amount of the Outstanding
Securities may declare the principal of all the Securities to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by the Holders), and upon any such declaration such principal and all accrued
interest thereon shall become immediately due and payable.  If an Event of
Default specified in Section 5.1(6) or 5.1(7) occurs, the principal of, and
                     --------------    ------
accrued interest on, all the Securities shall ipso facto become immediately due
                                              ---- -----
and payable without any declaration or other Act of the Holder or any act on the
part of the Trustee.

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

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

          (A) all overdue interest on all Securities,

          (B) the principal of and premium, if any (including the Make-Whole
Payment, if any), on any Securities which have become due otherwise than by such
declaration of acceleration and any interest thereon at the rate borne by the
Securities,

          (C) to the extent permitted by applicable law, interest upon overdue
interest at a rate of 4.50% per annum, and

                                      -40-
<PAGE>

          (D) all sums paid or advanced by the Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel; and

     (2)  all Events of Default, other than the nonpayment of the principal of,
and any premium and interest on, Securities which have become due solely by such
declaration of acceleration, have been cured or waived as provided in Section
                                                                      -------
5.13.
----

     No rescission or annulment referred to above shall affect any subsequent
default or impair any right consequent thereon.

SECTION 5.3    Collection of Indebtedness and Suits for Enforcement by Trustee.
               ---------------------------------------------------------------

     The Company covenants that if

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

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

the Company will upon demand of the Trustee pay to it, for the benefit of the
Holders of such Securities the whole amount then due and payable on such
Securities for principal and interest and interest on any overdue principal and
premium, if any (including the Make-Whole Payment, if any), and, to the extent
permitted by applicable law, on any overdue interest, at a rate of 4.50% per
annum, and in addition thereto, such further amount as shall be sufficient to
cover the reasonable costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel.

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

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

                                      -41-
<PAGE>

SECTION 5.4    Trustee May File Proofs of Claim.
               --------------------------------

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

     (1)  to file and prove a claim for the whole amount of principal, premium,
if any, and interest owing and unpaid in respect of the Securities and take such
other actions, including participating as a member, voting or otherwise, of any
official committee of creditors appointed in such matter, and to file such other
papers or documents, in each of the foregoing cases, as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and of the Holders of Securities allowed in
such judicial proceeding, and

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder of Securities to make such payments to the Trustee and, in the event
that the Trustee shall consent to the making of such payments directly to the
Holders of Securities, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel and any other amounts due the Trustee under Section 6.7.
                                                                   -----------

     Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder of a Security
any plan of reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of any Holder thereof or to authorize the Trustee to
vote in respect of the claim of any Holder of a Security in any such proceeding;
provided, however, that the Trustee may, on behalf of such Holders, vote for the
 -------  -------
election of a trustee in bankruptcy or similar official.

SECTION 5.5    Trustee May Enforce Claims Without Possession of Securities.
               -----------------------------------------------------------

     All rights of action and claims under this Indenture (including the amounts
provided for in Section 6.7) or the Securities may be prosecuted and enforced by
the Trustee without the possession of any of the Securities or the production
thereof in any proceeding relating thereto, and any such proceeding instituted
by the Trustee shall be brought in its own name as trustee of

                                      -42-
<PAGE>

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

SECTION 5.6    Application of Money Collected.
               ------------------------------

     Subject to Article Twelve, any money collected by the Trustee pursuant to
                --------------
this Article Five shall be applied in the following order, at the date or dates
     ------------
fixed by the Trustee and, in case of the distribution of such money on account
of principal, premium, if any (including the Make-Whole Payment, if any), or
interest, upon presentation of the Securities and the notation thereon of the
payment if only partially paid and upon surrender thereof if fully paid:

     FIRST: To the payment of all amounts due the Trustee under Section 6.7;
                                                                -----------

     SECOND: To the payment of the amounts then due and unpaid for principal of,
premium, if any (including the Make-Whole Payment, if any), or interest on, the
Securities in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to the
amounts due and payable on such Securities for principal, premium, if any
(including the Make-Whole Payment, if any), and interest, respectively; and

     THIRD: Any remaining amounts shall be repaid to the Company.

SECTION 5.7    Limitation on Suits.
               -------------------

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

     (1)  such Holder has previously given written notice to the Trustee of an
Event of Default that is continuing at the time of such institution;

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

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

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

                                      -43-
<PAGE>

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

SECTION 5.8    Unconditional Right of Holders to Receive Principal, Premium and
               ----------------------------------------------------------------
               Interest and to Convert.
               -----------------------

     Notwithstanding any other provision in this Indenture, the Holder of any
Security shall have the right, which is absolute and unconditional, to receive
payment of the principal of, premium, if any (including the Make-Whole Payment,
if any), and (subject to Section 3.7) interest on such Security on the
                         -----------
respective Stated Maturities expressed in such Security (or, in the case of
redemption or repurchase, on the Redemption Date or Repurchase Date, as the case
may be), and to convert such Security in accordance with Article Eleven, and to
                                                         --------------
institute suit for the enforcement of any such payment and right to convert, and
such rights shall not be impaired without the consent of such Holder.

SECTION 5,9    Restoration of Rights and Remedies.
               ----------------------------------

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

SECTION 5.10   Rights and Remedies Cumulative.
               ------------------------------

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

                                      -44-
<PAGE>

SECTION 5.11   Delay or Omission Not Waiver.
               ----------------------------

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

SECTION 5.12   Control by Holders of Securities.
               --------------------------------

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

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

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

In the event of such direction, the Trustee shall have no duty to ascertain
whether such actions or forbearances are unduly prejudicial to any Holders.

SECTION 5.13   Waiver of Past Defaults.
               -----------------------

     The Holders, either (a) through the written consent of not less than a
majority in principal amount of the Outstanding Securities, or (b) by the
adoption of a resolution, at a meeting of Holders of the Outstanding Securities
at which a quorum is present, by the Holders of at least a majority in principal
amount of the Outstanding Securities represented at such meeting, may on behalf
of the Holders of all the Securities waive any past default hereunder and its
consequences, except a default (1) in the payment of the principal of, premium,
if any (including the Make-Whole Payment, if any), or interest on any Security,
or (2) in respect of a covenant or provision hereof which under Article Eight
                                                                -------------
cannot be modified or amended without the consent of the Holder of each
Outstanding Security affected.

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

                                      -45-
<PAGE>

SECTION 5.14   Undertaking for Costs.
               ---------------------

     All parties to this Indenture agree, and each Holder of any Security by its
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in
its discretion assess reasonable costs, including reasonable attorneys' fees and
expenses, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant; but
the provisions of this Section 5.14 shall not apply to any suit instituted by
                       -------------
the Company, to any suit instituted by the Trustee, to any suit instituted by
any Holder, or group of Holders, holding in the aggregate more than 10% in
principal amount of the Outstanding Securities, or to any suit instituted by any
Holder of any Security for the enforcement of the payment of the principal of,
premium, if any, or interest on any Security on or after the respective Stated
Maturity or Maturities expressed in such Security (or, in the case of redemption
or repurchase, on or after the Redemption Date or Repurchase Date, as the case
may be) or for the enforcement of the right to convert any Security in
accordance with Article Eleven.
                --------------

                                  ARTICLE VI

                                  THE TRUSTEE

SECTION 6.1    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 on their face to the
requirements of this Indenture, but not to verify the contents thereof.

     (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 man would exercise or use under the circumstances in the conduct of his
own affairs.

                                      -46-
<PAGE>

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

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

          (3) the Trustee shall not be liable with respect to any action taken
or omitted to be taken by it in good faith in accordance with the direction of
the Holders of a majority in aggregate principal amount of the Outstanding
Securities 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;

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

          (5) the Trustee shall not be liable for interest on any money received
by it acting in its capacity as Trustee hereunder except as the Trustee may
agree in writing with the Company.

     (d)  In the absence of negligence or willful misconduct on the part of the
Trustee, the Trustee shall not be responsible for the applications of any money
by any Paying Agent other than the Trustee.

     (e)  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 and
the Trust Indenture Act.

SECTION 6.2    Notice of Defaults.
               ------------------

     Within 90 days after a Responsible Officer becomes aware of the occurrence
of any default hereunder as to which the Trustee has actually received written
notice, the Trustee shall give to all Holders of Securities, in the manner
provided in Section 1.6, notice of such default, unless such default shall have
            -----------
been cured or waived; provided, however, that, except in the case of a default
                      --------  -------
in the payment of the principal of, premium, if any, or interest on any Security
the

                                      -47-
<PAGE>

Trustee shall be protected in withholding such notice if and so long as the
board of directors, the executive committee or a trust committee of directors or
Responsible Officers of the Trustee in good faith determine that the withholding
of such notice is in the interest of the Holders; and provided, further, that in
                                                      --------  -------
the case of any default of the character specified in Section 5.1(4), no such
                                                      --------------
notice to Holders of Securities shall be given until at least 60 days after the
occurrence thereof.  For the purpose of this Section, the term "default" means
any event which is, or after notice or lapse of time or both would become, an
Event of Default.

SECTION  6.3   Certain Rights of Trustee.
               -------------------------

     Subject to the provisions of Section 6.1:
                                  -----------

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

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

     (3)  whenever in the administration of this Indenture the Trustee shall
deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other evidence
be herein specifically prescribed) may, in the absence of bad faith on its part,
request and rely upon an Officers' Certificate and the Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on the
Officer's Certificate;

     (4)  the Trustee may consult with counsel of its selection (at the expense
of the Company) 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 reliance
thereon;

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

     (6)  the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request,

                                      -48-
<PAGE>

direction, consent, order, bond, debenture, note, coupon, other evidence of
indebtedness or other paper or document, but the Trustee may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such further inquiry or investigation, it
shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney;

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

     (8)  the Trustee shall not be liable for any action it takes or omits to
take in good faith which it reasonably believes to be authorized or within its
rights or powers; provided, however, that the Trustee's action or omission does
                  --------  -------
not constitute willful misconduct or negligence;

     (9)  any permissive right of the Trustee hereunder shall not be construed
to be a duty; and

     (10) the Trustee shall not be charged with knowledge of any Event of
Default, other than as described in Section 5.1(1) or (2), unless and except to
                                    --------------    ---
the extent actually known to a Responsible Officer or written notice thereof is
received by the Trustee at its Corporate Trust Office.

SECTION 6.4    Not Responsible for Recitals or Issuance of Securities.
               ------------------------------------------------------

     The recitals contained herein and in the Securities (except the Trustee's
certificates of authentication) shall be taken as the statements of the Company,
and the Trustee assumes no responsibility for their correctness.  The Trustee
makes no representations as to the validity or sufficiency of this Indenture, of
the Securities or of the Common Stock issuable upon the conversion of the
Securities.  The Trustee shall not be accountable for the use or application by
the Company of Securities or the proceeds thereof.

SECTION 6.5    May Hold Securities, Act as Trustee Under Other Indentures.
               ----------------------------------------------------------

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

                                      -49-
<PAGE>

     The Trustee may become and act as trustee under other indentures under
which other securities, or certificates of interest or participation in other
securities, of the Company are outstanding in the same manner as if it were not
Trustee hereunder.

SECTION 6.6    Money Held in Trust.
               -------------------

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

SECTION 6.7    Compensation and Reimbursement.
               ------------------------------

     The Company agrees

     (1)  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);

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

     (3)  to indemnify the Trustee (and its directors, officers, employees and
agents) for, and to hold it harmless against, any and all loss, damage, claim,
liability or expense, including taxes (other than taxes based on the income of
the Trustee), incurred without negligence or bad faith on its part, arising out
of or in connection with the acceptance or administration of this trust,
including the reasonable costs, expenses and reasonable attorneys' fees of
defending itself against any claim or liability in connection with the exercise
or performance of any of its powers or duties hereunder.

     When the Trustee incurs expenses or renders services in connection with an
Event of Default specified in Section 5.1(6) or Section 5.1(7), the expenses
                              --------------    --------------
(including the reasonable charges of its counsel) and the compensation for the
services are intended to constitute expenses of the administration under any
applicable Federal or State bankruptcy, insolvency or other similar law.

     The Trustee is hereby granted a security interest in and a lien prior to
the Securities as to all property and funds held by it hereunder for any amount
owing it or any predecessor Trustee

                                      -50-
<PAGE>

pursuant to this Section 6.7, except with respect to funds held in trust for the
                 -----------
benefit of the Holders of particular Securities.

     The provisions of this Section shall survive the termination of this
Indenture or the earlier resignation or removal of the Trustee.

SECTION 6.8    Corporate Trustee Required; Eligibility.
               ---------------------------------------

     There shall at all times be a Trustee hereunder which shall be a Person
that is eligible pursuant to the Trust Indenture Act to act as such, having a
combined capital and surplus of at least U.S.$250,000,000, subject to
supervision or examination by Federal or State authority, in good standing and
having an established place of business in the Borough of Manhattan, The City of
New York.  If such corporation publishes reports of condition at least annually,
pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article and a successor shall be
appointed pursuant to Section 6.9.
                      -----------

SECTION 6.9    Resignation and Removal; Appointment of Successor.
               -------------------------------------------------

          (a)  No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 6.10.
                           ------------

          (b)  The Trustee may resign at any time by giving written notice
thereof to the Company. If the instrument of acceptance by a successor Trustee
required by Section 6.10 shall not have been delivered to the Trustee within 30
            ------------
days after the giving of such notice of resignation, the resigning Trustee may
petition any court of competent jurisdiction for the appointment of a successor
Trustee.

          (c)  The Trustee may be removed at any time by Act of the Holders of a
majority in aggregate principal amount of the Outstanding Securities, delivered
to the Trustee and the Company.  If the instrument of acceptance by a successor
Trustee required by Section 6.10 shall not have been delivered to the Trustee
                    ------------
within 30 days after the giving of such notice of removal, the removed Trustee
may petition any court of competent jurisdiction for the appointment of a
successor Trustee.

                                      -51-
<PAGE>

          (d)  If at any time:

               (1) the Trustee shall cease to be eligible under Section 6.8 and
                                                                -----------
shall fail to resign after written request therefor by the Company or by any
Holder of a Security who has been a bona fide Holder of a Security for at least
six months, or

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

then, in any such case (i) the Company by a Board Resolution may remove the
Trustee, or (ii) subject to Section 5.14, any Holder of a Security who has been
                            ------------
a bona fide Holder of a Security for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

          (e)  If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, the
Company, by a Board Resolution, shall promptly appoint a successor Trustee and
shall comply with the applicable requirements of this Section and Section 6.10.
                                                                  ------------
If, within one year after such resignation, removal or incapability, or
occurrence of such vacancy, a successor Trustee shall be appointed by Act of the
Holders of a majority in aggregate principal amount of the Outstanding
Securities delivered to the Company and the retiring Trustee, the successor
Trustee so appointed shall, forthwith upon its acceptance of such appointment in
accordance with the applicable requirements of Section 6.10 become the successor
                                               ------------
Trustee and supersede the successor Trustee appointed by the Company. If no
successor Trustee shall have been so appointed by the Company or the Holders of
Securities and accepted appointment in the manner required by this Section and
Section 6.10, any Holder of a Security who has been a bona fide Holder of a
------------
Security for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Trustee.

          (f)  The Company shall give notice of each resignation and each
removal of the Trustee and each appointment of a successor Trustee to all
Holders of Securities in the manner provided in Section 1.6. Each notice shall
                                                -----------
include the name of the successor Trustee and the address of its Corporate Trust
Office.

SECTION 6.10   Acceptance of Appointment by Successor.
               --------------------------------------

          Every successor Trustee appointed hereunder shall execute, acknowledge
and deliver to the Company and to the retiring Trustee an instrument accepting
such appointment, and thereupon the resignation or removal of the retiring
Trustee shall become effective and such

                                      -52-
<PAGE>

successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of the Company or the successor Trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder, subject
to the lien provided for in Section 6.7. 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.

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

SECTION 6.11   Merger, Conversion, Consolidation or Succession to Business.
               -----------------------------------------------------------

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

SECTION 6.12   Authenticating Agents.
               ---------------------

     The Trustee may, with the consent of the Company, appoint an Authenticating
Agent or Agents acceptable to the Company with respect to the Securities which
shall be authorized to act on behalf of the Trustee to authenticate Securities
issued upon exchange or substitution pursuant to this Indenture.

     Securities authenticated by an Authenticating Agent 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, and every reference in
this Indenture to the authentication and delivery of Securities by the Trustee
or the Trustee's certificate of authentication shall be deemed to include
authentication and delivery on behalf of the Trustee by an Authenticating Agent
and a certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent.  Each Authenticating Agent shall be subject to acceptance
by 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

                                      -53-
<PAGE>

Agent and subject to supervision or examination by government or other fiscal
authority.  If at any time an Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section 6.12 such Authenticating Agent
                                       ------------
shall resign immediately in the manner and with the effect specified in this
Section 6.12.
------------

     Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
                      --------
under this Section 6.12, without the execution or filing of any paper or any
           ------------
further act on the part of the Trustee or the Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and to the Company.  The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice thereof
to such Authenticating Agent and to the Company.  Upon receiving such a notice
of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 6.12, the Trustee may appoint a successor
                   ------------
Authenticating Agent which shall be subject to acceptance by the Company.  Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section 6.12.
                   ------------

     The Company agrees to pay to each Authenticating Agent from time to time
reasonable compensation for its services under this Section 6.12.
                                                    ------------

     If an Authenticating Agent is appointed with respect to the Securities
pursuant to this Section 6.12, the Securities may have endorsed thereon, in
                 ------------
addition to or in lieu of the Trustee's certification of authentication, an
alternative certificate of authentication in the following form:

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

                              Wilmington Trust Company,
                              as Trustee
                              By [Authenticating Agent],
                              as Authenticating Agent

                              By  ___________________________________
                                    Authorized Signature

                                      -54-
<PAGE>

SECTION 6.13   Disqualification; Conflicting Interests.
               ---------------------------------------

     If the Trustee has or shall acquire a conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture.

SECTION 6.14   Preferential Collection of Claims Against Company.
               -------------------------------------------------

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

                                  ARTICLE VII

             CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

SECTION 7.1    Company May Consolidate, Etc., Only on Certain Terms.
               ----------------------------------------------------

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

     (1)  in case the Company shall consolidate with or merge into another
Person or convey, transfer or lease its properties and assets substantially as
an entirety to any Person, the Person formed by such consolidation or into which
the Company is merged, or the Person which acquires by conveyance or transfer,
or which leases the properties and assets of the Company substantially as an
entirety, shall (i) be a corporation, limited liability company, partnership or
trust, (ii) shall be an entity (A) organized and validly existing under the laws
of the United States of America, any State thereof or the District of Columbia
or (B) organized and validly existing under the laws of jurisdiction outside of
the United States of America, with its common stock, or American Depositary
Shares representing such shares of common stock, traded on a national securities
exchange in the United States of America or through Nasdaq and an average
worldwide total market capitalization of its equity securities, before giving
effect to such Merger of consolidation, of at least U.S. $5 billion during the
five consecutive Trading Days immediately preceding the date of the transaction
and (iii)  shall expressly assume, by an indenture supplemental hereto, executed
and delivered to the Trustee, in form satisfactory to the Trustee, the due and
punctual payment of the principal of, premium, if any (including the Make-Whole
Payment, if any), and interest on all of the Securities as applicable, and the
performance or observance of every covenant of this Indenture on the part of the
Company to be performed or

                                      -55-
<PAGE>

observed and shall have provided for conversion rights substantially in
accordance with Article Eleven;
                --------------

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

     (3)  the Company has delivered to the Trustee an Officers' Certificate and
an Opinion of Counsel, each stating that such consolidation, merger, conveyance,
transfer or lease and, if a supplemental indenture is required in connection
with such transaction, such supplemental indenture comply with this Article and
that all conditions precedent provided for in this Article relating to such
transaction have been complied with, together with any documents required under
Section 8.3.
-----------

SECTION 7.2    Successor Substituted.
               ---------------------

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

                                 ARTICLE VIII

                            SUPPLEMENTAL INDENTURES

SECTION 8.1    Supplemental Indentures Without Consent of Holders of Securities.
               ----------------------------------------------------------------

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

     (1)  to evidence the succession of another Person to the Company and the
assumption by any such successor of the covenants and obligations of the Company
herein and in the Securities as permitted by this Indenture; or

     (2)  to add to the covenants of the Company for the benefit of the Holders
of Securities or to surrender any right or power herein conferred upon the
Company; or

                                      -56-
<PAGE>

     (3)  to secure the Securities; or

     (4)  to make provision with respect to the conversion rights of Holders of
Securities pursuant to Section 11.11; or
                       -------------

     (5)  to comply with the requirements of the Trust Indenture Act or the
rules and regulations of the Commission thereunder in order to effect or
maintain the qualification of this Indenture under the Trust Indenture Act, as
contemplated by this Indenture or otherwise; or

     (6)  to evidence and provide for the acceptance of appointment hereunder by
a successor Trustee; or

     (7)  to cure any ambiguity, to correct or supplement any provision herein
which may be inconsistent with any other provision herein or which is otherwise
defective, or to make any other provisions with respect to matters or questions
arising under this Indenture as the Company and the Trustee may deem necessary
or desirable, provided such action pursuant to this clause (7) shall not
              --------
adversely affect the interests of the Holders of Securities in any material
respect.

     Upon Company Request, accompanied by a Board Resolution authorizing the
execution of any such supplemental indenture, and subject to and upon receipt by
the Trustee of the documents described in Section 8.3 hereof, the Trustee shall
                                          -----------
join with the Company in the execution of any supplemental indenture authorized
or permitted by the terms of this Indenture and to make any further appropriate
agreements and stipulations which may be therein contained.

SECTION 8.2    Supplemental Indentures with Consent of Holders of Securities.
               -------------------------------------------------------------

     With either (a) the written consent of the Holders of not less than a
majority in principal amount of the Outstanding Securities, by the Act of said
Holders delivered to the Company and the Trustee, or (b) the adoption of a
resolution, at a meeting of Holders of the Outstanding Securities at which a
quorum is present, by the Holders of a majority in principal amount of the
Outstanding Securities represented at such meeting, the Company, when authorized
by a Board Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders of Securities under this
Indenture; provided, however, that no such supplemental indenture shall, without
           -----------------
the consent or affirmative vote of the Holder of each Outstanding Security
affected thereby,

     (1)  change the Stated Maturity of the principal of, or any installment of
interest on, any Security, or reduce the principal amount or the rate of
interest payable thereon or any amount (including the Make-Whole Payment)
payable upon redemption or repurchase pursuant to Article Thirteen thereof, or
                                                  ----------------
change the place at which any payment on any Security is payable, or change the
coin or currency in which any Security or the interest or any premium (including
the

                                      -57-
<PAGE>

Make-Whole Payment) thereon or any other amount in respect thereof is payable,
or impair the right to institute suit for the enforcement of any payment in
respect of any Security on or after the Stated Maturity thereof (or, in the case
of redemption or any repurchase, on or after the Redemption Date or Repurchase
Date, as the case may be) or, except as permitted by Section 11.11, adversely
                                                     -------------
affect the right to convert any Security as provided in Article Eleven, or
                                                        --------------
modify the provisions of this Indenture with respect to the subordination of the
Securities in a manner adverse to the Holders of Securities; or

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

     (3)  modify any of the provisions of this Section and Section 5.13 except
                                                           ------------
to increase any percentage contained herein or therein or to provide that
certain other provisions of this Indenture cannot be modified or waived without
the consent of the Holder of each Outstanding Security affected thereby; or

     (4)  modify the provisions of Article Thirteen in a manner adverse to the
                                   ----------------
Holders; or

     (5)  modify any of the provisions of Section 9.8.
                                          -----------

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

SECTION 8.3    Execution of Supplemental Indentures.
               ------------------------------------

     In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive,
and (subject to Sections 6.1 and 6.3) shall be fully protected in relying upon,
                ------------     ---
an Opinion of Counsel stating that the execution of such supplemental indenture
is authorized or permitted by this Indenture, and that such supplemental
indenture has been duly authorized, executed and delivered by the Company and
constitutes a valid and legally binding obligation of the Company enforceable
against the Company in accordance with its terms.  The Trustee may, but shall
not be obligated to, enter into any such supplemental indenture which affects
the Trustee's own rights, duties or immunities under this Indenture or
otherwise.

                                      -58-
<PAGE>

SECTION 8.4    Effect of Supplemental Indentures.
               ---------------------------------

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

SECTION 8.5    Reference in Securities to Supplemental Indentures.
               --------------------------------------------------

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

SECTION 8.6    Notice of Supplemental Indentures.
               ---------------------------------

     Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of Section 8.2, the Company
                                                     -----------
shall give notice to all Holders of Securities of such fact, setting forth in
general terms the substance of such supplemental indenture in the manner
provided in Section 1.6.  Any failure of the Company to give such notice, or any
            -----------
defect therein, shall not in any way impair or affect the validity of any such
supplemental indenture.

                                    ARTICLE

                                   COVENANTS

SECTION 9.1    Payment of Principal, Premium and Interest.
               ------------------------------------------

     The Company covenants and agrees that it will duly and punctually pay the
principal of and premium, if any (including the Make-Whole Payment, if any), and
interest on the Securities in accordance with the terms of the Securities and
this Indenture.  The Company will deposit or cause to be deposited with the
Trustee, no later than the opening of business on the date of the Stated
Maturity of any Security or no later than the opening of business on the due
date for any installment of interest, all payments so due, which payments shall
be in immediately available funds on the date of such Stated Maturity or due
date, as the case may be.

                                      -59-
<PAGE>

SECTION 9.2    Maintenance of Offices or Agencies.
               ----------------------------------

     The Company hereby appoints the Corporate Trust Office of the Trustee,
where Securities may be presented or surrendered for payment, where Securities
may be surrendered for registration of transfer or exchange, where Securities
may be surrendered for conversion, and where notices and demands to or upon the
Company in respect of the Securities and this Indenture may be served.

     The Company may at any time and from time to time vary or terminate the
appointment of any such agent or appoint any additional agents for any or all of
such purposes; provided, however, that until all of the Securities have been
               --------  -------
delivered to the Trustee for cancellation, or moneys sufficient to pay the
principal of, premium, if any (including the Make-Whole Payment, if any), and
interest on the Securities have been made available for payment and either paid
or returned to the Company pursuant to the provisions of Section 9.3, the
                                                         -----------
Company will maintain in the Borough of Manhattan, The City of New York an
office or agency where Securities may be presented or surrendered for payment
and conversion, where Securities may be surrendered for registration of transfer
or exchange and where notices and demands to or upon the Company in respect of
the Securities and this Indenture may be served.  The Company will give prompt
written notice to the Trustee, and notice to the Holders in accordance with
Section 1.6, of the appointment or termination of any such agents and of the
-----------
location and any change in the location of any such office or agency.

     If at any time the Company shall fail to maintain any such required office
or agency, or shall fail to furnish the Trustee with the address thereof,
presentations and surrenders may be made and notices and demands may be served
on the Corporate Trust Office of the Trustee.

SECTION 9.3    Money for Security Payments To Be Held in Trust.
               -----------------------------------------------

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

     Whenever the Company shall have one or more Paying Agents, it will, no
later than the opening of business on each due date of the principal of,
premium, if any (including the Make-Whole Payment, if any), or interest on any
Securities, deposit with the Trustee a sum sufficient to pay the principal,
premium, if any, or interest so becoming due, such sum to be held for the
benefit of the Persons entitled to such principal, premium, if any (including
the Make-Whole Payment, if any), or interest, and (unless such Paying Agent is
the Trustee) the Company will promptly notify the Trustee of any failure so to
act.

                                      -60-
<PAGE>

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

     (1)  hold all sums held by it for the payment of the principal of, premium,
if any (including the Make-Whole Payment, if any), or interest on Securities for
the benefit of the Persons entitled thereto until such sums shall be paid to
such Persons or otherwise disposed of as herein provided;

     (2)  give the Trustee notice of any default by the Company (or any other
obligor upon the Securities) in the making of any payment of principal, premium,
if any (including the Make-Whole Payment, if any), or interest; and

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

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

     Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal of, premium, if any
(including the Make-Whole Payment, if any), or interest on any Security and
remaining unclaimed for two years after such principal, premium, if any, or
interest has become due and payable shall be paid within 60 days of such date by
the Trustee to the Company on Company Request, as its property free from trust,
or (if then held by the Company) shall be discharged from such trust; and the
Holder of such Security shall thereafter, as an unsecured general creditor, look
only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; provided, however, that the
                                                   --------  -------
Trustee or such Paying Agent, before being required to make any such repayment,
may at the expense of the Company cause to be published once, in an Authorized
Newspaper in each Place of Payment, notice that such money remains unclaimed and
that, after a date specified therein, which shall not be less than 30 days from
the date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Company.

                                      -61-
<PAGE>

SECTION 9.4    Existence.
               ---------

     Subject to Article Seven, the Company will do or cause to be done all
                -------------
things necessary to preserve and keep in full force and effect its existence,
rights (charter and statutory) and franchises; provided, however, that the
                                               --------  -------
Company shall not be required to preserve any such right or franchise if the
Board of Directors shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and that the loss
thereof is not disadvantageous in any material respect to the Holders.

SECTION 9.5    Maintenance of Properties.
               -------------------------

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

SECTION 9.6    Payment of Taxes and Other Claims.
               ---------------------------------

     The Company will pay or discharge, or cause to be paid or discharged,
before the same may become delinquent, (1) all taxes, assessments and
governmental charges levied or imposed upon the Company or any Subsidiary or
upon the income, profits or property of the Company or any Subsidiary, and (2)
subject to Sections 11.8 and 13.3(h), all stamps and other duties, if any, which
           -------------     -------
may be imposed by the United States or any political subdivision thereof or
therein in connection with the issuance, transfer, exchange or conversion of any
Securities or with respect to this Indenture; provided, however, that, in the
                                              --------  -------
case of clause (1), the Company shall not be required to pay or discharge or
cause to be paid or discharged any such tax, assessment, charge or claim (a) if
the failure to do so will not, in the aggregate, have a material adverse impact
on the Company, or (b) if the amount, applicability or validity is being
contested in good faith by appropriate proceedings.

SECTION 9.7    Statement by Officers as to Default.
               -----------------------------------

     The Company shall deliver to the Trustee, within 120 days after the end of
each fiscal year of the Company ending after the date hereof, an Officers'
Certificate (one of the signers of which shall be the Company's principal
executive, principal financial or principal accounting officer), stating whether
or not to the best knowledge of the signers thereof the Company is in

                                      -62-
<PAGE>

default in the performance and observance of any of the terms, provisions and
conditions of this Indenture (without regard to any period of grace or
requirement of notice provided hereunder) and, if the Company shall be in
default, specifying all such defaults and the nature and status thereof of which
they may have knowledge.

