Document:

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Exhibit 4(a)

                              TXU ELECTRIC COMPANY
                (FORMERLY TEXAS UTILITIES ELECTRIC COMPANY)

                                       TO

                              THE BANK OF NEW YORK,
                         (FORMERLY IRVING TRUST COMPANY)

                                          TRUSTEE UNDER THE TEXAS UTILITIES
                                          ELECTRIC COMPANY MORTGAGE AND
                                          DEED OF TRUST, DATED AS OF
                                          DECEMBER 1, 1983

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

                       SIXTY-SECOND SUPPLEMENTAL INDENTURE

                        PROVIDING AMONG OTHER THINGS FOR
                              FIRST MORTGAGE BONDS,
                   FLOATING RATE SERIES C DUE JUNE 15, 2003

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

                            DATED AS OF JULY 1, 2001

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          THIS INSTRUMENT GRANTS A SECURITY INTEREST BY A UTILITY
        THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS

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          THIS INSTRUMENT GRANTS A SECURITY INTEREST BY A UTILITY
        THIS INSTRUMENT CONTAINS AFTER-ACQUIRED PROPERTY PROVISIONS

                       SIXTY-SECOND SUPPLEMENTAL INDENTURE

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

      INDENTURE, dated as of July 1, 2001, between TXU ELECTRIC COMPANY
(formerly Texas Utilities Electric Company), a corporation of the State of
Texas, whose address is Energy Plaza, 1601 Bryan Street, Dallas, Texas 75201
(hereinafter sometimes called the Company), and THE BANK OF NEW YORK (formerly
Irving Trust Company), a corporation of the State of New York, whose address is
101 Barclay Street, New York, New York 10286 (hereinafter sometimes called the
Trustee), Trustee under the Mortgage and Deed of Trust, dated as of December 1,
1983 (hereinafter called the Original Indenture, the Original Indenture and any
and all indentures and instruments supplemental thereto being hereinafter
sometimes collectively called the Mortgage), which Original Indenture was
executed and delivered by said Texas Utilities Electric Company to secure the
payment of bonds issued or to be issued under and in accordance with the
provisions of the Mortgage, reference to which Mortgage is made, this Indenture
(hereinafter called the Sixty-second Supplemental Indenture) being supplemental
thereto;

      WHEREAS, said Original Indenture was recorded or filed as required
in the State of Texas; and

      WHEREAS, the Company executed and delivered to the Trustee the following
supplemental indentures:

<Table>
<Caption>

                                   DESIGNATION                                     DATED AS OF
                                   -----------                                     -----------
<S>                                                                                <C>
First Supplemental Indenture.................................................      April 1, 1984
Second Supplemental Indenture................................................      September 1, 1984
Third Supplemental Indenture.................................................      April 1, 1985
Fourth Supplemental Indenture................................................      August 1, 1985
Fifth Supplemental Indenture.................................................      September 1, 1985
Sixth Supplemental Indenture.................................................      December 1, 1985
Seventh Supplemental Indenture...............................................      March 1, 1986
Eighth Supplemental Indenture................................................      May 1, 1986
Ninth Supplemental Indenture.................................................      October 1, 1986
Tenth Supplemental Indenture.................................................      December 1, 1986
Eleventh Supplemental Indenture..............................................      December 1, 1986
Twelfth Supplemental Indenture...............................................      February 1, 1987
Thirteenth Supplemental Indenture............................................      March 1, 1987
Fourteenth Supplemental Indenture............................................      April 1, 1987
Fifteenth Supplemental Indenture.............................................      July 1, 1987
Sixteenth Supplemental Indenture.............................................      September 1, 1987

                                            2

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                                   DESIGNATION                                     DATED AS OF
                                   -----------                                     -----------
Seventeenth Supplemental Indenture...........................................      October 1, 1987
Eighteenth Supplemental Indenture............................................      March 1, 1988
Nineteenth Supplemental Indenture............................................      May 1, 1988
Twentieth Supplemental Indenture.............................................      September 1, 1988
Twenty-first Supplemental Indenture..........................................      November 1, 1988
Twenty-second Supplemental Indenture.........................................      January 1, 1989
Twenty-third Supplemental Indenture..........................................      August 1, 1989
Twenty-fourth Supplemental Indenture.........................................      November 1, 1989
Twenty-fifth Supplemental Indenture..........................................      December 1, 1989
Twenty-sixth Supplemental Indenture..........................................      February 1, 1990
Twenty-seventh Supplemental Indenture........................................      September 1, 1990
Twenty-eighth Supplemental Indenture.........................................      October 1, 1990
Twenty-ninth Supplemental Indenture..........................................      October 1, 1990
Thirtieth Supplemental Indenture.............................................      March 1, 1991
Thirty-first Supplemental Indenture..........................................      May 1, 1991
Thirty-second Supplemental Indenture.........................................      July 1, 1991
Thirty-third Supplemental Indenture..........................................      February 1, 1992
Thirty-fourth Supplemental Indenture.........................................      April 1, 1992
Thirty-fifth Supplemental Indenture..........................................      April 1, 1992
Thirty-sixth Supplemental Indenture..........................................      June 1, 1992
Thirty-seventh Supplemental Indenture........................................      June 1, 1992
Thirty-eighth Supplemental Indenture.........................................      August 1, 1992
Thirty-ninth Supplemental Indenture..........................................      October 1, 1992
Fortieth Supplemental Indenture..............................................      November 1, 1992
Forty-first Supplemental Indenture...........................................      December 1, 1992
Forty-second Supplemental Indenture..........................................      March 1, 1993
Forty-third Supplemental Indenture...........................................      April 1, 1993
Forty-fourth Supplemental Indenture..........................................      April 1, 1993
Forty-fifth Supplemental Indenture...........................................      May 1, 1993
Forty-sixth Supplemental Indenture...........................................      July 1, 1993
Forty-seventh Supplemental Indenture.........................................      October 1, 1993
Forty-eighth Supplemental Indenture..........................................      November 1, 1993
Forty-ninth Supplemental Indenture...........................................      May 1, 1994
Fiftieth Supplemental Indenture..............................................      May 1, 1994
Fifty-first Supplemental Indenture...........................................      August 1, 1994
Fifty-second Supplemental Indenture..........................................      April 1, 1995
Fifty-third Supplemental Indenture...........................................      June 1, 1995
Fifty-fourth Supplemental Indenture..........................................      October 1, 1995
Fifty-fifth Supplemental Indenture...........................................      March 1, 1996
Fifty-sixth Supplemental Indenture...........................................      September 1, 1996
Fifty-seventh Supplemental Indenture.........................................      February 1, 1997
Fifty-eighth Supplemental Indenture..........................................      July 1, 1997
Fifth-ninth Supplemental Indenture...........................................      March 1, 1999

                                            3

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                                   DESIGNATION                                     DATED AS OF
                                   -----------                                     -----------

Sixtieth Supplemental Indenture..............................................      December 1, 2000
Sixty-first Supplemental Indenture...........................................      February 1, 2001

</Table>

which supplemental indentures were or are to be recorded or filed as
required in the State of Texas; and

      WHEREAS, by the Original Indenture, the Company covenanted that it would
execute and deliver such supplemental indenture or indentures and such further
instruments and do such further acts as may be necessary or proper to carry out
more effectually the purposes of the Mortgage and to make subject to the Lien of
the Mortgage any property thereafter acquired and intended to be subject to the
Lien thereof; and

      WHEREAS, in addition to the property described in the Original Indenture,
the Company has acquired certain other property, rights and interests in
property; and

      WHEREAS, the Company has heretofore issued as of June 30, 2001, in
accordance with the provisions of the Original Indenture, as heretofore
supplemented, the following series of First Mortgage and Collateral Trust Bonds
and First Mortgage Bonds:

<Table>
<Caption>

                                                                               Principal Amount        Principal Amount
                                 Series                                             Issued                Outstanding
                                 ------                                        ----------------        ----------------
<S>                                                                            <C>                     <C>
12% Series due March 1, 1985 .....................................             $    1,000,000                   None
13 5/8% Series due April 1, 2014 .................................                100,000,000                   None
13 1/2% Series due September 1, 2014 .............................                150,000,000                   None
12 7/8 % Series due April 1, 2015 ................................                150,000,000                   None
12% Series due August 1, 2015 ....................................                100,000,000                   None
12% Series due September 1, 2015 .................................                 75,000,000                   None
11 1/8% Series due December 1, 2015 ..............................                150,000,000                   None
9 3/8% Series due March 1, 2016 ..................................                200,000,000                   None
9 3/4% Series due May 1, 2016.....................................                200,000,000                   None
Pollution Control Series C........................................                 70,000,000                   None
Pollution Control Series D........................................                200,000,000                   None
9 1/2% Series due December 1, 2016................................                300,000,000                   None
9 1/4% Series due February 1, 2017................................                250,000,000                   None
Pollution Control Series E........................................                100,000,000                   None
10 1/2% Series due April 1, 2017..................................                250,000,000                   None
9 1/2% Series due July 1, 1997....................................                150,000,000                   None
10 1/2% Series due July 1, 2017...................................                150,000,000                   None
Pollution Control Series F........................................                 55,000,000                   None
Pollution Control Series G........................................                 12,000,000                   None
Pollution Control Series H........................................                112,000,000                   None
Pollution Control Series I........................................                100,000,000                   None

                                       4

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                                                                               Principal Amount        Principal Amount
                                 Series                                             Issued                Outstanding
                                 ------                                        ----------------        ----------------

10 3/8% Series due May 1, 1998....................................                150,000,000                   None
11 3/8% Series due May 1, 2018....................................                150,000,000                   None
Secured Medium-Term Notes, Series A ..............................                300,000,000                   None
10.44% Series due November 1, 2008 ...............................                150,000,000                   None
Pollution Control Series J .......................................             $  100,000,000                   None
9 1/2% Series due August 1, 1999 .................................                200,000,000                   None
10% Series due August 1, 2019 ....................................                100,000,000                   None
9 7/8% Series due November 1, 2019 ...............................                150,000,000                   None
Secured Medium-Term Notes, Series B...............................                150,000,000           $ 69,200,000
Pollution Control Series K........................................                 50,000,000                   None
Pollution Control Series L........................................                 40,000,000                   None
10 5/8% Series due September 1, 2020..............................                250,000,000                   None
Secured Medium-Term Notes, Series C...............................                150,000,000                   None
8 1/4% Pollution Control Series due October 1, 2020 ..............                 11,000,000                   None
7 7/8% Pollution Control Series due March 1, 2021 ................                100,000,000                   None
9 3/4% Series due May 1, 2021.....................................                300,000,000            127,747,000
Pollution Control Series M due June 1, 2021.......................                 86,250,000                   None
Pollution Control Series N due June 1, 2021.......................                 57,500,000                   None
Pollution Control Series O due June 1, 2021.......................                 57,500,000                   None
Pollution Control Series P due June 1, 2021 ......................                115,000,000                   None
8 1/8% Series due February 1, 2002 ...............................                150,000,000            150,000,000
8 7/8 % Series due February 1, 2022 ..............................                175,000,000            112,200,000
8 1/4% Series due April 1, 2004 ..................................                100,000,000            100,000,000
9% Series due April 1, 2022 ......................................                100,000,000                   None
6 3/4% Pollution Control Series due April 1, 2022 ................                 50,000,000             50,000,000
7 1/8% Series due June 1, 1997 ...................................                150,000,000                   None
8% Series due June 1, 2002 .......................................                147,000,000            147,000,000
6 5/8% Pollution Control Series due June 1, 2022 .................                 33,000,000             33,000,000
6 3/8% Series due August 1, 1997 .................................                175,000,000                   None
7 3/8% Series due August 1, 2001 .................................                150,000,000            145,000,000
8 1/2% Series due August 1, 2024 .................................                175,000,000            115,400,000
6.70% Pollution Control Series due October 1, 2022 ...............                 16,935,000             16,935,000
6.55 % Pollution Control Series due October 1, 2022 ..............                 40,000,000             40,000,000
7 3/8% Series due November 1, 1999 ...............................                100,000,000                   None
8 3/4% Series due November 1, 2023 ...............................                200,000,000            102,550,000
6 1/2% Pollution Control Series due December 1, 2027 .............                 46,660,000             46,660,000
6 3/4% Series due March 1, 2003 ..................................                200,000,000            194,475,000
7 7/8% Series due March 1, 2023...................................                300,000,000            223,770,000
6.05% Pollution Control Series due April 1, 2025..................                 90,000,000             90,000,000
6.10 % Pollution Control Series due April 1, 2028 ................                 50,000,000             50,000,000
5 7/8% Series due April 1, 1998 ..................................                175,000,000                   None
6 3/4% Series due April 1, 2003 ..................................                100,000,000             95,000,000

                                       5

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                                                                               Principal Amount        Principal Amount
                                 Series                                             Issued                Outstanding
                                 ------                                        ----------------        ----------------

7 7/8% Series due April 1, 2024...................................                225,000,000            132,743,000
Pollution Control Series due June 1, 2023.........................                115,000,000             78,987,750
5 3/4% Series due July 1, 1998....................................                150,000,000                   None
6 3/4% Series due July 1, 2005....................................                100,000,000             92,000,000
7 5/8% Series due July 1, 2025....................................             $  250,000,000           $214,750,000
5 1/2% Series due October 1, 1998.................................                125,000,000                   None
6 1/4% Series due October 1, 2004.................................                125,000,000            120,595,000
7 3/8% Series due October 1, 2025.................................                300,000,000            178,000,000
5 1/2% Pollution Control Series due May 1, 2022...................                 50,000,000             50,000,000
5.55% Pollution Control Series due May 1, 2022 ...................                 75,000,000             75,000,000
5.85% Pollution Control Series due May 1, 2022 ...................                 33,465,000             33,465,000
Floating Rate Series due May 1, 1999 .............................                300,000,000                   None
Pollution Control Series Q due May 1, 2029........................                 45,045,500                   None
Pollution Control Series R due May 1, 2029 .......................                 45,045,500                   None
0% Series due 1994................................................              1,013,831,000                   None
Pollution Control Series S due April 1, 2030......................                 58,270,500             58,270,500
Pollution Control Series T due April 1, 2030......................                 18,400,000             18,400,000
Pollution Control Series U........................................                136,108,250                   None
Pollution Control Series V........................................                136,108,250                   None
Pollution Control Series W........................................                 13,857,500             13,857,500
Pollution Control Series X........................................                 21,246,250             21,246,250
Secured Medium-Term Notes, Series D ..............................                201,150,000             60,000,000
Pollution Control Series Y........................................                 28,819,000             28,819,000
Pollution Control Series Z........................................                 66,642,500             66,642,500
Pollution Control Series AA.......................................                 28,750,000             28,750,000
Pollution Control Series AB.......................................                 28,750,000             28,750,000
Pollution Control Series AC.......................................                 70,397,250             70,397,250
Pollution Control Series AD.......................................                 57,500,000             57,500,000
Pollution Control Series AE.......................................                 57,500,000             57,500,000
Pollution Control Series AF.......................................                 36,000,750             36,000,750
Pollution Control Series AG.......................................                 28,801,750             28,801,750
Pollution Control Series AH.......................................                 33,079,750             33,079,250
Pollution Control Series AI.......................................                 59,253,750             59,253,750
Pollution Control Series AJ.......................................                 13,800,000             13,800,000
Pollution Control Series AK.......................................                250,163,335                   None
Floating Rate Series A due December 20, 2002......................                150,000,000            150,000,000
Floating Rate Series B due December 20, 2002......................                425,000,000            425,000,000
Collateral Series A...............................................              3,839,650,000                   None

</Table>

which bonds are also hereinafter sometimes called bonds of the First through One
Hundred First Series, respectively; and

                                       6

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      WHEREAS, Section 2.01 of the Original Indenture provides that the form of
each series of bonds (other than the First Series) issued thereunder and of the
coupons to be attached to coupon bonds of such series shall be established by
Resolution of the Board of Directors of the Company, and that the form of such
series, as established by said Board of Directors, shall specify the descriptive
title of the bonds and various other terms thereof, and may also have such
omissions or modifications or contain such provisions not prohibited by the
provisions of the Mortgage as the Board of Directors may, in its discretion,
cause to be inserted therein expressing or referring to the terms and conditions
upon which such bonds are to be issued and/or secured under the Mortgage; and

      WHEREAS, Section 22.04 of the Original Indenture provides, among other
things, that any power, privilege or right expressly or impliedly reserved to or
in any way conferred upon the Company by any provision of the Mortgage, whether
such power, privilege or right is in any way restricted or is unrestricted, may
be in whole or in part waived or surrendered or subjected to any restriction if
at the time unrestricted, or to additional restriction if already restricted,
and the Company may enter into any further covenants, limitations, restrictions
or provisions for the benefit of any one or more series of bonds issued
thereunder, or the Company may cure any ambiguity contained therein, or in any
supplemental indenture, or may establish the terms and provisions of any series
of bonds other than the First Series, by an instrument in writing executed and
acknowledged by the Company in such manner as would be necessary to entitle a
conveyance of real estate to be recorded in all of the states in which any
property at the time subject to the Lien of the Mortgage shall be situated; and

      WHEREAS, the Company now desires to create a new series of bonds and to
add to its covenants and agreements contained in the Mortgage certain other
covenants and agreements to be observed by it and to alter and amend in certain
respects the covenants and provisions contained in the Mortgage; and

      WHEREAS, the execution and delivery by the Company of this Sixty-second
Supplemental Indenture, and the terms of the bonds of the One Hundred Second
Series, hereinafter referred to, have been duly authorized by the Board of
Directors of the Company by appropriate resolutions of said Board of Directors;

      NOW, THEREFORE, THIS INDENTURE WITNESSETH: That the Company, in
consideration of the premises and of Ten Dollars to it duly paid by the Trustee
at or before the ensealing and delivery of these presents, the receipt whereof
is hereby acknowledged, and in order to secure the payment of both the principal
of and interest and premium, if any, on the bonds from time to time issued under
the Mortgage, according to their tenor and effect and the performance of all the
provisions of the Mortgage (including any instruments supplemental thereto and
any modification made as in the Mortgage provided) and of said bonds, hath
granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged,
hypothecated, affected, pledged, set over and confirmed and granted a security
interest in and by these presents doth grant, bargain, sell, release, convey,
assign, transfer, mortgage, hypothecate, affect, pledge, set over and confirm
and grant a security interest in (subject, however, to Excepted Encumbrances as
defined in Section 1.06 of the Original Indenture) unto The Bank of New York,
Trustee under the Mortgage, and to its successor

