Document:

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                                                                  Exhibit 4.1

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                                TECO ENERGY, INC.

                                     Issuer

                                       To

                              THE BANK OF NEW YORK

                                     Trustee

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

                                    INDENTURE

                           Dated as of August 17, 1998

                                   ----------

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                                TECO ENERGY, INC.

         Reconciliation and tie between Trust Indenture Act of 1939 and
                     Indenture, dated as of August 17, 1998

<TABLE>
<CAPTION>
Trust Indenture
  Act Section                                                                   Indenture Section

  <S>                        <C>                                                        <C>
Sections 310(a)(1)           .......................................................... 609
            (a)(2)           .......................................................... 609
            (a)(3)           .......................................................... Not Applicable
            (a)(4)           .......................................................... Not Applicable
            (b)              .......................................................... 608, 610
Sections 311(a)              .......................................................... 613(a)
            (b)              .......................................................... 613(b)
            (b)(2)           .......................................................... 703(a)(2), 703(b)
Sections 312(a)              .......................................................... 701, 702(a)
            (b)              .......................................................... 702(b)
            (c)              .......................................................... 702(c)
Sections 313(a)              .......................................................... 703(a)
            (b)              .......................................................... 703(b)
            (c)              .......................................................... 703(a), 703(b)
            (d)              .......................................................... 703(c)
Sections 314(a)              .......................................................... 704
            (b)              .......................................................... Not Applicable
            (c)(1)           .......................................................... 102
            (c)(2)           .......................................................... 102
            (c)(3)           .......................................................... Not Applicable
            (d)              .......................................................... Not Applicable
            (e)              .......................................................... 102
Sections 315(a)              .......................................................... 601(a)
            (b)              .......................................................... 602, 703(a)(6)
            (c)              .......................................................... 601(b)
            (d)              .......................................................... 601(c)
            (d)(1)           .......................................................... 601(c)(1)
            (d)(2)           .......................................................... 601(c)(2)
            (d)(3)           .......................................................... 601(c)(3)
            (e)              .......................................................... 514
Sections 316(a)              .......................................................... 101
            (a)(1)(A)        .......................................................... 502, 512
            (a)(1)(B)        .......................................................... 513
            (a)(2)           .......................................................... Not Applicable
            (b)              .......................................................... 508
Sections 317(a)(1)           .......................................................... 503
            (a)(2)           .......................................................... 504
            (b)              .......................................................... 1003
Sections 318(a)              .......................................................... 107
</TABLE>

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               PAGE

<S>      <C>                        <C>                                                                         <C>
ARTICLE ONE                         DEFINITIONS AND OTHER PROVISIONS OF
                                    GENERAL APPLICATIONS.........................................................1

         Section 101.               Definitions..................................................................1

         Section 102.               Compliance Certificates and Opinions.........................................6

         Section 103.               Form of Documents Delivered to Trustee.......................................7

         Section 104.               Acts of Holders..............................................................7

         Section 105.               Notices, Etc., to Trustee or Company.........................................8

         Section 106.               Notice to Holders; Waiver....................................................8

         Section 107.               Conflict with Trust Indenture Act............................................9

         Section 108.               Effect of Headings and Table of Contents.....................................9

         Section 109.               Successors and Assigns.......................................................9

         Section 110.               Separability Clause..........................................................9

         Section 111.               Benefits of Indenture........................................................9

         Section 112.               Governing Law................................................................9

         Section 113.               Legal Holidays...............................................................9

ARTICLE TWO                         SECURITY FORMS..............................................................10

         Section 201.               Forms Generally.............................................................10

         Section 202.               Form of Face of Security....................................................10

         Section 203.               Form of Reverse of Security.................................................12

         Section 204.               Additional Provisions Required in Global Security...........................16

         Section 205.               Form of Trustee's Certificate of Authentication.............................16

ARTICLE THREE                       THE SECURITIES..............................................................16

         Section 301.               Amount Unlimited; Issuable in Series........................................16

         Section 302.               Denominations...............................................................18

         Section 303.               Execution, Authentication, Delivery and Dating..............................19

         Section 304.               Temporary Securities........................................................20

         Section 305.               Registration, Registration of Transfer and Exchange.........................21

         Section 306.               Mutilated, Destroyed, Lost and Stolen Securities............................22

         Section 308.               Persons Deemed Owners.......................................................24

         Section 309.               Cancellation................................................................24

         Section 310.               Computation of Interest.....................................................24

                                      -i-
<PAGE>

                                TABLE OF CONTENTS
                                   (CONTINUED)

                                                                                                               PAGE

ARTICLE FOUR                        SATISFACTION AND DISCHARGE..................................................24

         Section 401.               Satisfaction and Discharge of Indenture.....................................24

         Section 402.               Application of Trust Money..................................................25

ARTICLE FIVE                        REMEDIES....................................................................26

         Section 501.               Events of Default...........................................................26

         Section 502.               Acceleration of Maturity; Rescission and Annulment..........................27

         Section 503.               Collection of Indebtedness and Suits for Enforcement by Trustee.............29

         Section 504.               Trustee May File Proofs of Claim............................................29

         Section 505.               Trustee May Enforce Claims Without Possession of Securities.................30

         Section 506.               Application of Money Collected..............................................30

         Section 507.               Limitation on Suits.........................................................31

         Section 508.               Unconditional Right of Holders to Receive Principal, Premium and
                                    Interest....................................................................31

         Section 509.               Restoration of Rights and Remedies..........................................31

         Section 510.               Rights and Remedies Cumulative..............................................32

         Section 511.               Delay or Omission Not Waiver................................................32

         Section 512.               Control by Holders..........................................................32

         Section 513.               Waiver of Past Defaults.....................................................33

         Section 514.               Undertaking for Costs.......................................................33

         Section 515.               Waiver of Stay or Extension Laws............................................34

ARTICLE SIX                         THE TRUSTEE.................................................................34

         Section 601.               Certain Duties and Responsibilities.........................................34

         Section 602.               Notice of Defaults..........................................................35

         Section 603.               Certain Rights of Trustee...................................................35

         Section 604.               Not Responsible for Recitals or Issuance of Securities......................36

         Section 605.               May Hold Securities.........................................................36

         Section 606.               Money Held in Trust.........................................................37

         Section 607.               Compensation and Reimbursement..............................................37

         Section 608.               Disqualification; Conflicting Interests.....................................37

         Section 609.               Corporate Trustee Required; Eligibility.....................................38

                                      -ii-
<PAGE>

                                TABLE OF CONTENTS
                                   (CONTINUED)

                                                                                                               PAGE

         Section 610.               Resignation and Removal; Appointment of Successor...........................38

         Section 611.               Acceptance of Appointment by Successor......................................39

         Section 612.               Merger, Conversion, Consolidation or Succession to Business.................40

         Section 613.               Preferential Collection of Claims...........................................41

         Section 614.               Appointment of Authenticating Agent.........................................41

ARTICLE SEVEN                       HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY...........................42

         Section 701.               Company to Furnish Trustee Names and Addresses of Holders...................42

         Section 702.               Preservation of Information; Communications to Holders......................43

         Section 703.               Reports by Trustee..........................................................43

         Section 704.               Reports by Company..........................................................43

ARTICLE EIGHT                       CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER...............................44

         Section 801.               Company May Consolidate, Etc., Only on Certain Terms........................44

ARTICLE NINE                        SUPPLEMENTAL INDENTURES.....................................................45

         Section 901.               Supplemental Indentures Without Consent of Holders..........................45

         Section 902.               Supplemental Indentures with Consent of Holders.............................46

         Section 903.               Execution of Supplemental Indentures........................................47

         Section 904.               Effect of Supplemental Indentures...........................................47

         Section 905.               Conformity with Trust Indenture Act.........................................47

         Section 906.               Reference in Securities to Supplemental Indentures..........................47

ARTICLE TEN                         COVENANTS...................................................................48

         Section 1001.              Payment of Principal, Premium and Interest..................................48

         Section 1002.              Maintenance of Office or Agency.............................................48

         Section 1003.              Money for Securities Payments to Be Held in Trust...........................48

         Section 1004.              Statement by Officers as to Default.........................................50

ARTICLE ELEVEN                      REDEMPTION OF SECURITIES....................................................50

         Section 1101.              Applicability of Article....................................................50

         Section 1102.              Election to Redeem; Notice to Trustee.......................................50