     The Company will deliver to the Trustee, forthwith upon becoming aware of
any default in the performance or observance of any covenant, agreement or
condition contained in this Indenture, or any Event of Default, an Officers'
Certificate specifying with particularity such default or Event of Default and
further stating what action the Company has taken, is taking or proposes to take
with respect thereto.

     Any notice required to be given under this Section 9.7 shall be delivered
                                                -----------
to the Trustee at its Corporate Trust Office.

SECTION 9.8    Waiver of Certain Covenants.
               ---------------------------

     The Company may omit in any particular instance to comply with any covenant
or conditions set forth in Sections 9.5 to 9.7 or otherwise in this Indenture
(other than a covenant or condition which under Article Eight cannot be modified
                                                -------------
or amended without the consent of the Holder of each Outstanding Security
affected), if before the time for such compliance the Holders shall, through the
written consent of, not less than a majority in principal amount of the
Outstanding Securities, either waive such compliance in such instance or
generally waive compliance with such covenant or condition, but no such waiver
shall extend to or affect such covenant or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the obligations
of the Company and the duties of the Trustee or any Paying or Conversion Agent
in respect of any such covenant or condition shall remain in full force and
effect.

                                    ARTICLE

                           REDEMPTION OF SECURITIES

SECTION 10.1   Right of Redemption.
               -------------------

     The Securities may be redeemed in accordance with the provisions of the
form of Securities set forth in Section 2.2.
                                -----------

SECTION 10.2   Applicability of Article.
               ------------------------

     Redemption of Securities at the election of the Company or otherwise, as
permitted or required by any provision of the Securities or this Indenture,
shall be made in accordance with such provisions and this Article Ten.
                                                          -----------

                                      -63-
<PAGE>

SECTION 10.3   Election to Redeem; Notice to Trustee.
               -------------------------------------

     The election of the Company to redeem any Securities shall be evidenced by
a Board Resolution.  In case of any redemption at the election of the Company of
any of the Securities, the Company shall, at least 60 days prior to the
Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee in writing of such Redemption
Date.

SECTION 10.4   Selection by Trustee of Securities To Be Redeemed.
               -------------------------------------------------

     If less than all the Securities are to be redeemed, the particular
Securities to be redeemed shall be selected by the Trustee within three Business
Days after it receives the notice described in Section 10.3, from the
                                               ------------
Outstanding Securities not previously called for redemption, by such method as
the Trustee may deem fair and appropriate.

     If any Security selected for partial redemption is converted in part before
termination of the conversion right with respect to the portion of the Security
so selected, the converted portion of such Security shall be deemed (so far as
may be) to be the portion selected for redemption.  Securities which have been
converted during a selection of Securities to be redeemed may be treated by the
Trustee as Outstanding for the purpose of such selection.

     The Trustee shall promptly notify the Company and each Security Registrar
in writing of the Securities selected for redemption and, in the case of any
Securities selected for partial redemption, the principal amount and certificate
numbers thereof to be redeemed.

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

SECTION 10.5   Notice of Redemption.
               --------------------

     Notice of redemption shall be given by the Company in the manner provided
in Section 1.6 to the Holders of Securities to be redeemed not less than 30 nor
   -----------
more than 60 days prior to the Redemption Date, and such notice shall be
irrevocable.

     All notices of redemption shall identify the Securities to be redeemed
(including CUSIP numbers) and shall state:

     (1)  the Redemption Date,

     (2)  the Redemption Price, and accrued interest, if any,

                                      -64-
<PAGE>

     (3)  if less than all Outstanding Securities are to be redeemed, the
aggregate principal amount of Securities to be redeemed,

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

     (5)  the Conversion Rate, the date on which the right to convert the
Securities to be redeemed will terminate and the places where such Securities
may be surrendered for conversion,

     (6)  the place or places where such Securities are to be surrendered for
payment of the Redemption Price and accrued interest, if any,

     (7)  the CUSIP number printed on the Securities being redeemed,

     (8)  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 Securities,

     (9)  whether the redemption is a Provisional Redemption or an Optional
Redemption,

     (10) if such a redemption is a Provisional Redemption, the amount of the
Make-Whole Payment, and

     (11) whether the Make-Whole Payment will be paid in Common Stock, cash or a
combination of cash and Common Stock.

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

SECTION 10.6   Deposit of Redemption Price or Make-Whole Payment.
               -------------------------------------------------

     Not less than one Business Day prior to any Redemption Date, the Company
shall deposit with the Trustee (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust as provided in Section 9.3) (i) an amount of
                                                  -----------
money (which shall be in immediately available funds on such Redemption Date)
sufficient to pay the Redemption Price of, and (except if the Redemption Date
shall be an Interest Payment Date) accrued interest on, all the Securities which
are to be redeemed on that date other than any Securities called for redemption
on that date which have been converted prior to the date of such deposit and
(ii) with respect to Securities called for Provisional Redemption pursuant to
Section 10.1, an amount of money (which shall be

                                      -65-
<PAGE>

in immediately available funds on the Redemption Date) or Common Stock
sufficient to pay the Make-Whole Payment for all the Securities (or portions
thereof) called for redemption (including those surrendered for conversion into
Common Stock after the Notice Date and prior to the Redemption Date in respect
thereof); provided that if such payment is made on the Redemption Date, it must
be received by the Trustee or Paying Agent, as the case may be, by 10:00 a.m.
New York City time on such date.

     If any Security called for redemption is converted, any money deposited
with the Trustee or with any Paying Agent or so segregated and held in trust for
the redemption of such Security shall (subject to any right of the Holder of
such Security or any Predecessor Security to receive interest as provided in the
last paragraph of Section 3.7) be paid to the Company on Company Request or, if
then held by the Company, shall be released from such trust; provided that, with
respect to a Provisional Redemption, any money or Common Stock so deposited for
payment of the Make-Whole Payment shall remain segregated and held in trust for
payment of the Make-Whole Payment which shall be made on all Securities called
for Provisional Redemption, including Securities converted into Common Stock
after the Notice Date and prior to the Redemption Date in respect of such
Provisional Redemption.

SECTION 10.7   Securities Payable on Redemption Date.
               -------------------------------------

     (a)  Notice of redemption having been given as aforesaid, the Securities so
to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and, with respect to Securities called for
Provisional Redemption, the Make-Whole Payment, and from and after such date
(unless the Company shall default in the payment of the Redemption Price,
including accrued interest or the Make-Whole Payment, if any) such Securities
shall cease to bear or accrue any interest.  Upon surrender of any such Security
for redemption in accordance with said notice, such Security shall be paid by
the Company at the Redemption Price, together with any accrued and unpaid
interest to (but not including) the Redemption Date and, with respect to
Securities called for Provisional Redemption (including Securities converted
into Common Stock pursuant to the terms hereof after the Notice Date and prior
to the Redemption Date in respect thereof), the Make-Whole Payment; provided,
however, that installments of interest whose Stated Maturity is on or prior to
the Redemption Date shall be payable to the Holders of such Securities, or one
or more Predecessor Securities, registered as such at the close of business on
the relevant Record Dates according to their terms and the provisions of Section
3.7; and provided further that, with respect to a Provisional Redemption, the
holder of any Securities converted into Common Stock pursuant to the terms of
this Indenture after the Notice Date and prior to the Redemption Date in respect
thereof shall have the right to the Make-Whole Payment, if any, with respect to
such Securities regardless of the conversion of such Securities.

     If the Company shall fail to deposit the Redemption Price (and Make-Whole
Payment, if any) with the Trustee and any Security called for redemption shall
not be so paid upon surrender

                                      -66-
<PAGE>

thereof for redemption, the principal and premium, if any (including the Make-
Whole Payment, if any) shall, until paid, bear and accrue interest from the
Redemption Date at the rate borne by the Security.

     (b)  Any issuance of shares of Common Stock in respect of the Make-Whole
Payment shall be deemed to have been effected immediately prior to the close of
business on the Redemption Date and the Person or Persons in whose name or names
any certificate or certificates for shares of Common Stock shall be issuable
upon such repurchase shall be deemed to have become on the Redemption Date the
holder or holders of record of the shares represented thereby.

     (c)  No fractions of shares shall be issued upon Provisional Redemption of
Securities.  If more than one Security shall be so redeemed from the same Holder
and all or any portion of the Make-Whole Payment shall be payable in shares of
Common Stock, the number of full shares which shall be issuable upon such
repurchase shall be computed on the basis of the aggregate principal amount of
the Securities so repurchased. Instead of any fractional share of Common Stock
which would otherwise be issuable on the Provisional Redemption of any Security
or Securities, the Company will deliver to the applicable Holder its check for
the value of such fractional share.  The value of a fraction of a share shall be
determined by multiplying the value of a share of Common Stock for purposes of
the Provisional Redemption by the fraction, and rounding the result to the
nearest cent.

     (d)  Any issuance and delivery of certificates for shares of Common Stock
on Provisional Redemption of Securities shall be made without charge to the
Holder of Securities being redeemed for such certificates or for any tax or duty
in respect of the issuance or delivery of such certificates or the securities
represented thereby; provided, however, that the Company shall not be required
                     --------  -------
to pay any tax or duty which may be payable in respect of (i) income of the
Holder or (ii) any transfer involved in the issuance or delivery of certificates
for shares of Common Stock in a name other than that of the Holder of the
Securities being redeemed, and no such issuance or delivery shall be made unless
and until the Person requesting such issuance or delivery has paid to the
Company the amount of any such tax or duty or has established, to the
satisfaction of the Company, that such tax or duty has been paid.

SECTION 10.8   Securities Redeemed in Part.
               ---------------------------

     Any Security which is to be redeemed only in part shall be surrendered at
an office or agency of the Company designated for that purpose pursuant to
Section 9.2 (with, if the Company or the Trustee so requires, due endorsement
-----------
by, or a written instrument of transfer in form satisfactory to the Trustee duly
executed by, the Holder thereof or his attorney duly authorized in writing), and
the Company shall execute, and the Trustee shall authenticate and make available
for delivery to the Holder of such Security without service charge, a new
Security or Securities, of any authorized denomination as requested by such
Holder, in aggregate principal

                                      -67-
<PAGE>

amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered.  Upon redemption, interests in Global Securities
shall be reduced in accordance with the Applicable Procedures.

SECTION 10.9   Conversion Arrangement on Call for Redemption.
               ---------------------------------------------

     In connection with any redemption of the Securities, the Company may
arrange for the purchase and conversion of any Securities by an agreement with
one or more investment bankers or other purchasers (the "Purchasers") to
purchase such Securities by paying to the Trustee in trust for the Holders, on
or before the Redemption Date, an amount not less than the applicable Redemption
Price, together with any interest accrued and unpaid to the Redemption Date, of
such Securities, and, in connection with a Provisional Redemption, the Make-
Whole Payment.  Notwithstanding anything to the contrary contained in this
Article Ten, the obligation of the Company to pay the Redemption Price, together
-----------
with any interest accrued and unpaid to the Redemption Date, and, in connection
with a Provisional Redemption, the Make-Whole Payment, 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 (a copy of which shall be
filed with the Trustee prior to the close of business on the second Business Day
immediately prior to the Redemption Date), any Securities called for redemption
that are 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, and
consistent with any agreement or agreements with such Purchasers, to be acquired
by such Purchasers from such Holders and (notwithstanding anything to the
contrary contained in this Article Ten) surrendered by such Purchasers for
                           -----------
conversion, all as of immediately prior to the close of business on the
Redemption Date (and the right to convert any such Securities shall be extended
through such time), subject to payment of the above amount as aforesaid,
including the Make-Whole Payment, if any, with respect to all Securities called
for Provisional Redemption.  At the direction of the Company, the Trustee shall
hold and dispose of any such amount paid to it by the Purchasers to the Holders
in the same manner as it would monies deposited with it by the Company for the
redemption of Securities.  Without the Trustee's prior written consent, no
arrangement between the Company and such Purchasers for the purchase and
conversion of any 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
Securities between the Company and such Purchasers, including the costs and
expenses, including reasonable legal fees, incurred by the Trustee 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.

                                      -68-
<PAGE>

SECTION 10.10  Conditions to the Company's Election to Pay the Make-Whole
               ----------------------------------------------------------
               Payment in Common Stock.
               -----------------------

     The Company may elect to pay all or a portion of the Make-Whole Payment by
delivery of shares of Common Stock if and only if the following conditions shall
have been satisfied:

     (a)  The shares of Common Stock deliverable in payment of the Make-Whole
Payment shall have a value, as determined in the following sentence, as of the
Repurchase Date of not less than the amount of the Make-Whole Payment.  For
purposes of this Section 10.10, the value of shares of Common Stock shall be
                 -------------
determined by the Company and shall be equal to 95% of the average of the
Closing Price Per Share for the five consecutive Trading Days immediately
preceding and including the third Trading Day prior to the Redemption Date in
respect of such Provisional Redemption;

     (b)  The Make-Whole Payment shall be paid only in cash in the event any
shares of Common Stock to be issued upon redemption of Securities hereunder (i)
require registration under any federal securities law before such shares may be
freely transferable without being subject to any transfer restrictions under the
Securities Act upon redemption and if such registration is not completed or does
not become effective prior to the Redemption Date in respect of such Provisional
Redemption, and/or (ii) require registration with or approval of any
governmental authority under any state law or any other federal law before such
shares may be validly issued or delivered upon repurchase and if such
registration is not completed or does not become effective or such approval is
not obtained prior to the Redemption Date in respect of such Provisional
Redemption;

     (c)  Payment of the Make-Whole Payment may not be made in Common Stock
unless such stock is, or shall have been, approved for quotation on the Nasdaq
National Market or listing or quotation on a national securities exchange or
quotation system, in either case, prior to the Redemption Date in respect of
such Provisional Redemption; and

     (d)  All shares of Common Stock which may be issued upon Provisional
Redemption of Securities will be issued out of the Company's authorized but
unissued Common Stock and, will upon issue, be duly and validly issued and fully
paid and non-assessable and free of any preemptive rights.

     Prior to making all or any portion of a Make-Whole Payment in Common Stock,
the Company shall certify to the Trustee in an Officer's Certificate that all of
the conditions set forth in this Section 10.10 are satisfied in accordance with
                                 -------------
the terms thereof and shall deliver to the Trustee an opinion of counsel to the
Company to the effect that the shares of Common Stock to be issued upon
Provisional Redemption are not subject to any restrictions on transfer under the
Securities Act.

                                      -69-
<PAGE>

                                  ARTICLE XI

                           CONVERSION OF SECURITIES

SECTION 11.1          Conversion Privilege and Conversion Rate.
                      ----------------------------------------

     Subject to and upon compliance with the provisions of this Article, at the
option of the Holder thereof, any Security or any portion of the principal
amount thereof that is U.S.$1,000 or an integral multiple of U.S.$1,000 may be
converted into fully paid and nonassessable shares (calculated as to each
conversion to the nearest 1/100th of a share) of Common Stock of the Company at
the Conversion Rate, determined as hereinafter provided, in effect at the time
of conversion. Such conversion right shall commence upon the original issuance
of the Securities and expire at the close of business on July 1, 2006, subject,
in the case of conversion of any Global Security, to any Applicable Procedures.
In case a Security or portion thereof is called for redemption at the election
of the Company or the Holder thereof exercises his right to require the Company
to repurchase the Security, such conversion right in respect of the Security, or
portion thereof so called, shall expire at the close of business on the Business
Day immediately preceding the Redemption Date or the Repurchase Date, as the
case may be, unless the Company defaults in making the payment due upon
redemption or repurchase, as the case may be (in each case subject as aforesaid
to any Applicable Procedures with respect to any Global Security).

     The rate at which shares of Common Stock shall be delivered upon conversion
(herein called the "Conversion Rate") shall be initially 34.6789 shares of
Common Stock for each U.S.$1,000 principal amount of Securities. The Conversion
Rate shall be adjusted in certain instances as provided in this Article Eleven.
                                                                --------------

SECTION 11.2          Exercise of Conversion Privilege.
                      --------------------------------

     In order to exercise the conversion privilege, the Holder of any Security
to be converted shall surrender such Security, duly endorsed or assigned to the
Company or in blank, at any office or agency of the Company maintained for that
purpose pursuant to Section 9.2, accompanied by a duly signed conversion notice
                    -----------
substantially in the form set forth in Section 2.4 stating that the Holder
                                       -----------
elects to convert such Security or, if less than the entire principal amount
thereof is to be converted, the portion thereof to be converted.  Each Security
surrendered for conversion (in whole or in part) during a Record Date Period
shall (except in the case of any Security or portion thereof which has been
called for redemption or repurchase if the Holder's conversion right would
terminate because of the redemption or repurchase during the Record Date Period)
be accompanied by payment in New York Clearing House funds or other funds
acceptable to the Company of an amount equal to the interest payable on such
Interest Payment Date on the principal amount of such Security (or part thereof,
as the case may be) being surrendered for conversion. The interest payable on an
Interest Payment Date with respect to any Security (or portion thereof, if
applicable) which is surrendered for conversion during the Record

                                      -70-
<PAGE>

Date Period corresponding to such Interest Payment Date, shall be paid to the
Holder of such Security as of the Regular Record Date for such Interest Payment
Date in an amount equal to the interest that would have been payable on such
Security if such Security (or a portion thereof) had not been converted.
Interest payable in respect of any Security surrendered for conversion on an
Interest Payment Date shall be paid to the Holder of such Security as of the
next preceding Regular Record Date, notwithstanding the exercise of the right of
conversion. Except as provided in this paragraph and subject to the last
paragraph of Section 3.7, no cash payment or adjustment shall be made upon any
             -----------
conversion on account of any interest accrued from the Interest Payment Date
next preceding the conversion date, in respect of any Security (or part thereof,
as the case may be) surrendered for conversion, or on account of any dividends
on the Common Stock issued upon conversion. The Company's delivery to the Holder
of the number of shares of Common Stock (and cash in lieu of fractions thereof,
as provided in this Indenture) into which a Security is convertible will be
deemed to satisfy the Company's obligation to pay the principal amount of the
Security.

     Securities shall be deemed to have been converted on the day of surrender
of such Securities for conversion in accordance with the foregoing provisions,
and at such time the rights of the Holders of such Securities as Holders shall
cease, and the Person or Persons entitled to receive the Common Stock issuable
upon conversion shall be treated for all purposes as the record holder or
holders of such Common Stock at such time. As promptly as practicable on or
after the conversion date, the Company shall issue and deliver to the Trustee,
for delivery to the Holder (unless a different Person is indicated on the
Conversion Notice), a certificate or certificates for the number of full shares
of Common Stock issuable upon conversion, together with payment in lieu of any
fraction of a share, as provided in Section 11.3.
                                    ------------

     In the case of any Security which is converted in part only, upon such
conversion the Company shall execute and the Trustee shall authenticate and make
available for delivery to the Holder thereof, at the expense of the Company, a
new Security or Securities of authorized denominations in an aggregate principal
amount equal to the unconverted portion of the principal amount of such
Security. A Security may be converted in part, but only if the principal amount
of such Security to be converted is any integral multiple of U.S.$1,000 and the
principal amount of such security to remain Outstanding after such conversion is
equal to U.S.$1,000 or any integral multiple of U.S.$1,000 in excess thereof.

SECTION 11.3          Fractions of Shares.
                      -------------------

     No fractional shares of Common Stock shall be issued upon conversion of any
Security or Securities. If more than one Security shall be surrendered for
conversion at one time by the same Holder, the number of full shares which shall
be issuable upon conversion thereof shall be computed on the basis of the
aggregate principal amount of the Securities (or specified portions thereof) so
surrendered. Instead of any fractional share of Common Stock which would
otherwise be issuable upon conversion of any Security or Securities (or
specified portions

                                      -71-
<PAGE>

thereof), the Company shall calculate and pay a cash adjustment in respect of
such fraction (calculated to the nearest 1/100th of a share) in an amount equal
to the same fraction of the Closing Price Per Share at the close of business on
the day of conversion.

SECTION 11.4          Adjustment of Conversion Rate.
                      -----------------------------

     The Conversion Rate shall be subject to adjustments from time to time as
follows:

     (1)    In case the Company shall pay or make a dividend or other
distribution on any class of capital stock of the Company payable in shares of
Common Stock, the Conversion Rate in effect at the opening of business on the
day following the date fixed for the determination of shareholders entitled to
receive such dividend or other distribution shall be increased by dividing such
Conversion Rate by a fraction of which the numerator shall be the number of
shares of Common Stock outstanding at the close of business on the date fixed
for such determination and the denominator shall be the sum of such number of
shares and the total number of shares constituting such dividend or other
distribution, such increase to become effective immediately after the opening of
business on the day following the date fixed for such determination. If, after
any such date fixed for determination, any dividend or distribution is not in
fact paid, the Conversion Rate shall be immediately readjusted, effective as of
the date the Board of Directors determines not to pay such dividend or
distribution, to the Conversion Rate that would have been in effect if such
determination date had not been fixed. For the purposes of this paragraph (1),
the number of shares of Common Stock at any time outstanding shall not include
shares held in the treasury of the Company but shall include shares issuable in
respect of scrip certificates issued in lieu of fractions of shares of Common
Stock. The Company will not pay any dividend or make any distribution on shares
of Common Stock held in the treasury of the Company.

     (2)    Subject to the last sentence of paragraph (7), in case the Company
shall issue rights, options or warrants to all holders of its Common Stock
entitling them to subscribe for or purchase shares of Common Stock at a price
per share less than the current market price per share (determined as provided
in paragraph (8) of this Section 11.4) of the Common Stock on the date fixed for
                         ------------
the determination of stockholders entitled to receive such rights, options or
warrants (other than any rights, options or warrants that by their terms will
also be issued to any Holder upon conversion of a Security into shares of Common
Stock without any action required by the Company or any other Person), the
Conversion Rate in effect at the opening of business on the day following the
date fixed for such determination shall be increased by dividing such Conversion
Rate by a fraction of which the numerator shall be the number of shares of
Common Stock outstanding at the close of business on the date fixed for such
determination plus the number of shares of Common Stock which the aggregate of
the offering price of the total number of shares of Common Stock so offered for
subscription or purchase would purchase at such current market price and the
denominator shall be the number of shares of Common Stock outstanding at the
close of business on the date fixed for such determination plus the number of
shares of Common Stock so offered for subscription or purchase, such increase to
become

                                      -72-
<PAGE>

effective immediately after the opening of business on the day following the
date fixed for such determination. If, after any such date fixed for
determination, any such rights, options or warrants are not in fact issued, the
Conversion Rate shall be immediately readjusted, effective as of the date the
Board of Directors determines not to issue such rights, options or warrants, to
the Conversion Rate that would have been in effect if such determination date
had not been fixed. For the purposes of this paragraph (2), the number of shares
of Common Stock at any time outstanding shall not include shares held in the
treasury of the Company but shall include shares issuable in respect of scrip
certificates issued in lieu of fractions of shares of Common Stock. The Company
will not issue any rights, options or warrants in respect of shares of Common
Stock held in the treasury of the Company.

     (3)    In case outstanding shares of Common Stock shall be subdivided into
a greater number of shares of Common Stock, the Conversion Rate in effect at the
opening of business on the day following the day upon which such subdivision
becomes effective shall be proportionately increased, and, conversely, in case
outstanding shares of Common Stock shall each be combined into a smaller number
of shares of Common Stock, the Conversion Rate in effect at the opening of
business on the day following the day upon which such combination becomes
effective shall be proportionately reduced, such increase or reduction, as the
case may be, to become effective immediately after the opening of business on
the day following the day upon which such subdivision or combination becomes
effective.

     (4)    Subject to the last sentence of paragraph (7), in case the Company
shall, by dividend or otherwise, distribute to all holders of its Common Stock
evidences of its indebtedness, shares of any class of capital stock, or rights,
options or warrants to subscribe for or purchase shares of any class of capital
stock (other than any rights, options or warrants that by their terms will also
be issued to any Holder upon conversion of a Security into shares of Common
Stock without any action required by the Company or any other Person) or other
property (including cash or assets or securities, but excluding (i) any rights,
options or warrants referred to in paragraph (2) of this Section, (ii) any
dividend or distribution paid exclusively in cash, (iii) any dividend or
distribution referred to in paragraph (1) of this Section and (iv) any
consideration distributed in any merger or consolidation to which Section 11.11
                                                                  -------------
applies), the Conversion Rate shall be adjusted so that the same shall equal the
rate determined by dividing the Conversion Rate in effect immediately prior to
the close of business on the date fixed for the determination of stockholders
entitled to receive such distribution by a fraction of which the numerator shall
be the current market price per share (determined as provided in paragraph (8)
of this Section 11.4) of the Common Stock on the date fixed for such
        -------------
determination less the then fair market value (as determined by the Board of
Directors, whose determination shall be conclusive and described in a Board
Resolution filed with the Trustee) of the portion of the assets, shares or
evidences of indebtedness or rights, options or warrants so distributed
applicable to one share of Common Stock and the denominator shall be such
current market price per share of the Common Stock, such adjustment to become
effective immediately prior to the opening of business on the day following the
date fixed for the determination of stockholders entitled to

                                      -73-
<PAGE>

receive such distribution. If, after any such date fixed for determination, any
such distribution is not in fact made, the Conversion Rate shall be immediately
readjusted, effective as of the date the Board of Directors determines not to
make such distribution, to the Conversion Rate that would have been in effect if
such determination date had not been fixed.

     (5)    In case the Company shall, by dividend or otherwise, distribute to
all holders of its Common Stock cash (excluding any cash that is distributed
upon a merger or consolidation to which Section 11.11 applies or as part of a
                                        -------------
distribution referred to in paragraph (4) of this Section) in an aggregate
amount that, combined together with (I) the aggregate amount of any other cash
distributions to all holders of its Common Stock made exclusively in cash within
the 12 months preceding the date of payment of such distribution and in respect
of which no adjustment pursuant to this paragraph (5) has been made and (II) the
aggregate of any cash plus the fair market value (as determined by the Board of
Directors, whose determination shall be conclusive and described in a Board
Resolution) of other  consideration payable in respect of any tender offer by
the Company or any of its subsidiaries for all or any portion of the Common
Stock concluded within the 12 months preceding the date of payment of such
distribution and in respect of which no adjustment pursuant to paragraph (6) of
this Section 11.4 has been made (the "combined cash and tender amount") exceeds
     ------------
10% of the product of the current market price per share (determined as provided
in paragraph (8) of this Section 11.4) of the Common Stock on the date for the
                         ------------
determination of holders of shares of Common Stock entitled to receive such
distribution times the number of shares of Common Stock outstanding on such date
(the "threshold amount"), then, and in each such case, immediately after the
close of business on such date for determination, the Conversion Rate shall be
adjusted so that the same shall equal the rate determined by dividing the
Conversion Rate in effect immediately prior to the close of business on the date
fixed for determination of the stockholders entitled to receive such
distribution by a fraction (i) the numerator of which shall be equal to the
current market price per share (determined as provided in paragraph (8) of this
Section) of the Common Stock on the date fixed for such determination less an
amount equal to the quotient of (x) the excess of such combined cash and tender
amount over such threshold amount divided by (y) the number of shares of Common
Stock outstanding on such date for determination and (ii) the denominator of
which shall be equal to the current market price per share (determined as
provided in paragraph (8) of this Section 11.4) of the Common Stock on such date
                                  ------------
for determination.

     (6)    In case a tender offer made by the Company or any Subsidiary for all
or any portion of the Common Stock shall expire and such tender offer (as
amended upon the expiration thereof) shall require the payment to stockholders
(based on the acceptance (up to any maximum specified in the terms of the tender
offer) of Purchased Shares (as defined below)) of an aggregate consideration
having a fair market value (as determined by the Board of Directors, whose
determination shall be conclusive and described in a Board Resolution) that
combined together with (I) the aggregate of the cash plus the fair market value
(as determined by the Board of Directors, whose determination shall be
conclusive and described in a Board Resolution), as of the expiration of such
tender offer, of consideration payable in respect of any other tender offer

                                      -74-
<PAGE>

by the Company or any Subsidiary for all or any portion of the Common Stock
expiring within the 12 months preceding the expiration of such tender offer and
in respect of which no adjustment pursuant to this paragraph (6) has been made
and (II) the aggregate amount of any cash distributions to all holders of the
Company's Common Stock within 12 months preceding the expiration of such tender
offer and in respect of which no adjustment pursuant to paragraph (5) of this
Section has been made (the "combined tender and cash amount") exceeds 10% of the
product of the current market price per share of the Common Stock (determined as
provided in paragraph (8) of this Section 11.4) as of the last time (the
                                  ------------
"Expiration Time") tenders could have been made pursuant to such tender offer
(as it may be amended) times the number of shares of Common Stock outstanding
(including any tendered shares) as of the Expiration Time, then, and in each
such case, immediately prior to the opening of business on the day after the
date of the Expiration Time, the Conversion Rate shall be adjusted so that the
same shall equal the rate determined by dividing the Conversion Rate immediately
prior to close of business on the date of the Expiration Time by a fraction (i)
the numerator of which shall be equal to (A) the product of (I) the current
market price per share of the Common Stock (determined as provided in paragraph
(8) of this Section 11.4) on the date of the Expiration Time multiplied by (II)
            ------------
the number of shares of Common Stock outstanding (including any tendered shares)
on the Expiration Time less (B) the combined tender and cash amount, and (ii)
the denominator of which shall be equal to the product of (A) the current market
price per share of the Common Stock (determined as provided in paragraph (8) of
this Section 11.4) as of the Expiration Time multiplied by (B) the number of
     ------------
shares of Common Stock outstanding (including any tendered shares) as of the
Expiration Time less the number of all shares validly tendered and not withdrawn
as of the Expiration Time (the shares deemed so accepted up to any such maximum,
being referred to as the "Purchased Shares").