                                       7

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or successors in said trust, and to said Trustee and its successors and
assigns forever, all properties of the Company, real, personal and mixed, of
the kind or nature specifically mentioned in the Original Indenture, as
heretofore supplemented, or of any other kind or nature acquired by the
Company on or after the date of the execution and delivery of the Original
Indenture (except any herein or in the Original Indenture expressly excepted),
now owned or, subject to the provisions of Section 18.03 of the Original
Indenture, hereafter acquired by the Company (by purchase, consolidation,
merger, donation, construction, erection or in any other way) and wheresoever
situated, including (without in anywise limiting or impairing by the
enumeration of the same, the scope and intent of the foregoing or of any
general description contained in this Sixtieth Supplemental Indenture) all
real estate, lands, easements, servitudes, licenses, permits, franchises,
privileges, rights of way and other rights in or relating to real estate or
the occupancy of the same; all power sites, flowage rights, water rights,
water locations, water appropriations, ditches, flumes, reservoirs, reservoir
sites, canals, raceways, waterways, dams, dam sites, aqueducts, and all other
rights or means for appropriating, conveying, storing and supplying water; all
rights of way and roads; all plants for the generation of electricity by
steam, water and/or other power; all power houses, gas plants, street lighting
systems, standards and other equipment incidental thereto; all telephone,
radio and television systems, air-conditioning systems and equipment
incidental thereto, water wheels, water works, water systems, steam heat and
hot water plants, substations, lines, service and supply systems, bridges,
culverts, tracks, ice or refrigeration plants and equipment, offices,
buildings and other structures and the equipment thereof; all machinery,
engines, boilers, dynamos, turbines, electric, gas and other machines, prime
movers, regulators, meters, transformers, generators (including, but not
limited to, engine driven generators and turbo-generator units), motors,
electrical, gas and mechanical appliances, conduits, cables, water, steam
heat, gas or other pipes, gas mains and pipes, service pipes, fittings, valves
and connections, pole and transmission lines, towers, overhead conductors and
devices, underground conduits, underground conductors and devices, wires,
cables, tools, implements, apparatus, storage battery equipment, and all other
fixtures and personalty; all municipal and other franchises, consents or
permits; all lines for the transmission and distribution of electric current,
gas, steam heat or water for any purpose including towers, poles, wires,
cables, pipes, conduits, ducts and all apparatus for use in connection
therewith and (except as herein or in the Original Indenture expressly
excepted) all the right, title and interest of the Company in and to all other
property of any kind or nature appertaining to and/or used and/or occupied
and/or enjoyed in connection with any property hereinbefore or in the Original
Indenture described.

      TOGETHER WITH all and singular the tenements, hereditaments,
prescriptions, servitudes and appurtenances belonging or in anywise appertaining
to the aforesaid property or any part thereof, with the reversion and
reversions, remainder and remainders and (subject to the provisions of Section
13.01 of the Original Indenture) the tolls, rents, revenues, issues, earnings,
income, product and profits thereof, and all the estate, right, title and
interest and claim whatsoever, at law as well as in equity, which the Company
now has or may hereafter acquire in and to the aforesaid property and franchises
and every part and parcel thereof.

      IT IS HEREBY AGREED by the Company that, subject to the provisions of
Section 18.03 of the Original Indenture, all the property, rights and franchises
acquired by the Company (by purchase, consolidation, merger, donation,
construction, erection or in any other way) after the date hereof, except any
herein or in the Original Indenture expressly excepted, shall be and are as
fully

                                       8

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granted and conveyed hereby and as fully embraced within the Lien of the
Original Indenture and the Lien hereof as if such property, rights and
franchises were now owned by the Company and were specifically described
herein and conveyed hereby.

      PROVIDED that the following are not and are not intended to be now or
hereafter granted, bargained, sold, released, conveyed, assigned, transferred,
mortgaged, hypothecated, affected, pledged, set over or confirmed hereunder, nor
is a security interest therein hereby or by the Original Indenture, as
heretofore supplemented, granted or intended to be granted, and the same are
hereby expressly excepted from the Lien and operation of the Original Indenture,
as heretofore supplemented, and from the Lien and operation of this Sixty-second
Supplemental Indenture, viz.: (1) cash, shares of stock, bonds, notes and other
obligations and other securities not hereinbefore or hereafter specifically
pledged, paid, deposited, delivered or held under the Mortgage or covenanted so
to be; (2) merchandise, equipment, apparatus, materials or supplies held for the
purpose of sale or other disposition in the usual course of business or for the
purpose of repairing or replacing (in whole or in part) any rolling stock,
buses, motor coaches, automobiles or other vehicles or aircraft or boats, ships,
or other vessels and any fuel, oil and similar materials and supplies consumable
in the operation of any of the properties of the Company; rolling stock, buses,
motor coaches, automobiles and other vehicles and all aircraft; boats, ships and
other vessels; all timber, minerals, mineral rights and royalties; (3) bills,
notes and other instruments and accounts receivable, judgments, demands, general
intangibles and choses in action, and all contracts, leases and operating
agreements not specifically pledged hereunder or under the Mortgage or
covenanted so to be; (4) the last day of the term of any lease or leasehold
which may hereafter become subject to the Lien of the Mortgage; (5) electric
energy, gas, water, steam, ice, and other materials or products generated,
manufactured, produced, or purchased by the Company for sale, distribution or
use in the ordinary course of its business; (6) any natural gas wells or natural
gas leases or natural gas transportation lines or other works or property used
primarily and principally in the production of natural gas or its
transportation, primarily for the purpose of sale to natural gas customers or to
a natural gas distribution or pipeline company, up to the point of connection
with any distribution system; and (7) the Company's franchise to be a
corporation; provided, however, that the property and rights expressly excepted
from the Lien and operation of the Original Indenture and this Sixty-second
Supplemental Indenture in the above subdivisions (2) and (3) shall (to the
extent permitted by law) cease to be so excepted in the event and as of the date
that the Trustee or a receiver or trustee shall enter upon and take possession
of the Mortgaged and Pledged Property in the manner provided in Article XV of
the Original Indenture by reason of the occurrence of a Default.

      TO HAVE AND TO HOLD all such properties, real, personal and mixed,
granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged,
hypothecated, affected, pledged, set over or confirmed or in which a security
interest has been granted by the Company as aforesaid, or intended so to be
(subject, however, to Excepted Encumbrances as defined in Section 1.06 of the
Original Indenture), unto The Bank of New York, Trustee, and its successors and
assigns forever.

      IN TRUST NEVERTHELESS, for the same purposes and upon the same terms,
trusts and conditions and subject to and with the same provisos and covenants as
are set forth in the Original Indenture, as heretofore supplemented, this
Sixty-second Supplemental Indenture being

                                       9

<Page>

supplemental to the Original Indenture.

      AND IT IS HEREBY COVENANTED by the Company that all the terms, conditions,
provisos, covenants and provisions contained in the Original Indenture, as
heretofore supplemented, shall affect and apply to the property hereinbefore
described and conveyed and to the estate, rights, obligations and duties of the
Company and the Trustee and the beneficiaries of the trust with respect to said
property, and to the Trustee and its successors as Trustee of said property, in
the same manner and with the same effect as if said property had been owned by
the Company at the time of the execution of the Original Indenture, and had been
specifically and at length described in and conveyed to said Trustee by the
Original Indenture as a part of the property therein stated to be conveyed.

      The Company further covenants and agrees to and with the Trustee and its
successors in said trust under the Mortgage, as follows:

                                  ARTICLE I.
                       ONE HUNDRED SECOND SERIES OF BONDS

      SECTION 1.1 There shall be a series of bonds designated "Floating Rate
Series C due June 15, 2003" (herein sometimes referred to as the One Hundred
Second Series), each of which shall also bear the descriptive title "First
Mortgage Bond", and the form thereof, which shall be established by Resolution
of the Board of Directors of the Company, shall contain suitable provisions
with respect to the matters hereinafter in this Section specified. Bonds of
the One Hundred Second Series shall mature on June 15, 2003 and shall be
issued as fully registered bonds in denominations of One Hundred Thousand
Dollars and in any integral multiples of Ten Thousand Dollars in excess
thereof (the exercise of such option to be evidenced by the execution and
delivery thereof); they shall bear interest at the per annum interest rate
(Interest Rate) determined by the Calculation Agent on each Interest
Determination Date, as such terms are defined below, payable quarterly in
arrears on March 15, June 15, September 15 and December 15 of each year (each
an Interest Payment Date), commencing September 15, 2001; the principal of and
interest on each said bond to be payable at the office or agency of the
Company in the Borough of Manhattan, The City of New York, New York, in such
coin or currency of the United States of America as at the time of payment is
legal tender for public and private debts. Bonds of the One Hundred Second
Series shall be dated as in Section 2.03 of the Original Indenture provided.
The Interest Rate shall not exceed the maximum rate permitted by law.

      The Calculation Agent for bonds of the One Hundred Second Series shall be
The Bank of New York, or its successor as Calculation Agent. At any time, the
Company may designate a successor Calculation Agent, who may be any person or
entity who is eligible to be a successor Trustee or co-trustee under the
Mortgage or who is independent as such term is defined in the Mortgage.

      "Interest Determination Date" for each Interest Period for bonds of the
One Hundred Second Series shall be the second London Business Day immediately
preceding the first day of such Interest Period.

                                      10

<Page>

      "Interest Period" for bonds of the One Hundred Second Series shall mean a
period commencing on an Interest Payment Date and ending on the calendar day
preceding the next succeeding Interest Payment Date; provided that the first
Interest Period shall commence on July 2, 2001.

      "LIBOR" for any Interest Determination Date will be the rate for Three
Month Deposits, as that rate appears on Telerate Page 3750, or a successor
reporter of such rates selected by the Calculation Agent and acceptable to the
Company, at approximately 11:00 a.m., London time, on the Interest Determination
Date (Reported Rate); provided, however, that in certain circumstances described
below, LIBOR will be determined in an alternative manner.

      "London Business Day" for bonds of the One Hundred Second Series shall
mean any day on which dealings in deposits in U.S. dollars are transacted, or,
with respect to any future date, are expected to be transacted, in the London
interbank market.

      "Representative Amount" for purposes of calculating the Interest Rate for
bonds of the One Hundred Second Series shall mean an amount determined by the
Calculation Agent to be representative of single transactions at such time.

      "Telerate Page 3750" means the display designated as Page 3750 on Bridge
Telerate, Inc. or any successor service for the purpose of displaying London
interbank rates of major banks for U.S. dollar deposits.

      "Three Month Deposits" for purposes of calculating the Interest Rate for
bonds of the One Hundred Second Series shall mean deposits in U.S. dollars
having a maturity of three months for a period commencing on the second London
Business Day immediately following the Interest Determination Date.

      The Interest Rate for bonds of the One Hundred Second Series for each
Interest Period will be equal to three month LIBOR on the Interest Determination
Date for that Interest Period plus .60%

      If the following circumstances exist on any Interest Determination Date,
the Calculation Agent will determine LIBOR for the bonds of the One Hundred
Second Series as follows:

                  (A)   In the event no Reported Rate appears on Telerate Page
                        3750 as of approximately 11:00 a.m., London time, on an
                        Interest Determination Date, the Calculation Agent will
                        request the principal London offices of each of four
                        major banks in the London interbank market selected by
                        the Calculation Agent (after consultation with the
                        Company) to provide a quotation of the rate at which
                        Three Month Deposits in Representative Amounts are
                        offered by it to prime banks in the London interbank
                        market, as of approximately 11:00 a.m., London time, on
                        that Interest Determination Date. If at least two rate
                        quotations are provided, LIBOR will be the arithmetic
                        mean of the rate quotations obtained by the Calculation
                        Agent.

                                      11

<Page>

                  (B)   In the event no Reported Rate appears on Telerate Page
                        3750 and the Calculation Agent obtains fewer than two
                        rate quotations, LIBOR will be the arithmetic mean of
                        the rates quoted at approximately 11:00 a.m., New York
                        City time, on that Interest Determination Date, by three
                        major banks in New York City, selected by the
                        Calculation Agent (after consultation with the Company),
                        for Three Month Deposits in Representative Amounts to
                        leading European banks, commencing on the second London
                        Business Day immediately following that Interest
                        Determination Date; provided, however, that if fewer
                        than three banks selected by the Calculation Agent are
                        quoting those rates, LIBOR for the applicable Interest
                        Period will be the same as LIBOR in effect for the
                        immediately preceding Interest Period.

      The determination of the Calculation Agent of the Interest Rate for a
particular Interest Period, absent willful default, bad faith or manifest error
will be binding and conclusive upon the registered owners of bonds of the One
Hundred Second Series, the Company and the Trustee.

      Interest on the bonds of the One Hundred Second Series shall be calculated
by multiplying the actual number of days for which interest is payable in the
relevant Interest Period by the Interest Rate divided by 360. All dollar amounts
resulting from such calculation shall be rounded, if necessary, to the nearest
cent, with one-half cent rounded upward.

      The Company shall cause the Calculation Agent to agree to notify the
Trustee of the Interest Rate for each Interest Period promptly upon the
determination of such Interest Rate.

      Notwithstanding the foregoing, so long as there is no existing default in
the payment of interest on the bonds of the One Hundred Second Series, the
person in whose name any bond of the One Hundred Second Series is registered at
the close of business on any Record Date (as hereinafter defined) with respect
to any Interest Payment Date shall be entitled to receive the interest payable
on such Interest Payment Date. "Record Date" for bonds of the One Hundred Second
Series shall mean (a) the business day next preceding the corresponding Interest
Payment Date as long as the applicable bonds of the One Hundred Second Series
are held by a securities depository or its nominee and (b) the fifteenth
calendar day preceding the corresponding Interest Payment Date if the applicable
bonds of the One Hundred Second Series are not held by a securities depository
or its nominee.

       The bonds of the One Hundred Second Series will be initially issued
pursuant to Section 4(2) of the Securities Act of 1933, as amended (the
"Securities Act"), in global form registered in the name of Cede & Co. (as
nominee for The Depository Trust Company ("DTC"), New York, New York). The bonds
of the One Hundred Second Series in global form shall bear the depository legend
in substantially the form set forth in Exhibit A hereto. The bonds of the One
Hundred Second Series shall contain restrictions on transfer, substantially as
described in the form thereof set forth in Exhibit A hereto. Each bond of the
One Hundred Second Series, whether in a global form or in a

                                      12

<Page>

certificated form, shall bear the non-registration legend in substantially the
form set forth in such form, unless otherwise agreed by the Company, such
agreement to be confirmed in writing to the Trustee. Nothing in the Mortgage,
the bonds of the One Hundred Second Series or this certificate shall be
construed to require the Company to register any of the bonds of the One
Hundred Second Series under the Securities Act, unless otherwise expressly
agreed by the Company, confirmed in writing to the Trustee, or to make any
transfer of such bonds of the One Hundred Second Series in violation of
applicable law.

      It is contemplated that beneficial interests in the bonds of the One
Hundred Second Series owned by qualified institutional buyers (as defined in
Rule 144A under the Securities Act)("QIBs") or sold to QIBs in reliance upon
Rule 144A under the Securities Act will be represented by one or more separate
certificates in global form registered in the name of Cede & Co., as registered
owner and as nominee for DTC; beneficial interests in the bonds of the One
Hundred Second Series sold to foreign purchasers pursuant to Regulation S under
the Securities Act will be evidenced by one or more separate certificates in
global form (each a "Regulation S Global Certificate") and will be registered in
the name of Cede & Co., as registered owner and as nominee for DTC for the
accounts of Euroclear and Cedel Bank; prior to the 40th day after the date of
initial issuance of the bonds of the One Hundred Second Series, beneficial
interests in a Regulation S Global Certificate may be held only through
Euroclear or Cedel Bank; bonds of the One Hundred Second Series acquired by
Institutional Accredited Investors (as defined in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act) ("IAIs") and other eligible transferees, who are
not QIBs and who are not foreign purchasers pursuant to Regulation S under the
Securities Act, will be in certificated form. The Trustee, the Security
Registrar and the Company will have no responsibility or liability for any
aspect of transfers of beneficial interests in the bonds of the One Hundred
Second Series, any records of DTC of beneficial interests or any transactions
between DTC and its participants or between any such participants and any other
beneficial owners or for monitoring, supervising or reviewing of any thereof.

      In connection with any transfer of bonds of the One Hundred Second Series,
the Trustee, the Security Registrar and the Company shall be under no duty to
inquire into, may conclusively presume the correctness of, and shall be fully
protected in relying upon the certificates and other information (in the forms
attached hereto as Exhibit A, for use in connection with the transfer of the
bonds of the One Hundred Second Series in certificated form, or Exhibit B, for
use in connection with the transfer of beneficial interests in one certificate
in global form to another certificate in global form or to a bond of the One
Hundred Second Series in certificated form, or otherwise) received from the
Holders and any transferees of any bonds of the One Hundred Second Series
regarding the validity, legality and due authorization of any such transfer, the
eligibility of the transferee to receive such bond of the One Hundred Second
Series and any other facts and circumstances related to such transfer.

      Bonds of the One Hundred Second Series will have such other terms and
provisions as set forth in the form thereof, attached hereto as Exhibit A, and
shall be issued in substantially such form.