         Section 1103.              Selection by Trustee of Securities to Be Redeemed...........................50

                                     -iii-
<PAGE>

                                TABLE OF CONTENTS
                                   (CONTINUED)

                                                                                                               PAGE

         Section 1104.              Notice of Redemption........................................................51

         Section 1105.              Deposit of Redemption Price.................................................51

         Section 1106.              Securities Payable on Redemption Date.......................................52

         Section 1107.              Securities Redeemed in Part.................................................52

ARTICLE TWELVE                      SINKING FUNDS...............................................................52

         Section 1201.              Applicability of Article....................................................52

         Section 1202.              Satisfaction of Sinking Fund Payments with Securities.......................53

         Section 1203.              Redemption of Securities for Sinking Fund...................................53

ARTICLE THIRTEEN                    DEFEASANCE..................................................................53

         Section 1301.              Applicability of Article; Company's Option to Effect Defeasance.............53

         Section 1302.              Defeasance and Discharge....................................................54

         Section 1303.              Conditions to Defeasance....................................................54

         Section 1304.              Deposited Money and U.S. Government Obligations to Be Held in Trust;
                                    Other Miscellaneous Provisions..............................................56

         Section 1305.              Reinstatement...............................................................56
</TABLE>

                                      -iv-

<PAGE>

         INDENTURE, dated as of August 17, 1998, between TECO ENERGY, INC., a
corporation duly organized and existing under the laws of the State of Florida
(herein called the "COMPANY"), having its principal executive offices at 702 N.
Franklin Street, Tampa, Florida 33602 and THE BANK OF NEW YORK, as Trustee
(herein called the "TRUSTEE"), having its principal corporate trust office at
101 Barclay Street, 21st Floor, New York, NY 10286

                             RECITALS OF THE COMPANY

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

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

         NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

                                  ARTICLE ONE
             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

         SECTION 101. DEFINITIONS.

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

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

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

         (3) all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with generally accepted accounting principles,
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 at the
date of such computation; and

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

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

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

         "AFFILIATE" of any specified Person means any other Person directly or
indirectly Controlling or Controlled by or under direct or indirect common
Control with such specified Person.

         "AUTHENTICATING AGENT" means any Person authorized by the Trustee to
act on behalf of the Trustee to authenticate Securities.

         "BOARD OF DIRECTORS," when used with reference to the Company, means
the board of directors, or any duly authorized committee of the board of
directors, of the Company.

         "BOARD RESOLUTION," when used with reference to the Company, 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" means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in the State in which
the principal place of business of the Company or the principal corporate trust
office of the Trustee or the office of the Trustee at which the Indenture is
administered are located are authorized or obligated by law or executive order
to close.

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

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

         "COMPANY REQUEST" or "COMPANY ORDER" means a written request or order
signed in the name of the Company by its President, its Treasurer or an
Assistant Treasurer and delivered to the Trustee.

         The term "CONTROL" means the power to direct the management and
policies of a 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" shall have meanings correlative to the
foregoing.

         "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, as at the date of this Indenture, is located at 101
Barclay Street, 21st Floor, New York, NY 10286; Attn: Corporate Trust; except
that notices to the Trustee under the Indenture shall be delivered to Towermarc,
2nd Floor, 10161 Centurion Parkway, Jacksonville, Florida 32256; Attn: Corporate
Trust.

                                       2
<PAGE>

         The term "COUNSEL" shall mean legal counsel who may be either an
employee or officer of or counsel to the Company.

         The term "CORPORATION" includes corporations, partnerships, joint
ventures, associations, companies, limited liability companies, joint-stock
companies and business trusts.

         The term "DEFEASANCE" has the meaning assigned to such term by Section
1302.

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

         "DEPOSITARY" means, with respect to the Securities of any series
issuable or issued in whole or in part in the form of one or more Global
Securities, the Person designated as Depositary by the Company pursuant to
Section 301.

         "EVENT OF DEFAULT" has the meaning specified in Section 501.

         "GLOBAL SECURITY" means a Security in the form prescribed in Section
204 evidencing all or part of a series of Securities, issued to the Depositary
or its nominee for such Series, and registered in the name of such Depositary or
nominee.

         "FISCAL YEAR" means with respect to the Company the fiscal year ending
December 31 of each year or such other date as the Company may hereafter elect,
and with respect to any other Person the calendar year or other annual
accounting period of the Person in question.

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

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

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

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

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

         "OFFICERS' CERTIFICATE" means a certificate of the Company signed by
the Chairman of the Board, the President or a Vice President, and by the
Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary, of
the Company and delivered to the Trustee.

                                       3
<PAGE>

         "OPINION OF COUNSEL" means a written opinion of Counsel, who may be
Counsel for the Company (including an employee or officer of the Company) and
who shall be acceptable to the Trustee.

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

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

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

                  (ii) Securities for whose payment or redemption money, U.S.
         Government Obligations or both in the necessary amount has been
         theretofore deposited with the Trustee or any Paying Agent (other than
         the Company) in trust or set aside and segregated in trust by the
         Company (if the Company shall act as its own Paying Agent) for the
         Holders of such Securities; PROVIDED that, if such Securities are to be
         redeemed, notice of such redemption has been duly given pursuant to
         this Indenture or provision therefor satisfactory to the Trustee has
         been made and PROVIDED FURTHER, in the case of payment by Defeasance
         under Section 1302, that all conditions precedent to the application of
         such Section shall have been satisfied; and

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

PROVIDED, HOWEVER, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, (i) the principal
amount of an Original Issue Discount Security that shall be deemed to be
Outstanding shall be the amount of the principal thereof that would be due and
payable as of the date of such determination upon acceleration of the Maturity
thereof pursuant to Section 502, (ii) the principal amount of a Security
denominated in a foreign currency or currencies shall be the U.S. dollar
equivalent, determined on the date of original issuance of such Security, of the
principal amount (or, in the case of an Original Issue Discount Security, the
U.S. dollar equivalent on the date of original issuance of such Security of the
amount determined as provided in (i) above) of such Security, and (iii)
Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor shall be disregarded and
deemed not to be Outstanding, except that, in determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which the Trustee knows to
be so owned shall be so disregarded. Securities so owned which have been pledged
in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee's independent right so to act with
respect to such Securities and that the pledgee is not the

                                       4
<PAGE>

Company or any other obligor upon the Securities or any Affiliate of the Company
or of such other obligor.

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

         "PERSON" means any individual, Corporation, trust, unincorporated
organization or government or any agency or political subdivision thereof.

         "PLACE OF PAYMENT," when used with respect to the Securities of any
series, means the place or places where the principal of (and premium, if any)
and interest on the Securities of that series are payable as specified as
contemplated by Section 301 or, if not so specified, the City of New York in the
State of New York.

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

         "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.

         "RESPONSIBLE OFFICER," when used with respect to the Trustee, means any
officer of the Trustee charged with responsibility for the administration of the
Indenture and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject.

         "SECURITY" and "SECURITIES" have the meaning stated in the first
recital of this Indenture and more particularly mean any Security or 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 means a
date fixed by the Trustee pursuant to Section 307.

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

                                       5
<PAGE>

         "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.

         "TRUST INDENTURE ACT" means the Trust Indenture Act of 1939 as in
effect from time to time.

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

         "U.S. GOVERNMENT OBLIGATION" has the meaning set forth in Section 1303.

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

         "VOTING STOCK" means stock which 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, but shall not
include securities convertible into such Voting Stock.

         The term "WHOLLY-OWNED SUBSIDIARY" shall mean at any given time any
Corporation all of the outstanding securities of which having ordinary voting
power (other than securities having such power only by reason of the happening
of a contingency), except for directors' qualifying shares, shall at such time
be owned by the Company or by one or more Wholly- Owned Subsidiaries or by the
Company and one or more Wholly-Owned Subsidiaries.

         SECTION 102. COMPLIANCE CERTIFICATES AND OPINIONS.

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

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

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

                                       6
<PAGE>

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

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

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

         SECTION 103. FORM OF DOCUMENTS DELIVERED TO TRUSTEE.

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

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

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

         SECTION 104. ACTS OF HOLDERS.