     (7)    The reclassification of Common Stock into securities other than
Common Stock (other than any reclassification upon a consolidation or merger to
which Section 11.11 applies) shall be deemed to involve (a) a distribution of
      -------------
such securities other than Common Stock to all holders of Common Stock (and the
effective date of such reclassification shall be deemed to be "the date fixed
for the determination of stockholders entitled to receive such distribution" and
"the date fixed for such determination" within the meaning of paragraph (4) of
this Section), and (b) a subdivision or combination, as the case may be, of the
number of shares of Common Stock outstanding immediately prior to such
reclassification into the number of shares of Common Stock outstanding
immediately thereafter (and the effective date of such reclassification shall be
deemed to be "the day upon which such subdivision becomes effective" or "the day
upon which such combination becomes effective," as the case may be, and "the day
upon which such subdivision or combination becomes effective" within the meaning
of paragraph (3) of this Section 11.4). Rights, options or warrants issued by
                         ------------
the Company to all holders of its Common Stock entitling the holders thereof to
subscribe for or purchase shares of capital stock of the Company, which rights,
options or warrants (i) are deemed to be transferred with such shares of Common
Stock, (ii) are not exercisable and (iii) are also issued in respect of future
issuances of shares of capital stock, in each case in clauses (i) through (iii)
until the occurrence of a specified

                                      -75-
<PAGE>

event or events ("Trigger Event"), shall for purposes of this Section 11.4 not
                                                              ------------
be deemed issued or distributed until the occurrence of the earliest Trigger
Event.

     (8)    For the purpose of any computation under paragraphs (2), (4), (5) or
(6) of this Section 11.4, the current market price per share of Common Stock on
            ------------
any date shall be calculated by the Company and be deemed to be the average of
the daily Closing Prices Per Share for the five consecutive Trading Days
selected by the Company commencing not more than 10 Trading Days before, and
ending not later than, the earlier of the day in question and the day before the
"ex date" with respect to the issuance or distribution requiring such
computation. For purposes of this paragraph, the term "ex date," when used with
respect to any issuance or distribution, means the first date on which the
Common Stock trades regular way in the applicable securities market or on the
applicable securities exchange without the right to receive such issuance or
distribution.

     (9)    No adjustment in the Conversion Rate shall be required unless such
adjustment (plus any adjustments not previously made by reason of this paragraph
(9)) would require an increase or decrease of at least one percent in such rate;
provided, however, that any adjustments which by reason of this paragraph (9)
--------  -------
are not required to be made shall be carried forward and taken into account in
any subsequent adjustment. All calculations under this Article shall be made to
the nearest cent or to the nearest one-hundredth of a share, as the case may be.

     (10)   The Company may make such increases in the Conversion Rate, for the
remaining term of the Securities or any shorter term, in addition to those
required by paragraphs (1), (2), (3), (4), (5) and (6) of this Section 11.4, as
                                                               ------------
it considers to be advisable in order to avoid or diminish any income tax
liability to any holders of shares of Common Stock resulting from any dividend
or distribution of Common Stock or issuance of rights or warrants to purchase or
subscribe for Common Stock or from any event treated as such for income tax
purposes.

     To the extent permitted by applicable law, the Company from time to time
may increase the Conversion Rate by any amount for any period of time if the
period is at least twenty (20) days and the Board of Directors shall have made a
determination that such increase would be in the best interests of the Company,
which determination shall be conclusive; provided, however, that such increase
                                         --------  -------
shall not be taken into account for purposes of determining whether the Closing
Price Per Share of the Common Stock exceeds the Conversion Price by 105% in
connection with an event which would otherwise be a Change in Control. Whenever
the Conversion Rate is increased pursuant to the preceding sentence, the Company
shall give notice of the increase to the Holders of Securities in the manner
provided in Section 1.6 at least fifteen (15) days prior to the date the
increased Conversion Rate takes effect, and such notice shall state the
increased Conversion Rate and the period during which it will be in effect. The
"Conversion Price" shall equal U.S.$1,000 divided by the Conversion Rate
(rounded to the nearest cent).

                                      -76-
<PAGE>

     (11)   Notwithstanding the foregoing provisions of this Section, no
adjustment of the Conversion Rate shall be required to be made (a) upon the
issuance of shares of Common Stock pursuant to any present or future plan for
the reinvestment of dividends or (b) because of a tender or exchange offer of
the character described in Rule 13e-4(h)(5) under the Exchange Act or any
successor rule thereto.

SECTION 11.5     Notice of Adjustments of Conversion Rate.
                 ----------------------------------------

     Whenever the Conversion Rate is adjusted as herein provided:

     (1)    the Company shall compute the adjusted Conversion Rate in accordance
with Section 11.4 and shall prepare a certificate signed by the Chief Financial
     ------------
Officer of the Company setting forth the adjusted Conversion Rate and showing in
reasonable detail the facts upon which such adjustment is based, and such
certificate shall promptly be filed with the Trustee and with each Conversion
Agent; and

     (2)    upon each such adjustment, a notice stating that the Conversion Rate
has been adjusted and setting forth the adjusted Conversion Rate shall be
required, and as soon as practicable after it is required, such notice shall be
provided by the Company to all Holders in accordance with Section 1.6.
                                                          -----------

Neither the Trustee nor any Conversion Agent shall be under any duty or
responsibility with respect to any such certificate or the information and
calculations contained therein, except to exhibit the same to any Holder of
Securities desiring inspection thereof at its office during normal business
hours.

SECTION 11.6     Notice of Certain Corporate Action.
                 ----------------------------------

     In case:

     (a)    the Company shall declare a dividend (or any other distribution) on
its Common Stock payable (i) otherwise than exclusively in cash or (ii)
exclusively in cash in an amount that would require any adjustment pursuant to
Section 11.4; or
------------

     (b)    the Company shall authorize the granting to the holders of its
Common Stock of rights, options or warrants to subscribe for or purchase any
shares of capital stock of any class or of any other rights (other than rights,
options or warrants described in the last sentence of Section 11.4(7); or
                                                      ---------------

     (c)    of any reclassification of the Common Stock of the Company, or of
any consolidation, merger or share exchange to which the Company is a party and
for which approval

                                      -77-
<PAGE>

of any stockholders of the Company is required, or of the conveyance, sale,
transfer or lease of all or substantially all of the assets of the Company; or

     (d)    of the voluntary or involuntary dissolution, liquidation or winding
up of the Company;

then the Company shall cause to be filed at each office or agency maintained for
the purpose of conversion of Securities pursuant to Section 9.2, and shall cause
                                                    -----------
to be provided to all Holders in accordance with Section 1.6, at least 20 days
                                                 -----------
(or 10 days in any case specified in clause (a) or (b) above) prior to the
applicable record or effective date hereinafter specified, a notice stating (x)
the date on which a record is to be taken for the purpose of such dividend,
distribution, rights, options or warrants, or, if a record is not to be taken,
the date as of which the holders of Common Stock of record to be entitled to
such dividend, distribution, rights, options or warrants are to be determined or
(y) the date on which such reclassification, consolidation, merger, conveyance,
transfer, sale, lease, dissolution, liquidation or winding up is expected to
become effective, and the date as of which it is expected that holders of Common
Stock of record shall be entitled to exchange their shares of Common Stock for
securities, cash or other property deliverable upon such reclassification,
consolidation, merger, conveyance, transfer, sale, lease, dissolution,
liquidation or winding up. Neither the failure to give such notice or the notice
referred to in the following paragraph nor any defect therein shall affect the
legality or validity of the proceedings described in clauses (a) through (d) of
this Section 11.6.  If at the time the Trustee shall not be the Conversion
     ------------
Agent, a copy of such notice shall also forthwith be filed by the Company with
the Trustee.

     The Company shall cause to be filed at each office or agency maintained for
the purpose of conversion of Securities pursuant to Section 9.2, and shall cause
                                                    -----------
to be provided to all Holders in accordance with Section 1.6, notice of any
                                                 -----------
tender offer by the Company or any Subsidiary for all or any portion of the
Common Stock at or about the time that such notice of tender offer is provided
to the public generally.

SECTION 11.7          Company to Reserve Common Stock.
                      -------------------------------

     The Company shall at all times reserve and keep available, free from
preemptive rights, out of its authorized but unissued Common Stock, for the
purpose of effecting the conversion of Securities, the full number of shares of
Common Stock then issuable upon the conversion of all Outstanding Securities.

SECTION 11.8          Taxes on Conversions.
                      --------------------

     Except as provided in the next sentence, the Company will pay any and all
taxes and duties that may be payable in respect of the issue or delivery of
shares of Common Stock on conversion of Securities pursuant hereto. The Company
shall not, however, be required to pay

                                      -78-
<PAGE>

any tax or duty which may be payable in respect of (i) income of the Holder or
(ii) any transfer involved in the issue and delivery of shares of Common Stock
in a name other than that of the Holder of the Security or Securities to be
converted, and no such issue or delivery shall be made unless and until the
Person requesting such issue has paid to the Company the amount of any such tax
or duty, or has established to the satisfaction of the Company that such tax or
duty has been paid.

SECTION 11.9          Covenant as to Common Stock.
                      ---------------------------

     The Company agrees that all shares of Common Stock which may be delivered
upon conversion of Securities, upon such delivery, will have been duly
authorized and validly issued and will be fully paid and nonassessable and,
except as provided in Section 11.8, the Company will pay all taxes, liens and
                      ------------
charges with respect to the issue thereof.

SECTION 11.10         Cancellation of Converted Securities.
                      ------------------------------------

     All Securities delivered for conversion shall be delivered to the Trustee
or its agent to be canceled by or at the direction of the Trustee, which shall
dispose of the same as provided in Section 3.9.
                                   -----------

SECTION 11.11         Provision in Case of Consolidation, Merger or Sale of
                      -----------------------------------------------------
                      Assets.
                      ------

     In case of any consolidation or merger of the Company with or into any
other Person, any merger of another Person with or into the Company (other than
a merger which does not result in any reclassification, conversion, exchange or
cancellation of outstanding shares of Common Stock of the Company) or any
conveyance, sale, transfer or lease of all or substantially all of the assets of
the Company, the Person formed by such consolidation or resulting from such
merger or which acquires such assets, as the case may be, shall execute and
deliver to the Trustee a supplemental indenture providing that the Holder of
which Security then Outstanding shall have the right thereafter, during the
period such Security shall be convertible as specified in the Section 11.1, to
                                                              ------------
convert such Security only into the kind and amount of securities, cash and
other property receivable upon such consolidation, merger, conveyance, sale,
transfer, or lease assuming such holder of Common Stock of the Company (i) is
not a Person with which the Company consolidated or merged with or into or
which merged into or with the Company or to which such conveyance, sale,
transfer or lease was made, as the case may be ("Constituent Person"), or an
Affiliate of a Constituent Person and (ii) failed to exercise his rights of
election, if any, as to the kind or amount of securities, cash and other
property receivable upon such consolidation, merger, conveyance, sale, transfer
or lease (provided that if the kind or amount of securities, cash and other
          --------
property receivable upon such consolidation, merger, conveyance, sale, transfer,
or lease is not the same for each share of Common Stock of

                                      -79-
<PAGE>

the Company held immediately prior to such consolidation, merger, conveyance,
sale, transfer or lease by others than a Constituent Person or an Affiliate
thereof and in respect of which such rights of election shall not have been
exercised ("Non-electing Share"), then for the purpose of this Section 11.11 the
                                                               -------------
kind and amount of securities, cash and other property receivable upon such
consolidation, merger, conveyance, sale, transfer or lease by the holders of
each Non-electing Share shall be deemed to be the kind and amount so receivable
per share by a plurality of the Non-electing Shares). Such supplemental
indenture shall provide for adjustments which, for events subsequent to the
effective date of such supplemental indenture, shall be as nearly equivalent as
may be practicable to the adjustments provided for in this Article. The above
provisions of this Section 11.11 shall similarly apply to successive
                   -------------
consolidations, mergers, conveyances, sales, transfers or leases. Notice of the
execution of such a supplemental indenture shall be given by the Company to the
Holder of each Security as provided in Section 1.6 promptly upon such execution.
                                       -----------

     Neither the Trustee nor any Conversion Agent shall be under any
responsibility to determine the correctness of any provisions contained in any
such supplemental indenture relating either to the kind or amount of shares of
stock or other securities or property or cash receivable by Holders of
Securities upon the conversion of their Securities after any such consolidation,
merger, conveyance, transfer, sale or lease or to any such adjustment, but may
accept as conclusive evidence of the correctness of any such provisions, and
shall be protected in relying upon, an Opinion of Counsel with respect thereto,
which the Company shall cause to be furnished to the Trustee upon request.

SECTION 11.2          Responsibility of Trustee for Conversion Provisions.
                      ---------------------------------------------------

     The Trustee, subject to the provisions of Section 6.1 and any Conversion
                                               -----------
Agent shall not at any time be under any duty or responsibility to any Holder of
Securities to determine whether any facts exist which may require any adjustment
of the Conversion Rate, or with respect to the nature or extent of any such
adjustment when made, or with respect to the method employed, or herein or in
any supplemental indenture provided to be employed, in making the same, or
whether a supplemental indenture need be entered into or to recalculate or
verify the content of any certificate filed with it by the Company pursuant to
the terms of this Article Eleven. Neither the Trustee, subject to the provisions
of Section 6.1, nor any Conversion Agent shall be accountable with respect to
   -----------
the validity or value (or the kind or amount) of any Common Stock, or of any
other securities or property or cash, which may at any time be issued or
delivered upon the conversion of any Security; and it or they do not make any
representation with respect thereto. Neither the Trustee, subject to the
provisions of Section 6.1, nor any Conversion Agent shall be responsible for any
failure of the Company to make or calculate any cash payment or to issue,
transfer or deliver any shares of Common Stock or share certificates or other
securities or property or cash upon the surrender of any Security for the
purpose of conversion; and the Trustee, subject to the provisions of Section
                                                                     -------
6.1, and any Conversion Agent shall not be
---

                                      -80-
<PAGE>

responsible for any failure of the Company to comply with any of the covenants
of the Company contained in this Article.

                                  ARTICLE XII

                          SUBORDINATION OF SECURITIES

SECTION 12.1          Securities Subordinate to Senior Debt.
                      -------------------------------------

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

SECTION 12.2          No Payments in Certain Circumstances; Payment Over of
                      -----------------------------------------------------
                      Proceeds Upon Dissolution, Etc.
                      ------------------------------

     No payment on account of principal of, premium, if any, or interest on, or
redemption or repurchase of, the Securities shall be made if either of the
following occurs:  (i) the Company defaults in its obligation to pay principal,
premium, if any (including the Make-Whole Payment, if any), or interest or other
amounts on its Senior Debt, including default under any redemption or repurchase
obligation, and the default continues beyond any grace period that the Company
may have to make those payments, unless and until such default shall have been
cured or waived, or shall have ceased to exist, or (ii) any other default occurs
and is continuing on any Designated Senior Debt and (1) the default permits the
holders of the Designated Senior Debt to accelerate its maturity and (2) the
Trustee has received a notice of the default (a "Payment Blockage Notice") from
the Company or any other Person permitted to give such notice pursuant to
Sections 12.5 and 12.6 hereof.
-------------     ----

     Notwithstanding the foregoing, the Company may make, and the Trustee may
receive and shall apply, any payment in respect of the Securities (for
principal, premium, if any, interest, or repurchase) if such payment was made
prior to the occurrence of any of the contingencies specified in clauses (i) and
(ii) above.

     If the Trustee receives any Payment Blockage Notice pursuant to clause (ii)
above, no subsequent Payment Blockage Notice shall be effective for purposes of
this Section unless and until (A) at least 365 days shall have elapsed since the
effectiveness of the immediately prior Payment Blockage Notice, and (B) all
scheduled payments of principal, premium, if any (including the Make-Whole
Payment, if any), and interest on the Securities that have come due

                                      -81-
<PAGE>

have been paid in full. No default, other than a payment default, that existed
or was continuing on the date of delivery of any Payment Blockage Notice to the
Trustee shall be, or be made, the basis for a subsequent Payment Blockage
Notice.

     The Company may and shall resume payments on and distributions in respect
of the Securities upon the earlier of: (i) the date upon which the default is
cured or waived, or (ii) in the case of a default referred to in clause (ii) of
the third preceding paragraph, 179 days pass after notice is received if the
maturity of such Designated Senior Debt has not been accelerated, unless this
Article otherwise prohibits the payment or distribution at the time of such
payment or distribution.

     Upon (i) any acceleration of the principal amount due on the Securities or
(ii) any payment or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to creditors upon any
dissolution, winding up or total or partial liquidation or reorganization of the
Company, whether voluntary or involuntary, or in bankruptcy, insolvency,
receivership or other proceedings, all principal of, premium, if any, sinking
fund and interest or other amounts due or to become due upon all Senior Debt
shall first be paid in full, or payment thereof provided for in money or money's
worth in accordance with its terms, before any payment is made on account of the
principal of, premium, if any (including the Make-Whole Payment, if any), or
interest on, or repurchase of, the indebtedness evidenced by the Securities or
any coupon appertaining thereto, and upon any such dissolution or winding up or
liquidation or reorganization any payment or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, to
which the Holders of the Securities or any coupons appertaining thereto or the
Trustee under this Indenture would be entitled, except for the provisions
hereof, shall be paid by the Company or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution,
or by the Holders of the Securities or any coupons appertaining thereto or by
the Trustee under this Indenture if received by them or it, as the case may be,
directly to the holders of Senior Debt (pro rata to each such holder on the
basis of the respective amounts of Senior Debt held by such Holder) or their
representatives, to the extent necessary to pay all Senior Debt in full, in
money or money's worth, after giving effect to any concurrent payment or
distribution to or for the holders of Senior Debt, before any payment or
distribution is made to the Holders of the Securities or any coupons
appertaining thereto or to the Trustee under this Indenture.

     In the event that, contrary to the foregoing, any payment or distribution
of assets of the Company of any kind or character, whether in cash, property or
securities, other than junior securities described in Section 12.11, shall be
received by the Trustee or the Holders of the Securities before all Senior Debt
is paid in full or provision made for such payment, in accordance with its
terms, such payment or distribution shall be paid over or delivered to, the
holders of such Senior Debt or their representative or representatives, or to
the trustee or trustees under any indenture pursuant to which any instruments
evidencing any of such Senior Debt have been issued, as their respective
interests may appear, for application to the payment of all Senior

                                      -82-
<PAGE>

Debt remaining unpaid to the extent necessary to pay all such Senior Debt in
full in accordance with its terms, after giving effect to any concurrent payment
or distribution to or for the holders of such Senior Debt.

     Subject to the payment in full of all Senior Debt, the Holders of the
Securities and any coupons (together with the holders of any other indebtedness
of the Company which is subordinated in right of payment to the payment in full
of all Senior Debt, but which is not subordinated in right of payment to the
Securities and which by its terms grants such right of subrogation to the
holders thereof) shall be subrogated to the rights of the holders of Senior Debt
to receive payments or distribution of assets of the Company made on the Senior
Debt until the principal of, premium, if any (including the Make-Whole Payment,
if any), and interest on, or amounts payable upon repurchase of, the Securities
shall be paid in full; and, for the purposes of such subrogation, no payments or
distributions to the holders of Senior Debt of any cash, property or securities
to which the Holders of the Securities and any coupons appertaining thereto or
the Trustee would be entitled except for the provisions of this Article, and no
payment over pursuant to the provisions of this Article to the holders of Senior
Debt by the Holders of the Securities or any coupon or the Trustee, shall, as
between the Company, its creditors other than the holders of Senior Debt, and
the Holders of Securities and coupons, be deemed to be a payment by the Company
to the holders of or on account of Senior Debt, it being understood that the
provisions of this Article are and are intended solely for the purpose of
defining the relative rights of the Holders of the Securities and coupons, on
the one hand, and the holders of Senior Debt, on the other hand.

SECTION 12.3          Trustee to Effectuate Subordination.
                      -----------------------------------

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

SECTION 12.4          No Waiver of Subordination Provisions.
                      -------------------------------------

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

     Without in any way limiting the generality of the foregoing paragraph, the
holders of Senior Debt may, at any time and from time to time, without the
consent of or notice to the Trustee or the Holders of the Securities, without
incurring responsibility to the Holders of the

                                      -83-
<PAGE>

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

SECTION 12.5          Notice to Trustee.
                      -----------------

     The Company shall give prompt written notice to the Trustee of any fact
known to the Company which would prohibit the making of any payment to or by the
Trustee in respect of the Securities. Notwithstanding the provisions of this
Article or any other provision of this Indenture, the Trustee shall not be
charged with knowledge of the existence of any facts which would prohibit the
making of any payment to or by the Trustee in respect of the Securities, unless
and until the Trustee shall have received written notice thereof from the
Company or a holder of Senior Debt or from any trustee, agent or representative
therefor; and, prior to the receipt of any such written notice, the Trustee,
subject to the provisions of Section 6.1, shall be entitled in all respects to
                             -----------
assume that no such facts exist; provided, however, that if the Trustee shall
                                 --------  -------
not have received the notice provided for in this Section 12.5 prior to the date
                                                  ------------
upon which by the terms hereof any money may become payable for any purpose
(including, without limitation, the payment of the principal of, premium, if any
(including the Make-Whole Payment, if any) or interest on any Security, then,
anything herein contained to the contrary notwithstanding the Trustee shall have
full power and authority to receive such money and to apply the same to the
purpose for which such money was received and shall not be affected by any
notice to the contrary which may be received by it within two Business Days
prior to such date or after such date.

     Subject to the provisions of Section 6.1, the Trustee shall be entitled to
                                  -----------
rely on the delivery to it of a written notice by a Person representing himself
to be a holder of Senior Debt (or a trustee, agent or representative therefor)
to establish that such notice has been given by a holder of Senior Debt (or a
trustee, agent or representative therefor). In the event that the Trustee
determines in good faith that further evidence is required with respect to the
right of any Person as a holder of Senior Debt to participate in any payment or
distribution pursuant to this Article, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount
of Senior Debt held by such Person, the extent to which such Person is entitled
to participate in such payment or distribution and any other facts pertinent to
the rights of such Person under this Article, and if such evidence is not
furnished, the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive

                                      -84-
<PAGE>

such payment, and during such deferral to also defer application of said payment
for which such money was received pursuant to this Indenture.

SECTION 12.6  Reliance on Judicial Order or Certificate of Liquidating
              --------------------------------------------------------
              Agent.
              -----

     Upon any payment or distribution of assets of the Company referred to in
this Article, the Trustee, subject to the provisions of Section 6.1, and the
                                                        -----------
Holders of the Securities shall be entitled to rely upon any order or decree
entered by any court of competent jurisdiction in which such insolvency,
bankruptcy, receivership, liquidation, reorganization, dissolution, winding up
or similar case or proceeding is pending, or a certificate of the trustee in
bankruptcy, receiver, liquidating trustee, custodian, assignee for the benefit
of creditors, agent or other Person making such payment or distribution,
delivered to the Trustee or to the Holders of Securities, for the purpose of
ascertaining the Persons entitled to participate in such payment or
distribution, the holders of the Senior Debt and other indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article.

SECTION 12.7  Trustee Not Fiduciary for Holders of Senior Debt.
              ------------------------------------------------

     The Trustee shall not be deemed to owe any fiduciary duty to the holders of
Senior Debt and shall not be liable to any such holders if it shall in good
faith mistakenly pay over or distribute to Holders of Securities or to the
Company or to any other Person cash, property or securities to which any holders
of Senior Debt shall be entitled by virtue of this Article or otherwise. With
respect to the holders of Senior Debt, the Trustee undertakes to perform or to
observe only such of its covenants or obligations as are specifically set forth
in this Article Twelve, and no implied covenants or obligations with respect to
        --------------
holders of Senior Debt shall be read into this Indenture against the Trustee.

SECTION 12.8  Reliance by Holders of Senior Debt on Subordination
              ---------------------------------------------------
              Provisions.
              ----------

     Each Holder by accepting a Security acknowledges and agrees that the
foregoing subordination provisions are, and are intended to be, an inducement
and a consideration to each holder of any Senior Debt, whether such Senior Debt
was created or acquired before or after the issuance of the Securities, to
acquire and continue to hold, or to continue to hold, such Senior Debt and such
holder of Senior Debt shall be deemed conclusively to have relied on such
subordination provisions in acquiring and continuing to hold, or in continuing
to hold, such Senior Debt.

                                      -85-
<PAGE>

SECTION 12.9    Rights of Trustee as Holder of Senior Debt; Preservation of
                -----------------------------------------------------------
                Trustee's Rights.
                -----------------

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

     Nothing in this Article shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 6.7.
                             -----------

SECTION 12.10   Article Applicable to Paying Agents.
                -----------------------------------

     In case at any time any Paying Agent other than the Trustee shall have been
appointed by the Company and be then acting hereunder, the term "Trustee" as
used in this Article shall in such case (unless the context otherwise requires)
be construed as extending to and including such Paying Agent within its meaning
as fully for all intents and purposes as if such Paying Agent were named in this
Article in addition to or in place of the Trustee; provided, however, that
                                                   --------  -------
Section 12.9 shall not apply to the Company or any Affiliate of the Company if
------------
it or such Affiliate acts as Paying Agent.

SECTION 12.11   Certain Conversions and Repurchases Deemed Payment.
                --------------------------------------------------

     For the purposes of this Article only, (1) the issuance and delivery of
junior securities upon conversion of Securities in accordance with Article
                                                                   -------
Eleven or upon the repurchase of Securities in accordance with Article Thirteen
------                                                         ----------------
shall not be deemed to constitute a payment or distribution on account of the
principal of or premium, if any (including the Make-Whole Payment, if any) or
interest on Securities or on account of the purchase or other acquisition of
Securities, and (2) the payment, issuance or delivery of cash, property or
securities (other than junior securities) upon conversion of a Security shall be
deemed to constitute payment on account of the principal of such Security.  For
the purposes of this Section, the term "junior securities" means (a) shares of
any stock of any class of the Company and any cash, property or securities into
which the Securities are convertible pursuant to Article Eleven and (b)
                                                 --------------
securities of the Company which are subordinated in right of payment to all
Senior Debt which may be outstanding at the time of issuance or delivery of such
securities to substantially the same extent as, or to a greater extent than, the
Securities are so subordinated as provided in this Article.  Nothing contained
in this Article or elsewhere in this Indenture or in the Securities is intended
to or shall impair, as among the Company, its creditors other than holders of
Senior Debt and the Holders of the Securities, the right, which is absolute and
unconditional, of the Holder of any Security to convert such Security in
accordance with Article Eleven or to exchange such Security for Common Stock in
                --------------
accordance with Article Thirteen if the Company elects to satisfy the
                ----------------
obligations under Article Thirteen by the delivery of Common Stock.
                  ----------------

                                      -86-
<PAGE>

                                 ARTICLE XIII

                 REPURCHASE OF SECURITIES AT THE OPTION OF THE
                        HOLDER UPON A CHANGE IN CONTROL

SECTION 13.1   Right to Require Repurchase.
               ---------------------------

     In the event that a Change in Control (as hereinafter defined) shall occur,
then each Holder shall have the right, at the Holder's option, but subject to
the provisions of Section 13.2, to require the Company to repurchase, and upon
                  ------------
the exercise of such right the Company shall repurchase, all of such Holder's
Securities not theretofore called for redemption, or any portion of the
principal amount thereof that is equal to U.S.$1,000 or any integral multiple of
U.S.$1,000, on the date (the "Repurchase Date") that is 45 days after the date
of the Company Notice (as defined in Section 13.3) at a purchase price equal to
                                     ------------
100% of the principal amount of the Securities to be repurchased plus interest
accrued to the Repurchase Date (the "Repurchase Price"); provided, however, that
                                                         --------  -------
installments of interest on Securities whose Stated Maturity is on or prior to
the Repurchase Date shall be payable to the Holders of such Securities, or one
or more Predecessor Securities, registered as such on the relevant Record Date
according to their terms and the provisions of Section 3.7.  Such right to
                                               -----------
require the repurchase of the Securities shall not continue after a discharge of
the Company from its obligations with respect to the Securities in accordance
with Article Four, unless a Change in Control shall have occurred prior to such
     ------------
discharge. At the option of the Company, the Repurchase Price may be paid in
cash or, subject to the fulfillment by the Company of the conditions set forth
Section 13.2, by delivery of shares of Common Stock having a fair market value
------------
equal to the Repurchase Price. Whenever in this Indenture (including Sections
                                                                     --------
2.2, 3.1, 5.1(1) and 5.8) there is a reference, in any context, to the principal
---  -----------     ----
of any Security as of any time, such reference shall be deemed to include
reference to the Repurchase Price payable in respect of such Security to the
extent that such Repurchase Price is, was or would be so payable at such time,
and express mention of the Repurchase Price in any provision of this Indenture
shall not be construed as excluding the Repurchase Price in those provisions of
this Indenture when such express mention is not made; provided, however, that
                                                      ----------------
for the purposes of Article Thirteen such reference shall be deemed to include
                    ----------------
reference to the Repurchase Price only to the extent the Repurchase Price is
payable in cash.

SECTION 13.2   Conditions to the Company's Election to Pay the Repurchase Price
               ----------------------------------------------------------------
               in Common Stock.
               ---------------

     The Company may elect to pay the Repurchase Price by delivery of shares of
Common Stock pursuant to Section 13.1 if and only if the following conditions
                         ------------
shall have been satisfied:

     (a)  The shares of Common Stock deliverable in payment of the Repurchase
Price shall have a fair market value as of the Repurchase Date of not less than
the Repurchase Price.  For purposes of Section 13.1 and this Section 13.2, the
                                       ------------          ------------
fair market value of shares of Common

                                      -87-
<PAGE>

Stock shall be determined by the Company and shall be equal to 95% of the
average of the Closing Price Per Share for the five consecutive Trading Days
immediately preceding and including the third Trading Day prior to the
Repurchase Date;

     (b)  The Repurchase Price shall be paid only in cash in the event any
shares of Common Stock to be issued upon repurchase of Securities hereunder (i)
require registration under any federal securities law before such shares may be
freely transferable without being subject to any transfer restrictions under the
Securities Act upon repurchase and if such registration is not completed or does
not become effective prior to the Repurchase Date, and/or (ii) require
registration with or approval of any governmental authority under any state law
or any other federal law before such shares may be validly issued or delivered
upon repurchase and if such registration is not completed or does not become
effective or such approval is not obtained prior to the Repurchase Date.  Prior
to paying all or any portion of the Repurchase Price in Common Stock, the
Company shall deliver to the Trustee an opinion of counsel to the Company to the
effect that the shares of Common Stock to be issued upon repurchase (other than
any shares to be issued to any Affiliate of the Company) are not subject to any
restrictions on transfer under the Securities Act;

     (c)  Payment of the Repurchase Price may not be made in Common Stock unless
such stock is, or shall have been, approved for quotation on the Nasdaq National
Market or listing or quotation on a national securities exchange or quotation
system, in either case, prior to the Repurchase Date; and

     (d)  All shares of Common Stock which may be issued upon repurchase of
Securities will be issued out of the Company's authorized but unissued Common
Stock and, will upon issue, be duly and validly issued and fully paid and non-
assessable and free of any preemptive rights.