            (I)   Any interest on any bond of the One Hundred Second Series
which is payable but is not punctually paid or duly provided for, on any
Interest Payment Date (herein called

                                      13

<Page>

"Defaulted Interest"), shall forthwith cease to be payable to the registered
owner on the relevant Record Date solely by virtue of such owner having been
such owner; and such Defaulted Interest may be paid by the Company, at its
election in each case, as provided in subsection A or B below:

                  A. The Company may elect to make payment of any Defaulted
            Interest on the bonds of the One Hundred Second Series to the
            persons in whose names such bonds are registered at the close of
            business on a Special Record Date (as hereinafter defined) 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 bond of
            the One Hundred Second Series and the date of the proposed payment
            (which date shall be such as will enable the Trustee to comply with
            the next sentence hereof), 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
            on or 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 subsection provided
            and not to be deemed part of the Mortgaged and Pledged Property.
            Thereupon the Trustee shall fix a date (herein referred to as a
            "Special Record Date") for the payment of such Defaulted Interest
            which date shall be not more than 15 nor 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 registered owner of a bond of the One Hundred
            Second Series at such owner's address as it appears in the bond
            register not less than 10 days prior to such Special Record Date.
            The Trustee may, in its discretion in the name and at the expense of
            the Company, cause a similar notice to be published at least once in
            one Daily Newspaper of general circulation in the Borough of
            Manhattan, The City of New York, New York and in one Daily Newspaper
            of general circulation in the City of Dallas, Texas, but such
            publication shall not be a condition precedent to the establishment
            of 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 the bonds of the One Hundred Second Series
            are registered on such Special Record Date and shall no longer be
            payable pursuant to the following subsection B.

                  B. The Company may make payment of any Defaulted Interest on
            the bonds of the One Hundred Second Series in any other lawful
            manner not inconsistent with the requirements of any securities
            exchange on which such bonds 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
            subsection, such payment shall be deemed practicable by the Trustee.

                                      14

<Page>

      Subject to the foregoing provisions of this Section, each bond of the One
Hundred Second Series delivered under the Mortgage upon transfer of or in
exchange for or in lieu of any other bond shall carry all the rights to interest
accrued and unpaid, and to accrue, which were carried by such other bond and
each such bond shall bear interest from such date, that neither gain nor loss in
interest shall result from such transfer, exchange or substitution.

            (II)  Bonds of the One Hundred Second Series shall not be
redeemable prior to December 15, 2001. On or after December 15, 2001, bonds of
the One Hundred Second Series shall be redeemable, at the option of the
Company, in whole but not in part on the 15th day of any March, June,
September or December prior to maturity, upon notice, as provided in Section
12.02 of the Original Indenture, mailed at least thirty (30) days prior to the
date fixed for redemption, at a redemption price of 100% of the principal
amount of the bonds to be redeemed together with accrued interest to the date
fixed for redemption.

            (III) At the option of the registered owner, any bonds of the One
Hundred Second Series, upon surrender thereof for cancellation at the office
or agency of the Company in the Borough of Manhattan, The City of New York,
New York, shall be exchangeable for a like aggregate principal amount of bonds
of the same series of other authorized denominations.

      Bonds of the One Hundred Second Series shall be transferable, upon the
surrender thereof for cancellation, together with a written instrument of
transfer in form approved by the registrar duly executed by the registered owner
or by his duly authorized attorney, at the office or agency of the Company in
the Borough of Manhattan, The City of New York, New York.

      Upon any exchange or transfer of bonds of the One Hundred Second Series,
the Company may make a charge therefor sufficient to reimburse it for any tax or
taxes or other governmental charge, as provided in Section 2.05 of the Original
Indenture, but the Company hereby waives any right to make a charge in addition
thereto for any exchange or transfer of bonds of the One Hundred Second Series.

                                  ARTICLE II.
                            MISCELLANEOUS PROVISIONS

      SECTION 2.1 Subject to the amendments provided for in this Sixty-second
Supplemental Indenture, the terms defined in the Original Indenture, as
heretofore supplemented, shall for all purposes of this Sixty-second
Supplemental Indenture have the meanings specified in the Original Indenture,
as heretofore supplemented.

      SECTION 2.2 The holders of bonds of the One Hundred Second Series
consent that the Company may, but shall not be obligated to fix a record date
for the purpose of determining the holders of bonds of the One Hundred Second
entitled to consent to any amendment, supplement or waiver. If a record date
is fixed, those persons who were holders at such record date (or their duly
designated proxies), and only those persons, shall be entitled to consent to
such amendment, supplement or waiver or to revoke any consent previously
given, whether or not such persons

                                      15

<Page>

continue to be holders after such record date. No such consent shall be valid
or effective for more than 90 days after such record date.

      SECTION 2.3 The Trustee hereby accepts the trusts herein declared,
provided, created or supplemented and agrees to perform the same upon the
terms and conditions herein and in the Original Indenture, as heretofore
supplemented, set forth and upon the following terms and conditions:

      The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Sixty-second Supplemental
Indenture or for or in respect of the recitals contained herein, all of which
recitals are made by the Company solely. In general, each and every term and
condition contained in Article XIX of the Original Indenture shall apply to and
form part of this Sixty-second Supplemental Indenture with the same force and
effect as if the same were herein set forth in full with such omissions,
variations and insertions, if any, as may be appropriate to make the same
conform to the provisions of this Sixty-second Supplemental Indenture.

      SECTION 2.4 Whenever in this Sixty-second Supplemental Indenture either of
the parties hereto is named or referred to, this shall, subject to the
provisions of Articles XVIII and XIX of the Original Indenture, be deemed to
include the successors and assigns of such party, and all the covenants and
agreements in this Sixty-second Supplemental Indenture contained, by or on
behalf of the Company, or by or on behalf of the Trustee, shall, subject as
aforesaid, bind and inure to the respective benefits of the respective
successors and assigns of such parties, whether so expressed or not.

      SECTION 2.5 Nothing in this Sixty-second Supplemental Indenture expressed
or implied, is intended, or shall be construed to confer upon, or to give to,
any person, firm or corporation, other than the parties hereto and the holders
of the bonds and coupons Outstanding under the Mortgage, any right, remedy or
claim under or by reason of this Sixty-second Supplemental Indenture or any
covenant, condition, stipulation, promise or agreement hereof, and all the
covenants, conditions, stipulations, promises and agreements in this
Sixty-second Supplemental Indenture contained, by or on behalf of the Company,
shall be for the sole and exclusive benefit of the parties hereto, and of the
holders of the bonds and coupons Outstanding under the Mortgage.

      SECTION 2.6 This Sixty-second Supplemental Indenture shall be executed in
several counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

                                      16

<Page>

      IN WITNESS WHEREOF, TXU ELECTRIC COMPANY has caused its corporate name to
be hereunto affixed, and this instrument to be signed and sealed by its Chairman
of the Board and Chief Executive, President or one of its Vice Presidents, and
its corporate seal to be attested by its Secretary or one of its Assistant
Secretaries for and in its behalf, and THE BANK OF NEW YORK has caused its
corporate name to be hereunto affixed, and this instrument to be signed and
sealed by one of its Vice Presidents or Assistant Vice Presidents and its
corporate seal to be attested by one of its Vice Presidents, Assistant Vice
Presidents, Assistant Secretaries or Assistant Treasurers, all as of the day and
year first above written.

                                    TXU ELECTRIC COMPANY

                                    By    /s/ Kirk R. Oliver
                                      ----------------------------------
                                              Kirk R. Oliver
                                              Vice President

Attest:

      /s/ John Stephens, Jr.
------------------------------
 John Stephens, Jr.
 Assistant Secretary

Executed, sealed and delivered by
TXU ELECTRIC COMPANY
in the presence of:

      /s/ Laura Conn
------------------------------

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

                                      17

<Page>

                                    THE BANK OF NEW YORK,
                                    Trustee

                                    By    /s/ Walter N. Gitlin
                                      ---------------------------
                                          Walter N. Gitlin
                                          Vice President

Attest:

      /s/ Mary K. LaGumina
------------------------------
Mary K. LaGumina
Vice President

Executed, sealed and delivered by
THE BANK OF NEW YORK
in the presence of:

      Michael C. Daly
------------------------------

      Essie Elcock
------------------------------

                                      18

<Page>

STATE OF TEXAS       )
                     ) SS.:
COUNTY OF DALLAS     )

      Before me, a Notary Public in and for said State, on this day personally
appeared Kirk R. Oliver, known to me to be the person whose name is subscribed
to the foregoing instrument and known to me to be a Vice President of TXU
ELECTRIC COMPANY, a Texas corporation, and acknowledged to me that said person
executed said instrument for the purposes and consideration therein expressed,
and as the act of said corporation.

      Given under my hand and seal of office this 2nd day of July, 2001.

                                          /s/ Julia Laxson
                                    ------------------------------
                                    JULIA LAXSON
                                    Notary Public, State of Texas
                                    My Commission Expires February 26, 2005

                                      19

<Page>

STATE OF NEW YORK    )
                     ) SS.:
COUNTY OF NEW YORK   )

      Before me, a Notary Public in and for said State, on this day personally
appeared WALTER N. GITLIN, known to me to be the person whose name is subscribed
to the foregoing instrument and known to me to be a Vice President of THE BANK
OF NEW YORK, a New York corporation, and acknowledged to me that said person
executed said instrument for the purposes and consideration therein expressed,
and as the act of said corporation.

      Given under my hand and seal of office this 2nd day of July, 2001.

                                          /s/ William J. Cassels
                                    ---------------------------------------
                                    WILLIAM J. CASSELS
                                    Notary Public, State of New York
                                    No. 01CA5027729
                                    Qualified in Bronx County
                                    Certificate filed in New York County
                                    Commission Expires May 16, 2002

                                      20

<Page>

                                                                       EXHIBIT A

                            [depository legend]

      Unless this Certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation ("DTC"), to the Company or
its agent for registration of transfer, exchange, or payment, and any
certificate issued is registered in the name of Cede & Co. or 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.

                         [non-registration legend]

"THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"). THE HOLDER HEREOF, BY PURCHASING THIS SECURITY,
AGREES FOR THE BENEFIT OF THE COMPANY THAT THIS SECURITY MAY NOT BE RESOLD,
PLEDGED OR OTHERWISE TRANSFERRED OTHER THAN (1) TO THE COMPANY, (2) IN A
TRANSACTION ENTITLED TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT, (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON WHOM
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR
OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS INDICATED BY THE BOX
CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS
SECURITY), (4) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE
TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY), OR
(5) TO AN INSTITUTION THAT IS AN "ACCREDITED INVESTOR" AS DEFINED IN RULE
501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX
CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS
SECURITY) THAT IS ACQUIRING THIS SECURITY FOR INVESTMENT PURPOSES AND NOT FOR
DISTRIBUTION, AND A CERTIFICATE IN THE FORM ATTACHED TO THIS SECURITY IS
DELIVERED BY THE TRANSFEREE TO THE COMPANY AND THE TRUSTEE IN EACH CASE IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES. AN INSTITUTIONAL ACCREDITED INVESTOR HOLDING THIS SECURITY AGREES IT
WILL FURNISH TO THE COMPANY AND THE TRUSTEE SUCH CERTIFICATES AND OTHER
INFORMATION AS THEY MAY REASONABLY REQUIRE TO CONFIRM THAT ANY TRANSFER BY IT OF
THIS SECURITY COMPLIES WITH THE FOREGOING RESTRICTIONS. THE HOLDER HEREOF, BY
PURCHASING THIS SECURITY,

<Page>

REPRESENTS AND AGREES FOR THE BENEFIT OF THE COMPANY THAT IT IS (1) A
QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A OR (2) AN
INSTITUTION THAT IS AN "ACCREDITED INVESTOR" AS DEFINED IN RULE 501(a)(1),
(2), (3) OR (7) UNDER THE SECURITIES ACT AND THAT IT IS HOLDING THIS SECURITY
FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION OR (3) A NON-U.S. PERSON
OUTSIDE THE UNITED STATES WITHIN THE MEANING OF, OR AN ACCOUNT SATISFYING THE
REQUIREMENTS OF PARAGRAPH (o)(2) OF RULE 902 UNDER, REGULATION S UNDER THE
SECURITIES ACT."

                          [FORM OF SERIES C BOND]

                            First Mortgage Bond,
                  Floating Rate Series C due June 15, 2003

                                                      CUSIP No._____________

No.____________

      TXU ELECTRIC COMPANY, a corporation of the State of Texas (hereinafter
called the Company), for value received, hereby promises to pay to

or registered assigns, at the office or agency of the Company in the
Borough of Manhattan, The City of New York, New York,

                        _________________________ DOLLARS

on June 15, 2003, in such coin or currency of the United States of America as at
the time of payment is legal tender for public and private debts, and to pay to
the registered owner hereof interest thereon, from July 2, 2001, if the date of
this bond is prior to September 15, 2001, or if the date of this bond is on or
after September 15, 2001, from the September 15, June 15, December 15, or March
15 immediately preceding the date of this bond to which interest has been paid
(unless the date hereof is an interest payment date to which interest has been
paid, in which case from the date hereof), at a rate per annum which will be
determined quarterly as provided in the Sixty-second Supplemental Indenture
dated as of July 1, 2001, hereinafter referred to, such interest to be payable
on March 15, June 15, September 15 and December 15 in each year (each an
interest payment date), commencing on the interest payment date next succeeding
the date of authentication of this bond, in each case in like coin or currency
at such office or agency on the interest payment date, until the Company's
obligation with respect to the payment of such principal shall have been
discharged. If the Company shall default in the payment of interest due on any
interest payment date, then interest shall be

<Page>

payable from the next preceding interest payment date to which interest has
been paid, or, if no such interest has been paid on the bonds, from July 2,
2001.

      The interest so payable on any interest payment date will, subject to
certain exceptions provided in the Mortgage hereinafter referred to, be paid to
the person in whose name this bond is registered at the close of business on (1)
the business day next preceding such interest payment date if this bond is in
book-entry only form or (2) the fifteenth calendar day preceding such interest
payment date as the case may be, if this bond is in certificated form
(hereinafter called record dates), provided that, interest payable on the
maturity date will be payable to the person to whom the principal hereof shall
be payable. At the option of the Company, interest may be payable by check
mailed on or prior to such interest payment date to the address of the person
entitled thereto as such address shall appear on the register of the Company or
by wire transfer to an account designated by the persons entitled thereto,
provided that so long as this bond is in book-entry only form, all payments of
principal and interest on this bond will be made in immediately available funds.
The Company shall not be required to make transfers or exchanges of this bond
while this bond is in certificated form for a period of fifteen days next
preceding an interest payment date.

      Each Holder shall be deemed to understand that the offer and sale of the
Securities of this series have not been registered under the Securities Act and
that the Securities of this series may not be offered or sold except as
permitted in the following sentence. Each Holder shall be deemed to agree, on
its own behalf and on behalf of any accounts for which it is acting as
hereinafter stated, that if such Holder sells any Securities of this series,
such Holder will do so only (A) to the Company, (B) to a person whom it
reasonably believes is a "qualified institutional buyer" within the meaning of
Rule 144A under the Securities Act that purchases for its own account or for the
account of a qualified institutional buyer to whom notice is given that the
resale, pledge or transfer is being made in reliance on Rule 144A, (C) to an
institutional "accredited investor" (as defined in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act) that, prior to such transfer, furnishes to the
Trustee a signed letter containing certain representations and agreements
relating to the restrictions on transfer of the Securities of this series, (D)
in an offshore transaction in accordance with Rule 904 of Regulation S under the
Securities Act, (E) pursuant to the exemption from registration provided by Rule
144 under the Securities Act (if available), or (F) pursuant to an effective
registration statement under the Securities Act, and each Holder is further
deemed to agree to provide to any person purchasing any of the Securities of
this series from it a notice advising such purchaser that resales of the
Securities of this series are restricted as stated herein.

      Each Holder shall be deemed to understand that, on any proposed resale of
any Securities of this series pursuant to the exemption from registration under
Rule 144 under the Securities Act, any Holder making any such proposed resale
will be required to furnish to the Trustee and Company such certifications,
legal opinions and other information as the Trustee and Company may reasonably
require to confirm that the proposed sale complies with the foregoing
restrictions in the form annexed hereto.

      This bond is one of an issue of bonds of the Company issuable in series
and is one of a series known as its First Mortgage Bonds, Floating Rate Series C
due June 15, 2003, all bonds of all series issued and to be issued under and
equally secured by a Mortgage and Deed of Trust (herein, together

<Page>

with any indenture supplemental thereto, including the Sixty-second
Supplemental Indenture dated as of July 1, 2001, called the Mortgage), dated
as of December 1, 1983, executed by the Company to Irving Trust Company (now
The Bank of New York), Trustee. Reference is made to the Mortgage for a
description of the property mortgaged and pledged, the nature and extent of
the security, the rights of the holders of the bonds and of the Trustee in
respect thereof, the duties and immunities of the Trustee and the terms and
conditions upon which the bonds are and are to be secured, the circumstances
under which additional bonds may be issued and the definition of certain terms
hereinafter used. With the consent of the Company and to the extent permitted
by and as provided in the Mortgage, the rights and obligations of the Company
and/or the rights of the holders of the bonds and/or coupons and/or the terms
and provisions of the Mortgage may be modified or altered by such affirmative
vote or votes of the holders of bonds then Outstanding as are specified in the
Mortgage; provided that, without the consent of the holder hereof, no such
modification or alteration shall, among other things, impair or affect the
right of the holder to receive payment of the principal of this bond, on or
after the due date expressed herein, or permit the creation of any lien equal
or prior to the Lien of the Mortgage or deprive the holder of the benefit of a
lien on the Mortgaged and Pledged Property or impair or affect the right to
receive payment of interest on this bond on or after the respective due dates
expressed herein, without the consent of the holder of the right to such
interest.

      The principal hereof may be declared or may become due prior to the
maturity date hereinbefore named on the conditions, in the manner and at the
time set forth in the Mortgage, upon the occurrence of a Default as in the
Mortgage provided.

      This bond is transferable as prescribed in the Mortgage by the registered
owner hereof in person, or by such owner's duly authorized attorney, at the
office or agency of the Company in the Borough of Manhattan, The City of New
York, New York, upon surrender of this bond, and upon payment, if the Company
shall require it, of the transfer charges provided for in the Mortgage, and
thereupon, a new fully registered bond of the same series for a like principal
amount will be issued to the transferee in exchange herefor as provided in the
Mortgage. The Company and the Trustee may deem and treat the person in whose
name this bond is registered as the absolute owner hereof for the purpose of
receiving payment and for all other purposes and neither the Company nor the
Trustee shall be affected by any notice to the contrary.