                  (a) Any request, demand, authorization, direction, notice,
         consent, waiver or other action provided by this Indenture to be 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; and, except as herein
         otherwise expressly provided, such action shall become effective when
         such instrument or instruments are delivered to the Trustee and, where
         it is hereby expressly required, to the Company. Such instrument or
         instruments (and the action embodied therein and evidenced thereby) are
         herein sometimes referred to as the "ACT" of the Holders signing such
         instrument or instruments. Proof of execution of any such instrument or
         of a writing appointing any such agent shall be sufficient for any
         purpose of this Indenture and (subject to Section 601) conclusive in
         favor of the Trustee and the Company, if made in the manner provided in
         this Section.

                                       7
<PAGE>

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

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

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

         SECTION 105. NOTICES, ETC., TO TRUSTEE OR COMPANY.

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

         (1) the Trustee by any Holder or the Company shall be sufficient for
every purpose hereunder if made, given, furnished or filed in writing to or with
the Trustee at Towermarc Plaza, 2nd Floor, 10161 Centurion Parkway,
Jacksonville, FL 32256, or at any other address that the Trustee previously
furnished in writing to the Person giving such notice, or

         (2) the Company by the Trustee or by any Holder shall be sufficient for
every purpose hereunder (unless otherwise herein expressly provided) if in
writing and mailed, first-class postage prepaid, to the Company addressed to it
at the address of its office specified in the first paragraph of this instrument
or at any other address previously furnished in writing to the Trustee by the
Company.

         SECTION 106. NOTICE TO HOLDERS; WAIVER.

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

                                       8
<PAGE>

such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

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

         SECTION 107. CONFLICT WITH TRUST INDENTURE ACT.

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

         SECTION 108. EFFECT OF HEADINGS AND TABLE OF CONTENTS.

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

         SECTION 109. SUCCESSORS AND ASSIGNS.

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

         SECTION 110. SEPARABILITY CLAUSE.

         In case any provision in this Indenture or in 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 in the Securities, express or implied,
shall give to any Person, other than the parties hereto and 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.

         SECTION 113. LEGAL HOLIDAYS.

         Except as otherwise provided for in the Securities of any Series, 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 payment
of interest or principal (and premium, if any) need not be made at such Place of
Payment on such date, but may be made on the next succeeding Business Day at
such Place of Payment with the same force and effect as if made on

                                       9
<PAGE>

the Interest Payment Date or Redemption Date, or at the Stated Maturity,
PROVIDED that no interest shall accrue for the period from and after such
Interest Payment Date, Redemption Date or Stated Maturity, as the case may be.

                                  ARTICLE TWO
                                 SECURITY FORMS

         SECTION 201. FORMS GENERALLY.

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

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

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

         SECTION 202. FORM OF FACE OF SECURITY.

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

                                                                    CUSIP Number

                                                   TECO ENERGY, INC.
                                                     %        Due

No. ....                                                            [$].........

          TECO ENERGY, INC., a corporation duly organized and existing under the
laws of The State of Florida (herein called the "COMPANY," which term includes
any successor Corporation under the Indenture hereinafter referred to), for
value received, hereby promises to pay to
 ..............................................., or registered assigns, the
principal sum of .................. ................... Dollars on
 ............................ ........................... [IF THE SECURITY IS TO
BEAR INTEREST PRIOR TO MATURITY, INSERT -- , and to pay interest thereon from
 ............. or from the most recent Interest Payment Date to which interest
has been paid or duly provided for, semi-annually on ............ and

                                       10
<PAGE>

 ............ in each year, commencing ........., at the rate of ....% per annum,
until the principal hereof is paid or made available for payment [IF APPLICABLE,
INSERT -- , and (to the extent that the payment of such interest shall be
legally enforceable) at the rate of ....% per annum on any overdue principal and
premium and on any overdue installment of interest] -- or if the Security is to
bear interest at a rate subject to adjustment from time to time pursuant to a
market index, insert any provisions relating to the index mechanism. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be
the ....... or ....... (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date. Any such interest not so punctually paid
or duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to Holders of Securities
of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series
may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in said Indenture].

         [IF THE SECURITY IS NOT TO BEAR INTEREST PRIOR TO MATURITY, INSERT --
The principal of this Security shall not bear interest except in the case of a
default in payment of principal upon acceleration, upon redemption or at Stated
Maturity and in such case the overdue principal of this Security shall bear
interest at the rate of ....% per annum (to the extent that the payment of such
interest shall be legally enforceable), which shall accrue from the date of such
default in payment to the date payment of such principal has been made or duly
provided for. Interest on any overdue principal shall be payable on demand. Any
such interest on any overdue principal that is not so paid on demand shall bear
interest at the rate of ......% per annum (to the extent that the payment of
such interest shall be legally enforceable), which shall accrue from the date of
such demand for payment to the date payment of such interest has been made or
duly provided for, and such interest shall also be payable on demand.]

          Payment of the principal of (and premium, if any) and [IF APPLICABLE,
INSERT -- any such] interest on this Security will be made at the office or
agency of the Company maintained for that purpose in ............, [IF
APPLICABLE, INSERT -- in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private
debts] [IF APPLICABLE, INSERT -- ; PROVIDED, HOWEVER, that at the option of the
Company payment of interest may be made by check mailed to the address of the
Person entitled thereto as such address shall appear in the Security Register
or, at the option of the Holder hereof, to such other place in the United States
of America as the Holder hereof shall designate to the Trustee in writing or, at
the option of the Holder hereof, by wire transfer in immediately available funds
if such Holder owns Securities of the same series as this Security issued
pursuant to the Indenture which pay interest on the same Interest Payment Date
and which are in an aggregate principal amount of $5,000,000 or more, PROVIDED
that the Holder shall bear any and all expenses of any such wire transfer] and
PROVIDED FURTHER that proper written wiring instructions shall have been
received by the Trustee on or prior to the Regular Record Date. [IF APPLICABLE,
INSERT ANY FOREIGN CURRENCY-RELATED PROVISIONS.]

                                       11
<PAGE>

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

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

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

Dated:

                                      TECO ENERGY, INC.

                                      By
                                         .....................................
                                         Title:

         SECTION 203. FORM OF REVERSE OF SECURITY.

         This Security is one of a duly authorized issue of securities of the
Company (herein called the "SECURITIES"), issued and to be issued in one or more
series under an Indenture, dated as of [..........], 1998 (herein called the
"INDENTURE"), among the Company and The Bank of New York, as Trustee (herein
called the "TRUSTEE," which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Trustee and the Holders of
the Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the securities of the
series designated on the face hereof [, limited in aggregate principal amount to
$...........].

          [IF APPLICABLE, INSERT -- The Securities of this series are subject to
redemption upon not less than 30 days' notice by mail, [IF APPLICABLE, INSERT --
(1) on ........... in any year commencing with the year ...... and ending with
the year ...... through operation of the sinking fund for this series at a
Redemption Price equal to 100% of the principal amount, and (2)] at any time [on
or after .........., 19..], as a whole or in part, at the election of the
Company, at the following Redemption Prices (expressed as percentages of the
principal amount): If redeemed [on or before ..............., __%, and if
redeemed] during the 12-month period beginning ............. of the years
indicated,

                                       12
<PAGE>

                          REDEMPTION                           REDEMPTION
       YEAR               PRICE            YEAR                PRICE

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

          [IF APPLICABLE, INSERT -- The Securities of this series are subject to
redemption upon not less than 30 days' nor more than 60 days' notice by mail,
(1) on ............ in any year commencing with the year .... and ending with
the year .... through operation of the sinking fund for this series at the
Redemption Prices for redemption through operation of the sinking fund
(expressed as percentages of the principal amount) set forth in the table below,
and (2) at any time [on or after ............], as a whole or in part, at the
election of the Company, at the Redemption Prices for redemption otherwise than
through operation of the sinking fund (expressed as percentages of the principal
amount) set forth in the table below: If redeemed during the 12-month period
beginning ............ of the years indicated,

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

</TABLE>

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

         [Notwithstanding the foregoing, the Company may not, prior to
 ............., redeem any Securities of this series as contemplated by [Clause
(2) of] the preceding paragraph as a part of,

                                       13
<PAGE>

or in anticipation of, any refunding operation by the application, directly or
indirectly, of moneys borrowed having an interest cost to the Company
(calculated in accordance with generally accepted financial practice) of less
than .....% per annum.]