     If all of the conditions set forth in this Section 13.2 are not satisfied
                                                ------------
in accordance with the terms thereof, the Company shall so certify to the
Trustee in an Officer's Certificate and the Repurchase Price shall be paid by
the Company only in cash.

SECTION 13.3    Notices; Method of Exercising Repurchase Right, Etc.
                ----------------------------------------------------

     (a)  Unless the Company shall have theretofore called for redemption all of
the Outstanding Securities, on or before the 30th day after the occurrence of a
Change in Control, the Company or, at the request and expense of the Company on
or before the 30th day after such occurrence, the Trustee, shall give to all
Holders of Securities, in the manner provided in Section 1.6, notice (the
                                                 -----------
"Company Notice") of the occurrence of the Change of Control and of the
repurchase right set forth herein arising as a result thereof and the Company
shall issue a Press Release including all relevant information required to be
included in such Company

                                      -88-
<PAGE>

Notice. The Company shall also deliver a copy of such notice of a repurchase
right to the Trustee.

     Each notice of a repurchase right shall state:

          (1)   the Repurchase Date,

          (2)   the date by which the repurchase right must be exercised,

          (3)   the Repurchase Price, and whether the Repurchase Price shall be
paid by the Company in cash or by delivery of shares of Common Stock.

          (4)   a description of the procedure which a Holder must follow to
exercise a repurchase right, and the place or places where such Securities are
to be surrendered for payment of the Repurchase Price and accrued interest, if
any,

          (5)   that on the Repurchase Date the Repurchase Price, and accrued
interest, if any, will become due and payable upon each such Security designated
by the Holder to be repurchased, and that interest thereon shall cease to accrue
on and after said date,

          (6)   the Conversion Rate then in effect, the date on which the right
to convert the principal amount of the Securities to be repurchased will
terminate and the place or places where such Securities may be surrendered for
conversion,

          (7)   the place or places that the certificate required by Section 2.2
shall be delivered, and

          (8)   the CUSIP number or numbers of such Securities.

     No failure of the Company to give the foregoing notices or defect therein
shall limit any Holder's right to exercise a repurchase right or affect the
validity of the proceedings for the repurchase of Securities.

     If any of the foregoing provisions or other provisions of this Article
                                                                    -------
Thirteen are inconsistent with applicable law, such law shall govern.
--------

     (b)  To exercise a repurchase right, a Holder shall deliver to the Trustee
on or before the 30th day after the date of the Company Notice (i) written
notice of the Holder's exercise of such right, which notice shall set forth the
name of the Holder, the principal amount of the Securities to be repurchased
(and, if any Security is to repurchased in part, the serial number thereof, the
portion of the principal amount thereof to be repurchased and the name of the
Person in which the portion thereof to remain Outstanding after such repurchase
is to be registered) and

                                      -89-
<PAGE>

a statement that an election to exercise the repurchase right is being made
thereby, and, in the event that the Repurchase Price shall be paid in shares of
Common Stock, the name or names (with addresses) in which the certificate or
certificates for shares of Common Stock shall be issued, and (ii) the Securities
with respect to which the repurchase right is being exercised. Such written
notice shall be irrevocable, except that the right of the Holder to convert the
Securities with respect to which the repurchase right is being exercised shall
continue until the close of business on the Repurchase Date.

     (C)  In the event a repurchase right shall be exercised in accordance with
the terms hereof, the Company shall pay or cause to be paid to the Trustee the
Repurchase Price in cash or shares of Common Stock, as provided above, for
payment to the Holder on the Repurchase Date or, if shares of Common Stock are
to be paid, as promptly after the Repurchase Date as practicable; provided,
                                                                  --------
however, that installments of interest on the Securities whose Stated Maturity
-------
is on or prior to the Repurchase Date shall be payable in cash to the Holders of
such Securities, or one or more Predecessor Securities, registered as such at
the close of business on the relevant Record Date.

     (d)  If any Security (or portion thereof) surrendered for repurchase shall
not be so paid on the Repurchase Date, the principal amount of such Security (or
portion thereof, as the case may be) shall, until paid, bear interest to the
extent permitted by applicable law from the Repurchase Date at the rate then in
effect per annum, and each Security shall remain convertible into Common Stock
until the principal of such Security (or portion thereof, as the case may be)
shall have been paid or duly provided for.

     (e)  Any Security which is to be repurchased only in part shall be
surrendered to the Trustee (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the
Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing), and the Company shall execute, and the Trustee
shall authenticate and make available for delivery to the Holder of such
Security without service charge, a new Security or Securities, containing
identical terms and conditions, each in an authorized denomination in aggregate
principal amount equal to and in exchange for the unrepurchased portion of the
principal of the Security so surrendered.

     (f)  Any issuance of shares of Common Stock in respect of the Repurchase
Price shall be deemed to have been effected immediately prior to the close of
business on the Repurchase Date and the Person or Persons in whose name or names
any certificate or certificates for shares of Common Stock shall be issuable
upon such repurchase shall be deemed to have become on the Repurchase Date the
holder or holders of record of the shares represented thereby; provided,
                                                               --------
however, that any surrender for repurchase on a date when the stock transfer
-------
books of the Company shall be closed shall constitute the Person or Persons in
whose name or names the certificate or certificates for such shares are to be
issued as the record holder or holders thereof for all purposes at the opening
of business on the next succeeding day on which such stock

                                      -90-
<PAGE>

transfer books are open. No payment or adjustment shall be made for dividends or
distributions on any Common Stock issued upon repurchase of any Security
declared prior to the Repurchase Date.

     (g)  No fractions of shares shall be issued upon repurchase of Securities.
If more than one Security shall be repurchased from the same Holder and the
Repurchase Price shall be payable in shares of Common Stock, the number of full
shares which shall be issuable upon such repurchase shall be computed on the
basis of the aggregate principal amount of the Securities so repurchased.
Instead of any fractional share of Common Stock which would otherwise be
issuable on the repurchase of any Security or Securities, the Company will
deliver to the applicable Holder its check for the current market value of such
fractional share.  The current market value of a fraction of a share is
determined by multiplying the current market price of a full share by the
fraction, and rounding the result to the nearest cent.  For purposes of this
Section, the current market price of a share of Common Stock is the Closing
Price Per Share of the Common Stock on the Trading Day immediately preceding the
Repurchase Date.

     (h)  Any issuance and delivery of certificates for shares of Common Stock
on repurchase of Securities shall be made without charge to the Holder of
Securities being repurchased for such certificates or for any tax or duty in
respect of the issuance or delivery of such certificates or the securities
represented thereby; provided, however, that the Company shall not be required
                     --------  -------
to pay any tax or duty which may be payable in respect of (i) income of the
Holder or (ii) any transfer involved in the issuance or delivery of certificates
for shares of Common Stock in a name other than that of the Holder of the
Securities being repurchased, and no such issuance or delivery shall be made
unless and until the Person requesting such issuance or delivery has paid to the
Company the amount of any such tax or duty or has established, to the
satisfaction of the Company, that such tax or duty has been paid.

     (i)  All Securities delivered for repurchase shall be delivered to the
Trustee to be canceled by the Trustee and disposed of as provided in Section
                                                                     -------
3.9.
---

SECTION 13.4   Certain Definitions.
               -------------------

     For purposes of this Article Thirteen,
                          ----------------

     (a)    the term "beneficial owner" shall be determined in accordance with
Rule 13d-3, as in effect on the date of the original execution of this
Indenture, promulgated by the Commission pursuant to the Exchange Act;

     (b)    a "Change in Control" will be deemed to have occurred at the time
after the Securities are originally issued that any of the following occurs:

                                      -91-
<PAGE>

          (i)    any Person, including any syndicate or group deemed to be a
"person" under Section 13(d)(3) of the Exchange Act, acquires beneficial
ownership, directly or indirectly, through a purchase, merger or other
acquisition transaction or series of transactions, of shares of the Company's
capital stock entitling that Person to exercise 50% or more of the total voting
power of all shares of the Company's capital stock entitled to vote generally in
elections of directors; however, any acquisition by the Company, any Subsidiary
of the Company or any employee benefit plan of the Company and any merger or
consolidation that is not a Change in Control under clause (ii) below will not
trigger this provision;

         (ii)    the Company consolidates with or merges with or into any other
Person or another Person merges into the Company, except if the transaction
satisfies any of the following: (x) the holders of 50% or more of the total
voting power of all shares of the Company's capital stock entitled to vote
generally in elections of directors immediately prior to the transaction have,
directly or indirectly, 50% or more of the total voting power of all shares of
capital stock of the continuing or surviving corporation entitled to vote
generally in elections of directors of the continuing or surviving corporation
immediately after the transaction; (y) the transaction is a merger which does
not result in any reclassification, conversion, exchange or cancellation of
outstanding shares of the Company's capital stock; or (z) the transaction is a
merger effected only to change the Company's jurisdiction of incorporation and
it results in a reclassification, conversion or exchange of outstanding shares
of the Company's common stock only into other shares of Common Stock or shares
of common stock of another corporation; or

        (iii)    the Company conveys, transfers, sells, leases or otherwise
disposes of all or substantially all of its assets to another Person, unless the
holders of 50% or more of the total voting power of all shares of capital stock
of the Company entitled to vote generally in elections of directors immediately
prior to the consummation of such transaction have, directly or indirectly, 50%
or more of the total voting power of all shares of capital stock of such Person
entitled to vote generally in elections of directors immediately after the
consummation of such transaction.

     However, a Change in Control shall not be deemed to have occurred if (x)
the Closing Price Per Share on any five Trading Days within the period of 10
consecutive Trading Days ending immediately after the later of the date of the
Change in Control or the date of the public announcement of the Change in
Control (in the case of a Change in Control under Clause (i) above), or within
the period of 10 consecutive Trading Days ending immediately prior to the date
the Change in Control (in the case of a Change in Control under Clause (ii) or
(iii) above), shall in the case of each of such five Trading Days equal or
exceed 105% of the Conversion Price of the Securities in effect on such Trading
Day or (y) all of the consideration, excluding cash payments for fractional
shares and cash payments made pursuant to dissenters' appraisal rights, in a
merger or consolidation otherwise constituting a Change in Control under Section
13.4(b)(i) or (ii) consists of shares of common stock traded on a national
securities exchange or quoted on the Nasdaq National Market, or will be so
traded or quoted immediately following such merger

                                      -92-
<PAGE>

or consolidation as a result of such merger or consolidation the Securities
become convertible solely into such common stock.

     (c)   the term "Conversion Price" shall equal U.S.$1,000 divided by the
Conversion Rate; and

     (d)   for purposes of Section 13.4(b)(i), the term "Person" shall include
                          ------------------
any syndicate or group which would be deemed to be a "Person" under Section
13(d)(3) of the Exchange Act, as in effect on the date of the original execution
of this Indenture.

                                  ARTICLE XIV

                           HOLDERS LISTS AND REPORTS
                     BY TRUSTEE AND COMPANY; NON-RECOURSE

SECTION 14.1   Company to Furnish Trustee Names and Addresses of Holders.
               ---------------------------------------------------------

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

      (a)  semi-annually, not more than 15 days after the Regular Record Date, a
list, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders of Securities as of such Regular Record Date, and

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

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

SECTION 14.2   Preservation of Information.
               ---------------------------

      (a)  The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders contained in the most recent
list furnished to the Trustee as provided in Section 14.1 and the names and
                                             ------------
addresses of Holders received by the Trustee in its capacity as Security
Registrar.  The Trustee may destroy any list furnished to it as provided in
Section 14.1 upon receipt of a new list so furnished.
------------

      (b)  After this Indenture has been qualified under the Trust Indenture
Act, the rights of Holders to communicate with other Holders with respect to
their rights under this Indenture or under the Securities, and the corresponding
rights and duties of the Trustee, shall be as provided by the Trust Indenture
Act.

                                      -93-
<PAGE>

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

SECTION 14.3   No Recourse Against Others.
               --------------------------

     An incorporator or any past, present or future director, officer, employee
or stockholder, as such, of the Company shall not have any liability for any
obligations of the Company under the Securities or this Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation.  By accepting a Security, each Holder shall waive and release all such
liability.  Such waiver and release shall be part of the consideration for the
issue of the Securities.

SECTION 14.4   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 sixty days after each September  15 following the date of this Indenture,
deliver to Holders a brief report, dated as of such September  15, which
complies with the provisions of such Section 313(a).
                                     --------------

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

SECTION 14.5   Reports by Company.
               ------------------

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

     Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee's receipt thereof 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 rely exclusively on Officers' Certificates).

                                      -94-
<PAGE>

                                  ARTICLE XV

                                   IMMUNITY

SECTION 15.1   Personal Immunity of Incorporators, Shareholders, Directors and
               ---------------------------------------------------------------
               Officers.
               --------

     No recourse for the payment of the principal of or interest on the
Securities, and no recourse under or upon any obligation, covenant or agreement
contained in this Indenture or in any indenture supplemental hereto, or in the
Securities, or because of any indebtedness evidenced thereby, shall be had
against any incorporator, or against any past, present or future shareholder,
officer or director, as such,  of the Company or any successor corporation,
either directly or through the Company or any successor corporation, under any
rule of law, statute or constitutional provision or by the enforcement of any
assessment or by any legal or equitable proceeding or otherwise, all such
liability being expressly waived and released by the acceptance of the
Securities by the Holders thereof and as part of the consideration for the issue
of the Securities.  Each and every Holder of the Securities, by receiving and
holding the same, agrees to the provisions of this Section 15.1 and waives and
releases any and all such recourse, claim and liability.

                          ___________________________

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

                                      -95-
<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.

                              MEDAREX, INC.

                              By: /s/ Christian Schade
                                  ------------------------------------
                                  Name:  Christian Schade
                                  Title: Chief Financial Officer

                              WILMINGTON TRUST COMPANY, as Trustee

                              By: /s/ Michael W. Diaz
                                  ------------------------------------
                                  Name:  Michael W. Diaz
                                  Title: Authorized Signer

                                      -96-<PAGE>

                                                                     EXHIBIT 4.1
       _________________________________________________________________

                            VERIZON NEW JERSEY INC.

                                       AND

                           THE CHASE MANHATTAN BANK

                                  AS TRUSTEE

                                  ____________

                                    INDENTURE

                            Dated as of June 15, 2001

                                  ____________

                                   Securities

       _________________________________________________________________
<PAGE>

       _________________________________________________________________

                             CROSS-REFERENCE TABLE

    Section of
  Trust Indenture Act                     Section of
  of 1939, as amended                     Indenture

  310(a).............................      7.09
  310(b).............................      7.08
                                           7.10
  310(c).............................      Inapplicable
  311(a).............................      7.13(a)
  311(b).............................      7.13(b)
  311(c).............................      Inapplicable
  312(a).............................      5.01
                                           5.02(a)
  312(b).............................      5.02(b)
  312(c).............................      5.02(c)
  313(a).............................      5.04(a)
  313(b).............................      5.04(b)
  313(c).............................      5.04(a)
                                           5.04(b)
  313(d).............................      5.04(c)
  314(a).............................      5.03
  314(b).............................      Inapplicable
  314(c).............................      13.06
  314(d).............................      Inapplicable
  314(e).............................      13.06
  314(f).............................      Inapplicable
  315(a).............................      7.01(a)
                                           7.02
  315(b).............................      6.07
  315(c).............................      7.01
  315(d).............................      7.01(b)
                                           7.01(c)
  315(e).............................      6.08
  316(a).............................      6.06
                                           8.04
  316(b).............................      6.04
  316(c).............................      8.01
  317(a).............................      6.02
  317(b).............................      4.04
  318(a).............................      13.08

       _________________________________________________________________

                                       i

<PAGE>

                               TABLE OF CONTENTS*
                               __________________

                                                           Page

PARTIES.....................................................  1

                            RECITALS:

Purpose of Indenture........................................  1
Compliance with legal requirements..........................  1
Purpose of and consideration for Indenture..................  1

                           ARTICLE ONE
                           DEFINITIONS

SECTION 1.01. Certain terms defined; other terms defined in
              Trust Indenture Act of 1939, as amended or by
              reference therein in Securities Act of 1933,
              as amended, to have meanings therein
              assigned......................................  2

 Affiliate..................................................  2
 Authenticating Agent.......................................  2
 Board of Directors.........................................  2
 Board Resolution...........................................  2
 Business day...............................................  2
 Certificate................................................  3
 Corporate Trust Office.....................................  2
 Company....................................................  3
 Default....................................................  3
 Depositary.................................................  3
 Event of Default...........................................  3
 First Mortgage Bonds.......................................  3
 Global Security............................................  3
 Governmental Obligations...................................  3
 Indenture..................................................  4
 Interest payment date......................................  4
 Officers' Certificate......................................  4
 Opinion of Counsel.........................................  4
 Outstanding................................................  4
 Predecessor Security.......................................  4
 Responsible officer........................................  5
 Security or Securities.....................................  5
 Securityholder.............................................  5
 Subsidiary.................................................  5
 Trustee....................................................  5
 Trust Indenture Act of 1939, as amended....................  5

__________

* This Table of Contents does not constitute part of the
Indenture and should not have any bearing upon the interpretation
of any of its terms or provisions.

                                      ii

<PAGE>

                            ARTICLE TWO
         ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION
                     AND EXCHANGE OF SECURITIES

                                                               Page

SECTION 2.01.  Designation, terms, amount, authentication
               and delivery of Securities.......................  6

SECTION 2.02.  Form of Securities and Trustee's certificate.....  7

SECTION 2.03.  Date and denominations of Securities, and
               provisions for payment of principal, premium
               and interest.....................................  7

SECTION 2.04.  Execution of Securities..........................  9

SECTION 2.05.  Exchange of Securities........................... 10

               (a) Registration and transfer of Securities...... 10

               (b) Securities to be accompanied by proper
                   instruments of transfer...................... 10

               (c) Charges upon exchange, transfer or
                   registration of Securities................... 10

               (d) Restrictions on transfer or exchange at
                   time of redemption........................... 10

SECTION 2.06.  Temporary Securities............................. 11

SECTION 2.07.  Mutilated, destroyed, lost or stolen Securities.. 11

SECTION 2.08.  Cancellation of surrendered Securities........... 12

SECTION 2.09.  Provisions of Indenture and Securities for
               sole benefit of parties and Securityholders...... 12

SECTION 2.10.  Appointment of Authenticating Agent.............. 12

SECTION 2.11.  Global Securities................................ 13

               (a)  Authentication and delivery................. 13

               (b)  Limitation on Transfer...................... 13

               (c)  Exchange of Global Securities for
                    definitive Securities....................... 13

                                      iii

<PAGE>

                           ARTICLE THREE
        REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

                                                               Page

SECTION 3.01.  Redemption of Securities......................... 14

SECTION 3.02.  (a)  Notice of redemption........................ 14

               (b)  Selection of Securities in case less than
                    all Securities to be redeemed............... 14

SECTION 3.03.  (a)  When Securities called for redemption
                    become due and payable...................... 15

               (b)  Receipt of new Security upon partial
                    payment..................................... 15

SECTION 3.04.  Sinking Fund for Securities...................... 15

SECTION 3.05.  Satisfaction of Sinking Fund Payments with
               Securities....................................... 16

SECTION 3.06.  Redemption of Securities for Sinking Fund........ 16

                                 ARTICLE FOUR
                      PARTICULAR COVENANTS OF THE COMPANY

SECTION 4.01.  Payment of principal of (and premium, if any)
               and interest on Securities....................... 16

SECTION 4.02.  Maintenance of office or agency for payment
               of Securities; designation of office or agency
               for payment, registration, transfer-and
               exchange of Securities........................... 16

SECTION 4.03.  (a) Duties of paying agent....................... 17

               (b) Company as paying agent...................... 17

               (c) Holding sums in trust........................ 17

SECTION 4.04.  Appointment to fill vacancy in office
               of Trustee....................................... 18

SECTION 4.05.  Covenant against certain prior liens............. 18

SECTION 4.06.  Restriction on consolidation, merger or sale..... 19

                                      iv

<PAGE>

                            ARTICLE FIVE
         SECURITYHOLDERS' LISTS, AND REPORTS BY THE COMPANY
                          AND THE TRUSTEE

                                                               Page

SECTION 5.01.  Company to furnish Trustee information as to
               names and addresses of Securityholders........... 19

SECTION 5.02.  (a)  Trustee to preserve information as to
                    names and addresses of Securityholders
                    received by it in capacity of paying agent.. 19

               (b)  Trustee may destroy list of Securityholders
                    on certain conditions....................... 19

               (c)  Trustee to make information as to names and
                    addresses of Securityholders available to
                    "applicants" or mail communications to
                    Securityholders in certain circumstances.... 20

               (d)  Procedure if Trustee elects not to make
                    information available to applicants......... 20

               (e)  Company and Trustee not accountable for
                    disclosure of information................... 20

SECTION 5.03.  (a)  Annual and other reports to be filed by
                    Company with Trustee........................ 21

               (b)  Additional information and reports to be
                    filed with Trustee and Securities and
                    Exchange Commission......................... 21

               (c)  Summaries of information and reports to be
                    transmitted by Company to Securityholders... 21

               (d)  Annual Certificate to be furnished to the
                    Trust....................................... 21

SECTION 5.04.  (a)  Trustee to transmit annual report to
                    Securityholders............................. 21

               (b)  Trustee to transmit certain further reports
                    to Securityholders.......................... 22

               (c)  Copies of reports to be filed with stock
                    exchanges and Securities and Exchange
                    Commission.................................. 22

                                       v
<PAGE>

                          ARTICLE SIX
          REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS
                     UPON EVENT OF DEFAULT

                                                                Page

SECTION 6.01.  (a)  Events of Default defined.................... 23

               (b)  Acceleration of maturity upon Event of
                    Default...................................... 23

               (c)  Waiver of default and rescission of
                    declaration of maturity...................... 24

               (d)  Restoration of former position and rights
                    upon curing default.......................... 24

SECTION 6.02.  (a)  Covenant of Company to pay to Trustee whole
                    amount due on Securities on default in payment
                    of interest or principal (and premium, if
                    any)......................................... 24

               (b)  Trustee may recover judgment for whole amount
                    due on Securities on failure of Company to
                    pay.......................................... 25

               (c)  Filing of proof of claim by Trustee in
                    bankruptcy, reorganization or receivership
                    proceedings.................................. 25

               (d)  Rights of action and of asserting claims may
                    be enforced by Trustee without possession of
                    Securities................................... 25

SECTION 6.03.  Application of moneys collected by Trustee........ 26

SECTION 6.04.  Limitation on suits by holders of Securities...... 26

SECTION 6.05.  (a)  Remedies cumulative.......................... 27

               (b)  Delay or omission in exercise of rights not
                    waiver of default............................ 27

SECTION 6.06.  Rights of holders of majority in principal amount
               of Securities to direct Trustee and to waive
               defaults.......................................... 27

SECTION 6.07.  Trustee to give notice of defaults known to it,
               but may withhold in certain circumstances......... 27

SECTION 6.08.  Requirements of an undertaking to pay costs
               in certain suits under Indenture or against
               Trustee........................................... 28

                                      vi
<PAGE>

                          ARTICLE SEVEN
                      CONCERNING THE TRUSTEE

                                                                Page

SECTION 7.01.  (a)  Upon Event of Default occurring and
                    continuing, Trustee shall exercise powers
                    vested in it, and use same degree of care and
                    skill in their exercise, as prudent
                    individual would use......................... 29

               (b)  Trustee not relieved from liability for
                    negligence or willful misconduct except as
                    provided in this section..................... 29

               (1)  Prior to Event of Default and after the
                    curing of all Events of Default which may
                    have occurred................................ 29

               (i)  Trustee not liable except for performance of
                    duties specifically set forth................ 29

               (ii) In absence of bad faith, Trustee may
                    conclusively rely on certificates or opinions
                    furnished it hereunder, subject to duty to
                    examine the same if specifically required to
                    be furnished to it........................... 29

               (2)  Trustee not liable for error of judgment made
                    in good faith by responsible officer unless
                    Trustee negligent............................ 29

               (3)  Trustee not liable for action or non-action
                    in accordance with direction of holders of
                    majority in principal amount of Securities... 29

               (4)  Trustee need not expend own funds without
                    adequate indemnity........................... 29

SECTION 7.02.  Subject to provisions of Section 7.01:

               (a)  Trustee may rely on documents believed
                    genuine and properly signed or presented..... 29

               (b)  Sufficient evidence by certain instruments
                    provided for................................. 29

               (c)  Trustee may consult with counsel and act on
                    advice or Opinion of Counsel................. 30

               (d)  Trustee may require indemnity from
                    Securityholders.............................. 30

               (e)  Trustee not liable for actions in good faith
                    believed to be authorized.................... 30

               (f)  Prior to Event of Default Trustee not bound
                    to investigate facts or matters stated in
                    certificates, etc., unless requested in
                    writing by Securityholders................... 30

               (g)  Trustee may perform duties directly or
                    through agents or attorneys.................. 30

                                      vii
<PAGE>

                                                                Page

SECTION 7.03.  (a)  Trustee not liable for recitals in
                    Indenture or in Securities................... 30

               (b)  No representations by Trustee as to validity
                    or Indenture or of Securities................ 30

               (c)  Trustee not accountable for use of Securities
                    or proceeds.................................. 30

SECTION 7.04.  Trustee, paying agent or Security Registrar
               may own Securities................................ 31

SECTION 7.05.  Moneys received by Trustee to be held in
               trust without interest............................ 31

SECTION 7.06.  (a)  Trustee entitled to compensation,
                    reimbursement and indemnity.................. 31

               (b)  Obligations to Trustee to be secured by lien
                    prior to Securities.......................... 31

               (c)  Certain expenses of Trustee considered
                    expenses of administration in a bankruptcy
                    proceeding................................... 31

SECTION 7.07.  Right of Trustee to rely on certificate of
               officers of Company where no other evidence
               specifically prescribed........................... 31

SECTION 7.08.  (a)  Trustee acquiring conflicting interest to
                    eliminate conflict or resign................. 31

               (b)  Notice to Securityholders in case of failure
                    to comply with subsection (a)................ 32

               (c)  Definition of conflicting interest........... 32

               (d)  Definition of certain terms.................. 35

               (e)  Calculation of percentages of Securities..... 35

               (f)  Trustee resignation not required under
                    certain circumstances........................ 36

                                     viii
<PAGE>

                                                                Page

SECTION 7.09.  Requirements for eligibility of Trustee........... 37

SECTION 7.10.  (a)  Resignation of Trustee and appointment of
                    successor.................................... 37

               (b)  Removal of Trustee by Company or by court on
                    Securityholders' application................. 37

               (c)  Removal of Trustee by holders of majority in
                    principal amount of Securities............... 38

               (d)  Time when resignation or removal of Trustee
                    effective.................................... 38

               (e)  One Trustee for each series.................. 38

SECTION 7.11.  (a)  Acceptance by successor to Trustee........... 38

               (b)  Trustee with respect to less than all series. 38

               (c)  Company to confirm Trustee's rights.......... 39

               (d)  Successor Trustee to be qualified............ 39

               (e)  Notice of succession......................... 39

SECTION 7.12.  Successor to Trustee by merger, consolidation or
               succession to business............................ 39

SECTION 7.13.  (a)  Limitations on rights of Trustee as a
                    creditor to obtain payment of certain claims
                    within four months prior to default or during
                    default, or to realize on property as such
                    creditor thereafter.......................... 39

               (b)  Certain creditor relationships excluded...... 41

               (c)  Definition of certain terms.................. 42

                                      ix
<PAGE>

                          ARTICLE EIGHT
                  CONCERNING THE SECURITYHOLDERS

                                                             Page

SECTION 8.01.  Evidence of action by Securityholders.......... 43

SECTION 8.02.  Proof of execution of instruments and of
               holding of Securities.......................... 43

SECTION 8.03.  Who may be deemed owners of Securities......... 43

SECTION 8.04.  Securities owned by Company or controlled or
               controlling companies disregarded for certain
               purposes....................................... 44

SECTION 8.05.  Instruments executed by Securityholders
               bind future holders............................ 44

                           ARTICLE NINE
                     SUPPLEMENTAL INDENTURES

SECTION 9.01.  Purposes for which supplemental indenture may
               be entered into without consent of
               Securityholders................................ 45

                (a) To evidence successor to the Company and
                    assumption of covenants................... 45

                (b) To add covenants.......................... 45

                (c) To cure ambiguity......................... 45

                (d) When no securities are outstanding........ 45

SECTION 9.02.  Modification of Indenture with consent of
               Securityholders................................ 45

SECTION 9.03.  Effect of supplemental indentures.............. 46

SECTION 9.04.  Securities may bear notation of changes by
               supplemental indentures........................ 46

SECTION 9.05.  Opinion of Counsel............................. 46

                                       x
<PAGE>

                           ARTICLE TEN
                  CONSOLIDATION, MERGER AND SALE

SECTION 10.01.  Consolidations or mergers of Company and
                sales or conveyances of property of Company
                permitted...................................... 47

SECTION 10.02.  (a)  Rights and duties of successor company.... 47

                (b)  Appropriate changes may be made in
                     phraseology and form of Securities........ 47

                (c)  Company may consolidate or merge into
                     itself or acquire properties of other
                     corporations.............................. 47

SECTION 10.03.  Opinion of Counsel............................. 47

                          ARTICLE ELEVEN
             SATISFACTION AND DISCHARGE OF INDENTURE;
                         UNCLAIMED MONEYS

SECTION 11.01.  Satisfaction and discharge of Indenture........ 48

SECTION 11.02.  Discharge of Company's Obligations............. 49

SECTION 11.03.  Application by Trustee of funds deposited
                for payment of Securities...................... 49

SECTION 11.04.  Repayment of moneys held by paying agent....... 49

SECTION 11.05.  Repayment of moneys held by Trustee............ 49

                                      xi
<PAGE>

                          ARTICLE TWELVE
             IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
                      OFFICERS AND DIRECTORS

                                                               Page

SECTION 12.01.  Incorporators, stockholders, officers and
                directors of Company exempt from individual
                liability....................................... 49

                         ARTICLE THIRTEEN
                         SUNDRY PROVISIONS

SECTION 13.01.  Successors and assigns of Company bound by
                Indenture....................................... 50

SECTION 13.02.  Acts of board, committee or officer of
                successor company valid......................... 50

SECTION 13.03.  Surrender of powers by Company.................. 50

SECTION 13.04.  Required notices or demands may be served by
                mail............................................ 50

SECTION 13.05.  Indenture and Securities to be construed in
                accordance with laws of the State of New York... 50

SECTION 13.06.  (a) Officers' Certificate and Opinion of
                    Counsel to be furnished upon applications or
                    demands by Company.......................... 50

                (b) Statements to be included in each
                    certificate or opinion with respect to
                    compliance with condition or covenant....... 51

SECTION 13.07.  Payments due on Sundays or holidays............. 51

SECTION 13.08.  Provisions required by Trust Indenture Act of
                1939 to control................................. 51

SECTION 13.09.  Indenture may be executed in counterparts....... 51

SECTION 13.10.  Separability of Indenture provisions............ 51

ACCEPTANCE OF TRUST BY TRUSTEE.................................. 52

TESTIMONIUM..................................................... 52

SIGNATURES AND SEALS............................................ 52

ACKNOWLEDGMENTS................................................. 53

                                      xii
<PAGE>

     THIS INDENTURE, dated as of the 15th day of June, 2001, between VERIZON NEW
JERSEY INC., a corporation duly organized and existing under the laws of the
State of New Jersey (hereinafter sometimes referred to as the "Company"), and
The Chase Manhattan Bank, a New York banking corporation organized and existing
under the laws of the State of New York, as trustee (hereinafter sometimes
referred to as the "Trustee"):

     WHEREAS, for its lawful corporate purposes, the Company has duly authorized
the execution and delivery of this Indenture to provide for the issuance of
unsecured securities, debentures, notes or other evidences of indebtedness
(hereinafter referred to as the "Securities"), in an unlimited aggregate
principal amount to be issued from time to time in one or more series as in this
Indenture provided as registered Securities without coupons, to be authenticated
by the certificate of the Trustee;

     WHEREAS, to provide the terms and conditions upon which the Securities are
to be authenticated, issued and delivered, the Company has duly authorized the
execution of this Indenture;

     WHEREAS, the Securities and the certificate of authentication to be borne
by the Securities (the "Certificate of Authentication") are to be substantially
in such forms as may be approved by the Board of Directors (as defined below) or
set forth in any indenture supplemental to this Indenture;

     AND WHEREAS, all acts and things necessary to make the Securities issued
pursuant hereto, when executed by the Company and authenticated and delivered by
the Trustee as in this Indenture provided, the valid, binding and legal
obligations of the Company, and to constitute these presents a valid indenture
and agreement according to its terms, have been done and performed or will be
done and performed prior to the issuance of such Securities, and the execution
of this Indenture and the issuance hereunder of the Securities have been or will
be prior to issuance in all respects duly authorized, and the Company, in the
exercise of the legal right and power in it vested, executes this Indenture and
proposes to make, execute, issue and deliver the Securities;

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     That in order to declare the terms and conditions upon which the Securities
are and are to be authenticated, issued and delivered, and in consideration of
the premises, of the purchase and acceptance of the Securities by the holders
thereof and of the sum of one dollar ($1.00) to it duly paid by the Trustee at
the execution of these presents, the receipt whereof is hereby acknowledged, the
Company covenants and agrees with the Trustee, for the equal and proportionate
benefit (subject to the provisions of this Indenture) of the respective holders
from time to time of the Securities, without any discrimination, preference or
priority of any one Security over any other by reason of priority in the time of
issue, sale or negotiation thereof, or otherwise, except as provided herein, as
follows:

                                       1
<PAGE>

                                   ARTICLE ONE
                                   Definitions

     SECTION 1.01. The terms defined in this Section (except as in this
Indenture otherwise expressly provided or unless the context otherwise requires)
for all purposes of this Indenture, any resolution of the Board of Directors of
the Company and of any indenture supplemental hereto shall have the respective
meanings specified in this Section. All other terms used in this Indenture which
are defined in the Trust Indenture Act of 1939, as amended, or which are by
reference in such Act defined in the Securities Act of 1933, as amended (except
as herein otherwise expressly provided or unless the context otherwise
requires), shall have the meanings assigned to such terms in said Trust
Indenture Act and in said Securities Act as in force at the date of the
execution of this instrument.