      In the manner prescribed in the Mortgage, any bonds of this series, upon
surrender thereof for cancellation at the office or agency of the Company in the
Borough of Manhattan, The City of New York, New York, together with a written
instrument of transfer, wherever required by the Company, duly executed by the
registered owner or by such owner's duly authorized attorney, are exchangeable
for a like aggregate principal amount of fully registered bonds of the same
series of other authorized denominations.

      The bonds of this series shall be redeemable as provided in the
Sixty-second Supplemental Indenture, dated as of July 1, 2001.

      As provided in the Mortgage, the Company shall not be required to make
transfers or exchanges of bonds of any series for a period of fifteen days next
preceding any interest payment

<Page>

date for bonds of said series, or next preceding any designation of bonds of
said series to be redeemed, and the Company shall not be required to make
transfers or exchanges of any bonds designated in whole or in part for
redemption.

      No recourse shall be had for the payment of the principal of or interest
on this bond against any incorporator or any past, present or future subscriber
to the capital stock, stockholder, officer or director of the Company or of any
predecessor or successor corporation, as such, either directly or through the
Company or any predecessor or successor corporation, under any rule of law,
statute or constitution or by the enforcement of any assessment or otherwise,
all such liability of incorporators, subscribers, stockholders, officers and
directors being released by the holder or owner hereof by the acceptance of this
bond and being likewise waived and released by the terms of the Mortgage.

      This bond shall not become obligatory until The Bank of New York, the
Trustee under the Mortgage, or its successor thereunder, shall have signed the
form of authentication certificate endorsed hereon.

      This bond shall be governed by and construed in accordance with the laws
of the State of New York, except to the extent that the law of any other
jurisdiction shall be mandatorily applicable.

<Page>

      IN WITNESS WHEREOF, TXU ELECTRIC COMPANY has caused this bond to be signed
in its corporate name by its Chairman of the Board, Chief Executive, President
or one of its Vice Presidents by such officer's signature or a facsimile
thereof, and its corporate seal to be impressed or imprinted hereon and attested
by its Secretary or one of its Assistant Secretaries by such officer's signature
or a facsimile thereof.

                                    TXU ELECTRIC COMPANY

                                    By
                                      --------------------------------------
                                                Vice President

ATTEST:

--------------------------------
      Assistant Secretary

                      TRUSTEE'S AUTHENTICATION CERTIFICATE

      This bond is one of the bonds, of the series herein designated, described
or provided for in the within-mentioned Mortgage.

DATED:
        -------------------

                                    THE BANK OF NEW YORK,
                                                Trustee

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

<Page>

                         [CERTIFICATE OF TRANSFER]

       FIRST MORTGAGE BONDS FLOATING RATE SERIES C DUE JUNE 15, 2003

   FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

      Name and address of assignee must be printed or typewritten.

the within Security of the Company and does hereby irrevocably constitute and
appoint ________________________________________________________________________

to transfer the said Security on the books of the within-named Company, with
full power of substitution in the premises.

The undersigned certifies that said Security is being resold, pledged or
otherwise transferred as follows:  (check one)

|_|   to the Company;

|_|   to a Person whom the undersigned reasonably believes is a qualified
      institutional buyer within the meaning of Rule 144A under the Securities
      Act of 1933, as amended (the "Securities Act") purchasing for its own
      account or for the account of a qualified institutional buyer to whom
      notice is given that the resale, pledge or other transfer is being made in
      reliance on Rule 144A;

|_|   in an offshore transaction in accordance with Rule 904 of Regulation S
      under the Securities Act;

|_|   to an institution that is an "accredited investor" as defined in Rule
      501(a)(1), (2), (3) or (7) under the Securities Act that is acquiring this
      Security for investment purposes and not for distribution; (attach a copy
      of an Accredited Investor Certificate in the form annexed signed by an
      authorized officer of the transferee)

|_|   as otherwise permitted by the non-registration legend appearing on
      this Security; or

|_|   as otherwise agreed by the Company, confirmed in writing to the
      Trustee, as follows: [describe]

Dated:                                    Signature:
       -----------------------                       ---------------------------

                                          NOTICE: The signature to this
                                          assignment must correspond with the
                                          name as written upon the face of the
                                          within instrument in every particular
                                          without alteration or enlargement, or
                                          any change whatever.

                             SIGNATURE GUARANTEE

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirement of the registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

<Page>

                 [FORM OF ACCREDITED INVESTOR CERTIFICATE]

[Transferor Name and Address]

Ladies and Gentlemen:

In connection with our proposed purchase of First Mortgage Bonds Floating Rate
Series C due June 15, 2003 (the "Bonds") issued by TXU Electric Company
("Issuer"), we confirm that:

            1. We have received a copy of the Offering Memorandum (the "Offering
      Memorandum") relating to the Bonds and such other information as we deem
      necessary in order to make our investment decision. We acknowledge that we
      have read and agree to the matters stated under the caption NOTICE TO
      INVESTORS in such Offering Memorandum, and the restrictions on duplication
      or circulation of, or disclosure relating to, such Offering Memorandum.

            2. We understand that any subsequent transfer of the Bonds is
      subject to certain restrictions and conditions set forth in the Indenture
      relating to Bonds (the "Indenture") and that any subsequent transfer of
      the Bonds is subject to certain restrictions and conditions set forth
      under NOTICE TO INVESTORS in the Offering Memorandum and the undersigned
      agrees to be bound by, and not to resell, pledge or otherwise transfer the
      Bonds except in compliance with such restrictions and conditions and the
      Securities Act of 1933, as amended ("Securities Act").

            3. We understand that the offer and sale of the Bonds have not been
      registered under the Securities Act, and that the Bonds may not be offered
      or sold except as permitted in the following sentence. We agree, on our
      own behalf and on behalf of any accounts for which we are acting as
      hereinafter stated, that if we sell any Bonds, we will do so only (A) to
      the Company, (B) to a person whom we reasonably believe is a "qualified
      institutional buyer" within the meaning of Rule 144A under the Securities
      Act that purchases for its own account or for the account of a qualified
      institutional buyer to whom notice is given that the resale, pledge or
      transfer is being made in reliance on Rule 144A, (C) to an institutional
      "accredited investor" (as defined below) that, prior to such transfer,
      furnishes to the Trustee (as defined in the Indenture) a signed letter
      containing certain representations and agreements relating to the
      restrictions on transfer of the Bonds (substantially in the form of this
      letter), (D) in an offshore transaction in accordance with Rule 904 of
      Regulation S under the Securities Act, (E) pursuant to the exemption from
      registration provided by Rule 144 under the Securities Act (if available),
      or (F) in accordance with another applicable exemption from the
      registration requirements of the Securities Act, and we further agree to
      provide to any person purchasing any of the Bonds from us a notice
      advising such purchaser that resales of the Bonds are restricted as stated
      herein.

            4. We understand that, on any proposed resale of any Senior Note, we
      will be required to furnish to the Trustee and Issuer such certifications,
      legal opinions and other information as the Trustee and Issuer may
      reasonably require to confirm that the proposed sale complies with the
      foregoing restrictions. We further understand that the Bonds purchased by
      us will bear a legend to the foregoing effect.

<Page>

            5. We are an institutional "accredited investor" (as defined in Rule
      501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and
      have such knowledge and experience in financial and business matters as to
      be capable of evaluating the merits and risks of our investment in the
      Bonds, and we and any accounts for which are acting are each able to bear
      the economic risk of our or its investment.

            6. We are acquiring the Bonds purchased by us for our own account or
      for one or more accounts (each of which is an institutional "accredited
      investor") as to each of which we exercise sole investment discretion.

      You, the Issuer and the Trustee are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

                                          Very truly yours,

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

<Page>

                                                                       EXHIBIT B

                            [CERTIFICATE OF TRANSFER]

                              TXU ELECTRIC COMPANY

       FIRST MORTGAGE BONDS FLOATING RATE SERIES C DUE JUNE 15, 2003

   FOR VALUE RECEIVED, the undersigned sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE

      Name and address of assignee must be printed or typewritten.

$
--------------------------------------------------------------------------------
principal amount of beneficial interest in the referenced Security of the
Company and does hereby irrevocably constitute and appoint

to transfer the said beneficial interest in such Security, with full power of
substitution in the premises.

The undersigned certifies that said beneficial interest in said Security
is being resold, pledged or otherwise transferred as follows: (check one)

|_|   to the Company;

|_|   to a Person whom the undersigned reasonably believes is a qualified
      institutional buyer within the meaning of Rule 144A under the Securities
      Act of 1933, as amended (the "Securities Act") purchasing for its own
      account or for the account of a qualified institutional buyer to whom
      notice is given that the resale, pledge or other transfer is being made in
      reliance on Rule 144A;

|_|   in an offshore transaction in accordance with Rule 904 of Regulation S
      under the Securities Act;

|_|   to an institution that is an "accredited investor" as defined in Rule
      501(a)(1), (2), (3) or (7) under the Securities Act that is acquiring this
      Security for investment purposes and not for distribution; (attach a copy
      of an Accredited Investor Certificate in the form annexed signed by an
      authorized officer of the transferee)

|_|   as otherwise permitted by the non-registration legend appearing on
      this Security; or

|_|   as otherwise agreed by the Company, confirmed in writing to the
      Trustee, as follows: [describe]

Dated:                                    Signature:
       ----------------------                        -----------------------

                                          NOTICE: The signature to this
                                          assignment must correspond with the
                                          name as written upon the face of the
                                          within instrument in every particular
                                          without alteration or enlargement, or
                                          any change whatever.

                               SIGNATURE GUARANTEE

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirement of the registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the registrar in
addition to, or in substitution for,

<Page>

STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

<Page>

                 [FORM OF ACCREDITED INVESTOR CERTIFICATE]

[Transferor Name and Address]

Ladies and Gentlemen:

In connection with our proposed purchase of First Mortgage Bonds Floating Rate
Series C due June 15, 2003 (the "Bonds") issued by TXU Electric Company
("Issuer"), we confirm that:

            1. We have received a copy of the Offering Memorandum (the "Offering
      Memorandum") relating to the Bonds and such other information as we deem
      necessary in order to make our investment decision. We acknowledge that we
      have read and agree to the matters stated under the caption NOTICE TO
      INVESTORS in such Offering Memorandum, and the restrictions on duplication
      or circulation of, or disclosure relating to, such Offering Memorandum.

            2. We understand that any subsequent transfer of the Bonds is
      subject to certain restrictions and conditions set forth in the Indenture
      relating to Bonds (the "Indenture") and that any subsequent transfer of
      the Bonds is subject to certain restrictions and conditions set forth
      under NOTICE TO INVESTORS in the Offering Memorandum and the undersigned
      agrees to be bound by, and not to resell, pledge or otherwise transfer the
      Bonds except in compliance with such restrictions and conditions and the
      Securities Act of 1933, as amended ("Securities Act").

            3. We understand that the offer and sale of the Bonds have not been
      registered under the Securities Act, and that the Bonds may not be offered
      or sold except as permitted in the following sentence. We agree, on our
      own behalf and on behalf of any accounts for which we are acting as
      hereinafter stated, that if we sell any Bonds, we will do so only (A) to
      the Company, (B) to a person whom we reasonably believe is a "qualified
      institutional buyer" within the meaning of Rule 144A under the Securities
      Act that purchases for its own account or for the account of a qualified
      institutional buyer to whom notice is given that the resale, pledge or
      transfer is being made in reliance on Rule 144A, (C) to an institutional
      "accredited investor" (as defined below) that, prior to such transfer,
      furnishes to the Trustee (as defined in the Indenture) a signed letter
      containing certain representations and agreements relating to the
      restrictions on transfer of the Bonds (substantially in the form of this
      letter), (D) in an offshore transaction in accordance with Rule 904 of
      Regulation S under the Securities Act, (E) pursuant to the exemption from
      registration provided by Rule 144 under the Securities Act (if available),
      or (F) in accordance with another applicable exemption from the
      registration requirements of the Securities Act, and we further agree to
      provide to any person purchasing any of the Bonds from us a notice
      advising such purchaser that resales of the Bonds are restricted as stated
      herein.

            4. We understand that, on any proposed resale of any Bonds, we will
      be required to furnish to the Trustee and Issuer such certifications,
      legal opinions and other information as the

<Page>

      Trustee and Issuer may reasonably require to confirm that the proposed
      sale complies with the foregoing restrictions. We further understand that
      the Bonds purchased by us will bear a legend to the foregoing effect.

            5. We are an institutional "accredited investor" (as defined in Rule
      501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and
      have such knowledge and experience in financial and business matters as to
      be capable of evaluating the merits and risks of our investment in the
      Bonds, and we and any accounts for which are acting are each able to bear
      the economic risk of our or its investment.

            6. We are acquiring the Bonds purchased by us for our own account or
      for one or more accounts (each of which is an institutional "accredited
      investor") as to each of which we exercise sole investment discretion.

      You, the Issuer and the Trustee are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceeding or official inquiry
with respect to the matters covered hereby.

                                          Very truly yours,

                                          By:
                                             ----------------------------
                                              Name:
                                              Title:<Page>

                                                                    EXHIBIT 4(b)

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

                                    TXU CORP.

                                       TO

                              THE BANK OF NEW YORK

                                     TRUSTEE

                                    ---------

                                    INDENTURE

                    (FOR UNSECURED DEBT SECURITIES SERIES J)

                            DATED AS OF JUNE 1, 2001

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

<Page>

                                TABLE OF CONTENTS

PARTIES........................................................................1
RECITAL OF THE COMPANY.........................................................1

                                   ARTICLE ONE

             Definitions and Other Provisions of General Application

  SECTION 101. Definitions.....................................................1
    Act........................................................................2
    Affiliate..................................................................2
    Authenticating Agent.......................................................2
    Authorized Officer.........................................................2
    Board of Directors.........................................................2
    Board Resolution...........................................................2
    Business Day...............................................................2
    Commission.................................................................3
    Company....................................................................3
    Company Request or Company Order...........................................3
    Corporate Trust Office.....................................................3
    corporation................................................................3
    Defaulted Interest.........................................................3
    Discount Security..........................................................3
    Dollar or $................................................................3
    Eligible Obligations.......................................................3
    Event of Default...........................................................3
    Governmental Authority.....................................................4
    Government Obligations.....................................................4
    Holder.....................................................................4
    Indenture..................................................................4
    Interest Payment Date......................................................4
    Maturity...................................................................4
    Officer's Certificate......................................................4
    Opinion of Counsel.........................................................4
    Outstanding................................................................5
    Paying Agent...............................................................6
    Periodic Offering..........................................................6
    Person.....................................................................6
    Place of Payment...........................................................6
    Predecessor Security.......................................................6
    Redemption Date............................................................6
    Redemption Price...........................................................6
    Regular Record Date........................................................6
    Required Currency..........................................................6
    Responsible Officer........................................................6

Note: This table of contents shall not, for any purpose, be deemed to be part of
      the Indenture.
<Page>

    Securities.................................................................7
    Security Register and Security Registrar...................................7
    Special Record Date........................................................7
    Stated Interest Rate.......................................................7
    Stated Maturity............................................................7
    Subsidiary.................................................................7
    Tranche....................................................................7
    Trust Indenture Act........................................................7
    Trustee....................................................................7
    United States..............................................................7
  SECTION 102. Compliance Certificates and Opinions............................8
  SECTION 103. Form of Documents Delivered to Trustee..........................8
  SECTION 104. Acts of Holders.................................................9
  SECTION 105. Notices, etc. to Trustee and Company...........................10
  SECTION 106. Notice to Holders of Securities; Waiver........................11
  SECTION 107. Conflict with Trust Indenture Act..............................12
  SECTION 108. Effect of Headings and Table of Contents.......................12
  SECTION 109. Successors and Assigns.........................................12
  SECTION 110. Separability Clause............................................12
  SECTION 111. Benefits of Indenture..........................................12
  SECTION 112. Governing Law..................................................13
  SECTION 113. Legal Holidays.................................................13

                                   ARTICLE TWO

                                 Security Forms

  SECTION 201. Forms Generally................................................13
  SECTION 202. Form of Trustee's Certificate of Authentication................14

                                  ARTICLE THREE

                                 The Securities

  SECTION 301. Amount Unlimited; Issuable in Series...........................14
  SECTION 302. Denominations..................................................17
  SECTION 303. Execution, Authentication, Delivery and Dating.................17
  SECTION 304. Temporary Securities...........................................20
  SECTION 305. Registration, Registration of Transfer and Exchange............21
  SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities...............22
  SECTION 307. Payment of Interest; Interest Rights Preserved.................23
  SECTION 308. Persons Deemed Owners..........................................24
  SECTION 309. Cancellation by Security Registrar.............................24
  SECTION 310. Computation of Interest........................................24
  SECTION 311. Payment to Be in Proper Currency...............................24
  SECTION 312. Extension of Interest Payment..................................25

<Page>

                                 ARTICLE FOUR

                           Redemption of Securities

  SECTION 401. Applicability of Article.......................................25
  SECTION 402. Election to Redeem; Notice to Trustee..........................25
  SECTION 403. Selection of Securities to Be Redeemed.........................25
  SECTION 404. Notice of Redemption...........................................26
  SECTION 405. Securities Payable on Redemption Date..........................27
  SECTION 406. Securities Redeemed in Part....................................28

                                 ARTICLE FIVE

                                 Sinking Funds

  SECTION 501. Applicability of Article.......................................28
  SECTION 502. Satisfaction of Sinking Fund Payments with Securities..........28
  SECTION 503. Redemption of Securities for Sinking Fund......................29

                                  ARTICLE SIX

                                   Covenants

  SECTION 601. Payment of Principal, Premium and Interest.....................29
  SECTION 602. Maintenance of Office or Agency................................29
  SECTION 603. Money for Securities Payments to Be Held in Trust..............30
  SECTION 604. Corporate Existence............................................31
  SECTION 605. Maintenance of Properties......................................32
  SECTION 606. Annual Officer's Certificate as to Compliance..................32
  SECTION 607. Waiver of Certain Covenants....................................32
  SECTION 608. Limitation on Liens............................................32

                                 ARTICLE SEVEN

                          Satisfaction and Discharge

  SECTION 701. Satisfaction and Discharge of Securities.......................35
  SECTION 702. Satisfaction and Discharge of Indenture........................37
  SECTION 703. Application of Trust Money.....................................38