          [The sinking fund for this series provides for the redemption on
 ............ in each year beginning with the year ....... and ending with the
year ...... of [not less than $.......... [("mandatory sinking fund") and not
more than $.........] aggregate principal amount of Securities of this series.
[The Company may, at its option, in each of the years commencing with the year
 ....... make an additional payment into the sinking fund not exceeding the
mandatory sinking fund payment, to be likewise applied to the redemption of
Securities at the principal amount without premium, with interest accrued
thereon to the date fixed for redemption.] [Securities of this series acquired
or redeemed by the Company otherwise than through [mandatory] sinking fund
payments may be credited against subsequent [mandatory] sinking fund payments
otherwise required to be made -- in the inverse order in which they become due.]

         In the event of redemption of this Security in part only, a new
Security or Securities of this series and of like tenor for the unredeemed
portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.

         [The Indenture contains provisions for Defeasance at any time of the
entire indebtedness on this Security upon compliance by the Company with certain
conditions set forth therein, which provisions apply to this Security.]

         [IF THE SECURITY IS NOT AN ORIGINAL ISSUE DISCOUNT SECURITY, -- If an
Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due
and payable in the manner and with the effect provided in the Indenture.]

         [IF THE SECURITY IS AN ORIGINAL ISSUE DISCOUNT SECURITY, -- If an Event
of Default with respect to Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture. Such amount shall be equal to -- INSERT FORMULA FOR DETERMINING THE
AMOUNT. Upon payment (i) of the amount of principal so declared due and payable
and (ii) of interest on any overdue principal and overdue interest (in each case
to the extent that the payment of such interest shall be legally enforceable),
all of the Company's obligations in respect of the payment of the principal of
and interest, if any, on the Securities of this series shall terminate.]

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of each series to be affected and of the Holders of 66 2/3%
in principal amount of the Securities at the time Outstanding of all series to
be affected. The Indenture also contains provisions permitting the Holders of
specified percentages in principal amount of the Securities of each series at
the time Outstanding, on behalf of the Holders of all Securities of such series,
to waive compliance by the Company with certain provisions of the

                                       14
<PAGE>

Indenture and certain past defaults under the Indenture and their consequences.
To the extent permitted by law, any such consent or waiver by the Holder of this
Security shall be conclusive and binding upon such Holder and upon all future
Holders of this Security and of any Security issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not notation
of such consent or waiver is made upon this Security.

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

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

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

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

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

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

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

                                       15
<PAGE>

         SECTION 204. ADDITIONAL PROVISIONS REQUIRED IN GLOBAL SECURITY.

         Any Global Security issued hereunder shall, in addition to the
provisions contained in Sections 202 and 203, bear a legend in substantially the
following form:

                   "This Security is a Global Security within the meaning of the
                  Indenture hereinafter referred to and is registered in the
                  name of a Depositary or a nominee of a Depositary. This
                  Security is exchangeable for Securities registered in the name
                  of a person other than the Depositary or its nominee only in
                  the limited circumstances described in the Indenture and may
                  not be transferred except as a whole by the Depositary to a
                  nominee of the Depositary or by a nominee of the Depositary to
                  the Depositary or another nominee of the Depositary."

          SECTION 205. FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION.

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

                  THE BANK OF NEW YORK,
                  AS TRUSTEE

                  By .................................  Date: ............
                           Authorized Signatory

                  or,

                  [NAME OF AUTHENTICATING AGENT],
                    AS AUTHENTICATING AGENT

                  By .................................  Date: ............
                           Authorized Signatory

                                 ARTICLE THREE
                                 THE SECURITIES

          SECTION 301. AMOUNT UNLIMITED; ISSUABLE IN SERIES.

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

         The Securities may be issued in one or more series. There shall be
established in or pursuant to a Board Resolution, and (subject to Section 303)
set forth or determined as provided in an Officers' Certificate, or established
in one or more indentures supplemental hereto, prior to the issuance of
Securities of any series,

                                       16
<PAGE>

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

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

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

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

         (5) the rate or rates (or method for establishing the rate or rates) at
which the Securities of the series shall bear interest, if any, 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 for the interest
payable on any Interest Payment Date (or method for establishing such date or
dates);

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

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

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

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

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

         (11) if other than such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public or
private debts, the currency or currencies (including composite currencies) in
which payment of the principal of (and premium, if any) and/or interest on the
Securities of such series shall be payable;

                                       17
<PAGE>

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

         (13) if the amounts of payments of principal of (and premium, if any)
and/or interest on the Securities of such series may be determined with
reference to an index, the manner in which such amounts shall be determined;

         (14) in the case of Securities of a series the terms of which are not
established pursuant to subsection (11), (12) or (13) above, the application, if
any, of Section 1302 to the Securities of such series; or, in the case of
Securities the terms of which are established pursuant to subsection (11), (12)
or (13) above, the adoption and applicability to such Securities of any terms
and conditions similar to those contained in Section 1302;

         (15) whether the Securities of the series shall be issued in the form
of a temporary global Security representing all of the Securities of such series
and the terms for exchange of such temporary global Security for definitive
Securities of such series;

         (16) whether the Securities of the series shall be issued in whole or
in part in the form of one or more Global Securities and, in such case, the
Depositary for such Global Security or Securities, which Depositary shall be a
clearing agency registered under the Securities Exchange Act of 1934, as
amended; and

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

         All Securities of any one series shall be substantially identical
except as to interest rates, method for determining interest rates, Interest
Payment Dates, Regular Record Dates, redemption terms, Stated Maturity,
denomination, date of authentication, currency, any index for determining
amounts payable, and except as may otherwise be provided in or pursuant to such
Board Resolution and set forth or determined as provided in such Officers'
Certificate or in any such indenture supplemental hereto.

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

         SECTION 302. DENOMINATIONS.

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

                                       18
<PAGE>

         SECTION 303. EXECUTION, AUTHENTICATION, DELIVERY AND DATING.

         The Securities shall be executed on behalf of the Company by its
Chairman of the Board, its President or one of its Vice Presidents. The
signature of any of these officers on the Securities may be manual or facsimile.

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

         At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities; and the Trustee in accordance
with such Company Order shall authenticate and make available for delivery such
Securities. If the form or terms of the Securities of the series have been
established in or pursuant to one or more Board Resolutions as permitted by
Sections 201 and 301, in authenticating such Securities, and accepting the
additional responsibilities under this Indenture in relation to such Securities,
the Trustee shall be entitled to receive, and (subject to Section 601) shall be
fully protected in relying upon:

                  (a) a copy of the resolution or resolutions of the Board of
         Directors in or pursuant to which the terms and form of the Securities
         were established, 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 as of the date of such certificate, and
         if the terms and form of such Securities are established by an
         Officers' Certificate pursuant to general authorization of the Board of
         Directors, such Officers' Certificate;

                  (b) an executed supplemental indenture, if any;

                  (c) an Officers' Certificate and Opinion of Counsel delivered
         in accordance with Section 102; and

                  (d) an Opinion of Counsel which shall state:

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

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

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

                                       19
<PAGE>

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

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

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

         Each Security shall be dated the date of its authentication.

         No Security shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such Security
has been duly authenticated and delivered hereunder and is entitled to the
benefits of this Indenture. Notwithstanding the foregoing, if any Security shall
have been authenticated and delivered hereunder but never issued and sold by the
Company, and the Company shall deliver such Security to the Trustee for
cancellation as provided in Section 309 together with a written statement (which
need not comply with Section 102 and need not be accompanied by an Opinion of
Counsel) stating that such Security has never been issued and sold by the
Company, for all purposes of this Indenture such Security shall be deemed never
to have been authenticated and delivered hereunder and shall never be entitled
to the benefits of this Indenture.

         SECTION 304. TEMPORARY SECURITIES.

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

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

                                       20
<PAGE>

series the Company shall execute and the Trustee shall authenticate and make
available for delivery in exchange therefor a like principal amount of
definitive Securities of the same series and of like tenor, of authorized
denominations. Until so exchanged the temporary Securities of any series shall
in all respects be entitled to the same benefits under this Indenture as
definitive Securities of such series.

         SECTION 305. REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE.

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

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

         At the option of the Holder, Securities of any series may be exchanged
for other Securities of the same series of any authorized denominations and of a
like aggregate principal amount and tenor, upon surrender of the Securities to
be exchanged at such office or agency. Whenever any Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and make available for delivery, the Securities which the Holder
making the exchange is entitled to receive.