Affiliate:
The term "Affiliate" of the Company shall mean any company at least a majority
of whose outstanding voting stock shall at the time be owned by Verizon
Communications Inc., a Delaware corporation, or by one or more direct or
indirect subsidiaries of Verizon Communications Inc. or by Verizon
Communications Inc. and one or more direct or indirect subsidiaries of Verizon
Communications Inc. For the purposes only of this definition of the term
"Affiliate", the term "voting stock", as applied to the stock of any company,
shall mean stock of any class or classes having ordinary voting power for the
election of a majority of the directors of such company, other than stock having
such power only by reason of the occurrence of a contingency.

Authenticating Agent:
The term "Authenticating Agent" means an authenticating agent with respect to
all or any of the series of Securities, as the case may be, appointed with
respect to all or any series of the Securities, as the case may be, by the
Trustee pursuant to Section 2.10.

Board of Directors:
The term "Board of Directors" shall mean the Board of Directors of the Company,
or an Executive or Special Committee of such Board.

Board Resolution:
The term "Board Resolution" shall mean 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.

Business day:
The term "business day", with respect to any series of securities, shall mean
any day other than a day on which banking institutions in the Borough of
Manhattan, the City and State of New York, as the case may be (depending on
whether an office or agency of the Company is being maintained in either such
city with respect to any such series), are authorized or obligated by law or
executive order to close.

Certificate:
The term "Certificate" shall mean a certificate signed by the principal
executive officer, the principal financial officer or the principal accounting
officer of the Company. The Certificate need not comply with the provisions of
Section 13.06.

                                       2
<PAGE>

Corporate Trust Office:
The term "Corporate Trust Office" shall mean the office of the Trustee at which
at any particular time its corporate trust business shall be principally
administered, which office at the date of the execution of this Indenture is
located at 450 West 33rd Street, New York, New York 10001 Attention:
Institutional Trust Services.

Company:
The term "Company" shall mean Verizon New Jersey Inc., a corporation duly
organized and existing under the laws of the State of New Jersey, and, subject
to the provisions of Article Ten, shall also include its successors and assigns.

Default:
The term "Default" shall mean any event, act or condition which with notice or
lapse of time, or both, would constitute an Event of Default.

Depository:
The term "Depository" shall mean, with respect to Securities of any series for
which the Company shall determine that such Securities will be issued as a
Global Security, The Depository Trust Company, New York, New York, another
clearing agency, or any successor registered as a clearing agency under the
Securities and Exchange Act of 1934, as amended, or other applicable statute or
regulation, which, in each case, shall be designated by the Company pursuant to
either Section 2.01 or 2.11.

Event of Default:
The term "Event of Default" with respect to Securities of a
particular series shall mean any event specified in Section 6.01,
continued for the period of time, if any, therein designated.

Global Security:

The term "Global Security" shall mean, with respect to any series of Securities,
a Security executed by the Company and authenticated and delivered by the
Trustee to the Depository or pursuant to the Depository's written instruction
(if acceptable to the Trustee) held by the Trustee as custodian for the
Depository, all in accordance with this Indenture, which shall be registered in
the name of the Depository or its nominee.

Governmental Obligations:
The term, "Governmental Obligations" shall mean securities that 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 (as defined in Section 3(a)(2) of
the Securities Act of 1933, as amended) as custodian with respect to any such
Governmental Obligation or a specific payment of principal of or interest on any
such Governmental Obligation held by such custodian for the account of the
holder of such depository receipt; provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depository receipt from any amount received by the
custodian in respect of the Governmental Obligation or the specific payment of
principal of or interest on the Governmental Obligation evidenced by such
depository receipt.

                                       3
<PAGE>

Indenture:
The term "Indenture" shall mean this instrument as originally executed, or, if
amended or supplemented as herein provided, as so amended or supplemented.

Interest payment date:
The term "interest payment date" when used with respect to any installment of
interest on a Security of a particular series shall mean the date specified in
such Security or in a Board Resolution or in an indenture supplemental hereto
with respect to such series as the fixed date on which an installment of
interest with respect to Securities of that series is due and payable.

Officers' Certificate:
The term "Officers' Certificate" shall mean a certificate signed by the
President or a Vice President and by the Treasurer or an Assistant Treasurer or
the Controller or an Assistant Controller or the Secretary or an Assistant
Secretary of the Company. Each such certificate shall include the statements
provided for in Section 13.06, if and to the extent required by the provisions
thereof.

Opinion of Counsel:
The term "Opinion of Counsel" shall mean an opinion in writing signed by legal
counsel, who may be an employee of or counsel for the Company. Each such opinion
shall include the statements provided for in Section 13.06, if and to the extent
required by the provisions thereof.

Outstanding:
The term "outstanding", when used with reference to Securities of any series,
shall, subject to the provisions of Section 8.04, mean, as of any particular
time, all Securities of that series theretofore authenticated and delivered by
the Trustee under this Indenture, except (a) Securities theretofore cancelled by
the Trustee or any paying agent, or delivered to the Trustee or any paying agent
for cancellation or which have previously been cancelled; (b) Securities or
portions thereof for the payment or redemption of which moneys or Governmental
Obligations in the necessary amount shall have been deposited in trust with the
Trustee or with any paying agent (other than the Company) or shall have been set
aside and segregated in trust by the Company (if the Company shall act as its
own paying agent); provided, however, that if such Securities or portions of
such Securities are to be redeemed prior to the maturity thereof, notice of such
redemption shall have been given as in Article Three provided, or provision
satisfactory to the Trustee shall have been made for giving such notice; and (c)
Securities in lieu of or in substitution for which other Securities shall have
been authenticated and delivered pursuant to the terms of Section 2.07.

Predecessor Security:
The term "Predecessor Security" of any particular Security shall mean every
previous Security evidencing all or a portion of the same debt as that evidenced
by such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 2.07 in lieu of a lost,
destroyed or stolen Security shall be deemed to evidence the same debt as the
lost, destroyed or stolen Security.

                                       4
<PAGE>

Responsible officer:
The term "responsible officer" when used with respect to the Trustee shall mean
the chairman of the board of directors, the president, any vice president, the
secretary, the treasurer, any trust officer, any corporate trust officer or any
other officer or assistant officer of the Trustee customarily performing
functions similar to those performed by the persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred
because of his or her knowledge of and familiarity with the particular subject.

Security or Securities:
The term "Security" or "Securities" shall mean any Security or Securities, as
the case may be, authenticated and delivered under this Indenture.

Securityholder:
The term "Securityholder", "holder of Securities", "registered holder", or other
similar term, shall mean the person or persons in whose name or names a
particular Security shall be registered on the books of the Company kept for
that purpose in accordance with the terms of this Indenture.

Subsidiary:
The term "Subsidiary" shall mean any corporation at least a majority of whose
outstanding voting stock shall at the time be owned by the Company or by one or
more Subsidiaries or by the Company and one or more Subsidiaries. For the
purposes only of this definition of the term "Subsidiary", the term "voting
stock", as applied to the stock of any corporation, shall mean stock of any
class or classes having ordinary voting power for the election of a majority of
the directors of such corporation, other than stock having such power only by
reason of the occurrence of a contingency.

Trustee:
The term "Trustee" shall mean The Chase Manhattan Bank and, subject to the
provisions of Article Seven, shall also include its successors and assigns, and,
if at any time there is more than one person acting in such capacity hereunder,
"Trustee" shall mean each such person. The term "Trustee" as used with respect
to a particular series of the Securities shall mean the trustee with respect to
that series.

Trust Indenture Act of 1939, as amended:
The term "Trust Indenture Act of 1939, as amended," subject to the provisions of
Sections 9.01, 9.02, and 10.01, shall mean the Trust Indenture Act of 1939, as
amended and in effect at the date of execution of this Indenture.

                                       5
<PAGE>

                                   ARTICLE TWO
                      Issue, Description, Terms, Execution,
                     Registration and Exchange of Securities

     SECTION 2.01. The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is unlimited.

     The Securities may be issued in one or more series up to the aggregate
principal amount of Securities of that series from time to time authorized by or
pursuant to a Board Resolution or pursuant to one or more indentures
supplemental hereto, prior to the initial issuance of Securities of a particular
series. Prior to the initial issuance of Securities of any series, there shall
be established in or pursuant to a Board Resolution, and set forth in an
Officers' Certificate, or established in one or more indentures supplemental
hereto:

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

     (2) any limit upon the aggregate principal amount of the Securities of that
series which may be authenticated and delivered under this Indenture (except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of that series);

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

     (4) the rate or rates at which the Securities of the series shall bear
interest or the manner of calculation of such rate or rates, if any, the date or
dates from which such interest shall accrue, the interest payment dates on which
such interest shall be payable or the manner of determination of such interest
payment dates;

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

     (6) the obligation, if any, of the Company to redeem or purchase Securities
of the series pursuant to any sinking fund or analogous provisions (including
payments made in cash in anticipation of future sinking fund obligations) or at
the option of a holder thereof and the period or periods within which, the price
or prices at which, and the terms and conditions upon which, Securities of the
series shall be redeemed or purchased, in whole or in part, pursuant to such
obligation;

     (7) the form of the Securities of the series including the form of the
Certificate of Authentication for such series;

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

     (9) whether the Securities of the series are issuable as a Global Security
and, in such case, the identity of the Depository for such series; and

     (10) any and all other terms with respect to such series (which terms shall
not be inconsistent with the terms of this Indenture).

                                       6
<PAGE>

     All Securities of any one series shall be substantially identical except as
to denomination and except as may otherwise be provided in or pursuant to any
such Board Resolution or in any indentures supplemental hereto.

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

     SECTION 2.02. The Securities of any series and the Trustee's Certificate of
Authentication to be borne by such Securities shall be substantially of the
tenor and purport as set forth in one or more indentures supplemental hereto or
as provided in a Board Resolution and as set forth in an Officers' Certificate,
and may have such letters, numbers or other marks of identification or
designation and such legends or endorsements printed, lithographed or engraved
thereon as the Company may deem appropriate and as are not inconsistent with the
provisions of this Indenture, or as may be required to comply with any law or
with any rule or regulation made pursuant thereto or with any rule or regulation
of any stock exchange on which Securities of that series may be listed, or to
conform to usage.

     SECTION 2.03. The Securities shall be issuable as registered Securities and
in the denominations of $1,000 or any multiple thereof, subject to Section
2.01(8). The Securities of a particular series shall bear interest payable on
the dates and at the rate specified with respect to that series. The principal
of and the interest on the Securities of any series, as well as any premium
thereon in case of redemption thereof prior to maturity, shall be payable in the
coin or currency of the United States of America which at the time is legal
tender for public and private debt, at the office or agency of the Company
maintained for that purpose in the Borough of Manhattan, the City and State of
New York. Each Security shall be dated the date of its authentication.
Interest on the Securities shall be computed on the basis of a 360-day year
composed of twelve 30-day months; provided that interest on Securities bearing
interest of a floating rate shall be computed on the basis of a year of 365 or 3
66 days, as appropriate, for the actual number of days elapsed.

     The interest installment on any Security which is payable, and is
punctually paid or duly provided for, on any interest payment date for
Securities of that series shall be paid to the person in whose name said
Security (or one or more Predecessor Securities) is registered at the close of
business on the regular record date for such interest installment. In the event
that any Security of a particular series or portion thereof is called for
redemption and the redemption date is subsequent to a regular record date with
respect to any interest payment date and prior to such interest payment date,
interest on such Security will be paid upon presentation and surrender of such
Security as provided in Section 3.03.

     Any interest on any Security which is payable, but is not punctually paid
or duly provided for, on any interest payment date for Securities of the same
series (herein called "Defaulted Interest") shall forthwith cease to be payable
to the registered holder on the relevant regular record date by virtue of having
been such holder; and such Defaulted Interest shall be paid by the Company, at
its election, as provided in clause (1) or clause (2) below:

                                       7
<PAGE>

     (1) The Company may make payment of any Defaulted Interest on Securities to
the persons in whose names such Securities (or their respective Predecessor
Securities) are registered at the close of business on a special record date for
the payment of such Defaulted Interest, which shall be fixed in the following
manner: the Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each such Security and the date of the
proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements satisfactory to
the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the persons entitled
to such Defaulted Interest as in this clause provided. Thereupon the Trustee
shall fix a special record date for the payment of such Defaulted Interest which
shall not be more than 15 or less than 10 days prior to the date of the proposed
payment and not less than 10 days after the receipt by the Trustee of the notice
of the proposed payment. The Trustee shall promptly notify the Company of such
special record date and, in the name and at the expense of the Company, shall
cause notice of the proposed payment of such Defaulted Interest and the special
record date therefor to be mailed, first class postage prepaid, to each
Securityholder at his or her address as it appears in the Security Register (as
hereinafter defined), not less than 10 days prior to such special record date.
Notice of the proposed payment of such Defaulted Interest and the special record
date therefor having been mailed as aforesaid, such Defaulted Interest shall be
paid to the persons in whose names such Securities (or their respective
Predecessor Securities) are registered on such special record date and shall be
no longer payable pursuant to the following clause (2).

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

     Unless otherwise set forth in a Board Resolution or one or more indentures
supplemental hereto establishing the terms of any series of Securities pursuant
to Section 2.01 hereof, the term "regular record date" as used in this Section
with respect to a series of Securities with respect to any interest payment date
for such series shall mean either the fifteenth day of the month immediately
preceding the month in which an interest payment date established for such
series pursuant to Section 2.01 hereof shall occur, if such interest payment
date is the first day of a month, or the first day of the month in which an
interest payment date established for such series pursuant to Section 2.01
hereof shall occur, if such interest payment date is the fifteenth day of a
month, whether or not such date is a business day.

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

                                       8
<PAGE>

     SECTION 2.04. The Securities shall, subject to the provisions of Section
2.06, be printed on steel engraved borders or fully or partially engraved, or
legibly typed, as the proper officers of the Company may determine, and shall be
signed on behalf of the Company by its President or one of its Vice Presidents,
under its corporate seal attested by its Secretary or one of its Assistant
Secretaries. The signature of the President or a Vice President and/or the
signature of the Secretary or an Assistant Secretary in attestation of the
corporate seal, upon the Securities, may be in the form of a facsimile signature
of a present or any future President or Vice President and of a present or any
future Secretary or Assistant Secretary and may be imprinted or otherwise
reproduced on the Securities and for that purpose the Company may use the
facsimile signature of any person who shall have been a President or Vice
President, or of any person who shall have been a Secretary or Assistant
Secretary, notwithstanding the fact that at the time the Securities shall be
authenticated and delivered or disposed of such person shall have ceased to be
the President or a Vice President, or the Secretary or an Assistant Secretary,
of the Company, as the case may be. The seal of the Company may be in the form
of a facsimile of the seal of the Company and may be impressed, affixed,
imprinted or otherwise reproduced on the Securities.

     Only such Securities as shall bear thereon a certificate of authentication
substantially in the form established for such Securities, executed manually by
an authorized signatory of the Trustee, or by any Authenticating Agent with
respect to such Securities, shall be entitled to the benefits of this Indenture
or be valid or obligatory for any purpose. Such certificate executed by the
Trustee, or by any Authenticating Agent appointed by the Trustee with respect to
such Securities, upon any Security executed by the Company shall be conclusive
evidence that the Security so authenticated has been duly authenticated and
delivered hereunder and that the holder is entitled to the benefits of this
Indenture.

     At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a written order of the
Company for the authentication and delivery of such Securities, signed by its
President or any Vice President and its Treasurer or any Assistant Treasurer,
and the Trustee in accordance with such written order shall authenticate and
deliver such Securities.

     In authenticating such Securities and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall be entitled to receive, and (subject to Section 7.01) shall be
fully protected in relying upon, an Opinion of Counsel stating that the form and
terms thereof have been established in conformity with the provisions of this
Indenture and that such Securities, when authenticated and delivered by the
Trustee, will be duly authorized, executed and delivered and will constitute the
legal, valid and binding obligations of the Company, enforceable against it in
accordance with their terms.

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

                                       9
<PAGE>

     SECTION 2.05. (a) Securities of any series may be exchanged upon
presentation thereof at the office or agency of the Company designated for such
purpose in the Borough of Manhattan, the City and State of New York, for other
Securities of such series of authorized denominations, and for a like aggregate
principal amount, upon payment of a sum sufficient to cover any tax or other
governmental charge in relation thereto, all as provided in this Section. In
respect of any Securities so surrendered for exchange, the Company shall
execute, the Trustee shall authenticate and such office or agency shall
deliver in exchange therefor the Security or Securities of the same series
which the Securityholder making the exchange shall be entitled to receive,
bearing numbers not contemporaneously outstanding.

     (b) The Company shall keep, or cause to be kept, at its office or agency
designated for such purpose in the Borough of Manhattan, the City and State of
New York, or such other location designated by the Company a register or
registers (herein referred to as the "Security Register") in which, subject to
such reasonable regulations as it may prescribe, the Company shall register the
Securities and the transfers of Securities as in this Article provided and which
at all reasonable times shall be open for inspection by the Trustee. The
registrar for the purpose of registering Securities and transfer of Securities
as herein provided shall be appointed by the Board of Directors by Board
Resolution (the "Security Registrar").

     Upon surrender for transfer of any Security at the office or agency of the
Company designated for such purpose in the Borough of Manhattan, the City and
State of New York, the Company shall execute, the Trustee shall authenticate
and such office or agency shall deliver in the name of the transferee or
transferees a new Security or Securities of the same series as the Security
presented for a like aggregate principal amount.

     All Securities presented or surrendered for exchange or registration of
transfer, as provided in this Section, shall be accompanied (if so required by
the Company or the Security Registrar) by a written instrument or instruments of
transfer, in form satisfactory to the Company or the Security Registrar, duly
executed by the registered holder or by his duly authorized attorney in writing.

     (c) No service charge shall be made for any exchange or registration of
transfer of Securities, or issue of new Securities in case of partial redemption
of any series, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge in relation thereto, other than exchanges
pursuant to Section 2.06, the second paragraph of Section 3.03 and Section 9.04
not involving any transfer.

     (d) The Company shall not be required (a) to issue, exchange or register
the transfer of any Securities during a period beginning at the opening of
business 15 days before the day of the mailing of a notice of redemption of less
than all the outstanding Securities of the same series and ending at the close
of business on the day of such mailing, nor (b) to register the transfer of or
exchange any Securities of any series or portions thereof called for redemption.

     The provisions of this Section 2.05 are, with respect to any Global
Security, subject to Section 2.11 hereof.

                                      10
<PAGE>

     SECTION 2.06. Pending the preparation of definitive Securities of any
series, the Company may execute, and the Trustee shall authenticate and deliver,
temporary Securities (printed, lithographed or typewritten) of any authorized
denomination, and substantially in the form of the definitive Securities in lieu
of which they are issued, but with such omissions, insertions and variations as
may be appropriate for temporary Securities, all as may be determined by the
Company. Every temporary Security of any series shall be executed by the Company
and be authenticated by the Trustee upon the same conditions and in
substantially the same manner, and with like effect, as the definitive
Securities of such series. Without unnecessary delay the Company will execute
and will furnish definitive Securities of such series and thereupon any or all
temporary Securities of such series may be surrendered in exchange therefor
(without charge to the holders), at the office or agency of the Company
designated for the purpose in the Borough of Manhattan, the City and State of
New York, and the Trustee shall authenticate and such office or agency shall
deliver in exchange for such temporary Securities an equal aggregate principal
amount of definitive Securities of such series. Until so exchanged, the
temporary Securities of such series shall be entitled to the same benefits under
this Indenture as definitive Securities of such series authenticated and
delivered hereunder.

     SECTION 2.07. In case any temporary or definitive Security shall become
mutilated or be destroyed, lost or stolen, the Company (subject to the next
succeeding sentence) shall execute, and upon its request the Trustee (subject as
aforesaid) shall authenticate and deliver, a new Security of the same series
bearing a number not contemporaneously outstanding, in exchange and substitution
for the mutilated Security, or in lieu of and in substitution for the Security
so destroyed, lost or stolen. In every case the applicant for a substituted
Security shall furnish to the Company and to the Trustee such security or
indemnity as may be required by them to save each of them harmless, and, in
every case of destruction, loss or theft, the applicant shall also furnish to
the Company and to the Trustee evidence to their satisfaction of the
destruction, loss or theft of the applicant's Security and of the ownership
thereof. The Trustee may authenticate any such substituted Security and deliver
the same upon the written request or authorization of any officer of the
Company. Upon the issue of any substituted Security, the Company may require the
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other expenses (including the fees
and expenses of the Trustee) connected therewith. In case any Security which has
matured or is about to mature shall become mutilated or be destroyed, lost or
stolen, the Company may, instead of issuing a substitute Security, pay or
authorize the payment of the same (without surrender thereof except in the case
of a mutilated Security) if the applicant for such payment shall furnish to the
Company and to the Trustee such security or indemnity as they may require to
save them harmless, and, in case of destruction, loss or theft, evidence to the
satisfaction of the Company and the Trustee of the destruction, loss or theft of
such Security and of the ownership thereof.

     Every Security issued pursuant to the provisions of this Section in
substitution for any Security which is mutilated, destroyed, lost or stolen
shall constitute an additional contractual obligation of the Company, whether or
not the mutilated, destroyed, lost or stolen Security shall be found at any
time, or be enforceable by anyone, and shall be entitled to all the benefits of

                                      11
<PAGE>

this Indenture equally and proportionately with any and all other Securities of
the same series duly issued hereunder. All 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
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 2.08. All Securities surrendered for the purpose of payment,
redemption, exchange or registration of transfer shall, if surrendered to the
Company or any paying agent, be delivered to the Trustee for cancellation, or,
if surrendered to the Trustee, shall be cancelled by it, and no Securities shall
be issued in lieu thereof except as expressly required or permitted by any of
the provisions of this Indenture. On request of the Company, the Trustee shall
deliver to the Company cancelled Securities held by the Trustee. In the absence
of such request the Trustee may dispose of cancelled Securities in accordance
with its standard procedures and deliver a certificate of destruction to the
Company. If the Company shall otherwise acquire any of the Securities, however,
such acquisition shall not operate as a redemption or satisfaction of the
indebtedness represented by such Securities unless and until the same are
delivered to the Trustee for cancellation.

     SECTION 2.09. Nothing in this Indenture or in the Securities, express or
implied, shall give or be construed to give to any person, firm or corporation,
other than the parties hereto and the holders of the Securities, any legal or
equitable right, remedy or claim under or in respect of this Indenture, or under
any covenant, condition or provision herein contained; all such covenants,
conditions and provisions being for the sole benefit of the parties hereto and
of the holders of the Securities.

     SECTION 2.10. So long as any of the Securities of any series remain
outstanding there may be an Authenticating Agent for any or all such series of
Securities which the Trustee shall have the right to appoint. Said
Authenticating Agent shall be authorized to act on behalf of the Trustee to
authenticate Securities of such series issued upon exchange, transfer or partial
redemption thereof, and Securities so authenticated shall be entitled to the
benefits of this Indenture and shall be valid and obligatory for all purposes as
if authenticated by the Trustee hereunder. All references in this Indenture to
the authentication of Securities by the Trustee shall be deemed to include
authentication by an Authenticating Agent for such series except for
authentication upon original issuance or pursuant to Section 2.07 hereof. Each
Authenticating Agent shall be acceptable to the Company and shall be a
corporation which has a combined capital and surplus, as most recently reported
or determined by it, sufficient under the laws of any jurisdiction under which
it is organized or in which it is doing business to conduct a trust business,
and which is otherwise authorized under such laws to conduct such business and
is subject to supervision or examination by Federal or State authorities. If at
any time any Authenticating Agent shall cease to be eligible in accordance with
these provisions, it shall resign immediately.

     Any Authenticating Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. The Trustee may at any time (and
upon request by the Company shall) terminate the agency of any Authenticating
Agent by giving written notice of termination to such Authenticating Agent and
to the Company. Upon resignation, termination or cessation of eligibility of any
Authenticating Agent, the Trustee may appoint an eligible successor

                                      12
<PAGE>

Authenticating Agent acceptable to the Company. Any successor Authenticating
Agent, upon acceptance of its appointment hereunder, shall become vested with
all the rights, powers and duties of its predecessor hereunder as if originally
named as an Authenticating Agent pursuant hereto.

Section 2.11 (a) If the Company shall establish pursuant to Section 2.01 that
the Securities of a particular series are to be issued as a Global Security,
then the Company shall execute and the Trustee shall, in accordance with Section
2.04, authenticate and deliver, a Global Security which (i) shall represent, and
shall be denominated in an amount equal to the aggregate principal amount of,
all of the Outstanding Securities of such series, (ii) shall be registered in
the name of the Depository or its nominee, (iii) shall be delivered by the
Trustee to the Depository or pursuant to the Depository's written instruction or
(if acceptable to the Trustee) held by the Trustee as custodian for the
Depository, and (iv) shall bear a legend substantially to the following effect:
'Except as otherwise provided in Section 2.11 of the Indenture, this Security
may be transferred, in whole but not in part, only to another nominee of the
Depository or to a successor Depository or to a nominee of such successor
Depository'.

     (b) Notwithstanding the provisions of Section 2.05, the Global Security of
a series may be transferred, in whole but not in part and in the manner provided
in Section 2.05, only to another nominee of the Depository for such series, or
to a successor Depository for such series selected or approved by the Company or
to a nominee of such successor Depository.