                                 ARTICLE EIGHT

                          Events of Default; Remedies

  SECTION 801. Events of Default..............................................38
  SECTION 802. Acceleration of Maturity; Rescission and Annulment.............40
  SECTION 803. Collection of Indebtedness and Suits for Enforcement by
               Trustee........................................................41

<Page>

  SECTION 804. Trustee May File Proofs of Claim...............................41
  SECTION 805. Trustee May Enforce Claims Without Possession of Securities....42
  SECTION 806. Application of Money Collected.................................42
  SECTION 807. Limitation on Suits............................................43
  SECTION 808. Unconditional Right of Holders to Receive Principal, Premium
                  and Interest................................................43
  SECTION 809. Restoration of Rights and Remedies.............................43
  SECTION 810. Rights and Remedies Cumulative.................................44
  SECTION 811. Delay or Omission Not Waiver...................................44
  SECTION 812. Control by Holders of Securities...............................44
  SECTION 813. Waiver of Past Defaults........................................44
  SECTION 814. Undertaking for Costs..........................................45
  SECTION 815. Waiver of Stay or Extension Laws...............................45

                                 ARTICLE NINE

                                  The Trustee

  SECTION 901. Certain Duties and Responsibilities............................45
  SECTION 902. Notice of Defaults.............................................46
  SECTION 903. Certain Rights of Trustee......................................46
  SECTION 904. Not Responsible for Recitals or Issuance of Securities.........47
  SECTION 905. May Hold Securities............................................48
  SECTION 906. Money Held in Trust............................................48
  SECTION 907. Compensation and Reimbursement.................................48
  SECTION 908. Disqualification; Conflicting Interests........................49
  SECTION 909. Corporate Trustee Required; Eligibility........................49
  SECTION 910. Resignation and Removal; Appointment of Successor..............50
  SECTION 911. Acceptance of Appointment by Successor.........................52
  SECTION 912. Merger, Conversion, Consolidation or Succession to Business....53
  SECTION 913. Preferential Collection of Claims Against Company..............53
  SECTION 914. Co-trustees and Separate Trustees..............................53
  SECTION 915. Appointment of Authenticating Agent............................54

                                  ARTICLE TEN

               Holders' Lists and Reports by Trustee and Company

  SECTION 1001. Lists of Holders..............................................56
  SECTION 1002. Reports by Trustee and Company................................56

                                ARTICLE ELEVEN

              Consolidation, Merger, Conveyance or Other Transfer

  SECTION 1101. Company May Consolidate, etc., Only on Certain Terms..........57
  SECTION 1102. Successor Corporation Substituted.............................57

<Page>

                                ARTICLE TWELVE

                            Supplemental Indentures

  SECTION 1201. Supplemental Indentures Without Consent of Holders............58
  SECTION 1202. Supplemental Indentures With Consent of Holders...............59
  SECTION 1203. Execution of Supplemental Indentures..........................61
  SECTION 1204. Effect of Supplemental Indentures.............................61
  SECTION 1205. Conformity With Trust Indenture Act...........................61
  SECTION 1206. Reference in Securities to Supplemental Indentures............61
  SECTION 1207. Modification Without Supplemental Indenture ..................62

                               ARTICLE THIRTEEN

                  Meetings of Holders; Action Without Meeting

  SECTION 1301. Purposes for Which Meetings May Be Called.....................62
  SECTION 1302. Call, Notice and Place of Meetings............................62
  SECTION 1303. Persons Entitled to Vote at Meetings..........................63
  SECTION 1304. Quorum; Action................................................63
  SECTION 1305. Attendance at Meetings; Determination of Voting Rights;.......64
  SECTION 1306. Counting Votes and Recording Action of Meetings...............65
  SECTION 1307. Action Without Meeting........................................65

                               ARTICLE FOURTEEN

        Immunity of Incorporators, Shareholders, Officers and Directors

  SECTION 1401. Liability Solely Corporate....................................65

                                ARTICLE FIFTEEN

                                Series J Notes

  SECTION 1501. Designation of Series J Notes.................................66

<Page>

                                    TXU CORP.

           Reconciliation and tie between Trust Indenture Act of 1939
                     and Indenture, dated as of June 1, 2001

TRUST INDENTURE ACT SECTION                                    INDENTURE SECTION

ss.310  (a)(1)...............................................................909
        (a)(2)...............................................................909
        (a)(3)...............................................................914
        (a)(4)....................................................Not Applicable
        (b)..................................................................908
        .....................................................................910
ss.311  (a)..................................................................913
        (b)..................................................................913
        (c)..................................................................913
ss.312  (a).................................................................1001
        (b).................................................................1001
        (c).................................................................1001
ss.313  (a).................................................................1002
        (b).................................................................1002
        (c).................................................................1002
ss.314  (a).................................................................1002
        (a)(4)...............................................................606
        (b).......................................................Not Applicable
        (c)(1)...............................................................102
        (c)(2)...............................................................102
        (c)(3)....................................................Not Applicable
        (d).......................................................Not Applicable
        (e)..................................................................102
ss.315  (a)..................................................................901
        .....................................................................903
        (b)..................................................................902
        (c)..................................................................901
        (d)..................................................................901
        (e)..................................................................814
ss.316  (a)..................................................................812
        .....................................................................813
        (a)(1)(A)............................................................802
        .....................................................................812
        (a)(1)(B)............................................................813
        (a)(2)....................................................Not Applicable
        (b)..................................................................808
ss.317  (a)(1)...............................................................803
        (a)(2)...............................................................804
        (b)..................................................................603
ss.318  (a)..................................................................107
<Page>

                  INDENTURE, dated as of June 1, 2001, between TXU CORP., a
corporation duly organized and existing under the laws of the State of Texas
(herein called the "Company"), having its principal office at Energy Plaza, 1601
Bryan Street, Dallas, Texas 75201, and THE BANK OF NEW YORK, a banking
corporation of the State of New York, having its principal corporate trust
office at 101 Barclay Street, New York, New York 10286, as Trustee (herein
called the "Trustee").

                             RECITAL OF THE COMPANY

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

                  For all purposes of this Indenture, except as otherwise
expressly provided or unless the context otherwise requires, capitalized terms
used herein shall have the meanings assigned to them in Article One of this
Indenture.

                  NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

                                  ARTICLE ONE

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

SECTION 101. DEFINITIONS.

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

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

            (b) all terms used herein without definition which are defined in
      the Trust Indenture Act, either directly or by reference therein, have the
      meanings assigned to them therein;

            (c) all accounting terms not otherwise defined herein have the
      meanings assigned to them in accordance with generally accepted accounting
      principles in the United States, and, except as otherwise herein expressly
      provided, the term "generally accepted accounting principles" with respect
      to any computation required or permitted hereunder shall mean such
      accounting principles as are generally accepted in the United States at
      the date of such computation or, at the election of the Company from time
      to time, at the date of the execution and delivery of this Indenture;
      provided, however, that in determining generally accepted accounting
      principles applicable to the Company, the Company shall, to

                                       -1-
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      the extent required, conform to any order, rule or regulation of any
      administrative agency, regulatory authority or other governmental body
      having jurisdiction over the Company; and

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

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

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

                  "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 through one or
more intermediaries, whether through the ownership of voting securities, by
contract or otherwise; and the terms "CONTROLLING" and "CONTROLLED" have
meanings correlative to the foregoing.

                  "AUTHENTICATING AGENT" means any Person (other than the
Company or an Affiliate of the Company) authorized by the Trustee pursuant to
Section 915 to act on behalf of the Trustee to authenticate one or more series
of Securities or Tranche thereof.

                  "AUTHORIZED OFFICER" means the Chairman of the Board, the
President, any Vice President, the Treasurer, any Assistant Treasurer, or any
other officer or agent of the Company duly authorized by the Board of Directors
to act in respect of matters relating to this Indenture.

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

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

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

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

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

                                       -2-
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                  "COMPANY REQUEST" or "COMPANY ORDER" means a written request
or order signed in the name of the Company by an Authorized Officer and
delivered to the Trustee.

                  "CORPORATE TRUST OFFICE" means the office of the Trustee at
which at any particular time its corporate trust business shall be principally
administered, which office at the date of execution and delivery of this
instrument is located on the 21st floor, at 101 Barclay Street, New York, New
York 10286.

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

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

                  "DISCOUNT SECURITY" means any Security which provides for an
amount less than the principal amount thereof to be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 802.
"Interest" with respect to a Discount Security means interest, if any, borne by
such Security at a Stated Interest Rate.

                  "DOLLAR" or "$" 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.

                  "ELIGIBLE OBLIGATIONS" means:

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

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

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

                  "GOVERNMENTAL AUTHORITY" means the government of the United
States or of any State or Territory thereof or of the District of Columbia or of
any county, municipality or other political subdivision of any of the foregoing,
or any department, agency, authority or other instrumentality of any of the
foregoing.

                                      -3-
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                  "GOVERNMENT OBLIGATIONS" means:

            (a) direct obligations of, or obligations the principal of and
      interest on which are unconditionally guaranteed by, the United States and
      entitled to the benefit of the full faith and credit thereof; and

            (b) certificates, depositary receipts or other instruments which
      evidence a direct ownership interest in obligations described in clause
      (a) above or in any specific interest or principal payments due in respect
      thereof; provided, however, that the custodian of such obligations or
      specific interest or principal payments shall be a bank or trust company
      (which may include the Trustee or any Paying Agent) subject to Federal or
      state supervision or examination with a combined capital and surplus of at
      least $50,000,000; and provided, further, that except as may be otherwise
      required by law, such custodian shall be obligated to pay to the holders
      of such certificates, depositary receipts or other instruments the full
      amount received by such custodian in respect of such obligations or
      specific payments and shall not be permitted to make any deduction
      therefrom.

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

                  "INDENTURE" means this instrument as originally executed and
delivered and as it may from time to time be supplemented or amended by one or
more indentures supplemental hereto entered into pursuant to the applicable
provisions hereof and shall include the terms of a particular series of
Securities established as contemplated by Section 301.

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

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

                  "OFFICER'S CERTIFICATE" means a certificate signed by an
Authorized Officer and delivered to the Trustee.

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

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

                                      -4-
<Page>

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

            (b) Securities deemed to have been paid in accordance with Section
      701; and

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

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

                        (x) Securities owned by the Company or any other obligor
                  upon the Securities or any Affiliate of the Company or of such
                  other obligor (unless the Company, such Affiliate or such
                  obligor owns all Securities Outstanding under this Indenture,
                  or (except for the purposes of actions to be taken by Holders
                  of (i) more than one series voting as a class under Section
                  812 or (ii) more than one series or more than one Tranche, as
                  the case may be, voting as a class under Section 1202) all
                  Outstanding Securities of each such series and each such
                  Tranche, as the case may be, determined without regard to this
                  clause (x)) shall be disregarded and deemed not to be
                  Outstanding, except that, in determining whether the Trustee
                  shall be protected in relying upon any such request, demand,
                  authorization, direction, notice, consent or waiver or upon
                  any such determination as to the presence of a quorum, only
                  Securities which the Trustee knows to be so owned shall be so
                  disregarded; provided, however, that Securities so owned which
                  have been pledged in good faith may be regarded as Outstanding
                  if 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 of such
                  other obligor; and

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

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

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

                  "PERIODIC OFFERING" means an offering of Securities of a
series from time to time any or all of the specific terms of which Securities,
including without limitation the rate or rates of interest, if any, thereon, the
Stated Maturity or Maturities thereof and the redemption provisions, if any,
with respect thereto, are to be determined by the Company or its agents upon the
issuance of such Securities.

                  "PERSON" means any individual, corporation, joint venture,
trust or unincorporated organization or any Governmental Authority.

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

                                      -5-
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                  "PREDECESSOR SECURITY" of any particular Security means every
previous Security evidencing all or a portion of the same debt as that evidenced
by such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 306 in exchange for or in
lieu of a mutilated, destroyed, lost or stolen Security shall be deemed (to the
extent lawful) to evidence the same debt as the mutilated, destroyed, lost or
stolen Security.

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

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

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

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

                  "RESPONSIBLE OFFICER", when used with respect to the Trustee,
means any Vice President, Assistant Vice President, Trust Officer or other
officer of the Trustee assigned by the Trustee to the Corporate Trust
Administration Division of the Trustee (or any successor division or department
of the Trustee).

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

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

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

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

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

                                      -6-
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                  "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 that ordinarily has voting power for the election of directors, whether at
all times or only so long as no senior class of stock has such voting power by
reason of any contingency.

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

                  "TRUST INDENTURE ACT" means, as of any time, the Trust
Indenture Act of 1939, or any successor statute, as in effect at such time.

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

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

SECTION 102. COMPLIANCE CERTIFICATES AND OPINIONS.

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

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

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

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

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

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

                                      -7-
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SECTION 103. FORM OF DOCUMENTS DELIVERED TO TRUSTEE.

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

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

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

                                      -8-
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SECTION 104. ACTS OF HOLDERS.

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

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

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

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

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

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

            (g) If the Company shall solicit from Holders any request, demand,
      authorization, direction, notice, consent, waiver or other Act, the
      Company may, at its option, fix in advance a record date for the
      determination of Holders entitled to give such request, demand,
      authorization, direction, notice, consent, waiver or other Act, but the
      Company shall have no obligation to do so. If such a record date is fixed,
      such request, demand, authorization, direction, notice, consent, waiver or
      other Act may be given before or after such record date, but only the
      Holders of record at the close of business on the record date shall be
      deemed to be Holders for the purposes of determining whether Holders of
      the requisite proportion of the Outstanding Securities have authorized or
      agreed or consented to such request, demand, authorization, direction,
      notice, consent, waiver or other Act, and for that purpose the Outstanding
      Securities shall be computed as of the record date.

                                      -9-
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SECTION 105. NOTICES, ETC. TO TRUSTEE AND COMPANY.

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

                  If to the Trustee, to:

                  The Bank of New York
                  Corporate Trust Administration, 21st Floor
                  101 Barclay Street - 21W
                  New York, New York 10286

                  Attention: Vice President, Corporate Trust Administration
                  Telephone: (212) 815-5375

                  Telecopy: (212) 815-5915

                  If to the Company, to:

                  TXU Corp.
                  Energy Plaza
                  1601 Bryan Street
                  Dallas, Texas 75201

                  Attention: Treasurer
                  Telephone: (214) 812-4646
                  Telecopy:  (214) 812-3366

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

                                      -10-
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SECTION 106. NOTICE TO HOLDERS OF SECURITIES; WAIVER.

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

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

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

SECTION 107. CONFLICT WITH TRUST INDENTURE ACT.

                  If any provision of this Indenture limits, qualifies or
conflicts with another provision hereof which is required or deemed to be
included in this Indenture by, or is otherwise governed by, any of the
provisions of the Trust Indenture Act, such other provision shall control; and
if any provision hereof otherwise conflicts with the Trust Indenture Act, the
Trust Indenture Act shall control unless otherwise provided as contemplated by
Section 301 with respect to any series of Securities.

                                      -11-
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SECTION 108. EFFECT OF HEADINGS AND TABLE OF CONTENTS.

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

SECTION 109. SUCCESSORS AND ASSIGNS.

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

SECTION 110. 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 111. BENEFITS OF INDENTURE.

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

SECTION 112. GOVERNING LAW.

                  THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT TO THE
EXTENT THAT THE LAW OF ANY OTHER JURISDICTION SHALL BE MANDATORILY APPLICABLE.

SECTION 113. LEGAL HOLIDAYS.

                  In any case where any Interest Payment Date, Redemption Date
or Stated Maturity of any Security shall not be a Business Day at any Place of
Payment, then (notwithstanding any other provision of this Indenture or of the
Securities other than a provision in Securities of any series, or any Tranche
thereof, or in the Board Resolution or Officer's Certificate which establishes
the terms of the Securities of such series or Tranche, which specifically states
that such provision shall apply in lieu of this Section) payment of interest or
principal and premium, if any, need not be made at such Place of Payment on such
date, but may be made on the next succeeding Business Day at such Place of
Payment, with the same force and effect, and in the same amount, as if made on
the Interest Payment Date or Redemption Date, or at the Stated Maturity, as the
case may be, and, if such payment is made or duly provided for on such Business
Day, no interest shall accrue on the amount so payable for the period from and
after such Interest Payment Date, Redemption Date or Stated Maturity, as the
case may be, to such Business Day.

                                      -12-
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                                  ARTICLE TWO

                                 SECURITY FORMS

SECTION 201. FORMS GENERALLY.

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

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

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

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

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

Dated:

                                            ____________________________________
                                            as Trustee

                                            By:_________________________________
                                                   Authorized Signatory

                                      -13-
<Page>

                                 ARTICLE THREE

                                 THE SECURITIES

SECTION 301. AMOUNT UNLIMITED; ISSUABLE IN SERIES.