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

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

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

         The Company shall not be required (i) to issue, register the transfer
of or exchange Securities of any series during a period beginning at the opening
of business 15 days before the day of the mailing of a notice of redemption of
Securities of that series selected for redemption

                                       21
<PAGE>

under Section 1103 and ending at the close of business on the day of such
mailing, or (ii) to register the transfer of or exchange any Security so
selected for redemption in whole or in part, except the unredeemed portion of
any Security being redeemed in part.

         Notwithstanding the foregoing, any Global Security shall be
exchangeable pursuant to this Section 305 for Securities registered in the names
of Persons other than the Depositary for such Security or its nominee only if
(i) such Depositary notifies the Company that it is unwilling or unable to
continue as Depositary for such Global Security or if at any time such
Depositary ceases to be a clearing agency registered under the Securities
Exchange Act of 1934, as amended, at a time when such Depository is requested to
be so registered in order to act as Depositary, (ii) the Company executes and
delivers to the Trustee a Company Order that such Global Security shall be so
exchangeable or (iii) there shall have occurred and be continuing an Event of
Default with respect to the Securities. Any Global Security that is exchangeable
pursuant to the preceding sentence shall be exchangeable for Securities
registered in such names as such Depositary shall direct.

         Notwithstanding any other provision in this Indenture, a Global
Security may not be transferred except as a whole by the Depositary with respect
to such Global Security to a nominee of such Depositary or by a nominee of such
Depositary to such Depositary or another nominee of such Depositary.

         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 make available for delivery
in exchange therefor a new Security of the same series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

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

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

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

         Every new Security of any series issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the

                                       22
<PAGE>

Company, whether or not the destroyed, lost or stolen Security shall be at any
time enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Securities of that
series duly issued hereunder.

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

         SECTION 307. PAYMENT OF INTEREST; INTEREST RIGHTS RESERVED.

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

         Any interest on any Security of any series that 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
entitled to such interest by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company, at its election in each case, as
provided in Clause (1) or (2) below:

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

                                       23
<PAGE>

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

         Subject to the foregoing provisions of this Section, each Security
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, that 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 may treat the Person in
whose name such Security is registered as the owner of such Security for the
purpose of receiving payment of principal of (and premium, if any) and (subject
to Section 307) interest on such Security and for all other purposes whatsoever,
whether or not such Security be overdue, and neither the Company, the Trustee
nor any agent of the Company or the Trustee shall be affected by notice to the
contrary.

         SECTION 309. CANCELLATION.

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

         SECTION 310. COMPUTATION OF INTEREST.

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

                                  ARTICLE FOUR
                           SATISFACTION AND DISCHARGE

         SECTION 401. SATISFACTION AND DISCHARGE OF INDENTURE.

         This Indenture shall upon Company Request cease to be of further effect
(except as to any surviving rights of registration of transfer or exchange of
Securities herein expressly

                                       24
<PAGE>

provided for), and the Trustee, on the demand of and at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

         (1)      either

         (A) all Securities theretofore authenticated and delivered (other than
         (i) Securities which have been destroyed, lost or stolen and which have
         been replaced or paid as provided in Section 306 and (ii) Securities
         for whose payment money has theretofore been deposited in trust or
         segregated and held in trust by the Company and thereafter repaid to
         the Company or discharged from such trust, as provided in Section 1003)
         have been delivered to the Trustee for cancellation; or

         (B) the Company has deposited or caused to be deposited with the
         Trustee as trust funds in trust for the purpose (A) money in an amount,
         or (B) U.S. Government Obligations which through the scheduled payment
         of principal and interest in respect thereof in accordance with their
         terms will provide, not later than one day before the due date of any
         payment, money in an amount, or (C) a combination thereof, sufficient,
         in the opinion of a nationally recognized firm of independent public
         accountants or a nationally recognized investment banking firm
         acceptable to the Company expressed in a written certification thereof
         delivered to the Trustee, to pay and discharge the entire indebtedness
         on such Securities not theretofore delivered to the Trustee for
         cancellation, for principal (and premium, if any) and interest to the
         date of such deposit (in the case of Securities which have become due
         and payable) or to the Stated Maturity or earlier Redemption Date (in
         the case of Securities that have been, or by an irrevocable instruction
         delivered by the Company to the Trustee will be, called for
         redemption), as the case may be;

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

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

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

         SECTION 402. APPLICATION OF TRUST MONEY.

         Subject to provisions of the last paragraph of Section 1003, all money
and U.S. Government Obligations deposited with the Trustee pursuant to Sections
401 or 1302 and all money received by the Trustee in respect of U.S. Government
Obligations deposited with the Trustee pursuant to Sections 401 or 1302, shall
be held in trust and applied by it, in accordance with the provisions of the
Securities and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as Paying Agent) as the Trustee may

                                       25
<PAGE>

determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for which payment such money has been deposited with or
received by the Trustee as contemplated by Section 401 and Section 1302.

                                  ARTICLE FIVE
                                    REMEDIES

         SECTION 501. EVENTS OF DEFAULT.

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

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

         (2) default in the payment of the principal of (or premium, if any, on)
any Security of that series at its Maturity; or

         (3) default in the deposit of any sinking fund payment, when and as due
by the terms of a Security of that series and continuance of such default for a
period of 30 days; or

         (4) default in the performance, or breach, of any covenant or warranty
of the Company in this Indenture (other than a covenant or warranty a default in
whose performance or whose breach is elsewhere in this Section specifically
dealt with or which has expressly been included in this Indenture solely for the
benefit of series of Securities other than that series), and continuance of such
default or breach for a period of 90 days after there has been given, by
registered or certified mail, to the Company by the Trustee or to the Company
and the Trustee by the Holders of at least 25% in principal amount of the
Outstanding Securities of that series a written notice specifying such default
or breach and requiring it to be remedied and stating that such notice is a
"NOTICE OF DEFAULT" hereunder; or

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

         (6) 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

                                       26
<PAGE>

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

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

Subject to the provisions of Section 601 hereof, the Trustee shall not be deemed
to have knowledge of an Event of Default hereunder (except for those described
in paragraphs (1) through (3) above) unless a Responsible Officer has received
written notice thereof.

         Upon receipt by the Trustee of any Notice of Default pursuant to this
Section 501 with respect to Securities of a series all or part of which is
represented by a Global Security, a record date shall be established for
determining Holders of Outstanding Securities of such series entitled to join in
such Notice of Default, which record date shall be at the close of business on
the day the Trustee receives such Notice of Default. The Holders as of such
record date, or their duly designated proxies, and only such Persons, shall be
entitled to join in such Notice of Default, whether or not such Holders remain
Holders after such record date; PROVIDED, that unless holders of at least 25% in
principal amount of the Outstanding Securities of such series, or their proxies,
shall have joined in such Notice of Default prior to the day which is 90 days
after such record date, such Notice of Default shall automatically and without
further action by any Holder be canceled and of no further effect. Nothing in
this paragraph shall prevent a Holder, or a proxy of a Holder, from giving,
after expiration of such 90-day period, a new Notice of Default identical to a
Notice of Default which has been cancelled pursuant to the proviso to the
preceding sentence, in which event a new record date shall be established
pursuant to the provisions of this Section 501.

         SECTION 502. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.

         If an Event of Default (other than an Event of Default specified in
Section 501(5) or 501(6)) with respect to Securities of any series at the time
Outstanding occurs and is continuing, then and in every such case the Trustee or
the Holders of not less than 25% in principal amount of the Outstanding
Securities of that series may declare the principal amount (or, if any of the
Securities of that series are Original Issue Discount Securities, such portion
of the principal amount of such Securities as may be specified in the terms
thereof) of all of the Securities of that series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified
amount) shall become immediately due and payable. If an Event of Default
specified in Section 501(5) or 501(6) with respect to Securities of any series
at the time Outstanding occurs, the principal amount of all the Securities of
that series (of, if any Securities

                                       27
<PAGE>

of that series are Original Issue Discount Securities, such portion of the
principal amount of such Securities as may be specified by the terms thereof)
shall automatically, and without any declaration or other action on the part of
the Trustee or any Holder, become immediately due and payable.