     (c) If at any time the Depository for a series of Securities notifies the
Company that it is unwilling or unable to continue as Depository for such series
or if at any time the Depository for such series shall no longer be registered
or in good standing under the Securities Exchange Act of 1934, as amended, or
other applicable statute or regulation and a successor Depository for such
series is not appointed by the Company within 90 days after the Company receives
such notice or becomes aware of such condition, as the case may be, this Section
2.11 shall no longer be applicable to the Securities of such series and the
Company will execute, and subject to Section 2.05, the Trustee will authenticate
and deliver, Securities of such series in definitive registered form without
coupons, in authorized denominations, and in an aggregate principal amount equal
to the principal amount of the Global Security of such series in exchange for
such Global Securities. In addition, the Company may at any time determine that
the Securities of any series shall no longer be represented by a Global Security
and that the provisions of this Section 2.11 shall no longer apply to the
Securities of such series. In such event the Company will execute and subject to
Section 2.05, the Trustee, upon receipt of an Officers' Certificate evidencing
such determination by the Company, will authenticate and deliver Securities of
such series in definitive registered form without coupons, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security of such series in exchange for such Global
Security. Upon the exchange of the Global Security for such Securities in
definitive registered form without coupons, in authorized denominations, the
Global Security shall be cancelled by the Trustee. Such Securities in definitive
registered form issued in exchange for the Global Security pursuant to this
Section 2.11(c) shall be registered in such names and in such authorized
denominations as the Depository, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee. The Trustee

                                      13
<PAGE>

shall deliver such Securities to the Depository for delivery to the persons in
whose names such Securities are so registered.

                                  ARTICLE THREE
              Redemption of Securities and Sinking Fund Provisions

     SECTION 3.01. The Company may redeem the Securities of any series issued
hereunder on and after the dates and in accordance with the terms established
for such series pursuant to Section 2.01 hereof.

     SECTION 3.02. (a) In case the Company shall desire to exercise such right
to redeem all or, as the case may be, a portion of the Securities of any series
in accordance with the right reserved so to do, it shall give notice of such
redemption to holders of the Securities of such series to be redeemed by
mailing, first class postage prepaid, a notice of such redemption not less than
30 days and not more than 60 days before the date fixed for redemption of that
series to such holders at their last addresses as they shall appear upon the
Security Register. Any notice which is mailed in the manner herein provided
shall be conclusively presumed to have been duly given, whether or not the
registered holder receives the notice. In any case, failure duly to give such
notice to the holder of any Security of any series designated for redemption in
whole or in part, or any defect in the notice, shall not affect the validity of
the proceedings for the redemption of any other Securities of such series or any
other series. In the case of any redemption of Securities prior to the
expiration of any restriction on such redemption provided in the terms of such
Securities or elsewhere in this Indenture, the Company shall furnish the Trustee
with an Officers' Certificate evidencing compliance with any such restriction.

     Each such notice of redemption shall specify the date fixed for redemption
and the redemption price at which Securities of that series are to be redeemed,
and shall state that payment of the redemption price of such Securities to be
redeemed will be made at the office or agency of the Company in the Borough of
Manhattan, the City and State of New York, upon presentation and surrender of
such Securities, that interest accrued to the date fixed for redemption will be
paid as specified in said notice, that from and after said date interest will
cease to accrue and that the redemption is for a sinking fund, if such is the
case. If less than all the Securities of a series are to be redeemed, the notice
to the holders of Securities of that series to be redeemed in whole or in part
shall specify the particular Securities to be so redeemed. In case any Security
is to be redeemed in part only, the notice which relates to such Security shall
state the portion of the principal amount thereof to be redeemed, and shall
state that on and after the redemption date, upon surrender of such Security, a
new Security or Securities of such series in principal amount equal to the
unredeemed portion thereof will be issued.

     (b) If less than all the Securities of a series are to be redeemed, the
Company shall give the Trustee at least 45 days' notice in advance of the date
fixed for redemption as to the aggregate principal amount of Securities of the
series to be redeemed, and thereupon the Trustee shall select, by lot or in such
other manner as it shall deem appropriate and fair in its discretion and which
may provide for the selection of a portion or portions (equal to $1,000 or any
multiple thereof) of the principal amount of such Securities of a denomination
larger than $1,000, the Securities to be redeemed and shall thereafter promptly

                                      14
<PAGE>

notify the Company in writing of the numbers of the Securities to be redeemed,
in whole or in part.

     The Company may, if and whenever it shall so elect, by delivery of
instructions signed on its behalf by its President or any Vice President,
instruct the Trustee or any paying agent to call all or any part of the
Securities of a particular series for redemption and to give notice of
redemption in the manner set forth in this Section, such notice to be in the
name of and at the expense of the Company. In any case in which notice of
redemption is to be given by the Trustee or any such paying agent, the Company
shall deliver or cause to be delivered to, or permit to remain with, the Trustee
or such paying agent, as the case may be, such Security Register, transfer books
or other records, or suitable copies or extracts therefrom, sufficient to enable
the Trustee or such paying agent to give any notice by mail that may be required
under the provisions of this Section.

     SECTION 3.03. (a) If the giving of notice of redemption shall have been
completed as above provided, the Securities or portions of Securities of the
series to be redeemed specified in such notice shall become due and payable on
the date and at the place stated in such notice at the applicable redemption
price, together with interest accrued to the date fixed for redemption and
interest on such Securities or portions of Securities shall cease to accrue on
and after the date fixed for redemption, unless the Company shall default in the
payment of such redemption price and accrued interest with respect to any such
Security or portion thereof. On presentation and surrender of such Securities on
or after the date fixed for redemption at the place of payment specified in the
notice, said Securities shall be paid and redeemed at the applicable redemption
price for such series, together with interest accrued thereon to the date fixed
for redemption (but if the date fixed for redemption is an interest payment
date, the interest installment payable on such date shall be payable to the
registered holder at the close of business on the applicable record date
pursuant to Section 2.03).

     (b) Upon presentation of any Security of such series which is to be
redeemed in part only, the Company shall execute and the Trustee shall
authenticate and the office or agency where the Security is presented shall
deliver to the holder thereof, at the expense of the Company, a new Security or
Securities of the same series, of authorized denominations in principal amount
equal to the unredeemed portion of the Security so presented.

     SECTION 3.04. The provisions of Sections 3.04, 3.05 and 3.06 shall be
applicable to any sinking fund for the retirement of Securities of a series,
except as otherwise specified as contemplated by Section 2.01 for Securities of
such series.

     The minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a "mandatory sinking fund
payment", and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an "optional sinking
fund payment". If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 3.05. Each sinking fund payment shall be applied to the redemption of
Securities of any series as provided for by the terms of Securities of such
series.

                                      15
<PAGE>

     SECTION 3.05. The Company (1) may deliver Outstanding Securities of a
series (other than any previously called for redemption) and (2) may apply as a
credit Securities of a series which have been redeemed either at the election of
the Company pursuant to the terms of such Securities or through the application
of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of such series required to be made
pursuant to the terms of such Securities as provided for by the terms of such
series; provided that such Securities have not been previously so credited. Such
Securities shall be received and credited for such purpose by the Trustee at the
redemption price specified in such Securities for redemption through operation
of the sinking fund and the amount of such sinking fund payment shall be reduced
accordingly.

     SECTION 3.06. Not less than 45 days prior to each sinking fund payment date
for any series of Securities, the Company will deliver to the Trustee an
Officers' Certificate specifying the amount of the next ensuing sinking fund
payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by delivering and crediting Securities
of that series pursuant to Section 3.05 and the basis for such credit and will
also deliver to the Trustee any Securities to be so delivered. Not less than 30
days before each such sinking fund payment date the Trustee shall select the
Securities to be redeemed upon such sinking fund payment date in the manner
specified in Section 3.02 and cause notice of the redemption thereof to be given
in the name of and at the expense of the Company in the manner provided in
Section 3.02. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Section
3.03.

                                  ARTICLE FOUR
                       Particular Covenants of the Company

     The Company covenants and agrees for each series of the Securities as
follows:

     SECTION 4.01. The Company will duly and punctually pay or cause to be paid
the principal of (and premium, if any) and interest on the Securities of that
series at the time and place and in the manner provided herein and established
with respect to such Securities.

     SECTION 4.02. So long as any series of the Securities remain outstanding,
the Company agrees to maintain an office or agency in the Borough of Manhattan,
the City and State of New York, with respect to each such series and at such
other location or locations as may be designated as provided in this Section
4.02, where (i) Securities of that series may be presented for payment, (ii)
Securities of that series may be presented as hereinabove authorized for
registration of transfer and exchange, and (iii) notices and demands to or upon
the Company in respect of the Securities of that series and this Indenture may
be given or served. As to such office or agency in the Borough of Manhattan, the
City and State of New York, the Company shall, designate the required office or
agency to be located in the Borough of Manhattan, the City and State of New
York, for each Series of Securities, such designation to continue with

                                      16
<PAGE>

respect to such office or agency until the Company shall, by written notice
signed by its President or a Vice President and delivered to the Trustee,
designate some other office or agency for such purposes or any of them. If at
any time the Company shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such
presentations, notices and demands may be made or served at the Corporate Trust
Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, notices and demands.

     SECTION 4.03. (a) If the Company shall appoint one or more paying agents
for all or any series of the Securities, other than the Trustee, the Company
will cause each such paying agent to execute and deliver to the Trustee an
instrument in which such agent shall agree with the Trustee, subject to the
provisions of this Section,

(1) that it will hold all sums held by it as such agent for the payment of the
principal of (and premium, if any) or interest on the Securities of that series
(whether such sums have been paid to it by the Company or by any other obligor
on such securities) in trust for the benefit of the persons entitled thereto;

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

(3) that it will, at any time during the continuance of any failure referred to
in the preceding paragraph (a)(2) above, upon the written request of the
Trustee, forthwith pay to the Trustee all sums so held in trust by such paying
agent; and

(4) that it will perform all other duties of paying agent as set forth in this
Indenture.

The Company initially appoints the First Union National Bank, or its successor
by merger, as paying agent.

     (b) If the Company shall act as its own paying agent with respect to any
series of the Securities, it will on or before each due date of the principal of
(and premium, if any) or interest on Securities of that series, set aside,
segregate and hold in trust for the benefit of the persons entitled thereto a
sum sufficient to pay such principal (and premium, if any) or interest so
becoming due on Securities of that series until such sums shall be paid to such
persons or otherwise disposed of as herein provided and will promptly notify the
Trustee of such action, or any failure (by it or any other obligor on such
Securities) to take such action. Whenever the Company shall have one or more
paying agents for any series of Securities, it will, prior to each due date of
the principal of (and premium, if any) or interest on any Securities of that
series, deposit with a paying agent a sum sufficient to pay the principal (and
premium, if any) or interest so becoming due, such sum to be held in trust for
the benefit of the persons entitled to such principal, premium or interest, and
(unless such paying agent is the Trustee) the Company will promptly notify the
Trustee of its action or failure so to act.

     (c) Anything in this Section to the contrary notwithstanding, (i) the
agreement to hold sums in trust as provided in this Section is subject to the
provisions of Section 11.05, and (ii) the Company may at any time, for the
purpose of obtaining the satisfaction and discharge of this Indenture or for any
other purpose, pay, or direct any paying agent to pay, to the Trustee all sums
held in trust by the Company or such paying agent, such sums to be held by the

                                      17
<PAGE>

Trustee upon the same terms as those upon which such sums were held by the
Company or such paying agent; and, upon such payment by any paying agent to the
Trustee, such paying agent shall be released from all further liability with
respect to such money.

     SECTION 4.04. The Company, whenever necessary to avoid or fill a vacancy in
the office of Trustee, will appoint, in the manner provided in Section 7.10, a
Trustee, so that there shall at all times be a Trustee hereunder.

     SECTION 4.05. The Company will not, while any of the Securities remain
outstanding, create, or suffer to be created or to exist, any mortgage, lien,
pledge, security interest or other encumbrance of any kind upon any property of
any character of the Company whether now owned or hereafter acquired or upon any
of the income or profits therefrom unless it shall make effective provision
whereby the Securities then outstanding shall be secured by such mortgage, lien,
pledge, security interest or other encumbrance equally and ratably with any and
all obligations and indebtedness thereby secured so long as any such obligations
and indebtedness shall be so secured; provided, however, that nothing in this
Section shall be construed to prevent the Company from creating, or from
suffering to be created or to exist, any mortgages, liens, pledges, security
interests or other encumbrances, or any agreements, with respect to:

(1) Purchase money mortgages, or other purchase money liens, pledges or
encumbrances of any kind upon property hereafter acquired by the Company, or
mortgages, liens, pledges, security interests or other encumbrances of any kind
existing on such property at the time of the acquisition thereof, or conditional
sales agreements or other title retention agreements with respect to any
property hereafter acquired; provided, however, that no such mortgage, lien,
pledge, security interest or other encumbrance, and no such agreement, shall
extend to or cover any other property of the Company;

(2) The replacement, extension or renewal of any such mortgage, lien, pledge,
security interest or other encumbrance, or of any such agreement, permitted by
the foregoing clause (1), or the replacement or renewal (without increase in
principal amount or extension of final maturity date) of the indebtedness
secured thereby;

(3) Liens for taxes or assessments or governmental charges or levies; pledges or
deposits to secure obligations under worker's compensation laws or similar
legislation; pledges or deposits to secure performance in connection with bids,
tenders, contracts (other than contracts for the payment of money) or leases to
which the Company is a party; deposits to secure public or statutory obligations
of the Company; materialmen's, mechanics', carriers', workers', repairmen's or
other like liens in the ordinary course of business, or deposits to obtain the
release of such liens; deposits to secure surety and appeal bonds to which the
Company is a party; other pledges or deposits for similar purposes in the
ordinary course of business; liens created by or resulting from any litigation
or legal proceeding which at the time is currently being contested in good faith
by appropriate proceedings; leases made, or existing on property acquired, in
the ordinary course of business; landlord's liens under leases to which the
Company is a party; zoning restrictions, easements, licenses, restrictions on
the use of real property or minor irregularities in title thereto, which do not
materially impair the use of such property in the operation of the business of
the Company or the value of such property for the purpose of such business; or

                                      18
<PAGE>

the lien of the Trustee described in Section 7.06 hereof;

(4) Indebtedness assumed by the Company of the character specified in clause (a)
of the second paragraph of Section 4.06 hereof.

     SECTION 4.06. The Company will not, while any of the Securities remain
outstanding, consolidate with, or merge into, or merge into itself, or sell or
convey all or substantially all of its property to, any other company unless the
provisions of Article Ten hereof are complied with.

     If upon any such consolidation or merger, or sale or conveyance, any of the
property of the Company owned by the Company prior thereto would thereupon
become subject to any mortgage, security interest, pledge or lien, the Company,
prior to such consolidation, merger, sale or conveyance, will secure the
outstanding Securities, or cause the same to be secured, equally and ratably
with the other indebtedness or obligations secured by such mortgage, security
interest, pledge or lien so long as such other indebtedness or obligations shall
be so secured; provided, however, that (a) the subjection of the property of the
Company to any mortgage, security interest, pledge or lien securing indebtedness
of an Affiliate which is required to be assumed by the Company in connection
with any merger or consolidation of such Affiliate shall be deemed excluded from
the operation of this Section and shall not require that any of the Securities
be secured; and (b) the subjection of property of the Company to any mortgage,
security interest, pledge or lien of the character referred to in clauses (1),
(2) and (3)of Section 4.05 shall be deemed excluded from the operation of this
Section and shall not require that any of the Securities be secured.

                                  ARTICLE FIVE
                Securityholders' Lists and Reports by the Company
                                 and the Trustee

     SECTION 5.01. The Company will furnish or cause to be furnished to the
Trustee (a) semi-annually, not more than 15 days after each regular record date
(as defined in Section 2.03) a list, in such form as the Trustee may reasonably
require, of the names and addresses of the holders of each series of Securities
as of such regular record date and (b) at such other times as the Trustee may
request in writing, within 30 days after the receipt by the Company of any such
request, a list of similar form and content as of a date not more than 15 days
prior to the time such list is furnished; provided, however, no such list need
be furnished for any series for which the Trustee shall be the Security
Registrar.

     SECTION 5.02. (a) The Trustee shall preserve, in as current a form as is
reasonably practicable, all information as to the names and addresses of the
holders of Securities contained in the most recent list furnished to it as
provided in Section 5.01 and as to the names and addresses of holders of
Securities received by the Trustee in its capacity as Security Registrar (if
acting in such capacity).

     (b) The Trustee may destroy any list furnished to it as provided in Section
5.01 upon receipt of a new list so furnished.

     (c) In case three or more holders of Securities of a series (hereinafter
referred to as "applicants") apply in writing to the Trustee, and furnish to the

                                      19
<PAGE>

Trustee reasonable proof that each such applicant has owned a Security for a
period of at least six months preceding the date of such application, and such
application states that the applicants desire to communicate with other holders
of Securities of such series or holders of all Securities with respect to their
rights under this Indenture or under such Securities, and is accompanied by a
copy of the form of proxy or other communication which such applicants propose
to transmit, then the Trustee shall, within five business days after the receipt
of such application, at its election, either

(1) afford to such applicants access to the information preserved at the time by
the Trustee in accordance with the provisions of subsection (a) of this Section,
or

(2) inform such applicants as to the approximate number of holders of Securities
of such series or of all Securities, as the case may be, whose names and
addresses appear in the information preserved at the time by the Trustee, in
accordance with the provisions of subsection (a) of this Section, and as to the
approximate cost of mailing to such Securityholders the form of proxy or other
communication, if any, specified in such application.

     (d) If the Trustee shall elect not to afford such applicants access to such
information, the Trustee shall, upon the written request of such applicants,
mail to each holder of such series or of all Securities, as the case may be,
whose name and address appears in the information preserved at the time by the
Trustee in accordance with the provisions of subsection (a) of this Section, a
copy of the form of proxy or other communication which is specified in such
request, with reasonable promptness after a tender to the Trustee of the
material to be mailed and of payment, or provision for the payment, of the
reasonable expenses of mailing, unless within five days after such tender, the
Trustee shall mail to such applicants and file with the Securities and Exchange
Commission, together with a copy of the material to be mailed, a written
statement to the effect that, in the opinion of the Trustee, such mailing would
be contrary to the best interests of the holders of Securities of such series or
of all Securities, as the case may be, or would be in violation of applicable
law. Such written statement shall specify the basis of such opinion. If said
Commission, after opportunity for a hearing upon the objections specified in the
written statement so filed, shall enter an order refusing to sustain any of such
objections or if, after the entry of an order sustaining one or more of such
objections, said Commission shall find, after notice and opportunity for
hearing, that all the objections so sustained have been met and shall enter an
order so declaring, the Trustee shall mail copies of such material to all such
Securityholders with reasonable promptness after the entry of such order and the
renewal of such tender; otherwise the Trustee shall be relieved of any
obligation or duty to such applicants respecting their application.

     (e) Each and every holder of the Securities, by receiving and holding the
same, agrees with the Company and the Trustee that neither the Company nor the
Trustee nor any paying agent nor any Security Registrar shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the holders of Securities in accordance with the provisions of
subsection (b) of this Section, regardless of the source from which such
information was derived, and that the Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under said subsection
(b).

                                      20
<PAGE>

     SECTION 5.03. (a) The Company covenants and agrees to file with the
Trustee, within 15 days after the Company is required to file the same with the
Securities and Exchange Commission, copies of the annual reports and of the
information, documents and other reports (or copies of such portions of any of
the foregoing as said Commission may from time to time by rules and regulations
prescribe) which the Company may be required to file with said Commission
pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934,
as amended; or, if the Company is not required to file information, documents or
reports pursuant to either of such sections, then to file with the Trustee and
said Commission, in accordance with the rules and regulations prescribed from
time to time by said Commission, such of the supplementary and periodic
information, documents and reports which may be required pursuant to Section 13
of the Securities Exchange Act of 1934, as amended, in respect of a security
listed and registered on a national securities exchange as may be prescribed
from time to time in such rules and regulations.

     (b) The Company covenants and agrees to file with the Trustee and the
Securities and Exchange Commission, in accordance with the rules and regulations
prescribed from time to time by said Commission, such additional information,
documents and reports with respect to compliance by the Company with the
conditions and covenants provided for in this Indenture as may be required from
time to time by such rules and regulations.

     (c) The Company covenants and agrees to transmit by mail, first class
postage prepaid, or reputable over-night delivery service which provides for
evidence of receipt, to the Securityholders, as their names and addresses appear
upon the Security Register, within 30 days after the filing thereof with the
Trustee, such summaries of any information, documents and reports required to be
filed by the Company pursuant to subsections (a) and (b) of this Section as may
be required by rules and regulations prescribed from time to time by the
Securities and Exchange Commission.

     (d) The Company covenants and agrees to furnish to the Trustee, on or
before May 15 in each calendar year in which any of the Securities are
outstanding, or on or before such other day in each calendar year as the Company
and the Trustee may from time to time agree upon, a certificate from the
principal executive officer, principal financial officer or principal accounting
officer as to his or her knowledge of the Company's compliance with all
conditions and covenants under this Indenture. For purposes of this subsection
(d), such compliance shall be determined without regard to any period of grace
or requirement of notice provided under this Indenture.

     SECTION 5.04. (a) On or before July 15 in each year in which any Securities
are outstanding hereunder, the Trustee shall transmit by mail, first class
postage prepaid, to the Securityholders, as their names and addresses appear
upon the Security Register, a brief report dated as of the preceding May 15,
with respect to any of the following events which may have occurred within the
previous twelve months (but if no such event has occurred within such period no
report need be transmitted):

(1) any change to its eligibility under Section 7.09, and its qualifications
under Section 7.08;

(2) the creation of or any material change to a relationship specified in
paragraphs (1) through (10) of subsection (c) of Section 7.08;

(3) the character and amount of any advances (and if the Trustee elects so to

                                      21
<PAGE>

state, the circumstances surrounding the making thereof) made by the Trustee (as
such) which remain unpaid on the date of such report, and for the reimbursement
of which it claims or may claim a lien or charge, prior to that of the
Securities, on any property or funds held or collected by it as Trustee if such
advances so remaining unpaid aggregate more than 1/2 of 1% of the principal
amount of the Securities outstanding on the date of such report;

(4) any change to the amount, interest rate, and maturity date of all other
indebtedness owing by the Company, or by any other obligor on the Securities, to
the Trustee in its individual capacity, on the date of such report, with a brief
description of any property held as collateral security therefor, except any
indebtedness based upon a creditor relationship arising in any manner described
in paragraphs (2), (3), (4), or (6) of subsection (b) of Section 7.13;

(5) any change to the property and funds, if any, physically in the possession
of the Trustee as such on the date of such report;

(6) any release, or release and substitution, of property subject to the lien of
this Indenture (and the consideration thereof, if any) which it has not
previously reported;

(7) any additional issue of Securities which the Trustee has not previously
reported; and

(8) any action taken by the Trustee in the performance of its duties under this
Indenture which it has not previously reported and which in its opinion
materially affects the Securities or the Securities of any series, except any
action in respect of a default, notice of which has been or is to be withheld by
it in accordance with the provisions of Section 6.07.

     (b) The Trustee shall transmit by mail, first class postage prepaid, to the
Securityholders, as their names and addresses appear upon the Security Register,
a brief report with respect to the character and amount of any advances (and if
the Trustee elects so to state, the circumstances surrounding the making
thereof) made by the Trustee as such since the date of the last report
transmitted pursuant to the provisions of subsection (a) of this Section (or if
no such report has yet been so transmitted, since the date of execution of this
Indenture), for the reimbursement of which it claims or may claim a lien or
charge prior to that of the Securities of any series on property or funds held
or collected by it as Trustee, and which it has not previously reported pursuant
to this subsection if such advances remaining unpaid at any time aggregate more
than 10% of the principal amount of Securities of such series outstanding at
such time, such report to be transmitted within 90 days after such time.

     (c) A copy of each such report shall, at the time of such transmission to
Securityholders, be filed by the Trustee with the Company, with each stock
exchange upon which any Securities are listed (if so listed) and also with the
Securities and Exchange Commission. The Company agrees to notify the Trustee
when any Securities become listed on any stock exchange.

                                      22
<PAGE>

                                   ARTICLE SIX
                   Remedies of the Trustee and Securityholders
                               on Event of Default

     SECTION 6.01. (a) Whenever used herein with respect to Securities of a
particular series, "Event of Default" means any one or more of the following
events which has occurred and is continuing:

(1) default in the payment of any installment of interest upon any of the
Securities of that series, as and when the same shall become due and payable,
and continuance of such default for a period of 30 business days;

(2) default in the payment of the principal of (or premium, if any, on) any of
the Securities of that series as and when the same shall become due and payable
whether at maturity, upon redemption, by declaration or otherwise, or in any
payment required by any sinking or analogous fund established with respect to
that series;

(3) failure on the part of the Company duly to observe or perform any other of
the covenants or agreements on the part of the Company with respect to that
series contained in such Securities or otherwise established with respect to
that series of Securities pursuant to Section 2.01 hereof or contained in this
Indenture (other than a covenant or agreement which has been expressly included
in this Indenture solely for the benefit of one or more series of Securities
other than such series) for a period of 90 days after the date on which written
notice of such failure, requiring the same to be remedied and stating that such
notice is a "Notice of Default" hereunder, shall have been given to the Company
by the Trustee, by registered or certified mail, or to the Company and the
Trustee by the holders of at least 25% in principal amount of the Securities of
that series at the time outstanding;

(4) a decree or order by a court having jurisdiction in the premises shall have
been entered adjudging the Company a bankrupt or insolvent, or approving as
properly filed a petition seeking liquidation or reorganization of the Company
under the Federal Bankruptcy Code or any other similar applicable Federal or
State law, and such decree or order shall have continued unvacated and unstayed
for a period of 90 days; or an involuntary case shall be commenced under such
Code in respect of the Company and shall continue undismissed for a period of 90
days or an order for relief in such case shall have been entered; or a decree or
order of a court having jurisdiction in the premises shall have been entered for
the appointment on the ground of insolvency or bankruptcy of a receiver or
custodian or liquidator or trustee or assignee in bankruptcy or insolvency of
the Company or of its property, or for the winding up or liquidation of its
affairs, and such decree or order shall have remained in force unvacated and
unstayed for a period of 90 days; or

(5) the Company shall institute proceedings to be adjudicated a voluntary
bankrupt, or shall consent to the filing of a bankruptcy proceeding against it,
or shall file a petition or answer or consent seeking liquidation or
reorganization under the Federal Bankruptcy Code or any other similar applicable
Federal or State law, or shall consent to the filing of any such petition, or
shall consent to the appointment on the ground of insolvency or bankruptcy of a
receiver or custodian or liquidator or trustee or assignee in bankruptcy or
insolvency of it or of its property, or shall make an assignment for the benefit
of creditors.

     (b) In each and every such case, unless the principal of all the Securities
of that series shall have already become due and payable, either the Trustee or

                                      23
<PAGE>

the holders of not less than 25% in aggregate principal amount of the Securities
of that series then outstanding hereunder, by notice in writing to the Company
(and to the Trustee if given by such Securityholders), may declare the principal
of all the Securities of that series to be due and payable immediately, and upon
any such declaration the same shall become and shall be immediately due and
payable, anything contained in this Indenture or in the Securities of that
series or established with respect to that series pursuant to Section 2.01
hereof to the contrary notwithstanding.

     (c) This provision, however, is subject to the condition that if, at any
time after the principal of the Securities of that series shall have been so
declared due and payable, and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided, the
Company shall pay or shall deposit with the Trustee a sum sufficient to pay all
matured installments of interest upon all the Securities of that series and the
principal of (and premium, if any, on) any and all Securities of that series
which shall have become due otherwise than by acceleration (with interest upon
such principal and premium, if any, and, to the extent that such payment is
enforceable under applicable law, upon overdue installments of interest, at the
rate per annum expressed in the Securities of that series to the date of such
payment or deposit) and the amount payable to the Trustee under Section 7.06,
and any and all defaults under the Indenture, other than the nonpayment of
principal on Securities of that series which shall not have become due by their
terms, shall have been remedied or waived as provided in Section 6.06 then and
in every such case the holders of a majority in aggregate principal amount of
the Securities of that series then outstanding, by written notice to the Company
and to the Trustee, may rescind and annul such declaration and its consequences;
but no such rescission and annulment shall extend to or shall affect any
subsequent default, or shall impair any right consequent thereon.

     (d) In case the Trustee shall have proceeded to enforce any right with
respect to Securities of that series under this Indenture and such proceedings
shall have been discontinued or abandoned because of such rescission or
annulment or for any other reason or shall have been determined adversely to the
Trustee, then and in every such case the Company and the Trustee shall be
restored respectively to their former positions and rights hereunder, and all
rights, remedies and powers of the Company and the Trustee shall continue as
though no such proceedings had been taken.

     SECTION 6.02. (a) The Company covenants that (1) in case default shall be
made in the payment of any installment of interest on any of the Securities of a
series, or any payment required by any sinking or analogous fund established
with respect to that series as and when the same shall become due and payable,
and such default shall have continued for a period of 30 business days, or (2)
in case default shall be made in the payment of the principal of (or premium, if
any, on) any of the Securities of a series when the same shall have become due
and payable, whether upon maturity of the Securities of a series or upon
redemption or upon declaration or otherwise--then, upon demand of the Trustee,
the Company will pay to the Trustee, for the benefit of the holders of the
Securities of that series, the whole amount that then shall have become due and
payable on all such Securities for principal (and premium, if any) or interest,
or both, as the case may be, with interest upon the overdue principal (and
premium, if any) and (to the extent that payment of such interest is enforceable
under applicable law) upon overdue installments of interest at the rate per
annum expressed in the Securities of that series; and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of

                                      24
<PAGE>

collection, and the amount payable to the Trustee under Section 7.06.

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

     (c) In case of any receivership, insolvency, liquidation, bankruptcy,
reorganization, readjustment, arrangement, composition or other judicial
proceedings affecting the Company, any other obligor on such Securities, or the
creditors or property of either, the Trustee shall have power to intervene in
such proceedings and take any action therein that may be permitted by the court
and shall (except as may be otherwise provided by law) be entitled to file such
proofs of claim and other papers and documents as may be necessary or advisable
in order to have the claims of the Trustee and of the holders of Securities of
such series allowed for the entire amount due and payable by the Company or such
other obligor under the Indenture at the date of institution of such proceedings
and for any additional amount which may become due and payable by the Company or
such other obligor after such date, and to collect and receive any moneys or
other property payable or deliverable on any such claim, and to distribute the
same after the deduction of the amount payable to the Trustee under Section
7.06; and any receiver, assignee or trustee in bankruptcy or reorganization is
hereby authorized by each of the holders of 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 such Securityholders, to pay to the
Trustee any amount due it under Section 7.06.

     (d) All rights of action and of asserting claims under this Indenture, or
under any of the terms established with respect to Securities of that series,
may be enforced by the Trustee without the possession of any of such Securities,
or the production thereof at any trial or other proceeding relative thereto, and
any such suit or proceeding instituted by the Trustee shall be brought in its
own name as trustee of an express trust, and any recovery of judgment shall,
after provision for payment to the Trustee of any amounts due under Section
7.06, be for the ratable benefit of the holders of the Securities of such
series.