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

                  The Securities may be issued in one or more series. Subject to
the last paragraph of this Section, prior to the authentication and delivery of
Securities of any series there shall be established by specification in a
supplemental indenture or in a Board Resolution, or in an Officer's Certificate
pursuant to a supplemental indenture or a Board Resolution:

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

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

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

                                      -14-
<Page>

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

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

            (f) the place or places at which or methods by which (1) the
      principal of and premium, if any, and interest, if any, on Securities of
      such series, or any Tranche thereof, shall be payable, (2) registration of
      transfer of Securities of such series, or any Tranche thereof, may be
      effected, (3) exchanges of Securities of such series, or any Tranche
      thereof, may be effected and (4) notices and demands to or upon the
      Company in respect of the Securities of such series, or any Tranche
      thereof, and this Indenture may be served; the Security Registrar for such
      series or Tranche; and if such is the case, that the principal of such
      Securities shall be payable without presentment or surrender thereof;

            (g) the period or periods within which, or the date or dates on
      which, the price or prices at which and the terms and conditions upon
      which the Securities of such series, or any Tranche thereof, may be
      redeemed, in whole or in part, at the option of the Company and any
      restrictions on such redemptions, including but not limited to a
      restriction on a partial redemption by the Company of the Securities of
      any series, or any Tranche thereof, resulting in delisting of such
      Securities from any national exchange;

            (h) the obligation or obligations, if any, of the Company to redeem
      or purchase the Securities of such series, or any Tranche thereof,
      pursuant to any sinking fund or other mandatory redemption provisions or
      at the option of a Holder thereof and the period or periods within which
      or the date or dates on which, the price or prices at which and the terms
      and conditions upon which such Securities shall be redeemed or purchased,
      in whole or in part, pursuant to such obligation, and applicable
      exceptions to the requirements of Section 404 in the case of mandatory
      redemption or redemption at the option of the Holder;

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

            (j) the currency or currencies, including composite currencies, in
      which payment of the principal of and premium, if any, and interest, if
      any, on the Securities of such series, or any Tranche thereof, shall be
      payable (if other than in Dollars);

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

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

                                      -15-
<Page>

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

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

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

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

            (q) the obligations or instruments, if any, which shall be
      considered to be Eligible Obligations in respect of the Securities of such
      series, or any Tranche thereof, denominated in a currency other than
      Dollars or in a composite currency, and any additional or alternative
      provisions for the reinstatement of the Company's indebtedness in respect
      of such Securities after the satisfaction and discharge thereof as
      provided in Section 701;

            (r) if the Securities of such series, or any Tranche thereof, are to
      be issued in global form, (i) any limitations on the rights of the Holder
      or Holders of such Securities to transfer or exchange the same or to
      obtain the registration of transfer thereof, (ii) any limitations on the
      rights of the Holder or Holders thereof to obtain certificates therefor in
      definitive form in lieu of temporary form and (iii) any and all other
      matters incidental to such Securities;

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

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

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

            (v) any collateral security, assurance or guarantee for the
      Securities of such series;

                                      -16-
<Page>

            (w) any non-applicability of Section 608 to the Securities of such
      series or any exceptions or modifications of Section 608 with respect to
      the Securities of such series;

            (x) any rights or duties of another Person to assume the obligations
      of the Company with respect to the Securities of such series (whether as
      joint obligor, primary obligor, secondary obligor or substitute obligor)
      and any rights or duties to discharge and release any obligor with respect
      to the Securities of such series or the Indenture to the extent related to
      such series; and

            (y) any other terms of the Securities of such series, or any Tranche
      thereof, not inconsistent with the provisions of this Indenture.

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

SECTION 302. DENOMINATIONS.

                  Unless otherwise provided as contemplated by Section 301 with
respect to any series of Securities, or any Tranche thereof, the Securities of
each series shall be issuable in denominations of $1,000 and any integral
multiple thereof.

SECTION 303. EXECUTION, AUTHENTICATION, DELIVERY AND DATING.

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

                  Securities bearing the manual or facsimile signatures of
individuals who were at the time of execution Authorized Officers or the
Secretary or an Assistant Secretary 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.

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

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

                                      -17-
<Page>

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

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

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

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

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

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

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

                  (x) when the terms of such Securities shall have been
            established pursuant to a Company Order or Orders or pursuant to
            such procedures (acceptable to the Trustee) as may be specified from
            time to time by a Company Order or Orders, all

                                      -18-
<Page>

            as contemplated by and in accordance with the instrument or
            instruments delivered pursuant to clause (a) above, such terms will
            have been duly authorized by the Company and will have been
            established in conformity with the provisions of this Indenture; and

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

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

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

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

                  Unless otherwise specified as contemplated by Section 301 with
respect to any series of Securities, no Security shall be entitled to any
benefit under this Indenture or be valid or obligatory for any purpose unless
there appears on such Security a certificate of authentication substantially in
the form provided for herein executed by the Trustee or an Authenticating Agent
by manual signature, and such certificate upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated
and delivered hereunder and is

                                      -19-
<Page>

entitled to the benefits of this Indenture. Notwithstanding the foregoing, if
any Security shall have been authenticated and delivered hereunder to the
Company, or any Person acting on its behalf, but shall never have been issued
and sold by the Company, and the Company shall deliver such Security to the
Trustee for cancellation as provided in Section 309 together with a written
statement (which need not comply with Section 102 and need not be accompanied by
an Opinion of Counsel) stating that such Security has never been issued and sold
by the Company, for all purposes of this Indenture such Security shall be deemed
never to have been authenticated and delivered hereunder and shall never be
entitled to the benefits hereof.

SECTION 304. TEMPORARY SECURITIES.

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

                  Unless otherwise specified as contemplated by Section 301 with
respect to the Securities of any series, or any Tranche thereof, after the
preparation of definitive Securities of such series or Tranche, the temporary
Securities of such series or Tranche shall be exchangeable, without charge to
the Holder thereof, for definitive Securities of such series or Tranche upon
surrender of such temporary Securities at the office or agency of the Company
maintained pursuant to Section 602 in a Place of Payment for such Securities.
Upon such surrender of temporary Securities for such exchange, the Company
shall, except as aforesaid, execute and the Trustee shall authenticate and
deliver in exchange therefor definitive Securities of the same series and
Tranche of authorized denominations and of like tenor and aggregate principal
amount.

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

SECTION 305. REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE.

                  The Company shall cause to be kept in each office designated
pursuant to Section 602, with respect to the Securities of each series, a
register (all registers kept in accordance with this Section being collectively
referred to as the "Security Register") in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration
of Securities of such series, or any Tranche thereof, and the registration of
transfer thereof. The Company shall designate one Person to maintain the
Security Register for the Securities of each series on a consolidated basis, and
such Person is referred to herein, with respect to such series, as the "Security
Registrar." Anything herein to the contrary notwithstanding, the Company may
designate one or more of its offices as an office in which a register with
respect to the Securities of one or more series shall be maintained, and the
Company may designate itself the Security

                                      -20-
<Page>

Registrar with respect to one or more of such series. The Security Register
shall be open for inspection by the Trustee and the Company at all reasonable
times.

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

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

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

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

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

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

                                      -21-
<Page>

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

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

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

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

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

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

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

SECTION 307. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.

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

                  Subject to Section 312, any interest on any Security of any
series which is payable, but is not punctually paid or duly provided for, on any
Interest Payment Date (herein called "Defaulted Interest") shall forthwith cease
to be payable to the Holder on the related

                                      -22-
<Page>

Regular Record Date by virtue of having been such Holder, and such Defaulted
Interest may be paid by the Company, at its election in each case, as provided
in clause (a) or (b) below:

            (a) The Company may elect to make payment of any Defaulted Interest
      to the Persons in whose names the Securities of such series (or their
      respective Predecessor Securities) are registered at the close of business
      on a date (herein called a "Special Record Date") for the payment of such
      Defaulted Interest, which shall be fixed in the following manner. The
      Company shall notify the Trustee in writing of the amount of Defaulted
      Interest proposed to be paid on each Security of such series and the date
      of the proposed payment, and at the same time the Company shall deposit
      with the Trustee an amount of money equal to the aggregate amount proposed
      to be paid in respect of such Defaulted Interest or shall make
      arrangements satisfactory to the Trustee for such deposit on or prior to
      the date of the proposed payment, such money when deposited to be held in
      trust for the benefit of the Persons entitled to such Defaulted Interest
      as in this clause provided. Thereupon the Trustee shall fix a Special
      Record Date for the payment of such Defaulted Interest which shall be not
      more than 15 days and not less than 10 days prior to the date of the
      proposed payment and not less than 10 days after the receipt by the
      Trustee of the notice of the proposed payment. The Trustee shall promptly
      notify the Company of such Special Record Date and, in the name and at the
      expense of the Company, shall promptly cause notice of the proposed
      payment of such Defaulted Interest and the Special Record Date therefor to
      be mailed, first-class postage prepaid, to each Holder of Securities of
      such series at the address of such Holder as it appears in the Security
      Register, not less than 10 days prior to such Special Record Date. Notice
      of the proposed payment of such Defaulted Interest and the Special Record
      Date therefor having been so mailed, such Defaulted Interest shall be paid
      to the Persons in whose names the Securities of such series (or their
      respective Predecessor Securities) are registered at the close of business
      on such Special Record Date.

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

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

SECTION 308. PERSONS DEEMED OWNERS.

                  Prior to due presentment of a Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name such Security is registered as the absolute
owner of such Security for the purpose of receiving payment of principal of and
premium, if any, and (subject to Sections 305 and 307) interest, if any, on such
Security and for all other purposes whatsoever, whether or not such Security be

                                      -23-
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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 309. CANCELLATION BY SECURITY REGISTRAR.

                  All Securities surrendered for payment, redemption,
registration of transfer or exchange shall, if surrendered to any Person other
than the Security Registrar, be delivered to the Security Registrar and, if not
theretofore canceled, shall be promptly canceled by the Security Registrar. The
Company may at any time deliver to the Security Registrar for cancellation any
Securities previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever or which the Company shall not have
issued and sold, and all Securities so delivered shall be promptly canceled by
the Security Registrar. No Securities shall be authenticated in lieu of or in
exchange for any Securities canceled as provided in this Section, except as
expressly permitted by this Indenture. All canceled Securities held by the
Security Registrar shall be disposed of in accordance with the customary
practices of the Security Registrar at the time in effect, and the Security
Registrar shall not be required to destroy any such certificates. The Security
Registrar shall promptly deliver a certificate of disposition to the Trustee and
the Company unless, by a Company Order, similarly delivered, the Company shall
direct that canceled Securities be returned to it. The Security Registrar shall
promptly deliver evidence of any cancellation of a Security in accordance with
this Section 309 to the Trustee and the Company.

SECTION 310. COMPUTATION OF INTEREST.

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

SECTION 311. PAYMENT TO BE IN PROPER CURRENCY.

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

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SECTION 312. EXTENSION OF INTEREST PAYMENT.

                  The Company shall have the right at any time, so long as the
Company is not in default in the payment of interest on the Securities of any
series hereunder, to extend interest payment periods on all Securities of one or
more series, if so specified as contemplated by Section 301 with respect to such
Securities and upon such terms as may be specified as contemplated by Section
301 with respect to such Securities.

                                  ARTICLE FOUR

                            REDEMPTION OF SECURITIES

SECTION 401. APPLICABILITY OF ARTICLE.

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

SECTION 402. ELECTION TO REDEEM; NOTICE TO TRUSTEE.

                  The election of the Company to redeem any Securities shall be
evidenced by a Board Resolution or an Officer's Certificate. The Company shall,
at least 45 days prior to the Redemption Date fixed by the Company (unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee in
writing of such Redemption Date and of the principal amount of such Securities
to be redeemed. In the case of any redemption of Securities (a) prior to the
expiration of any restriction on such redemption provided in the terms of such
Securities or elsewhere in this Indenture or (b) pursuant to an election of the
Company which is subject to a condition specified in the terms of such
Securities, the Company shall furnish the Trustee with an Officer's Certificate
evidencing compliance with such restriction or condition.

SECTION 403. SELECTION OF SECURITIES TO BE REDEEMED.

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

                                      -25-
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                  The Trustee shall promptly notify the Company and the Security
Registrar in writing of the Securities selected for redemption and, in the case
of any Securities selected to be redeemed in part, the principal amount thereof
to be redeemed.

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

SECTION 404. NOTICE OF REDEMPTION.

                  Except as otherwise specified as contemplated by Section 301
for Securities of any series, notice of redemption shall be given in the manner
provided in Section 106 to the Holders of the Securities to be redeemed not less
than 30 nor more than 60 days prior to the Redemption Date.

                  Except as otherwise specified as contemplated by Section 301
for Securities of any series, all notices of redemption shall state:

            (a) the Redemption Date,

            (b) the Redemption Price (if known),

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

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

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

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

            (g) the CUSIP or ISIN numbers, if any, assigned to such Securities;
      provided, however, that such notice may state that no representation is
      made as to the correctness of CUSIP or ISIN numbers, in which case none of
      the Company, the Trustee or any agent of the Company or the Trustee shall
      have any liability in respect of the use of any CUSIP or ISIN number or
      numbers on such notices, and the redemption of such Securities shall not
      be affected by any defect in or omission of such numbers, and

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

                                      -26-
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                  Unless otherwise specified with respect to any Securities in
accordance with Section 301, with respect to any notice of redemption of
Securities at the election of the Company, unless, upon the giving of such
notice, such Securities shall be deemed to have been paid in accordance with
Section 701, such notice may state that such redemption shall be conditional
upon the receipt by the Paying Agent or Agents for such Securities, on or prior
to the date fixed for such redemption, of money sufficient to pay the principal
of and premium, if any, and interest, if any, on such Securities and that if
such money shall not have been so received such notice shall be of no force or
effect and the Company shall not be required to redeem such Securities. In the
event that such notice of redemption contains such a condition and such money is
not so received, the redemption shall not be made and within a reasonable time
thereafter notice shall be given, in the manner in which the notice of
redemption was given, that such money was not so received and such redemption
was not required to be made, and the Paying Agent or Agents for the Securities
otherwise to have been redeemed shall promptly return to the Holders thereof any
of such Securities which had been surrendered for payment upon such redemption.

                  Notice of redemption of Securities to be redeemed at the
election of the Company, and any notice of non-satisfaction of a condition for
redemption as aforesaid, shall be given by the Company or, at the Company's
request, by the Security Registrar in the name and at the expense of the
Company. Notice of mandatory redemption of Securities shall be given by the
Security Registrar in the name and at the expense of the Company.

SECTION 405. SECURITIES PAYABLE ON REDEMPTION DATE.

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

SECTION 406. SECURITIES REDEEMED IN PART.

                  Upon the surrender of any Security which is to be redeemed
only in part at a Place of Payment therefor (with, if the Company or the Trustee
so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by, the Holder thereof
or his attorney duly authorized in writing), the Company shall execute,

                                      -27-
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and the Trustee shall authenticate and deliver to the Holder of such Security,
without service charge, a new Security or Securities of the same series and
Tranche, of any authorized denomination requested by such Holder and of like
tenor and in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Security so surrendered.

                                  ARTICLE FIVE

                                  SINKING FUNDS

SECTION 501. APPLICABILITY OF ARTICLE.

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

                  The minimum amount of any sinking fund payment provided for by
the terms of Securities of any series, or any Tranche thereof, is herein
referred to as a "mandatory sinking fund payment", and any payment in excess of
such minimum amount provided for by the terms of Securities of any series, or
any Tranche thereof, is herein referred to as an "optional sinking fund
payment". If provided for by the terms of Securities of any series, or any
Tranche thereof, the cash amount of any sinking fund payment may be subject to
reduction as provided in Section 502. Each sinking fund payment shall be applied
to the redemption of Securities of the series or Tranche in respect of which it
was made as provided for by the terms of such Securities.

SECTION 502. SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES.

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

SECTION 503. REDEMPTION OF SECURITIES FOR SINKING FUND.

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

                                      -28-
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            (a) the amount of the next succeeding mandatory sinking fund payment
      for such series or Tranche;

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

            (c) the aggregate sinking fund payment;

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

            (e) the portion, if any, of such aggregate sinking fund payment
      which is to be satisfied by delivering and crediting Securities of such
      series or Tranche pursuant to Section 502 and stating the basis for such
      credit and that such Securities have not previously been so credited, and
      the Company shall also deliver to the Trustee any Securities to be so
      delivered.

                  If the Company shall have not delivered such Officer's
Certificate and, to the extent applicable, all such Securities, the next
succeeding sinking fund payment for such series or Tranche shall be made
entirely in cash in the amount of the mandatory sinking fund payment. Not less
than 30 days before each such sinking fund payment date the Trustee shall select
the Securities to be redeemed upon such sinking fund payment date in the manner
specified in Section 403 and cause notice of the redemption thereof to be given
in the name of and at the expense of the Company in the manner provided in
Section 404. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Sections 405
and 406.

                                  ARTICLE SIX

                                    COVENANTS

SECTION 601. PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.

                  The Company shall pay the principal of and premium, if any,
and interest, if any, on the Securities of each series in accordance with the
terms of such Securities and this Indenture.

SECTION 602. MAINTENANCE OF OFFICE OR AGENCY.

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

                                      -29-
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Securities shall be made, registration of transfer or exchange thereof may be
effected and notices and demands in respect thereof may be served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent for all such purposes in any such event.

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

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

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

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

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

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

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

                                      -30-
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            (b) give the Trustee notice of any failure by the Company (or any
      other obligor upon such Securities) to make any payment of principal of or
      premium, if any, or interest, if any, on such Securities; and

            (c) at any time during the continuance of any such failure, upon the
      written request of the Trustee, forthwith pay to the Trustee all sums so
      held in trust by such Paying Agent and furnish to the Trustee such
      information as it possesses regarding the names and addresses of the
      Persons entitled to such sums.

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

                  Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of and
premium, if any, or interest, if any, on any Security and remaining unclaimed
for two years after such principal and premium, if any, or interest has become
due and payable shall be paid to the Company on Company Request, or, if then
held by the Company, shall be discharged from such trust; and, upon such payment
or discharge, the Holder of such Security shall, as an unsecured general
creditor and not as a Holder of an Outstanding Security, look only to the
Company for payment of the amount so due and payable and remaining unpaid, and
all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such payment to the Company, may at the expense of the
Company cause to be mailed, on one occasion only, notice to such Holder that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such mailing, any unclaimed
balance of such money then remaining will be paid to the Company.

SECTION 604. CORPORATE EXISTENCE.

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

SECTION 605. MAINTENANCE OF PROPERTIES.

                  The Company shall cause (or, with respect to property owned in
common with others, make reasonable effort to cause) all its properties used or
useful in the conduct of its business to be maintained and kept in good
condition, repair and working order and shall cause (or, with respect to
property owned in common with others, make reasonable effort to cause) to be
made all necessary repairs, renewals, replacements, betterments and improvements
thereof, all as, in the judgment of the Company, may be necessary so that the
business carried on in connection therewith may be properly conducted; provided,
however, that nothing in this Section

                                      -31-
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shall prevent the Company from discontinuing, or causing the discontinuance of,
the operation and maintenance of any of its properties if such discontinuance
is, in the judgment of the Company, desirable in the conduct of its business.

SECTION 606. ANNUAL OFFICER'S CERTIFICATE AS TO COMPLIANCE.