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

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

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

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

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

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

         and

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

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

         Upon receipt by the Trustee of written notice declaring such an
acceleration, or rescission and annulment thereof, with respect to Securities of
a series all or part of which is represented by a Global Security, a record date
shall be established for determining Holders of Outstanding Securities of such
series entitled to join in such notice, which record date shall be at the close
of business on the day the Trustee receives such notice. The Holders on such
record date, or their duly designated proxies, and only such Persons, shall be
entitled to join in such notice, whether or not such Holders remain Holders
after such record date; PROVIDED, that unless such declaration of acceleration,
or rescission and annulment, as the case may be, shall have become effective by
virtue of the requisite percentage having joined in such notice prior to the day
which is 90 days after such record date, such notice of declaration of
acceleration, or rescission and annulment, as the case may be, shall
automatically and without further action by any Holder be cancelled and of no
further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of
a Holder, from giving, after expiration of such 90-day period, a new written
notice of declaration of acceleration, or rescission and annulment thereof, as
the case may be, that is identical to a written

                                       28
<PAGE>

notice which has been cancelled pursuant to the proviso to the preceding
sentence, in which event a new record date shall be established pursuant to the
provisions of this Section 502.

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

         The Company covenants that if

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

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

         (3) default is made in the deposit of any sinking fund payment, when
and as due by the terms of a Security of that series and such default continues
for a period of 30 days;

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

         If the Company fails to pay such amounts forthwith upon such demand,
the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid, may
prosecute such proceeding to judgment or final decree and may enforce the same
against the Company or any other obligor upon 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 occurs
and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Securities of such series by
such appropriate judicial proceedings as the Trustee shall deem most effectual
to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy.

         SECTION 504. TRUSTEE MAY FILE PROOFS OF CLAIM.

         In case of 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

                                       29
<PAGE>

principal or interest) shall be entitled and empowered, by intervention in such
proceeding or otherwise,

                  (i) to file and prove a claim for the whole amount of
         principal (and premium, if any) and interest owing and unpaid in
         respect of the Securities and to file such other papers or documents as
         may be necessary or advisable in order to have the claims of the
         Trustee (including any claim for the reasonable compensation, expenses,
         disbursements and advances of the Trustee, its agents and Counsel) and
         of the Holders allowed in such judicial proceeding, and

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to
pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and Counsel, and any other
amounts due the Trustee under Section 607.

         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 505. 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 of the Securities in respect of which such
judgment has been recovered.

         SECTION 506. APPLICATION OF MONEY COLLECTED.

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

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

         SECOND:           To the payment of the amounts then due and unpaid for
                           principal of (and premium, if any) and interest on
                           the Securities in respect of which or for the benefit
                           of which such money has been collected, ratably,
                           without

                                       30
<PAGE>

                           preference or priority of any kind, according to the
                           amounts due and payable on such Securities for
                           principal (and premium, if any) and interest,
                           respectively.

         SECTION 507. LIMITATION ON SUITS.

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

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

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

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

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

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

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

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

         Notwithstanding any other provision in this Indenture, the Holder of
any Security shall have the right, which is absolute and unconditional, to
receive payment of the principal of (and premium, if any) and (subject to
Section 307) interest 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 509. RESTORATION OF RIGHTS AND REMEDIES.

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

                                       31
<PAGE>

subject to any determination in such proceeding, the Company, the Trustee and
the Holders shall be restored severally and respectively to their former
positions hereunder and thereafter all rights and remedies of the Trustee and
the Holders shall continue as though no such proceeding had been instituted.

         SECTION 510. RIGHTS AND REMEDIES CUMULATIVE.

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

         SECTION 511. DELAY OR OMISSION NOT WAIVER.

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

         SECTION 512. CONTROL BY HOLDERS.

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

         (1) such direction shall not be in conflict with any rule of law or
with this Indenture, nor subject the Trustee to a material risk of personal
liability, and

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

         Upon receipt by the Trustee of any written notice directing the time,
method or place of conducting any such proceeding or exercising any such trust
or power, with respect to Securities of a series all or part of which is
represented by a Global Security, a record date shall be established by the
Trustee for determining Holders of Outstanding Securities of such series
entitled to join in such notice, which record date shall be at the close of
business on the day the Trustee receives such notice. The Holders on such record
date, or their duly designated proxies, and only such Persons, shall be entitled
to join in such notice, whether or not such Holders remain Holders after such
record date; PROVIDED, that unless the Holders of a majority in principal amount
of the Outstanding Securities of such series shall have joined in such notice
prior to the day which is 90 days after such record date, such notice shall
automatically and

                                       32
<PAGE>

without further action by any Holder be cancelled and of no further effect.
Nothing in this paragraph shall prevent a Holder, or a proxy of a Holder, from
giving, after expiration of such 90-day period, a new notice identical to a
notice which has been cancelled pursuant to the proviso to the preceding
sentence, in which event a new record date shall be established pursuant to the
provisions of this Section 512.

         SECTION 513. WAIVER OF PAST DEFAULTS.

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

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

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

         The Trustee may, but shall not be obligated to, fix a record date for
the purpose of determining the Persons entitled to waive any past default
hereunder. If a record date is fixed, the Holders on such record date, or their
duly designated proxies, and only such Persons, shall be entitled to waive any
default hereunder, whether or not such Holders remain Holders after such record
date; PROVIDED, that unless such majority in principal amount shall have waived
such default prior to the date which is 90 days after such record date, any such
waiver previously given shall automatically and without further action by any
Holder be cancelled and of no further effect.

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

         SECTION 514. UNDERTAKING FOR COSTS.

         All parties to this Indenture agree, and each Holder of any Security 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 principal
amount of the Outstanding Securities of any series, or to any suit instituted by
any Holder for the enforcement of the payment of the principal of (or premium,
if any) or interest 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).

                                       33
<PAGE>

         SECTION 515. WAIVER OF STAY OR EXTENSION LAWS.

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

                                  ARTICLE SIX
                                   THE TRUSTEE

         SECTION 601. CERTAIN DUTIES AND RESPONSIBILITIES.

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

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

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

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

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

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

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

                  (3) the Trustee shall not be liable with respect to any action
         taken or omitted to be taken by it in good faith in accordance with the
         direction, determined as provided in

                                       34
<PAGE>

         Section 512, of the Holders of a majority in principal amount of the
         Outstanding Securities of any series, relating to the time, method and
         place of conducting any proceeding for any remedy available to the
         Trustee, or exercising any trust or power conferred upon the Trustee,
         under this Indenture with respect to the Securities of such series;
         and

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

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

         SECTION 602. NOTICE OF DEFAULTS.

         Within 90 days after the occurrence of any default hereunder with
respect to the Securities of any series, the Trustee shall transmit by mail to
all Holders of Securities of such series, as their names and addresses appear in
the Security Register, notice of such default hereunder known to the Trustee,
unless such default shall have been cured or waived; PROVIDED, HOWEVER, that,
except in the case of a default in the payment of the principal of (or premium,
if any) or interest on any Security of such series or in the payment of any
sinking fund installment with respect to Securities of such series, the Trustee
shall be protected in withholding such notice if and so long as the board of
directors, the executive committee or a trust committee of directors or
Responsible Officers of the Trustee in good faith determine that the withholding
of such notice is in the interest of the Holders of Securities of such series.
For the purpose of this Section, the term "DEFAULT" means any event which is, or
after notice or lapse of time or both would become, an Event of Default with
respect to Securities of such series.

         SECTION 603. CERTAIN RIGHTS OF TRUSTEE.

         Subject to the provisions of Section 601:

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

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

                                       35
<PAGE>

         action hereunder, the Trustee (unless other evidence be herein
         specifically prescribed) may, in the absence of bad faith on its part,
         rely upon an Officers' Certificate;

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

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

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

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

                  (h) The Trustee shall not be liable for any action taken,
         suffered, or omitted to be taken by it in good faith and reasonably
         believed, upon advice of Counsel, by it to be authorized or within the
         discretion or rights or powers conferred upon it by this Indenture.

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

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

         SECTION 605. MAY HOLD SECURITIES.

         The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar or any other agent of the Company or of the Trustee, in its individual
or any other capacity, may become the owner or pledgee of Securities and,
subject to Sections 608 and 613, may otherwise

                                       36
<PAGE>

deal with the Company with the same rights it would have if it were not Trustee,
Authenticating Agent, Paying Agent, Security Registrar or such other agent.

         SECTION 606. MONEY HELD IN TRUST.

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

         SECTION 607. COMPENSATION AND REIMBURSEMENT.

         The Company agrees

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

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

         (3) to indemnify each of the Trustee, or any predecessor Trustee, and
each of its officers, directors, employees and agents, for, and to hold it
harmless against, any and all losses, liabilities, damages, claims or expenses,
including taxes (other than taxes based upon, measured or determined by the
income of the Trustee) incurred without negligence or bad faith on its part,
arising out of or in connection with the acceptance or administration of the
trust or trusts hereunder, including the costs and expenses of defending itself
against any claim or liability in connection with the exercise or performance of
any of its powers or duties hereunder.