     In case of an Event of Default hereunder the Trustee may in its discretion
proceed to protect and enforce the rights vested in it by this Indenture by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any of such rights, either at law or in equity or in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or
agreement contained in the Indenture or in aid of the exercise of any power
granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.

     Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Securityholder any
plan of reorganization, arrangement, adjustment or composition affecting the
Securities of that series or the rights of any holder thereof or to authorize
the Trustee to vote in respect of the claim of any Securityholder in any such

                                      25
<PAGE>

proceeding.

     SECTION 6.03. Any moneys collected by the Trustee pursuant to Section 6.02
with respect to a particular series of Securities shall be applied in the order
following, at the date or dates fixed by the Trustee and, in case of the
distribution of such moneys on account of principal (or premium, if any) or
interest, upon presentation of the several Securities of that series, 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 collection and of all amounts
payable to the Trustee under Section 7.06;

SECOND: To the payment of the amounts then due and unpaid upon Securities of
such series for principal (and premium, if any) and interest, in respect of
which or for the benefit of which such money has been collected, ratably,
without preference or priority of any kind, according to the amounts due and
payable on such Securities for principal (and premium, if any) and interest,
respectively.

     SECTION 6.04. No holder of any Security of any series shall have any right
by virtue or by availing of any provision of this Indenture to institute any
suit, action or proceeding in equity or at law upon or under or with respect to
this Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless such holder previously shall have given to the Trustee
written notice of an Event of Default and of the continuance thereof with
respect to Securities of such series specifying such Event of Default, as
hereinbefore provided, and unless also the holders of not less than 25% in
aggregate principal amount of the Securities of such series then outstanding
shall have made written request upon the Trustee to institute such action, suit
or proceeding in its own name as trustee hereunder and shall have offered to the
Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee for 60 days
after its receipt of such notice, request and offer of indemnity, shall have
failed to institute any such action, suit or proceeding; it being understood and
intended, and being expressly covenanted by the taker and holder of every
Security of such series with every other such taker and holder and the Trustee,
that no one or more holders of Securities of such series shall have any right in
any manner whatsoever by virtue or by availing of any provision of this
Indenture to affect, disturb or prejudice the rights of the holders of any other
of such Securities, or to obtain or seek to obtain priority over or preference
to any other such holder, or to enforce any right under this Indenture, except
in the manner herein provided and for the equal, ratable and common benefit of
all holders of Securities of such series. For the protection and enforcement of
the provisions of this Section, each and every Securityholder and the Trustee
shall be entitled to such relief as can be given either at law or in equity.

     Notwithstanding any other provisions of this Indenture, however, the right
of any holder of any Security to receive payment of the principal of (and
premium, if any) and interest on such Security, as therein provided, on or after
the respective due dates expressed in such Security (or in the case of
redemption, on the redemption date), or to institute suit for the enforcement of
any such payment on or after such respective dates or redemption date, shall not
be impaired or affected without the consent of such holder.

                                      26
<PAGE>

     SECTION 6.05. (a) All powers and remedies given by this Article to the
Trustee or to the Securityholders shall, to the extent permitted by law, be
deemed cumulative and not exclusive of any others thereof or of any other powers
and remedies available to the Trustee or the holders of the Securities, by
judicial proceedings or otherwise, to enforce the performance or observance of
the covenants and agreements contained in this Indenture or otherwise
established with respect to such Securities.

     (b) No delay or omission of the Trustee or of any holder of any of the
Securities to exercise any right or power accruing upon any Event of Default
occurring and continuing as aforesaid shall impair any such right or power, or
shall be construed to be a waiver of any such default or an acquiescence
therein; and, subject to the provisions of Section 6.04, every power and remedy
given by this Article or by law to the Trustee or to the Securityholders may be
exercised from time to time, and as often as shall be deemed expedient, by the
Trustee or by the Securityholders.

     SECTION 6.06. The holders of a majority in aggregate principal amount of
the Securities of any series at the time outstanding, determined in accordance
with Section 8.04, shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred on the Trustee with respect to such series;
provided, however, that such direction shall not be in conflict with any rule of
law or with this Indenture or unduly prejudicial to the rights of holders of
Securities of any other series at the time outstanding determined in accordance
with Section 8.04, not parties thereto. Subject to the provisions of Section
7.01, the Trustee shall have the right to decline to follow any such direction
if the Trustee in good faith shall, by a responsible officer or officers of the
Trustee, determine that the proceeding so directed would involve the Trustee in
personal liability. The holders of a majority in aggregate principal amount of
the Securities of any series at the time outstanding, determined in accordance
with Section 8.04, may on behalf of the holders of all of the Securities of that
series waive any past default in the performance of any of the covenants
contained herein or established pursuant to Section 2.01 with respect to such
series and its consequences, except a default in the payment of the principal
of, or premium, if any, or interest on, any of the Securities of that series as
and when the same shall become due by the terms of such Securities or a call for
redemption of Securities of that series. Upon any such waiver, the default
covered thereby shall be deemed to be cured for all purposes of this Indenture
and the Company, the Trustee and the holders of the Securities of that 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 6.07. The Trustee shall, within 90 days after the occurrence of a
default with respect to a particular series, transmit by mail, first class
postage prepaid, to the holders of Securities of that series, as their names and
addresses appear upon the Security Register, notice of all defaults with respect
to that series known to the Trustee, unless such defaults shall have been cured
before the giving of such notice (the term "defaults" for the purposes of this
Section being hereby defined to be the events specified in subsections (1), (2),
(3), (4) and (5) of Section 6.01(a), not including any periods of grace provided
for therein and irrespective of the giving of notice provided for by subsection
(3) of Section 6.01(a)); provided, that, except in the case of default in the

                                      27
<PAGE>

payment of the principal of (or premium, if any) or interest on any of the
Securities of that series or in the payment of any sinking fund installment
established with respect to that series, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee, or a trust committee of directors and/or responsible officers, of the
Trustee in good faith determine that the withholding of such notice is in the
interests of the Securityholders of Securities of that series; provided further,
that in the case of any default of the character specified in Section 6.01(a)(3)
with respect to Securities of such series no such notice to the holders of the
Securities of that series shall be given until at least 30 days after the
occurrence thereof.

     The Trustee shall not be deemed to have knowledge of any default, except
(i) a default under subsections (a)(1) or (a)(2) of Section 6.01 as long as the
Trustee is acting as paying agent for such series of Securities or (ii) any
default as to which the Trustee shall have received written notice or a
responsible officer charged with the administration of this Indenture shall have
obtained actual knowledge.

     SECTION 6.08. All parties to this Indenture agree, and each holder of any
Securities by his or her acceptance thereof shall be deemed to have agreed, that
any court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Indenture, or in any suit against the Trustee for any
action taken or omitted by it as Trustee, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys'
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding more than 10% in aggregate principal amount of the
outstanding Securities of any series, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of (or
premium, if any) or interest on any Security of such series, on or after the
respective due dates expressed in such Security or established pursuant to this
Indenture.

                                      28
<PAGE>

                                  ARTICLE SEVEN
                             Concerning the Trustee

     SECTION 7.01. (a) The Trustee, prior to the occurrence of an Event of
Default with respect to Securities of a series and after the curing of all
Events of Default with respect to Securities of that series which may have
occurred, shall undertake to perform with respect to Securities of such series
such duties and only such duties as are specifically set forth in this
Indenture, and no implied covenants shall be read into this Indenture against
the Trustee. In case an Event of Default with respect to Securities of a series
has occurred (which has not been cured or waived), the Trustee shall exercise
with respect to Securities of that series such of the rights and powers vested
in it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent man would exercise or use under the circumstances in the
conduct of his own affairs.

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

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

(ii) in the absence of bad faith on the part of the Trustee, the Trustee may
with respect to Securities of such series conclusively rely, as to the truth of
the statements and the correctness of the opinions expressed therein, upon any
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;

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

(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 not less than a majority in principal amount of the Securities of any series
at the time outstanding relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee under this Indenture with respect to the
Securities of that series; and

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

     SECTION 7.02. Except as otherwise provided in Section 7.01:

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

     (b) Any request, direction, order or demand of the Company mentioned herein
shall be sufficiently evidenced by a Board Resolution or an instrument signed in
the name of the Company by the President or any Vice President and by the
Secretary or an Assistant Secretary or the Treasurer or an Assistant Treasurer
(unless other evidence in respect thereof is specifically prescribed herein);

                                      29
<PAGE>

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

     (d) The Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request, order or direction of
any of the Securityholders, pursuant to the provisions of this Indenture, unless
such Securityholders shall have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities which may be incurred
therein or thereby; nothing herein contained shall, however, relieve the Trustee
of the obligation, upon the occurrence of an Event of Default with respect to a
series of the Securities (which has not been cured or waived) to exercise with
respect to Securities of that series such of the rights and powers vested in it
by this Indenture, and to use the same degree of care and skill in their
exercise, as a prudent man would exercise or use under the circumstances in the
conduct of his own affairs;

     (e) 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 rights or powers conferred upon it by this Indenture;

     (f) The Trustee shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, security, or
other papers or documents, unless requested in writing so to do by the holders
of not less than a majority in principal amount of the outstanding Securities of
the particular series affected thereby (determined as provided in Section 8.04);
provided, however, that if the payment within a reasonable time to the Trustee
of the costs, expenses or liabilities likely to be incurred by it in the making
of such investigation is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms of this Indenture,
the Trustee may require reasonable indemnity against such costs, expenses or
liabilities as a condition to so proceeding. The reasonable expense of every
such examination shall be paid by the Company or, if paid by the Trustee, shall
be repaid by the Company upon demand; and

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

     SECTION 7.03. (a) The recitals contained herein and in the Securities
(other than the Certificate of Authentication on the Securities) shall be taken
as the statements of the Company, and the Trustee assumes no responsibility for
the correctness of the same.

     (b) The Trustee makes no representations as to the validity or sufficiency
of this Indenture or of the Securities.

     (c) The Trustee shall not be accountable for the use or application by the
Company of any of the Securities or of the proceeds of such Securities, or for
the use or application of any moneys paid over by the Trustee in accordance with
any provision of this Indenture or established pursuant to Section 2.01, or for
the use or application of any moneys received by any paying agent other than the
Trustee.

                                      30
<PAGE>

     SECTION 7.04. The Trustee or any paying agent or Security Registrar, in its
individual or any other capacity, may become the owner or pledgee of Securities
with the same rights it would have if it were not Trustee, paying agent or
Security Registrar.

     SECTION 7.05. Subject to the provisions of Section 11.05, all moneys
received by the Trustee shall, until used or applied as herein provided, be held
in trust for the purposes for which they were received, but need not be
segregated from other funds except to the extent required by law. The Trustee
shall be under no liability for interest on any moneys received by it hereunder
except such as it may agree with the Company to pay thereon.

     SECTION 7.06. (a) The Company covenants and agrees to pay to the Trustee
from time to time, and the Trustee shall be entitled to, reasonable compensation
(which shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust) for all services rendered by it
in the execution of the trusts hereby created and in the exercise and
performance of any of the powers and duties hereunder of the Trustee, and the
Company will pay or reimburse the Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Trustee in
accordance with any of the provisions of this Indenture (including the
reasonable compensation and the expenses and disbursements of its counsel
(including in-house counsel) and of all persons not regularly in its employ)
except any such expense, disbursement or advance as may arise from its
negligence or bad faith. The Company also covenants to indemnify the Trustee
(and its officers, agents, directors and employees) for, and to hold it harmless
against, any loss, liability or expense incurred without negligence or bad faith
on the part of the Trustee and arising out of or in connection with the
acceptance or administration of this trust, including the costs and expenses of
defending itself against any claim of liability in the premises.

     (b) The obligations of the Company under this Section to compensate and
indemnify the Trustee and to pay or reimburse the Trustee for expenses,
disbursements and advances shall constitute additional indebtedness hereunder.
Such additional indebtedness shall be secured by a lien prior to that of the
Securities 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
Securities.

     (c) The parties hereto agree that any expenses that the Trustee incurs in
connection with Section 6.01(a)(4) and (a)(5) hereof are intended to constitute
expenses of administration in a bankruptcy proceeding.

     SECTION 7.07. Except as otherwise provided in Section 7.01, whenever in the
administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or
suffering or omitting to take any action hereunder, such matter (unless other
evidence in respect thereof be herein specifically prescribed) may, in the
absence of negligence or bad faith on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers' Certificate delivered to the
Trustee and such certificate, in the absence of negligence or bad faith on the
part of the Trustee, shall be full warrant to the Trustee for any action taken,
suffered or omitted to be taken by it under the provisions of this Indenture
upon the faith thereof.

     SECTION 7.08. (a) If the Trustee has or shall acquire any conflicting
interest, as defined in this Section, with respect to the Securities of any
series and if the Default to which such conflicting interest relates has not
been cured, duly waived or otherwise eliminated, within 90 days after
ascertaining that it has such conflicting interest, it shall either eliminate
such conflicting interest, except as otherwise provided herein, or resign with

                                      31
<PAGE>

respect to the Securities of that series in the manner and with the effect
specified in Section 7.10 and the Company shall promptly appoint a successor
Trustee in the manner provided herein.

     (b) In the event that the Trustee shall fail to comply with the provisions
of subsection (a) of this Section, with respect to the Securities of any series
the Trustee shall, within ten days after the expiration of such 90-day period,
transmit notice of such failure by mail, first class postage prepaid, to the
Securityholders of that series as their names and addresses appear upon the
registration books.

     (c) For the purposes of this Section the Trustee shall be deemed to have a
conflicting interest with respect to the Securities of any series if a Default
has occurred and is continuing and:

(1) the Trustee is trustee under this Indenture with respect to the outstanding
Securities of any series other than that series, or is trustee under another
indenture under which any other securities, or certificates of interest or
participation in any other securities, of the Company are outstanding, unless
such other indenture is a collateral trust indenture under which the only
collateral consists of Securities issued under this Indenture; provided that
there shall be excluded from the operation of this paragraph the Securities of
any series other than that series and any other indenture or indentures under
which other securities, or certificates of interest or participation in other
securities, of the Company are outstanding if (i) this Indenture and such other
indenture or indentures and all series of securities issuable thereunder are
wholly unsecured and rank equally and such other indenture or indentures (and
such series) are hereafter qualified under the Trust Indenture Act of 1939, as
amended, unless the Securities and Exchange Commission shall have found and
declared by order pursuant to subsection (b) of Section 305 or subsection (c) of
Section 307 of the Trust Indenture Act of 1939, as amended, that differences
exist between (A) the provisions of this Indenture with respect to Securities of
that series and with respect to one or more other series or (B) the provisions
of this Indenture and the provisions of such other indenture or indentures (or
such series), which are so likely to involve a material conflict of interest as
to make it necessary in the public interest or for the protection of investors
to disqualify the Trustee from acting as such under this Indenture with respect
to the Securities of that series and such other series or such other indenture
or indentures, or (ii) the Company shall have sustained the burden of proving,
on application to the Securities and Exchange Commission and after opportunity
for hearing thereon, that the trusteeship under this Indenture with respect to
Securities of that series and such other series or such other indenture or
indentures is not so likely to involve a material conflict of interest as to
make it necessary in the public interest or for the protection of investors to
disqualify the Trustee from acting as such under this Indenture with respect to
Securities of that series and such other series or under such other indentures;

(2) the Trustee or any of its directors or executive officers is an underwriter
for the Company;

(3) the Trustee directly or indirectly controls or is directly or indirectly
controlled by or is under direct or indirect common control with or an
underwriter for the Company;

(4) the Trustee or any of its directors or executive officers is a director,
officer, partner, employee, appointee or representative of the

                                      32
<PAGE>

Company, or of an underwriter (other than the Trustee itself) for the Company
who is currently engaged in the business of underwriting, except that (A) one
individual may be a director and/or an executive officer of the Trustee and a
director and/or an executive officer of the Company, but may not be at the same
time an executive officer of both the Trustee and the Company; (B) if and so
long as the number of directors of the Trustee in office is more than nine, one
additional individual may be a director and/or an executive officer of the
Trustee and a director of the Company; and (C) the Trustee may be designated by
the Company or by an underwriter for the Company to act in the capacity of
transfer agent, registrar, custodian, paying agent, fiscal agent, escrow agent,
or depository, or in any other similar capacity, or, subject to the provisions
of paragraph (1) of this subsection (c), to act as trustee whether under an
indenture or otherwise;

(5) 10% or more of the voting securities of the Trustee is beneficially owned
either by the Company or by any director, partner, or executive officer thereof,
or 20% or more of such voting securities is beneficially owned, collectively, by
any two or more of such persons; or 10% or more of the voting securities of the
Trustee is beneficially owned either by an underwriter for the Company or by any
director, partner, or executive officer thereof, or is beneficially owned,
collectively, by any two or more such persons;

(6) the Trustee is the beneficial owner of, or holds as collateral security for
an obligation which is in default (as hereinafter in this subsection (c)
defined), (A) 5% or more of the voting securities, or 10% or more of any other
class of security, of the Company, not including the Securities issued under
this Indenture and securities issued under any other indenture under which the
Trustee is also trustee, or (B) 10% or more of any class of security of an
underwriter for the Company;

(7) the Trustee is the beneficial owner of, or holds as collateral security for
an obligation which is in default (as hereinafter in this subsection (c)
defined), 5% or more of the voting securities of any person who, to the
knowledge of the Trustee, owns 10% or more of the voting securities of, or
controls directly or indirectly or is under direct or indirect common control
with, the Company;

(8) the Trustee is the beneficial owner of, or holds as collateral security for
an obligation which is in default (as hereinafter in this subsection (c)
defined), 10% or more of any class of security of any person who, to the
knowledge of the Trustee, owns 50% or more of the voting securities of the
Company;

(9) the Trustee owns, on the date of Default upon the Securities of any series
or any anniversary of such Default while such Default upon the Securities issued
under this Indenture remains outstanding, in the capacity of executor,
administrator, testamentary or inter vivos trustee, guardian, committee or
conservator, or in any other similar capacity, an aggregate of 25% or more of
the voting securities, or of any class of security, of any person, the
beneficial ownership of a specified percentage of which would have constituted a
conflicting interest under paragraph (6), (7), or (8) of this subsection (d). As
to any such securities of which the Trustee acquired ownership through becoming
executor, administrator or testamentary trustee of an estate which include them,
the provisions of the preceding sentence shall not apply, for a period of two
years from the date of such acquisition, to the extent that such securities
included in such estate do not exceed 25% of such voting securities or 25% of

                                      33
<PAGE>

any such class of security. Promptly after the dates of any such Default upon
the Securities issued under this Indenture and annually in each succeeding year
that the Securities issued under this Indenture remain in Default, the Trustee
shall make a check of its holding of such securities in any of the
above-mentioned capacities as of such dates. If the Company fails to make
payment in full of principal of or interest on any of the Securities when and as
the same becomes due and payable, and such failure continues for 30 days
thereafter, the Trustee shall make a prompt check of its holding of such
securities in any of the above-mentioned capacities as of the date of the
expiration of such 30-day period, and after such date, notwithstanding the
foregoing provisions of this paragraph (9), all such securities so held by the
Trustee, with sole or joint control over such securities vested in it, shall,
but only so long as such failure shall continue, be considered as though
beneficially owned by the Trustee for the purposes of paragraphs (6), (7) and
(8) of this subsection (c); or (10) except under the circumstances described in
paragraphs (1), (3), (4), (5) or (6) of subsection (b) of Section 7.13 the
Trustee shall be or shall become a creditor of the Company.

     For purposes of paragraph (1) of this subsection (c), and of Section 6.06,
the term "series of Securities" or "series" means a series, class or group of
securities issuable under an indenture pursuant to whose terms holders of one
such series may vote to direct the indenture trustee, or otherwise take action
pursuant to a vote of such holders, separately from holders of another such
series; provided, that "series of securities" or "series" shall not include any
series of securities issuable under an indenture if all such series rank equally
and are wholly unsecured.

     The specification of percentages in paragraphs (5) to (9), inclusive, of
this subsection (c) shall not be construed as indicating that the ownership of
such percentages of the securities of a person is or is not necessary or
sufficient to constitute direct or indirect control for the purposes of
paragraph (3) or (7) of this subsection (c).

     For the purposes of paragraphs (6), (7), (8) and (9) of this subsection (c)
only, (A) the terms "security" and "securities" shall include only such
securities as are generally known as corporate securities, but shall not include
any note or other evidence of indebtedness issued to evidence an obligation to
repay moneys lent to a person by one or more banks, trust companies or banking
firms, or any certificate of interest or participation in any such note or
evidence of indebtedness; (B) an obligation shall be deemed to be in "default"
when a default in payment of principal shall have continued for 30 days or more
and shall not have been cured; and (C) the Trustee shall not be deemed to be the
owner or holder of (i) any security which it holds as collateral security (as
trustee or otherwise) for any obligation which is not in default as defined in
clause (B) above, or (ii) any security which it holds as collateral security
under this Indenture, irrespective of any Default hereunder, or (iii) any
security which it holds as agent for collection, or as custodian, escrow agent
or depositary, or in any similar representative capacity.

     Except as above provided, the word "security" or "securities" as used in
this Indenture shall mean any note, stock, treasury stock, bond, debenture,
evidence of indebtedness, certificate of interest or participation in any
profit-sharing agreement, collateral-trust certificate, pre-organization
certificate or subscription, transferable share, investment contract,
voting-trust certificate, certificate of deposit for a security, fractional

                                      34
<PAGE>

undivided interest in oil, gas, or other mineral rights, or, in general, any
interest or instrument commonly known as a "security", or any certificate of
interest or participation in, temporary or interim certificate for, receipt for,
guarantee of, or warrant or right to subscribe to or purchase, any of the
foregoing.

     (d) For the purposes of this Section:

     (1) The term "underwriter" when used with reference to the Company shall
mean every person, who, within one year prior to the time as of which the
determination is made, has purchased from the Company with a view to, or has
offered or sold for the Company in connection with, the distribution of any
security of the Company outstanding at such time, or has participated or has had
a direct or indirect participation in any such undertaking, or has participated
or has had a participation in the direct or indirect underwriting of any such
undertaking, but such term shall not include a person whose interest was limited
to a commission from an underwriter or dealer not in excess of the usual and
customary distributors' or sellers' commission.

     (2) The term "director" shall mean any member of the board of directors of
a corporation or any individual performing similar functions with respect to any
organization whether incorporated or unincorporated.

     (3) The term "person" shall mean an individual, a corporation, a
partnership, an association, a joint-stock company, a trust, an unincorporated
organization or a government or political subdivision thereof. As used in this
paragraph, the term "trust" shall include only a trust where the interest or
interests of the beneficiary or beneficiaries are evidenced by a security.

     (4) The term "voting security" shall mean any security presently entitling
the owner or holder thereof to vote in the direction or management of the
affairs of a person, or any security issued under or pursuant to any trust,
agreement or arrangement whereby a trustee or trustees or agent or agents for
the owner or holder of such security are presently entitled to vote in the
direction or management of the affairs of a person.

     (5) The term "Company" shall mean any obligor upon the Securities.

     (6) The term "executive officer" shall mean the president, every vice
president, every assistant vice president, every trust officer, the cashier, the
secretary, and the treasurer of a corporation, and any individual customarily
performing similar functions with respect to any organization whether
incorporated or unincorporated, but shall not include the chairman of the board
of directors.

     (e) The percentages of voting securities and other securities specified in
this Section shall be calculated in accordance with the following provisions:

     (1) A specified percentage of the voting securities of the Trustee, the
Company or any other person referred to in this Section (each of whom is
referred to as a "person" in this paragraph) means such amount of the
outstanding voting securities of such person as entitles the holder or holders
thereof to cast such specified percentage of the aggregate votes which the
holders of all the outstanding voting securities of such person are entitled to
cast in the direction or management of the affairs of such person.

                                      35
<PAGE>

     (2) A specified percentage of a class of securities of a person means such
percentage of the aggregate amount of securities of the class outstanding.

     (3) The term "amount", when used in regard to securities, means the
principal amount if relating to evidences of indebtedness, the number of shares
if relating to capital shares, and the number of units if relating to any other
kind of security.

     (4) The term "outstanding" means issued and not held by or for the account
of the issuer. The following securities shall not be deemed outstanding within
the meaning of this definition:

(i) securities of an issuer held in a sinking fund relating to securities of the
issuer of the same class,

(ii) securities of an issuer held in a sinking fund relating to another class of
securities of the issuer, if the obligation evidenced by such other class of
securities is not in default as to principal or interest or otherwise,

(iii) securities pledged by the issuer thereof as security for an obligation of
the issuer not in default as to principal or interest or otherwise,

(iv) securities held in escrow if placed in escrow by the issuer thereof.

Provided, however, that any voting securities of an issuer shall be deemed
outstanding if any person other than the issuer is entitled to exercise the
voting rights thereof.

     (5) A security shall be deemed to be of the same class as another security
if both securities confer upon the holder or holders thereof substantially the
same rights and privileges; provided, however, that, in the case of secured
evidences of indebtedness, all of which are issued under a single indenture,
differences in the interest rates or maturity dates of various series thereof
shall not be deemed sufficient to constitute such series different classes; and
provided, further, that, in the case of unsecured evidences of indebtedness,
differences in the interest rates or maturity dates thereof shall not be deemed
sufficient to constitute them securities of different classes, whether or not
they are issued under a single indenture.

     (f) Except in the case of a default in the payment of the principal of (or
premium, if any) or interest on any Securities issued under this Indenture, or
in the payment of any sinking or analogous fund installment, the Trustee shall
not be required to resign as provided by this Section 7.08 if such Trustee shall
have sustained the burden of proving, on application to the Securities and
Exchange Commission and after opportunity for hearing thereon, that (i) the
default under the Indenture may be cured or waived during a reasonable period
and under the procedures described in such application and (ii) a stay of the
Trustee's duty to resign will not be inconsistent with the interests of
Securityholders. The filing of such an application shall automatically stay the
performance of the duty to resign until the Securities and Exchange Commission
orders otherwise.

     Any resignation of the Trustee shall become effective only upon the
appointment of a successor trustee and such successor's acceptance of such an
appointment.

                                      36
<PAGE>

     SECTION 7.09. There shall at all times be a Trustee with respect to the
Securities issued hereunder which shall at all times be a corporation organized
and doing business under the laws of the United States of America or any State
or Territory thereof or of the District of Columbia, or a corporation or other
person permitted to act as trustee by the Securities and Exchange Commission,
authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus of at least 50 million dollars, and subject to supervision
or examination by Federal, State, Territorial, or District of Columbia
authority. If such corporation publishes reports of condition at least annually,
pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. The
Company may not, nor may any person directly or indirectly controlling,
controlled by, or under common control with the Company, serve as Trustee. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, the Trustee shall resign immediately in the manner
and with the effect specified in Section 7.10.

     SECTION 7.10. (a) The Trustee or any successor hereafter appointed, may at
any time resign with respect to the Securities of one or more series by giving
written notice thereof to the Company and by transmitting notice of resignation
by mail, first class postage prepaid, to the Securityholders of such series, as
their names and addresses appear upon the Security Register. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor trustee
with respect to Securities of such 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 appointment
within 30 days after the mailing of such notice of resignation, the resigning
Trustee may petition any court of competent jurisdiction for the appointment of
a successor trustee with respect to Securities of such series, or any
Securityholder of that series who has been a bona fide holder of a Security or
Securities for at least six months may, subject to the provisions of Section
6.08, 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 subsection (a)
of Section 7.08 after written request therefor by the Company or by any
Securityholder who has been a bona fide holder of a Security or Securities for
at least six months, or

     (2) the Trustee shall cease to be eligible in accordance with the
provisions of Section 7.09 and shall fail to resign after written request
therefor by the Company or by any such Securityholder of 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 for the purpose of rehabilitation, conservation or
liquidation, then, in any such case, the Company may remove the Trustee with
respect to all Securities and appoint a successor trustee by written instrument,

                                      37
<PAGE>

in duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the
successor trustee, or, subject to the provisions of Section 6.08, unless the
Trustee's duty to resign is stayed as provided herein, any Securityholder who
has been a bona fide holder of a Security or Securities 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 and the appointment of
a successor trustee. Such court may thereupon after such notice, if any, as it
may deem proper and prescribe, remove the Trustee and appoint a successor
trustee.

     (c) The holders of a majority in aggregate principal amount of the
Securities of any series at the time outstanding may at any time remove the
Trustee with respect to such series and appoint a successor trustee.

     (d) Any resignation or removal of the Trustee and appointment of a
successor trustee with respect to the Securities of a series pursuant to any of
the provisions of this Section shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 7.11.

     (e) Any successor trustee appointed pursuant to this Section may be
appointed with respect to the Securities of one or more series or all of such
series, and at any time there shall be only one Trustee with respect to the
Securities of any particular series.

     SECTION 7.11. (a) In case of the appointment hereunder of a successor
trustee with respect to all Securities, every such successor trustee so
appointed shall execute, acknowledge and deliver to the Company and to the
retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such
successor trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of the Company or the successor trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor trustee all the rights, powers, and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
trustee all property and money held by such retiring Trustee hereunder.

     (b) In case of the appointment hereunder of a successor trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor trustee relates, (2)
shall contain such provisions as shall be deemed necessary or desirable to
confirm that all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee, and
(3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such Trustees co-trustees of

                                      38
<PAGE>

the same trust, 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 that no Trustee shall be responsible for any act or
failure to act on the part of any other Trustee hereunder; and upon the
execution and delivery of such supplemental indenture the resignation or removal
of the retiring Trustee shall become effective to the extent provided therein,
such retiring Trustee shall with respect to the Securities of that or those
series to which the appointment of such successor trustee relates have no
further responsibility for the exercise of rights and powers or for the
performance of the duties and obligations vested in the Trustee under this
Indenture, and each such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
to which the appointment of such successor trustee relates; but, on request of
the Company or any successor trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor trustee, to the extent contemplated by
such supplemental indenture, the property and money held by such retiring
Trustee hereunder with respect to the Securities of that or those series to
which the appointment of such successor trustee relates.

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

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

     (e) Upon acceptance of appointment by a successor trustee as provided in
this Section, the Company shall transmit notice of the succession of such
trustee hereunder by mail, first class postage prepaid, to the Securityholders,
as their names and addresses appear upon the Security Register. If the Company
fails to transmit such notice within ten days after acceptance of appointment by
the successor trustee, the successor trustee shall cause such notice to be
transmitted at the expense of the Company.