                  Not later than June 1 in each year, commencing June 1, 2002,
the Company shall deliver to the Trustee an Officer's Certificate which need not
comply with Section 102, executed by the principal executive officer, the
principal financial officer or the principal accounting officer of the Company,
as to such officer's knowledge of the Company's compliance with all conditions
and covenants under this Indenture, such compliance to be determined without
regard to any period of grace or requirement of notice under this Indenture, and
making any other statements as may be required by the provisions of Section
314(a)(4) of the Trust Indenture Act.

SECTION 607. WAIVER OF CERTAIN COVENANTS.

                  The Company may omit in any particular instance to comply with
any term, provision or condition set forth in (a) Section 602 or any additional
covenant or restriction specified with respect to the Securities of any series,
or any Tranche thereof, as contemplated by Section 301, if before the time for
such compliance the Holders of a majority in aggregate principal amount of the
Outstanding Securities of all series and Tranches with respect to which
compliance with Section 602 or such additional covenant or restriction is to be
omitted, considered as one class, shall, by Act of such Holders, either waive
such compliance in such instance or generally waive compliance with such term,
provision or condition and (b) Section 604, 605 or Article Eleven if before the
time for such compliance the Holders of a majority in principal amount of
Securities Outstanding under this Indenture shall, by Act of such Holders,
either waive such compliance in such instance or generally waive compliance with
such term, provision or condition; but, in the case of (a) or (b), no such
waiver shall extend to or affect such term, provision or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such
term, provision or condition shall remain in full force and effect.

SECTION 608. LIMITATION ON LIENS.

            (a) Except as otherwise specified as contemplated by Section 301 for
      Securities of any series, so long as any Securities of any series are
      Outstanding, the Company will not pledge, mortgage, hypothecate or grant a
      security interest in, or permit any mortgage, pledge, security interest or
      other lien upon, any capital stock of any Subsidiary now or hereafter
      owned by the Company, to secure any Indebtedness (hereinafter defined)
      without concurrently making effective provision whereby the Outstanding
      Securities shall (so long as such other Indebtedness shall be so secured)
      be equally and ratably secured with any and all such other Indebtedness
      and any other indebtedness similarly entitled to be equally and ratably
      secured; provided, however, that this restriction shall not apply to nor
      prevent the creation or existence of:

                  (1) any mortgage, pledge, security interest, lien or
            encumbrance upon any such capital stock created at the time of the
            acquisition of such capital stock by

                                      -32-
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            the Company or within 270 days after such time to secure all or a
            portion of the purchase price for such capital stock;

                  (2) any mortgage, pledge, security interest, lien or
            encumbrance upon any such capital stock existing thereon at the time
            of the acquisition thereof by the Company (whether or not the
            obligations secured thereby are assumed by the Company);

                  (3) any extension, renewal or refunding of any mortgage,
            pledge, security interest, lien or encumbrance permitted by
            Subsection (1) or (2) above on capital stock of any Subsidiary
            theretofore subject thereto (or substantially the same capital
            stock) or any portion thereof; or

                  (4) any judgment, levy, execution, attachment or other similar
            lien arising in connection with court proceedings, provided that
            either

                  (ii)  the execution or enforcement of each such lien is
                        effectively stayed within 30 days after entry of the
                        corresponding judgment (or the corresponding judgment
                        has been discharged within such 30 day period) and the
                        claims secured thereby are being contested in good faith
                        by appropriate proceedings timely commenced and
                        diligently prosecuted;

                  (iii) the payment of each such lien is covered in full by
                        insurance and the insurance company has not denied or
                        contested coverage thereof; or

                  (iv)  so long as each such lien is adequately bonded, any
                        appropriate legal proceedings that may have been duly
                        initiated for the review of the corresponding judgment,
                        decree or order shall not have been fully terminated or
                        the period within which such proceedings may be
                        initiated shall not have expired.

                  For purposes of this Section 608, "Indebtedness" means all
indebtedness, whether or not represented by bonds, debentures, notes or other
securities, created or assumed by the Company for the repayment of money
borrowed. All indebtedness for money borrowed secured by a lien upon property
owned by the Company and upon which indebtedness for money borrowed the Company
customarily pays interest, although the Company has not assumed or become liable
for the payment of such indebtedness for money borrowed, shall for purposes of
this Section 608 be deemed to be Indebtedness of the Company. All indebtedness
of others for money borrowed which is guaranteed as to payment of principal by
the Company or in effect guaranteed by the Company through a contingent
agreement to purchase such indebtedness for money borrowed shall for purposes of
this Section 608 be deemed to be Indebtedness of the Company, but no other
contingent obligation of the Company in respect of indebtedness for money
borrowed or other obligations incurred by others shall for purposes of this
Section 608 be deemed to be Indebtedness of the Company.

                                      -33-
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               In case the Company shall propose to pledge, mortgage,
hypothecate or grant a security interest in any capital stock of any Subsidiary
owned by the Company to secure any Indebtedness, other than as permitted by
Subsections (a)(1) to (a)(3), inclusive, of this Section, the Company will prior
thereto give written notice thereof to the Trustee, and the Company will prior
to or simultaneously with such pledge, mortgage, hypothecation or grant of
security interest, by supplemental indenture executed to the Trustee (or to the
extent legally necessary to another trustee or an additional or separate
trustee), in form satisfactory to the Trustee, effectively secure (for so long
as such other Indebtedness shall be so secured) all the Securities equally and
ratably with such Indebtedness and with any other indebtedness for money
borrowed similarly entitled to be equally and ratably secured.

            (b) Except as otherwise specified as contemplated by Section 301 for
      Securities of any series, the provisions of Subsection (a) of this Section
      608 shall not apply in the event that the Company shall pledge, mortgage,
      hypothecate or grant a security interest in or other lien upon any capital
      stock of any Subsidiary now or hereafter owned by the Company to secure
      any Indebtedness which would otherwise be subject to the foregoing
      restriction up to an aggregate amount which, together with all other
      Indebtedness (other than mortgages, pledges, security interests, liens or
      encumbrances permitted by Subsection (a) of this Section 608) which would
      otherwise be subject to the foregoing restriction, does not at the time
      exceed 5% of Consolidated Capitalization.

            For purposes of this Section 608:

                  (1) The term "Consolidated Capitalization" means the sum
            obtained by adding (i) Consolidated Shareholders' Equity, (ii)
            Consolidated Indebtedness for money borrowed (exclusive of any
            thereof which is due and payable within one year of the date such
            sum is determined) and, without duplication, (iii) any preference or
            preferred stock of the Company or any Consolidated Subsidiary which
            is subject to mandatory redemption or sinking fund provisions.

                  (2) The term "Consolidated Shareholders' Equity" means the
            total Assets of the Company and its Consolidated Subsidiaries less
            all liabilities of the Company and its Consolidated Subsidiaries. As
            used in this definition, "liabilities" means all obligations which
            would, in accordance with generally accepted accounting principles,
            be classified on a balance sheet as liabilities, including without
            limitation, (i) indebtedness secured by property of the Company or
            any of its Consolidated Subsidiaries whether or not the Company or
            such Consolidated Subsidiary is liable for the payment thereof
            unless, in the case that the Company or such Consolidated Subsidiary
            is not so liable, such property has not been included among the
            Assets of the Company or such Consolidated Subsidiary on such
            balance sheet, (ii) deferred liabilities, (iii) indebtedness of the
            Company or any of its Consolidated Subsidiaries that is expressly
            subordinated in right and priority of payment to other liabilities
            of the Company or such Consolidated Subsidiary. As used in this
            definition, "liabilities" includes preference or preferred stock of
            the Company or any Consolidated Subsidiary only to the extent of any
            such preference or preferred stock that is subject to mandatory
            redemption or sinking fund provisions.

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                  (3) The term "Consolidated Subsidiary" means at any date any
            Subsidiary the financial statements of which under generally
            accepted accounting principles would be consolidated with those of
            the Company in its consolidated financial statements as of such
            date.

                  (4) The "Assets" of any Person means the whole or any part of
            its business, property, assets, cash and receivables.

                  (5) The term "Consolidated Indebtedness" means total
            indebtedness as shown on the consolidated balance sheet of the
            Company and its Consolidated Subsidiaries.

                                 ARTICLE SEVEN

                           SATISFACTION AND DISCHARGE

SECTION 701. SATISFACTION AND DISCHARGE OF SECURITIES.

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

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

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

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

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

                  (x) if such deposit shall have been made prior to the Maturity
            of such Securities, a Company Order stating that the money and
            Eligible Obligations deposited in accordance with this Section shall
            be held in trust, as provided in Section 703; and

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

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

                  Upon the deposit of money or Eligible Obligations, or both, in
accordance with this Section, together with the documents required by clauses
(x), (y) and (z) above, the Trustee shall, upon receipt of a Company Request,
acknowledge in writing that the Security or Securities or portions thereof with
respect to which such deposit was made are deemed to have been paid for all
purposes of this Indenture and that the entire indebtedness of the Company in
respect thereof has been satisfied and discharged as contemplated in this
Section. In the event that all of the conditions set forth in the preceding
paragraph shall have been satisfied in respect of any Securities or portions
thereof except that, for any reason, the Officer's Certificate specified in
clause (z) shall not have been delivered, such Securities or portions thereof
shall nevertheless be deemed to have been paid for all purposes of this
Indenture, and the Holders of such Securities or portions thereof shall
nevertheless be no longer entitled to the benefits of this Indenture or of any
of the covenants of the Company under Article Six (except the covenants
contained in Sections 602 and 603) or any other covenants made in respect of
such Securities or portions thereof as contemplated by Section 301, but the
indebtedness of the Company in respect of such Securities or portions thereof
shall not be deemed to have been satisfied and discharged prior to Maturity for
any other purpose, and the Holders of such Securities or portions thereof shall
continue to be entitled to look to the Company for payment of the indebtedness
represented thereby; and, upon Company Request, the Trustee shall acknowledge in
writing that such Securities or portions thereof are deemed to have been paid
for all purposes of this Indenture.

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

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

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                  Notwithstanding that any Securities shall be deemed to have
been paid for purposes of this Indenture, as aforesaid, the obligations of the
Company and the Trustee in respect of such Securities under Sections 304, 305,
306, 404, 503 (as to notice of redemption), 602, 603, 907 and 915 and this
Article Seven shall survive.

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

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

SECTION 702. SATISFACTION AND DISCHARGE OF INDENTURE.

                  This Indenture shall upon Company Request cease to be of
further effect (except as hereinafter expressly provided), and the Trustee, at
the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

            (a) no Securities remain Outstanding hereunder; and

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

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

                  Notwithstanding the satisfaction and discharge of this
Indenture as aforesaid, the obligations of the Company and the Trustee under
Sections 304, 305, 306, 404, 503 (as to notice of redemption), 602, 603, 907 and
915 and this Article Seven shall survive.

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                  Upon satisfaction and discharge of this Indenture as provided
in this Section, the Trustee shall assign, transfer and turn over to the
Company, subject to the lien provided by Section 907, any and all money,
securities and other property then held by the Trustee for the benefit of the
Holders of the Securities other than money and Eligible Obligations held by the
Trustee pursuant to Section 703.

SECTION 703. APPLICATION OF TRUST MONEY.

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

                                 ARTICLE EIGHT

                           EVENTS OF DEFAULT; REMEDIES

SECTION 801. EVENTS OF DEFAULT.

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

            (a) failure to pay interest, if any, on any Security of such series
      within 30 days after the same becomes due and payable; provided, however,
      that a valid extension of the interest payment period by the Company as
      contemplated in Section 312 of this Indenture shall not constitute a
      failure to pay interest for this purpose; or

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            (b) failure to pay the principal of or premium, if any, on any
      Security of such series at its Maturity; or

            (c) failure to perform or breach of any covenant or warranty of the
      Company in this Indenture (other than a covenant or warranty a default in
      the performance of which or breach of which is elsewhere in this Section
      specifically dealt with or which has expressly been included in this
      Indenture solely for the benefit of one or more series of Securities other
      than such series) for a period of 90 days after there has been given, by
      registered or certified mail, to the Company by the Trustee, or to the
      Company and the Trustee by the Holders of at least 33% in principal amount
      of the Outstanding Securities of such series, a written notice specifying
      such default or breach and requiring it to be remedied and stating that
      such notice is a "Notice of Default" hereunder, unless the Trustee, or the
      Trustee and the Holders of a principal amount of Securities of such series
      not less than the principal amount of Securities the Holders of which gave
      such notice, as the case may be, shall agree in writing to an extension of
      such period prior to its expiration; provided, however, that the Trustee,
      or the Trustee and the Holders of such principal amount of Securities of
      such series, as the case may be, shall be deemed to have agreed to an
      extension of such period if corrective action is initiated by the Company
      within such period and is being diligently pursued; or

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

            (e) the commencement by the Company of a voluntary case or
      proceeding under any applicable Federal or State bankruptcy, insolvency,
      reorganization or other similar law or of any other case or proceeding to
      be adjudicated a bankrupt or insolvent, or the consent by it to the entry
      of a decree or order for relief in respect of the Company in a case or
      proceeding under any applicable Federal or State bankruptcy, insolvency,
      reorganization or other similar law or to the commencement of any
      bankruptcy or insolvency case or proceeding against it, or the filing by
      it of a petition or answer or consent seeking reorganization or 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
      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 authorization of such action by
      the Board of Directors; or

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

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SECTION 802. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.

                  If an Event of Default due to the default in payment of
principal of, or interest on, any series of Securities or due to the default in
the performance or breach of any other covenant or warranty of the Company
applicable to the Securities of such series but not applicable to all
Outstanding Securities shall have occurred and be continuing, either the Trustee
or the Holders of not less than 33% in principal amount of the Securities of
such series may then declare the principal amount (or, if any of the Securities
of such series are Discount Securities, such portion of the principal amount as
may be specified in the terms thereof as contemplated by Section 301) of all
Securities of such series and interest accrued thereon to be due and payable
immediately. If an Event of Default due to default in the performance of any
other of the covenants or agreements herein applicable to all Outstanding
Securities or an Event of Default specified in Section 801(d) or (e) shall have
occurred and be continuing, either the Trustee or the Holders of not less than
33% in principal amount of all Securities then Outstanding (considered as one
class), and not the Holders of the Securities of any one of such series, may
declare the principal of all Securities and interest accrued thereon to be due
and payable immediately. As a consequence of each such declaration (herein
referred to as a declaration of acceleration) with respect to Securities of any
series, the principal amount (or portion thereof in the case of Discount
Securities) of such Securities and interest accrued thereon shall become due and
payable immediately.

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

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

                  (1) all overdue interest on all Securities of such series;

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

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

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

and

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

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

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

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

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

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

SECTION 804. TRUSTEE MAY FILE PROOFS OF CLAIM.

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

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

                                      -41-
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            (b) to collect and receive any moneys or other property payable or
      deliverable on any such claims and to distribute the same;

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

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

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

                  All rights of action and claims under this Indenture 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 an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders in respect of which such judgment has been
recovered.

SECTION 806. APPLICATION OF MONEY COLLECTED.

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

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

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

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

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SECTION 807. LIMITATION ON SUITS.

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

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

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

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

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

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

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

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

                  Notwithstanding any other provision in this Indenture, the
Holder of any Security shall have the right, which is absolute and
unconditional, to receive payment of the principal of and premium, if any, and
(subject to Sections 307 and 312) interest, if any, on such Security on the
Stated Maturity or Maturities expressed in such Security (or, in the case of
redemption, on the Redemption Date) and to institute suit for the enforcement of
any such payment, and such rights shall not be impaired without the consent of
such Holder.

SECTION 809. RESTORATION OF RIGHTS AND REMEDIES.

                  If the Trustee or any Holder has instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding shall have
been discontinued or abandoned for any reason, or shall have been determined
adversely to the Trustee or to such Holder, then and in every such case, subject
to any determination in such proceeding, the Company, and Trustee and

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such Holder shall be restored severally and respectively to their former
positions hereunder and thereafter all rights and remedies of the Trustee and
such Holder shall continue as though no such proceeding had been instituted.

SECTION 810. RIGHTS AND REMEDIES CUMULATIVE.

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

SECTION 811. DELAY OR OMISSION NOT WAIVER.

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

SECTION 812. CONTROL BY HOLDERS OF SECURITIES.

                  If an Event of Default shall have occurred and be continuing
in respect of a series of Securities, the Holders of a majority in principal
amount of the Outstanding Securities of such series shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred on the
Trustee, with respect to the Securities of such series; provided, however, that
if an Event of Default shall have occurred and be continuing with respect to
more than one series of Securities, the Holders of a majority in aggregate
principal amount of the Outstanding Securities of all such series, considered as
one class, shall have the right to make such direction, and not the Holders of
the Securities of any one of such series; and provided, further, that such
direction shall not be in conflict with any rule of law or with this Indenture.
The Trustee may take any other action, deemed proper by the Trustee, which is
not inconsistent with any such direction. Before proceeding to exercise any
right or power hereunder at the direction of such Holders, the Trustee shall be
entitled to receive from such Holders reasonable security or indemnity against
the costs, expenses and liabilities which might be incurred by it in compliance
with any such direction.

SECTION 813. WAIVER OF PAST DEFAULTS.

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

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

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

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

SECTION 814. UNDERTAKING FOR COSTS.

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

SECTION 815. WAIVER OF STAY OR EXTENSION LAWS.

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

                                  ARTICLE NINE

                                   THE TRUSTEE

SECTION 901. CERTAIN DUTIES AND RESPONSIBILITIES.

            (a) The Trustee shall have and be subject to all the duties and
      responsibilities specified with respect to an indenture trustee in the
      Trust Indenture Act and no implied covenants or obligations shall be read
      into this Indenture against the Trustee. For purposes

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      of Sections 315(a) and 315(c) of the Trust Indenture Act, the term
      "default" is hereby defined as an Event of Default which has occurred and
      is continuing.

            (b) 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.