         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, except funds held
in trust for the payment of principal of, premium, if any, or interest, if any,
on particular Securities.

         SECTION 608. DISQUALIFICATION; CONFLICTING INTERESTS.

         If the Trustee has or shall acquire a conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture. To the extent
permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under this Indenture with respect to
Securities of more than one series or a trustee under any other indenture with
respect to bonds issued for the benefit of the Company.

                                       37
<PAGE>

         SECTION 609. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.

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

         SECTION 610. RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

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

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

         (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 608(a) after
         written request therefor by the Company or any Holder who has been a
         bona fide Holder of a Security for at least six months, or

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

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

then, in any such case, (i) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, or (ii) subject to Section 514, any
Holder who has been a bona fide Holder of a Security for at least six months
may, on behalf of himself and all others similarly

                                       38
<PAGE>

situated, petition any court of competent jurisdiction for the removal of the
Trustee with respect to all Securities and the appointment of a successor
Trustee or Trustees.

         (e) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, with
respect to the Securities of one or more series, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect
to the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or more
or all of such series and that at any time there shall be only one Trustee with
respect to the Securities of any particular series) and shall comply with the
applicable requirements of Section 611. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee with respect to the Securities of any series shall be
appointed by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such appointment in accordance with the applicable requirements of Section
611, become the successor Trustee with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the Company. If
no successor Trustee with respect to the Securities of any series shall have
been so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 611, any Holder who has been a bona fide Holder of a
Security of such series for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series.

         (f) The Company shall give notice of each resignation and each removal
of the Trustee with respect to the Securities of any series and each appointment
of a successor Trustee with respect to the Securities of any series by mailing
written notice of such event by first-class mail, postage prepaid, to all
Holders of 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 611. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

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

         (b) In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and

                                       39
<PAGE>

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

         (c) Upon request of any such successor Trustee, the Company shall
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Trustee all such rights, powers and trusts referred
to in paragraph (a) and (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 612. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO
                      BUSINESS.

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

                                       40
<PAGE>

         SECTION 613. PREFERENTIAL COLLECTION OF CLAIMS.

         If and when the Trustee shall be or become a creditor of the Company,
the Trustee shall be subject to the provisions of the Trust Indenture Act
regarding the collection of claims against the Company.

         SECTION 614. APPOINTMENT OF AUTHENTICATING AGENT.

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

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

         An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and 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 the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall mail written notice of
such appointment by first-class mail, postage prepaid, to all Holders of
Securities of the series with respect to which such Authenticating Agent will
serve, as their names and addresses appear in the Security Register.

                                       41
<PAGE>

Any successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

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

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

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

                           By _____________________________________________
                              The Bank of New York, as Trustee

                           By _____________________________________________
                              As Authenticating Agent

                           By _____________________________________________
                              Authorized Signatory

                                 ARTICLE SEVEN
                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

         SECTION 701. COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF HOLDERS.

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

                  (a) semi-annually, not later than 15 days after each Regular
         Record Date (or, if there is no Regular Record Date relating to a
         series, semi-annually on dates set forth in the Board Resolution or
         supplemental indenture with respect to such series), a list, in such
         form as the Trustee may reasonably require, of the names and addresses
         of the Holders as of such date, and

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

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

                                       42
<PAGE>

         SECTION 702. PRESERVATION OF INFORMATION; COMMUNICATIONS TO HOLDERS.

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

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

         (c) Every Holder of Securities, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the Trustee
nor any agent of either of them shall be held accountable by reason of the
disclosure of any such information as to the names and addresses of the Holders
in accordance with Section 702(b), regardless of the source from which such
information was derived, and that the Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under Section 702(b).

         SECTION 703. REPORTS BY TRUSTEE.

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

         Reports so required to be transmitted at stated intervals of not more
than 12 months shall be transmitted no later than 60 days after May 15 in each
calendar year, commencing with the year 1999.

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

         SECTION 704. REPORTS BY COMPANY.

         The Company shall file with the Trustee and the Commission, and
transmit to Holders, such information, documents and other reports, and such
summaries thereof, as may be required pursuant to the Trust Indenture Act at the
times and in the manner provided pursuant to such Act; PROVIDED that any such
information, documents or reports required to be filed with the Commission
pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934, as
amended, shall be filed with the Trustee within 15 days after the same is so
required to be filed with the Commission.

                                       43
<PAGE>

                                 ARTICLE EIGHT
                  CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER

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

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

         (1) the Corporation formed by such consolidation or into which the
Company is merged or the Person which acquires by conveyance or transfer the
properties and assets of the Company substantially as an entirety shall be, if a
Corporation, a Corporation organized and existing under the laws of the United
States of America or any State 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 on all the Securities and
the performance of every covenant of this Indenture on the part of the Company
to be performed or observed;

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

         (3) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel each stating that such consolidation, merger,
conveyance or transfer and such supplemental indenture comply with this Article
and that all conditions precedent herein provided for relating to such
transaction have been complied with.

         The Company shall not consolidate with any other Corporation or permit
the Company to be merged into any other Corporation, or sell its property and
assets as, or substantially as, an entirety except upon the terms and conditions
set forth in this Article Eight. Upon any consolidation or merger, or any sale
of the property and assets of the Company as, or substantially as, an entirety
in accordance with the provisions of this Article Eight, the Corporation formed
by such consolidation or into which the Company shall have been merged or the
Person to which such sale shall have been made shall succeed to and be
substituted for the Company with the same effect as if it had been named herein
as a party hereto, and thereafter from time to time such Corporation may
exercise each and every right and power of the Company under this Indenture, in
the name of the Company or in its own name; and any act or proceeding by any
provision of this Indenture required or permitted to be done by any board or
officer of the Company may be done with like force and effect by the like board
or officer of any Corporation that shall at the time be the successor of the
Company hereunder.

         The Trustee shall be entitled to receive and may conclusively rely on
and shall be protected in relying upon an Opinion of Counsel as conclusive
evidence that any such consolidation, merger or sale, and any such assumption of
payment and performance complies with the provisions of this Article.

                                       44
<PAGE>

                                  ARTICLE NINE
                             SUPPLEMENTAL INDENTURES

         SECTION 901. Supplemental Indentures Without Consent of Holders.

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

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

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

                  (3) to add any additional Events of Default; or

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

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

                  (6) to secure the Securities pursuant to the requirements of
         Section 801(3) or Section 1004 or otherwise; or

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

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

                  (9) to cure any ambiguity, to correct or supplement any
         provision herein which may be inconsistent with any other provision
         herein, or to make any other provisions with respect to matters or
         questions arising under this Indenture, PROVIDED

                                       45
<PAGE>

         such action shall not adversely affect the interests of the Holders of
         Securities of any series in any material respect.

         SECTION 902. SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS.

         With the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities of each series affected by such
supplemental indenture and of not less than 66 2/3% in principal amount of the
Outstanding Securities of all series affected by such supplemental indenture, 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
of modifying in any manner the rights of the Holders of Securities of such
series under this Indenture; PROVIDED, HOWEVER, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Security
affected thereby,

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

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

                  (3) modify any of the provisions of this Section, Section 513
         or Section 1008, except to increase any such percentage or to provide
         that certain other provisions of this Indenture cannot be modified or
         waived without the consent of the Holder of each Outstanding Security
         affected thereby; PROVIDED, HOWEVER, that this clause shall not be
         deemed to require the consent of any Holder with respect to changes in
         the references to "the Trustee" and concomitant changes in this Section
         and Section 1008, or the deletion of this proviso, in accordance with
         the requirements of Sections 611(b) and 901(8).

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

                                       46
<PAGE>

         The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Persons entitled to consent to any indenture
supplemental hereto. If a record date is fixed, the Holders on such record date,
or their duly designated proxies, and only such Persons, shall be entitled to
consent to such supplemental indenture, whether or not such Holders remain
Holders after such record date; PROVIDED, that unless such consent shall have
become effective by virtue of the requisite percentage having been obtained
prior to the date which is 90 days after such record date, any such consent
previously given shall automatically and without further action by any Holder be
cancelled and of no further effect.