     SECTION 7.12. Any corporation into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be qualified under the provisions of Section 7.08 and eligible
under the provisions of Section 7.09, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities.

     SECTION 7.13. (a) Subject to the provisions of subsection (b) of this
Section, if the Trustee shall be or shall become a creditor, directly or
indirectly, secured or unsecured, of the Company within three months prior to a
default, as defined in subsection (c) of this Section, or subsequent to such a

                                      39
<PAGE>

default, then, unless and until such default shall be cured, the Trustee shall
set apart and hold in a special account for the benefit of the Trustee
individually, the holders of the Securities and the holders of other indenture
securities (as defined in subsection (c) of this Section)

     (1) an amount equal to any and all reductions in the amount due and owing
upon any claim as such creditor in respect of principal or interest, effected
after the beginning of such three months' period and valid as against the
Company and its other creditors, except any such reduction resulting from the
receipt or disposition of any property described in paragraph (2) of this
subsection, or from the exercise of any right of set-off which the Trustee could
have exercised if a petition in bankruptcy had been filed by or against the
Company upon the date of such default; and

     (2) all property received by the Trustee in respect of any claim as such
creditor, either as security therefor, or in satisfaction or composition
thereof, or otherwise, after the beginning of such three months' period, or an
amount equal to the proceeds of any such property, if disposed of, subject,
however, to the rights, if any, of the Company and its other creditors in such
property or such proceeds.

     Nothing herein contained, however, shall affect the right of the Trustee

     (A) to retain for its own account (i) payments made on account of any such
claim by any person (other than the Company) who is liable thereon, and (ii) the
proceeds of the bona fide sale of any such claim by the Trustee to a third
person, and (iii) distributions made in cash, securities, or other property in
respect of claims filed against the Company in bankruptcy or receivership or in
a case for reorganization pursuant to the Federal Bankruptcy Code or applicable
State law;

     (B) to realize, for its own account, upon any property held by it as
security for any such claim, if such property was so held prior to the beginning
of such three months' period;

     (C) to realize, for its own account, but only to the extent of the claim
hereinafter mentioned, upon any property held by it as security for any such
claim, if such claim was created after the beginning of such three months'
period and such property was received as security therefor simultaneously with
the creation thereof, and if the Trustee shall sustain the burden of proving
that at the time such property was so received the Trustee had no reasonable
cause to believe that a default, as defined in subsection (c) of this Section,
would occur within three months; or

     (D) to receive payment on any claim referred to in paragraph (B) or (C),
against the release of any property held as security for such claim as provided
in such paragraph (B) or (C), as the case may be, to the extent of the fair
value of such property.

     For the purposes of paragraphs (B), (C) and (D), property substituted after
the beginning of such three months' period for property held as security at the
time of such substitution shall, to the extent of the fair value of the property
released, have the same status as the property released, and, to the extent that
any claim referred to in any of such paragraphs is created in renewal of or in
substitution for or for the purpose of repaying or refunding any pre-existing

                                      40
<PAGE>

claim of the Trustee as such creditor, such claim shall have the same status as
such pre-existing claim.

     If the Trustee shall be required to account, the funds and property held in
such special account and the proceeds thereof shall be apportioned between the
Trustee, the Securityholders and the holders of other indenture securities in
such manner that the Trustee, the Securityholders and the holders of other
indenture securities realize, as a result of payments from such special account
and payments of dividends on claims filed against the Company in bankruptcy or
receivership or in a case for reorganization pursuant to the Federal Bankruptcy
Code or applicable State law, the same percentage of their respective claims,
figured before crediting to the claim of the Trustee anything on account of the
receipt by it from the Company of the funds and property in such special account
and before crediting to the respective claims of the Trustee, the
Securityholders and the holders of other indenture securities dividends on
claims filed against the Company in bankruptcy or receivership or in a case for
reorganization pursuant to the Federal Bankruptcy Code or applicable State law,
but after crediting thereon receipts on account of the indebtedness represented
by their respective claims from all sources other than from such dividends and
from the funds and property so held in such special account. As used in this
paragraph, with respect to any claim, the term "dividends" shall include any
distribution with respect to such claim, in bankruptcy or receivership or in a
case for reorganization pursuant to the Federal Bankruptcy Code or applicable
State law, whether such distribution is made in cash, securities, or other
property, but shall not include any such distribution with respect to the
secured portion, if any, of such claim. The court in which such bankruptcy,
receivership or a case for reorganization is pending shall have jurisdiction (i)
to apportion between the Trustee, the Securityholders and the holders of other
indenture securities, in accordance with the provisions of this paragraph, the
funds and property held in such special account and the proceeds thereof, or
(ii) in lieu of such apportionment, in whole or in part, to give to the
provisions of this paragraph due consideration in determining the fairness of
the distributions to be made to the Trustee, the Securityholders and the holders
of other indenture securities with respect to their respective claims, in which
event it shall not be necessary to liquidate or to appraise the value of any
securities or other property held in such special account or as security for any
such claim, or to make a specific allocation of such distributions as between
the secured and unsecured portions of such claims, or otherwise to apply the
provisions of this paragraph as a mathematical formula.

     Any Trustee who has resigned or been removed after the beginning of such
three months' period shall be subject to the provisions of this subsection (a)
as though such resignation or removal had not occurred. If any Trustee has
resigned or been removed prior to the beginning of such three months' period, it
shall be subject to the provisions of this subsection (a) if and only if the
following conditions exist:

     (i) the receipt of property or reduction of claim which would have given
rise to the obligation to account, if such Trustee had continued as trustee,
occurred after the beginning of such three months' period; and

     (ii) such receipt of property or reduction of claim occurred within three
months after such resignation or removal.

     (b) There shall be excluded from the operation of subsection (a) of this
Section a creditor relationship arising from

                                      41
<PAGE>

     (1) the ownership or acquisition of securities issued under any indenture,
or any security or securities having a maturity of one year or more at the time
of acquisition by the Trustee;

     (2) advances authorized by a receivership or bankruptcy court of competent
jurisdiction, or by this Indenture, for the purpose of preserving any property
other than cash which shall at any time be subject to the lien, if any, of this
Indenture or of discharging tax liens or other prior liens or encumbrances
thereon, if notice of such advance and of the circumstances surrounding the
making thereof is given to the Securityholders at the time and in the manner
provided in this Indenture;

     (3) disbursements made in the ordinary course of business in the capacity
of trustee under an indenture, transfer agent, registrar, custodian, paying
agent, subscription agent, fiscal agent or depositary, or other similar
capacity;

     (4) an indebtedness created as a result of services rendered or premises
rented; or an indebtedness created as a result of goods or securities sold in a
cash transaction as defined in subsection (c) of this Section;

     (5) the ownership of stock or of other securities of a Company organized
under the provisions of Section 25(a) of the Federal Reserve Act, as amended,
which is directly or indirectly a creditor of the Company; or

     (6) the acquisition, ownership, acceptance or negotiation of any drafts,
bills of exchange, acceptances or obligations which fall within the
classification of self-liquidating paper as defined in subsection (c) of this
Section.

     (c) As used in this Section:

     (1) The term "default" shall mean any failure to make payment in full of
the principal of (or premium, if any) or interest upon any of the Securities or
upon the other indenture securities when and as such principal (or premium, if
any) or interest becomes due and payable.

     (2) The term "other indenture securities" shall mean securities upon which
the Company is an obligor (as defined in the Trust Indenture Act of 1939, as
amended) outstanding under any other indenture (A) under which the Trustee is
also trustee, (B) which contains provisions substantially similar to the
provisions of subsection (a) of this Section, and (C) under which a default
exists at the time of the apportionment of the funds and property held in said
special account.

     (3) The term "cash transaction" shall mean any transaction in which full
payment for goods or securities sold is made within seven days after delivery of
the goods or securities in currency or in checks or other orders drawn upon
banks or bankers and payable upon demand.

     (4) The term "self-liquidating paper" shall mean any draft, bill of
exchange, acceptance or obligation which is made, drawn, negotiated or incurred
by the Company for the purpose of financing the purchase, processing,
manufacture, shipment, storage or sale of goods, wares or merchandise and which
is secured by documents evidencing title to, possession of, or a lien upon, the
goods, wares or merchandise or the receivables or proceeds arising from the sale
of the goods, wares or merchandise previously constituting the security,
provided the security is received by the Trustee simultaneously with the
creation of the creditor relationship with the Company arising from the making,
drawing, negotiating or incurring of the draft, bill of exchange, acceptance or
obligation.

     (5) The term "Company" shall mean any obligor upon any of the Securities.

                                      42
<PAGE>

                                  ARTICLE EIGHT
                         Concerning the Securityholders

     SECTION 8.01. Whenever in this Indenture it is provided that the holders of
a majority or specified percentage in aggregate principal amount of the
Securities of a particular series may take any action (including the making of
any demand or request, the giving of any notice, consent or waiver or the taking
of any other action), the fact that at the time of taking any such action the
holders of such majority or specified percentage of that series have joined
therein may be evidenced by any instrument or any number of instruments of
similar tenor executed by such holders of Securities of that series in person or
by agent or proxy appointed in writing.

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

     SECTION 8.02. Subject to the provisions of Section 7.01, proof of the
execution of any instrument by a Securityholder (such proof will not require
notarization) or his agent or proxy and proof of the holding by any person of
any of the Securities shall be sufficient if made in the following manner:

     (a) The fact and date of the execution by any such person of any instrument
may be proved in any reasonable manner acceptable to the Trustee.

     (b) The ownership of Securities shall be proved by the Security Register of
such Securities or by a certificate of the Security Registrar thereof.

     (c) The Trustee may require such additional proof of any matter referred to
in this Section as it shall deem necessary.

     SECTION 8.03. Prior to the due presentment for registration of transfer of
any Security, the Company, the Trustee, any paying agent and any Security
Registrar may deem and treat the person in whose name such Security shall be
registered upon the books of the Company as the absolute owner of such Security
(whether or not such Security shall be overdue and notwithstanding any notice of

                                      43
<PAGE>

ownership or writing thereon made by anyone other than the Security Registrar)
for the purpose of receiving payment of or on account of the principal of,
premium, if any, and (subject to Section 2.03) interest on such Security and for
all other purposes; and neither the Company nor the Trustee nor any paying agent
nor any Security Registrar shall be affected by any notice to the contrary.

     SECTION 8.04. In determining whether the holders of the requisite aggregate
principal amount of Securities of a particular series have concurred in any
direction, consent or waiver under this Indenture, Securities of that series
which are owned by the Company or any other obligor on the Securities of that
series or by any person directly or indirectly controlling or controlled by or
under common control with the Company or any other obligor on the Securities of
that series shall be disregarded and deemed not to be outstanding for the
purpose of any such determination, except that for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, consent
or waiver only Securities of such series which the Trustee actually knows are so
owned shall be so disregarded. Securities so owned which have been pledged in
good faith may be regarded as outstanding for the purposes of this Section, if
the pledgee shall establish to the satisfaction of the Trustee the pledgee's
right so to act with respect to such Securities and that the pledgee is not a
person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company or any 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 full protection to the Trustee.

     SECTION 8.05. At any time prior to (but not after) the evidencing to the
Trustee, as provided in Section 8.01, of the taking of any action by the holders
of the majority or percentage in aggregate principal amount of the Securities of
a particular series specified in this Indenture in connection with such action,
any holder of a Security of that series which is shown by the evidence to be
included in the Securities the holders of which have consented to such action
may, by filing written notice with the Trustee, and upon proof of holding as
provided in Section 8.02, revoke such action so far as concerns such Security.
Except as aforesaid any such action taken by the holder of any Security shall be
conclusive and binding upon such holder and upon all future holders and owners
of such Security, and of any Security issued in exchange therefor, on
registration of transfer thereof or in place thereof, irrespective of whether or
not any notation in regard thereto is made upon such Security. Any action taken
by the holders of the majority or percentage in aggregate principal amount of
the Securities of a particular series specified in this Indenture in connection
with such action shall be conclusively binding upon the Company, the Trustee and
the holders of all the Securities of that series.

                                      44
<PAGE>

                                  ARTICLE NINE
                             Supplemental Indentures

     SECTION 9.01. In addition to any supplemental indenture otherwise
authorized by this Indenture, the Company, when authorized by a Board
Resolution, and the Trustee may from time to time and at any time enter into an
indenture or indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act of 1939 as then in effect), without the
consent of the Securityholders, for one or more of the following purposes:

     (a) to evidence the succession of another corporation to the Company, and
the assumption by any such successor of the covenants of the Company contained
herein or otherwise established with respect to the Securities; or

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

     (c) to cure any ambiguity or to correct or supplement any provision
contained herein or in any supplemental indenture which may be defective or
inconsistent with any other provision contained herein or in any supplemental
indenture, or to make such other provisions in regard to matters or questions
arising under this Indenture as shall not be inconsistent with the provisions of
this Indenture and shall not adversely affect the interests of the holders of
the Securities of any series; or

     (d) to change or eliminate any of the provisions of this Indenture,
provided that any such change or elimination shall become effective only when
there is no Security outstanding of any series created prior to the execution of
such supplemental indenture which is entitled to the benefit of such provision.

     The Trustee is hereby authorized to join with the Company in the execution
of any such supplemental indenture, and to make any further appropriate
agreements and stipulations which may be therein contained, but the Trustee
shall not be obligated to enter into any such supplemental indenture which
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise.

     Any supplemental indenture authorized by the provisions of this Section may
be executed by the Company and the Trustee without the consent of the holders of
any of the Securities at the time outstanding, notwithstanding any of the
provisions of Section 9.02.

     SECTION 9.02. With the consent (evidenced as provided in Section 8.01) of
the holders of not less than a majority in aggregate principal amount of the
Securities of each series affected by such supplemental indenture or indentures
at the time outstanding, the Company, when authorized by a Board Resolution, and
the Trustee may from time to time and at any time enter into an indenture or
indentures supplemental hereto (which shall conform to the provisions of the
Trust Indenture Act of 1939 as then in effect) for the purpose of adding any
provisions 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 the Securities of such series under this Indenture;

                                      45
<PAGE>

provided, however, that no such supplemental indenture shall (i) extend the
fixed maturity of any Securities of any series, or reduce the principal amount
thereof, or reduce the rate or extend the time of payment of interest thereon,
or reduce any premium payable upon the redemption thereof, without the consent
of the holder of each Security so affected, or (ii) reduce the aforesaid
percentage of Securities, the holders of which are required to consent to any
such supplemental indenture, without the consent of the holders of each Security
then outstanding and affected thereby.

     Upon the request of the Company, accompanied by a Board Resolution
authorizing the execution of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of Securityholders required
to consent thereto 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 Securityholders of any
series affected thereby under this Section to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such consent
shall approve the substance thereof.

     Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Trustee
shall transmit by mail, first class postage prepaid, a notice, setting forth in
general terms the substance of such supplemental indenture, to the
Securityholders of all series affected thereby as their names and addresses
appear upon the Security Register. Any failure of the Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

     SECTION 9.03. Upon the execution of any supplemental indenture pursuant to
the provisions of this Article or of Section 10.01, this Indenture shall, with
respect to such series, 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 Securities of the series affected thereby shall
thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

     SECTION 9.04. Securities of any series, affected by a supplemental
indenture, authenticated and delivered after the execution of such supplemental
indenture pursuant to the provisions of this Article or of Section 10.01, may
bear a notation in form approved by the Company, provided such form meets the
requirements of any exchange upon which such series may be listed, as to any
matter provided for in such supplemental indenture. If the Company shall so
determine, new Securities of that series so modified as to conform, in the
opinion of the Board of Directors, to any modification of this Indenture
contained in any such supplemental indenture may be prepared by the Company,
authenticated by the Trustee and delivered in exchange for the Securities of
that series then outstanding.

     SECTION 9.05. The Trustee, subject to the provisions of Section 7.01, may
receive an Opinion of Counsel as conclusive evidence that any supplemental
indenture executed pursuant to this Article is authorized or permitted by, and
conforms to, the terms of this Article and constitutes the legal, valid and
binding obligation of the Company, and that it is proper for the Trustee
under the provisions of this Article to join in the execution thereof.

                                      46
<PAGE>

                                   ARTICLE TEN
                         Consolidation, Merger and Sale

     SECTION 10.01. Nothing contained in this Indenture or in any of the
Securities shall prevent any consolidation or merger of the Company with or into
any other corporation or corporations (whether or not affiliated with the
Company), or successive consolidations or mergers in which the Company or its
successor or successors shall be a party or parties, or shall prevent any sale,
conveyance, transfer or other disposition of the property of the Company or its
successor or successors as an entirety, or substantially as an entirety, to any
other corporation (whether or not affiliated with the Company or its successor
or successors) authorized to acquire and operate the same; provided, however,
the Company hereby covenants and agrees that, upon any such consolidation,
merger, sale, conveyance, transfer or other disposition, the due and punctual
payment of the principal of (premium, if any) and interest on all of the
Securities of all series in accordance with the terms of each series, according
to their tenor, and the due and punctual performance and observance of all the
covenants and conditions of this Indenture with respect to each series or
established with respect to such series pursuant to Section 2.01 to be kept or
performed by the Company, shall be expressly assumed, by supplemental indenture
(which shall conform to the provisions of the Trust Indenture Act of 1939 as
then in effect) satisfactory in form to the Trustee executed and delivered to
the Trustee by the Company formed by such consolidation, or into which the
Company shall have been merged, or by the corporation which shall have acquired
such property.

     SECTION 10.02. (a) In case of any such consolidation, merger, sale,
conveyance, transfer or other disposition and upon the assumption by the
successor corporation, by supplemental indenture, executed and delivered to the
Trustee and satisfactory in form to the Trustee, of the due and punctual payment
of the principal of, premium, if any, and interest on all of the Securities of
all series outstanding and the due and punctual performance of all of the
covenants and conditions of this Indenture or established with respect to each
series of the Securities pursuant to Section 2.01 to be performed by the Company
with respect to each series, such successor corporation shall succeed to and be
substituted for the Company, with the same effect as if it had been named herein
as the party of the first part, and thereupon the predecessor corporation shall
be relieved of all obligations and covenants under this Indenture and the
Securities. Such successor corporation thereupon may cause to be signed, and may
issue either in its own name or in the name of the Company or any other
predecessor obligor on the Securities, any or all of the Securities issuable
hereunder which theretofore shall not have been signed by the Company and
delivered to the Trustee; and, upon the order of such successor company, instead
of the Company, and subject to all the terms, conditions and limitations in this
Indenture prescribed, the Trustee shall authenticate and shall deliver any
Securities which previously shall have been signed and delivered by the officers
of the predecessor Company to the Trustee for authentication, and any Securities
which such successor corporation thereafter shall cause to be signed and
delivered to the Trustee for that purpose. All the Securities so issued shall in
all respects have the same legal rank and benefit under this Indenture as the
Securities theretofore or thereafter issued in accordance with the terms of this
Indenture as though all of such Securities had been issued at the date of the
execution hereof.

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

     (c) Nothing contained in this Indenture or in any of the Securities shall
prevent the Company from merging into itself or acquiring by purchase or
otherwise all or any part of the property of any other corporation (whether or
not affiliated with the Company).

     SECTION 10.03. The Trustee, subject to the provisions of Section 7.01, may
receive an Opinion of Counsel as conclusive evidence that any such
consolidation, merger, sale, conveyance, transfer or other disposition, and any
such assumption, comply with the provisions of this Article.

                                      47
<PAGE>

                                 ARTICLE ELEVEN
                    Satisfaction and Discharge of Indenture;
                                Unclaimed Moneys

     SECTION 11.01. If at any time: (a) the Company shall have delivered to the
Trustee for cancellation all Securities of a series theretofore authenticated
(other than any Securities which shall have been destroyed, lost or stolen and
which shall have been replaced or paid as provided in Section 2.07) and
Securities for whose payment money or Governmental Obligations has theretofore
been deposited in trust or segregated and held in trust by the Company (and
thereupon repaid to the Company or discharged from such trust, as provided in
Section 11.05); (b) all such Securities of a particular series not theretofore
delivered to the Trustee for cancellation shall have become due and payable, or
are by their terms to become due and payable within one year or are to be called
for redemption within one year under arrangements satisfactory to the Trustee
for the giving of notice of redemption, and the Company shall deposit or cause
to be deposited with the Trustee as trust funds the entire amount in moneys or
Governmental Obligations sufficient; or (c) a combination thereof, sufficient,
without reinvestment, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay at maturity or upon redemption all Securities
of that series not theretofore delivered to the Trustee for cancellation,
including principal (and premium, if any) and interest due or to become due to
such date of maturity or date fixed for redemption, as the case may be, and if
the Company shall also pay or cause to be paid all other sums payable hereunder
with respect to such series by the Company, then this Indenture shall thereupon
cease to be of further effect with respect to such series except for the
provisions of Sections 2.05, 2.07, 4.02 and 7.10, which shall survive until the
date of maturity or redemption date, as the case may be, and Sections 7.06 and
11.05 which shall survive to such date and thereafter, and the Trustee, on
demand of the Company and at the cost and expense of the Company, shall execute
proper instruments acknowledging satisfaction of and discharging this Indenture
with respect to such series.

     SECTION 11.02. If at any time all such Securities of a particular series
not heretofore delivered to the Trustee for cancellation or which have not
become due and payable as described in Section 11.01 shall have been paid by the
Company by depositing irrevocably with the Trustee as trust funds moneys or an

                                      48
<PAGE>

amount of Governmental Obligations sufficient to pay at maturity or upon
redemption all such Securities of that series not theretofore delivered to the
Trustee for cancellation, including principal (and premium, if any) and interest
due or to become due to such date of maturity or date fixed for redemption, as
the case may be, and if the Company shall also pay or cause to be paid all other
sums payable hereunder by the Company with respect to such series, then after
the date such moneys or Governmental Obligations, as the case may be, are
deposited with the Trustee the obligations of the Company under this Indenture
with respect to such series shall cease to be of further effect except for the
provisions of Sections 2.05, 2.07, 4.02, 7.06, 7.10 and 11.05 hereof which shall
survive until such Securities shall mature and be paid. Thereafter, Sections
7.06 and 11.05 shall survive.

     SECTION 11.03. All moneys or Governmental Obligations deposited with the
Trustee pursuant to Sections 11.01 or 11.02 shall be held in trust and shall be
available for payment as due, either directly or through any paying agent
(including the Company acting as its own paying agent), to the holders of the
particular series of Securities for the payment or redemption of which such
moneys or Governmental Obligations have been deposited with the Trustee.

     SECTION 11.04. In connection with the satisfaction and discharge of this
Indenture all moneys or Governmental Obligations then held by any paying agent
under the provisions of this Indenture shall, upon demand of the Company, be
paid to the Trustee and thereupon such paying agent shall be released from all
further liability with respect to such moneys or Governmental Obligations.

     SECTION 11.05. Any moneys or Governmental Obligations deposited with any
paying agent or the Trustee, or then held by the Company, in trust for payment
of principal of or premium or interest on the Securities of a particular series
that are not applied but remain unclaimed by the holders of such Securities for
at least two years after the date upon which the principal of (and premium, if
any) or interest on such Securities shall have respectively become due and
payable, shall be repaid to the Company on May 31 of each year or (if then held
by the Company) shall be discharged from such trust; and thereupon the paying
agent and the Trustee shall be released from all further liability with respect
to such moneys or Governmental Obligations, and the holder of any of the
Securities entitled to receive such payment shall thereafter, as an unsecured
general creditor, look only to the Company for the payment thereof.

                                 ARTICLE TWELVE
                Immunity of Incorporators, Stockholders, Officers
                                  and Directors

     SECTION 12.01. No recourse under or upon any obligation, covenant or
agreement of this Indenture, or of any Security, or for any claim based thereon
or otherwise in respect thereof, shall be had against any incorporator,
stockholder, officer or director, past, present or future as such, of the
Company or of any predecessor or successor corporation, either directly or
through the Company or any such predecessor or successor corporation, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly understood that this
Indenture and the obligations issued hereunder are solely corporate obligations,
and that no such personal liability whatever shall attach to, or is or shall be
incurred by, the incorporators, stockholders, officers or directors as such, of
the Company or of any predecessor or successor corporation, or any of them,
because of the creation of the indebtedness hereby authorized, or under or by
reason of the obligations, covenants or agreements contained in this Indenture
or in any of the Securities or implied therefrom; and that any and all such
personal liability of every name and nature, either at common law or in equity
or by constitution or statute, of, and any and all such rights and claims
against, every such incorporator, stockholder, officer or director as such,
because of the creation of the indebtedness hereby authorized, or under or by
reason of the obligations, covenants or agreements contained in this Indenture
or in any of the Securities or implied therefrom, are hereby expressly waived
and released as a condition of, and as a consideration for, the execution of
this Indenture and the issuance of such Securities.

                                      49
<PAGE>

                                ARTICLE THIRTEEN
                                Sundry Provisions

     SECTION 13.01. All the covenants, stipulations, promises and agreements in
this Indenture contained by or on behalf of the Company shall bind its
successors and assigns, whether so expressed or not.

     SECTION 13.02. Any act or proceeding by any provision of this Indenture
authorized or required to be done or performed by any board, committee or
officer of the Company shall and may be done and performed with like force and
effect by the corresponding board, committee or officer of any corporation that
shall at the time be the lawful sole successor of the Company.

     SECTION 13.03. The Company by instrument in writing executed by authority
of two-thirds of its Board of Directors and delivered to the Trustee may
surrender any of the powers reserved to the Company and thereupon such power so
surrendered shall terminate both as to the Company and as to any successor
corporation.

     SECTION 13.04. Except as otherwise expressly provided herein any notice or
demand which by any provision of this Indenture is required or permitted to be
given or served by the Trustee or by the holders of Securities to or on the
Company may be given or served by being deposited first class postage prepaid in
a post-office letterbox addressed (until another address is filed in writing by
the Company with the Trustee), as follows: Verizon New Jersey Inc., c/o Verizon
Communications Inc., 1095 Avenue of the Americas, New York, New York 10036,
Attention: Corporate Secretary. Any notice, election, request or demand by the
Company or any Securityholder to or upon the Trustee shall be deemed to have
been sufficiently given or made, for all purposes, if given or made in writing
at the Corporate Trust Office of the Trustee, Attention: Institutional Trust
Services.

     SECTION 13.05. This Indenture and each Security shall be deemed to be a
contract made under the laws of the State of New York, and for all purposes
shall be construed in accordance with the laws of said State.

     SECTION 13.06. (a) Upon any application or demand by the Company to the
Trustee to take any action under any of the provisions of this Indenture, the
Company shall furnish to the Trustee an Officers' Certificate stating that all
conditions precedent provided for in this Indenture relating to the proposed
action have been complied with and an Opinion of Counsel stating that in the

                                      50
<PAGE>

opinion of such counsel all such conditions precedent have been complied with,
except that in the case of any such application or demand as to which the
furnishing of such documents is specifically required by any provision of this
Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.

     (b) Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
in this Indenture (other than the certificate provided pursuant to Section
5.03(d) of this Indenture) shall include (1) a statement that the person making
such certificate or opinion has read such covenant or condition; (2) a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based; (3) a statement that, in the opinion of such person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and (4) a statement as to whether or not, in the opinion of such
person, such condition or covenant has been complied with.

     SECTION 13.07. In any case where the date of maturity of interest or
principal of any Security or the date of redemption of any Security shall not be
a business day then payment of interest or principal (and premium, if any) may
be made on the next succeeding business day with the same force and effect as if
made on the nominal date of maturity or redemption, and no interest shall accrue
for the period after such nominal date.

     SECTION 13.08. If and to the extent that any provision of this Indenture
limits, qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act of 1939, as amended, such imposed duties
shall control.

     SECTION 13.09. This Indenture may be executed in any number of
counterparts, each of which shall be an original; but such counterparts shall
together constitute but one and the same instrument.

     SECTION 13.10. In case any one or more of the provisions contained in this
Indenture or in the 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 provisions of this Indenture or of
such Securities, but this Indenture and such Securities shall be construed as if
such invalid or illegal or unenforceable provision had never been contained
herein or therein.

     THE CHASE MANHATTAN BANK hereby accepts the trusts in this Indenture
declared and provided, upon the terms and conditions hereinabove set forth.

                                      51
<PAGE>

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

                                VERIZON NEW JERSEY INC.

[Seal]                          By ___________________________

Attest:

By _____________________________
   Secretary

                                THE CHASE MANHATTAN BANK
                                        as Trustee

                                By ___________________________

                                      52
<PAGE>

STATE OF NEW YORK    )
                        ss.:
COUNTY OF _________  )

    On ___________, 2001 before me, ____________, Notary Public, personally
appeared ___________________ and ___________________

/X/  personally known to me - OR -

/ /  proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies),
and that by his/her/their signature(s) on the instrument the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

     Witness my hand and official seal.

_____________________________
  Signature of Notary

CAPACITY CLAIMED BY SIGNER

/  / INDIVIDUAL(S) _____________________

/X/  CORPORATE OFFICER(S)____________________

/  / PARTNER(S)

/  / ATTORNEY-IN-FACT

/  / TRUSTEE(S)

/  / GUARDIAN/CONSERVATOR

/  / OTHER:

SIGNER IS REPRESENTING:
NAME OF PERSON(S) OR ENTITY(IES)

VERIZON NEW JERSEY INC.

                                      53
<PAGE>

STATE OF NEW YORK   )
                       ss.:
COUNTY OF _________ )

     On ____________, 2001 before me, ____________, Notary Public, personally
appeared ___________________

/X/  personally known to me - OR -

/ /  proved to me on the basis of satisfactory evidence to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies),
and that by his/her/their signature(s) on the instrument the person(s), or the
entity upon behalf of which the person(s) acted, executed the instrument.

     Witness my hand and official seal.

_____________________________
  Signature of Notary

CAPACITY CLAIMED BY SIGNER

/ /  INDIVIDUAL(S) _____________________

/X/  CORPORATE OFFICER(S)     TRUST OFFICER

/ /  PARTNER(S)

/ /  ATTORNEY-IN-FACT

/X/  TRUSTEE(S)

/ /  GUARDIAN/CONSERVATOR

/ /  OTHER:

SIGNER IS REPRESENTING:
NAME OF PERSON(S) OR ENTITY(IES)

THE CHASE MANHATTAN BANK

                                      54

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}]]