            (c) Notwithstanding anything contained in this Indenture to the
      contrary, the duties and responsibilities of the Trustee under this
      Indenture shall be subject to the protections, exculpations and
      limitations on liability afforded to an indenture trustee under the
      provisions of the Trust Indenture Act. For the purposes of Sections
      315(b)(2) and 315(d)(2) of the Trust Indenture Act, the term "responsible
      officer" is hereby defined as a Responsible Officer and the chairman or
      vice chairman of the board of directors, the chairman or vice chairman of
      the executive committee of the board of directors, the president, any vice
      president, the secretary, any assistant secretary, the treasurer any
      assistant treasurer, the cashier, any assistant cashier, any trust officer
      or assistant trust officer, the controller and any assistant controller of
      the Trustee, or any other officer of the Trustee customarily performing
      functions similar to those performed by a Responsible Officer or 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 or her knowledge of and familiarity with the particular
      subject.

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

SECTION 902. NOTICE OF DEFAULTS.

                  The Trustee shall give notice of any default hereunder known
to the Trustee with respect to the Securities of any series to the Holders of
Securities of such series in the manner and to the extent required to do so by
the Trust Indenture Act, unless such default shall have been cured or waived;
provided, however, that in the case of any default of the character specified in
Section 801(c), no such notice to Holders shall be given until at least 45 days
after the occurrence thereof. For the purpose of this Section and clause (h) of
Section 903, the term "default" means any event which is, or after notice or
lapse of time, or both, would become, an Event of Default.

SECTION 903. CERTAIN RIGHTS OF TRUSTEE.

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

            (a) the Trustee may rely and shall be protected in acting or
      refraining from acting in good faith upon any resolution, certificate,
      statement, instrument, opinion, report, notice, request, direction,
      consent, order, bond, debenture, note, other evidence of indebtedness or

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      other paper or document reasonably believed by it to be genuine and to
      have been signed or presented by the proper party or parties;

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

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

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

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

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

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

            (h) the rights, privileges, protections, immunities and benefits
      given to the Trustee, including, without limitation, its right to be
      indemnified, are extended to, and shall be enforceable by, the Trustee in
      each of its capacities hereunder; and

            (i) the Trustee shall not be charged with knowledge of any default
      or Event of Default, as the case may be, with respect to the Securities of
      any series for which it is acting as Trustee unless either (1) a
      Responsible Officer of the Trustee shall have actual knowledge that such
      default or Event of Default, as the case may be, exists and constitutes a
      default or Event of Default under this Indenture or (2) written notice of
      such default or Event of Default, as the case may be, shall have been
      given in the manner provided in

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      Section 105 hereof to the Trustee by the Company, any other obligor on
      such Securities or by any Holder of such Securities.

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

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

SECTION 905. MAY HOLD SECURITIES.

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

SECTION 906. MONEY HELD IN TRUST.

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

SECTION 907. COMPENSATION AND REIMBURSEMENT.

                  The Company shall

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

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

            (c) indemnify the Trustee for, and hold it harmless from and
      against, any loss, liability or expense reasonably incurred by it arising
      out of or in connection with the acceptance or administration of the trust
      or trusts hereunder or the performance of its duties hereunder, including
      the reasonable costs and expenses of defending itself against any claim or
      liability in connection with the exercise or performance of any of its
      powers or

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      duties hereunder, except to the extent any such loss, liability or expense
      may be attributable to its negligence, willful misconduct or bad faith.

                  As security for the performance of the obligations of the
Company under this Section, the Trustee shall have a lien prior to the
Securities upon all property and funds held or collected by the Trustee as such
other than property and funds held in trust under Section 703 (except as
otherwise provided in Section 703). "Trustee" for purposes of this Section shall
include any predecessor Trustee; provided, however, that the negligence, willful
misconduct or bad faith of any Trustee hereunder shall not affect the rights of
any other Trustee hereunder.

                  When the Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 801(d) or Section
801(e), the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for the services are intended to constitute
expenses of administration under any applicable Federal or State bankruptcy,
insolvency or other similar law.

                  The provisions of this Section 907 shall survive the
termination of this Indenture.

SECTION 908. DISQUALIFICATION; CONFLICTING INTERESTS.

                  If the Trustee shall have or acquire any conflicting interest
within the meaning of the Trust Indenture Act, it shall either eliminate such
conflicting interest or resign to the extent, in the manner and with the effect,
and subject to the conditions, provided in the Trust Indenture Act and this
Indenture. For purposes of Section 310(b)(1) of the Trust Indenture Act and to
the extent permitted thereby, the Trustee, in its capacity as trustee in respect
of the Securities of any series, shall not be deemed to have a conflicting
interest arising from its capacity as trustee in respect of the Securities of
any other series or any securities of any series issued under the Indenture (For
Unsecured Debt Securities Series A), dated as of October 1, 1997, of the Company
to The Bank of New York, as trustee, the Indenture (For Unsecured Debt
Securities Series B), dated as of October 1, 1997, of the Company to The Bank of
New York, as trustee, the Indenture (For Unsecured Debt Securities Series C),
dated as of January 1, 1998, of the Company to The Bank of New York, as trustee,
the Purchase Contract Agreement dated as of July 1, 1998 of the Company to The
Bank of New York, as agent, attorney-in-fact and trustee, the Indenture (For
Unsecured Debt Securities Series D and Series E), dated as of July 1, 1998, of
the Company to The Bank of New York, as trustee, the Indenture (For Unsecured
Debt Securities Series F), dated as of October 1, 1998 of the Company to The
Bank of New York, as trustee, the Indenture (For Unsecured Debt Securities
Series G), dated as of October 1, 1998, of the Company to The Bank of New York,
as trustee, the Indenture (For Unsecured Debt Securities Series H), dated as of
June 1, 1999, of the Company to The Bank of New York, as trustee, or the
Indenture (For Unsecured Debt Securities Series I), dated as of September 1,
1999, of the Company to The Bank of New York, as trustee.

SECTION 909. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.

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

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

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

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

SECTION 910. RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

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

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

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

            (d) If at any time:

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

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

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

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

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

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

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            (g) The Company (or, should the Company fail so to act promptly, the
      successor trustee at the expense of the Company) shall give notice of each
      resignation and each removal of the Trustee with respect to the Securities
      of any series and each appointment of a successor Trustee with respect to
      the Securities of any series by mailing written notice of such event by
      first-class mail, postage prepaid, to all Holders of Securities of such
      series as their names and addresses appear in the Security Register. Each
      notice shall include the name of the successor Trustee with respect to the
      Securities of such series and the address of its corporate trust office.

SECTION 911. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

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

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

                                      -52-
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      assign, transfer and deliver to such successor Trustee all property and
      money held by such retiring Trustee hereunder with respect to the
      Securities of that or those series to which the appointment of such
      successor Trustee relates.

            (c) Upon request of any such successor Trustee, the Company shall
      execute any instruments which fully vest in and confirm to such successor
      Trustee all such rights, powers and trusts referred to in Subsection (a)
      or (b) of this Section, as the case may be.

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

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

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

SECTION 913. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

                  If the Trustee shall be or become a creditor of the Company or
any other obligor upon the Securities (other than by reason of a relationship
described in Section 311(b) of the Trust Indenture Act), the Trustee shall be
subject to any and all applicable provisions of the Trust Indenture Act
regarding the collection of claims against the Company or such other obligor.
For purposes of Section 311(b) of the Trust Indenture Act:

            (a) the term "cash transaction" means 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;

            (b) the term "self-liquidating paper" means 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, manufacturing, 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.

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SECTION 914. CO-TRUSTEES AND SEPARATE TRUSTEES.

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

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

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

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

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

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

                                      -54-
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            (d) no co-trustee or separate trustee hereunder shall be personally
      liable by reason of any act or omission of the Trustee, or any other such
      trustee hereunder; and

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

SECTION 915. APPOINTMENT OF AUTHENTICATING AGENT.

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

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

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

                                      -55-
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successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

                  The Trustee agrees to pay to each Authenticating Agent from
time to time reasonable compensation for its services under this Section, and
the Trustee shall be entitled to be reimbursed for such payments, in accordance
with, and subject to the provisions of, Section 907.

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

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

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

Dated:                                             _____________________________
                                                     As Trustee

                                                   By___________________________
                                                     As Authenticating Agent

                                                   By___________________________
                                                     Authorized Signatory

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

                                  ARTICLE TEN

                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 1001. LISTS OF HOLDERS.

                  Semiannually, not later than June 1 and December 1 in each
year, commencing December 1, 2001, and at such other times as the Trustee may
request in writing, the Company shall furnish or cause to be furnished to the
Trustee information as to the names and addresses of

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the Holders, and the Trustee shall preserve such information and similar
information received by it in any other capacity and afford to the Holders
access to information so preserved by it, all to such extent, if any, and in
such manner as shall be required by the Trust Indenture Act; provided, however,
that no such list need be furnished so long as the Trustee shall be the Security
Registrar.

SECTION 1002. REPORTS BY TRUSTEE AND COMPANY.

                  Not later than November 1 in each year, commencing with the
year 2001, the Trustee shall transmit to the Holders, the Commission and each
securities exchange upon which any Securities are listed, a report, dated as of
the next preceding September 15 (October 1, in the case of the year 2001), with
respect to any events and other matters described in Section 313(a) of the Trust
Indenture Act, in such manner and to the extent required by the Trust Indenture
Act. The Trustee shall transmit to the Holders, the Commission and each
securities exchange upon which any Securities are listed, and the Company shall
file with the Trustee (within 30 days after filing with the Commission in the
case of reports which pursuant to the Trust Indenture Act must be filed with the
Commission and furnished to the Trustee) and transmit to the Holders, such other
information, reports and other documents, if any, at such times and in such
manner, as shall be required by the Trust Indenture Act. The Company shall
notify the Trustee of the listing of any Securities on any securities exchange.

                                 ARTICLE ELEVEN

               CONSOLIDATION, MERGER, CONVEYANCE OR OTHER TRANSFER

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

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

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

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

            (c) the Company shall have delivered to the Trustee an Officer's
      Certificate and an Opinion of Counsel, each stating that such
      consolidation, merger, conveyance, or other

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      transfer or lease and such supplemental indenture comply with this Article
      and that all conditions precedent herein provided for relating to such
      transactions have been complied with.

SECTION 1102. SUCCESSOR CORPORATION SUBSTITUTED.

                  Upon any consolidation by the Company with or merger by the
Company into any other corporation or any conveyance, or other transfer or lease
of the properties and assets of the Company substantially as an entirety in
accordance with Section 1101, the successor corporation formed by such
consolidation or into which the Company is merged or the Person 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 Outstanding hereunder.

                                 ARTICLE TWELVE

                             SUPPLEMENTAL INDENTURES

SECTION 1201. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS.

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

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

            (b) to add one or more covenants of the Company or other provisions
      for the benefit of all Holders or for the benefit of the Holders of, or to
      remain in effect only so long as there shall be Outstanding, Securities of
      one or more specified series, or one or more specified Tranches thereof,
      or to surrender any right or power herein conferred upon the Company; or

            (c) to add any additional Events of Default with respect to all or
      any series of Securities Outstanding hereunder; or

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

            (e) to provide collateral security for all but not part of the
      Securities; or

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

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

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

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

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

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

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

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

                                      -59-
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                        (y) if any such amendment shall permit one or more
                  changes to, or the elimination of, any provisions hereof
                  which, at the date of the execution and delivery hereof or at
                  any time thereafter, are required by the Trust Indenture Act
                  to be contained herein, this Indenture shall be deemed to have
                  been amended to effect such changes or elimination, and the
                  Company and the Trustee may, without the consent of any
                  Holders, enter into an indenture supplemental hereto to
                  evidence such amendment hereof.

SECTION 1202. SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS.

                  With the consent of the Holders of a majority in aggregate
principal amount of the Securities of all series then Outstanding under this
Indenture, considered as one class, by Act of said Holders delivered to the
Company and the Trustee, the Company, 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 modifying in any manner
the rights of the Holders of Securities of such series under the Indenture;
provided, however, that if there shall be Securities of more than one series
Outstanding hereunder and if a proposed supplemental indenture shall directly
affect the rights of the Holders of Securities of one or more, but less than
all, of such series, then the consent only of the Holders of a majority in
aggregate principal amount of the Outstanding Securities of all series so
directly affected, considered as one class, shall be required; and provided,
further, that if the Securities of any series shall have been issued in more
than one Tranche and if the proposed supplemental indenture shall directly
affect the rights of the Holders of Securities of one or more, but less than
all, of such Tranches, then the consent only of the Holders of a majority in
aggregate principal amount of the Outstanding Securities of all Tranches so
directly affected, considered as one class, shall be required; and provided,
further, that no such supplemental indenture shall:

            (a) change the Stated Maturity of the principal of, or any
      installment of principal of or interest on, any Security, or reduce the
      principal amount thereof or the rate of interest thereon (or the amount of
      any installment of interest thereon) or change the method of calculating
      such rate or reduce any premium payable upon the redemption thereof, or
      reduce the amount of the principal of a Discount Security that would be
      due and payable upon a declaration of acceleration of the Maturity thereof
      pursuant to Section 802, or change the coin or currency (or other
      property), in which any Security or any premium or the interest thereon is
      payable, or impair the right to institute suit for the enforcement of any
      such payment on or after the Stated Maturity of any Security (or, in the
      case of redemption, on or after the Redemption Date), without, in any such
      case, the consent of the Holder of such Security, or

            (b) reduce the percentage in principal amount of the Outstanding
      Securities of any series, or any Tranche thereof, the consent of the
      Holders of which is required for any such supplemental indenture, or the
      consent of the Holders of which is required for any waiver of compliance
      with any provision of this Indenture or of any default hereunder and its
      consequences, or reduce the requirements of Section 1304 for quorum or
      voting, without, in any such case, the consent of the Holders of each
      Outstanding Security of such series or Tranche, or

                                      -60-
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            (c) modify any of the provisions of this Section, Section 607 or
      Section 813 with respect to the Securities of any series, or any Tranche
      thereof, except to increase the percentages in principal amount referred
      to in this Section or such other Sections or to provide that other
      provisions of this Indenture cannot be modified or waived without the
      consent of the Holder of each Outstanding Security affected thereby;
      provided, however, that this clause shall not be deemed to require the
      consent of any Holder with respect to changes in the references to "the
      Trustee" and concomitant changes in this Section, or the deletion of this
      proviso, in accordance with the requirements of Sections 911(b), 914 and
      1201(h).

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

                  It shall not be necessary for any Act of Holders under this
Section to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such Act shall approve the substance thereof. A
waiver by a Holder of such Holder's right to consent under this Section shall be
deemed to be a consent of such Holder.

SECTION 1203. EXECUTION OF SUPPLEMENTAL INDENTURES.

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

SECTION 1204. EFFECT OF SUPPLEMENTAL INDENTURES.

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

SECTION 1205. CONFORMITY WITH TRUST INDENTURE ACT.

                  Unless otherwise provided as contemplated by Section 301 with
respect to any series of Securities, every supplemental indenture executed
pursuant to this Article shall conform to the requirements of the Trust
Indenture Act as then in effect.

                                      -61-
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SECTION 1206. REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES.

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

SECTION 1207. MODIFICATION WITHOUT SUPPLEMENTAL INDENTURE.

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

                                ARTICLE THIRTEEN

                   MEETINGS OF HOLDERS; ACTION WITHOUT MEETING

SECTION 1301. PURPOSES FOR WHICH MEETINGS MAY BE CALLED.

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

SECTION 1302. CALL, NOTICE AND PLACE OF MEETINGS.

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

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

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

SECTION 1303. PERSONS ENTITLED TO VOTE AT MEETINGS.

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

SECTION 1304. QUORUM; ACTION.

                  The Persons entitled to vote a majority in aggregate principal
amount of the Outstanding Securities of the series and Tranches with respect to
which a meeting shall have been called as hereinbefore provided, considered as
one class, shall constitute a quorum for a meeting of Holders of Securities of
such series and Tranches; provided, however, that if any action is to be taken
at such meeting which this Indenture expressly provides may be taken by the
Holders of a specified percentage, which is less than a majority, in principal
amount of the Outstanding Securities of such series and Tranches, considered as
one class, the Persons entitled to vote such specified percentage in principal
amount of the Outstanding Securities of such series and Tranches, considered as
one class, shall constitute a quorum. In the absence of a quorum within one hour
of the time appointed for any such meeting, the meeting shall, if convened at
the request of Holders of Securities of such series and Tranches, be dissolved.
In any other case the meeting may be adjourned for such period as may be
determined by the chairman of the meeting prior to the adjournment of such
meeting. In the absence of a quorum at any such adjourned

                                      -63-
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meeting, such adjourned meeting may be further adjourned for such period as may
be determined by the chairman of the meeting prior to the adjournment of such
adjourned meeting. Except as provided by Section 1305(e), notice of the
reconvening of any meeting adjourned for more than 30 days shall be given as
provided in Section 1302(a) not less than 10 days prior to the date on which the
meeting is scheduled to be reconvened. Notice of the reconvening of an adjourned
meeting shall state expressly the percentage, as provided above, of the
principal amount of the Outstanding Securities of such series and Tranches which
shall constitute a quorum.

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

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

SECTION 1305. ATTENDANCE AT MEETINGS; DETERMINATION OF VOTING RIGHTS;

CONDUCT AND ADJOURNMENT OF MEETINGS.

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

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

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

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

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

SECTION 1306. COUNTING VOTES AND RECORDING ACTION OF MEETINGS.

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

SECTION 1307. ACTION WITHOUT MEETING.

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

                                      -65-
<Page>

                                ARTICLE FOURTEEN

         IMMUNITY OF INCORPORATORS, SHAREHOLDERS, OFFICERS AND DIRECTORS

SECTION 1401. LIABILITY SOLELY CORPORATE.

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

                                ARTICLE FIFTEEN

                                 SERIES J NOTES

SECTION 1501. DESIGNATION OF SERIES J NOTES.

                  There is hereby created a series of Securities designated
"6.375% Series J Senior Notes due June 15, 2006" (herein sometimes referred to
as "Series J Notes"). The form and terms of the Series J Notes shall be
established in an Officer's Certificate pursuant to Sections 201 and 301.

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

                  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.

                                      -66-
<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.

                                       TXU CORP.

                                    By: /s/ Kirk R. Oliver
                                        ----------------------------------------
                                        Kirk R. Oliver
                                        Treasurer

                                    THE BANK OF NEW YORK, Trustee

                                    By: /s/ Remo J. Reale
                                        ----------------------------------------
                                        Remo J. Reale
                                        Vice President

                                      -67-

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