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

         SECTION 903. EXECUTION OF SUPPLEMENTAL INDENTURES.

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

         SECTION 904. EFFECT OF SUPPLEMENTAL INDENTURES.

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

         SECTION 905. CONFORMITY WITH TRUST INDENTURE ACT.

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

         SECTION 906. REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES.

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

                                       47
<PAGE>

                                   ARTICLE TEN
                                    COVENANTS

         SECTION 1001. PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.

         The Company covenants and agrees for the benefit of each series of
Securities that it will duly and punctually pay the principal of (and premium,
if any) and interest on the Securities of that series in accordance with the
terms of the Securities and this Indenture.

         SECTION 1002. MAINTENANCE OF OFFICE OR AGENCY.

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

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

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

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

         In the event that the Company appoints one or more Paying Agents for
any series of Securities, the Company covenants and agrees to indemnify the
Trustee for, and hold the Trustee harmless against, any loss, liability or
expense incurred without negligence or bad faith on the part of the Trustee,
arising out of or in connection with the administration of the duties of the
Paying Agent appointed by the Company under this Indenture and to reimburse the
Trustee for the reasonable costs and expenses (including Counsel fees) of
defending against any such claim or liability.

                                       48
<PAGE>

         Whenever the Company shall have one or more Paying Agents for any
series of Securities, it will, prior to each due date of the principal of (and
premium, if any) or interest on any Securities of that series, deposit with a
Paying Agent a sum sufficient to pay the principal (and premium, if any) or
interest so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal, premium or interest, and (unless such Paying
Agent is the Trustee) the Company will promptly notify the Trustee of its action
or failure so to act.

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

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

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

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

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

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

                                       49
<PAGE>

         SECTION 1004. STATEMENT BY OFFICERS AS TO DEFAULT.

         The Company shall deliver to the Trustee within 30 days after the
occurrence thereof written notice of any event which with the giving of notice
and the lapse of time or both would become an Event of Default.

         The Company shall deliver to the Trustee, within 120 days after the end
of each Fiscal Year of the Company ending after the date hereof, an Officers'
Certificate, stating whether or not to the best knowledge of the signers thereof
the Company is in default in the performance and observance of any of the terms,
provisions and conditions applicable to the Company hereunder, and if the
Company shall be in default, specifying all such defaults and the nature and
status thereof of which they may have knowledge.

                                 ARTICLE ELEVEN
                            REDEMPTION OF SECURITIES

         SECTION 1101. APPLICABILITY OF ARTICLE.

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

         SECTION 1102. ELECTION TO REDEEM; NOTICE TO TRUSTEE.

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

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

         If less than all the Securities of like tenor of any series are to be
redeemed, the particular Securities to be redeemed shall be selected not more
than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of like tenor of such series not previously called for redemption, 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 that series or any integral multiple thereof) of
the principal amount of such Securities of a denomination larger than the
minimum authorized denomination for such Securities.

                                       50
<PAGE>

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

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

         SECTION 1104. NOTICE OF REDEMPTION.

         Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption
Date unless a shorter period is specified pursuant to Section 301, to each
Holder of Securities to be redeemed, at his address appearing in the Security
Register.

         All notices of redemption shall state:

                  (1) the Redemption Date,

                  (2) the Redemption Price,

                  (3) the CUSIP Number of the Securities to be redeemed,

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

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

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

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

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

         SECTION 1105. DEPOSIT OF REDEMPTION PRICE.

         Unless the Company has otherwise made an election to have Section 1302
apply to the Securities of any series and has complied with the provisions of
Section 1303, on or prior to any Redemption Date, the Company shall deposit with
the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 1003) an amount
of money sufficient to pay the Redemption Price of, and (except if the

                                       51
<PAGE>

Redemption Date shall be an Interest Payment Date) accrued interest on, all the
Securities which are to be redeemed on that date.

         SECTION 1106. SECURITIES PAYABLE ON REDEMPTION DATE.

         Notice of redemption having been given as aforesaid, the Securities so
to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest. Upon surrender of any
such Security for redemption in accordance with said notice, such Security shall
be paid by the Company or by the Trustee, if the Company has made an election
pursuant to Section 1301, at the Redemption Price, together with accrued
interest to the Redemption Date; PROVIDED, HOWEVER, that installments of
interest whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Record
Dates according to their terms and the provisions of Section 307.

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

         SECTION 1107. SECURITIES REDEEMED IN PART.

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

                                 ARTICLE TWELVE
                                  SINKING FUNDS

         SECTION 1201. APPLICABILITY OF ARTICLE.

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

         The minimum amount of any sinking fund payment provided for by the
terms of Securities of any series is herein referred to as a "mandatory sinking
fund payment," and any payment in excess of such minimum amount provided for by
the terms of Securities of any series is herein referred to as an "optional
sinking fund payment." If provided for by the terms of

                                       52
<PAGE>

Securities of any series, the cash amount of any sinking fund payment may be
subject to reduction as provided in Section 1202. Each sinking fund payment
shall be applied to the redemption of Securities of any series as provided for
by the terms of Securities of such series.

         SECTION 1202. SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES.

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

         SECTION 1203. REDEMPTION OF SECURITIES FOR SINKING FUND.

         Not less than 60 days prior to each sinking fund payment date for any
series of Securities, the Company will deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing sinking fund payment for
that series pursuant to the terms of that series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if any,
which is to be satisfied by delivering and crediting Securities of that series
pursuant to Section 1202 and will also deliver to the Trustee any Securities to
be so delivered. 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 1103 and cause notice of
the redemption thereof to be given in the name of and at the expense of the
Company in the manner provided in Section 1104. Such notice having been duly
given, the redemption of such Securities shall be made upon the terms and in the
manner stated in Sections 1106 and 1107.

                                ARTICLE THIRTEEN
                                   DEFEASANCE

         SECTION 1301. APPLICABILITY OF ARTICLE; COMPANY'S OPTION TO EFFECT
                       DEFEASANCE.

         Unless otherwise provided for the Securities of any series pursuant to
Section 301, the provisions of Article Thirteen shall be applicable to the
Securities of any series, and the Company may at its option by or pursuant to a
Board Resolution, at any time, with respect to the Securities of such series,
elect to have Section 1302 be applied to the Outstanding Securities of such
series upon compliance with the conditions set forth below in this Article
Thirteen.

                                       53
<PAGE>

         SECTION 1302. DEFEASANCE AND DISCHARGE.

         Upon the Company's exercise of the above option applicable to this
Section, the Company shall be deemed to have been discharged from its
obligations with respect to the Outstanding Securities of such series on the
date the conditions set forth below are satisfied (hereinafter, "DEFEASANCE").
For this purpose, such Defeasance means that the Company shall be deemed to have
paid and discharged the entire indebtedness represented by the Outstanding
Securities of such series and to have satisfied all its other obligations under
such Securities and this Indenture insofar as such Securities are concerned (and
the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following which shall survive until
otherwise terminated or discharged hereunder: (A) the rights of Holders of
Outstanding Securities of such series to receive, solely from the trust fund
described in Section 1303 and as more fully set forth in such Section, payments
in respect of the principal of (and premium, if any) and interest on such
Securities when such payments are due, (B) the Company's obligations with
respect to such Securities under Sections 304, 305, 306, 1002, 1003 and 1102,
(C) the rights, powers, trusts, duties, and immunities of the Trustee under
Sections 305, 306, 307, 309, 402, 607, the last paragraph of Section 1003 and
Sections 1104 and 1106, and otherwise the duty of the Trustee to authenticate
Securities of such series issued on registration of transfer or exchange and (D)
this Article Thirteen. Subject to compliance with this Article Thirteen, the
Company may exercise its option under this Section 1302.

         SECTION 1303. CONDITIONS TO DEFEASANCE.

         The following shall be the conditions to application of Section 1302 to
the Outstanding Securities of such series:

                  (a) the Company shall irrevocably have deposited or caused to
         be deposited with the Trustee (or another trustee satisfying the
         requirements of Section 609 who shall agree to comply with the
         provisions of this Article Thirteen applicable to it) as trust funds in
         trust for the purpose of making the following payments, specifically
         pledged as security for, and dedicated solely to, the benefit of the
         holders of such Securities, (A) money in an amount, or (B) U.S.
         Government Obligations which through the scheduled payment of principal
         and interest in respect thereof in accordance with their terms will
         provide, not later than one day before the due date of any payment,
         money in an amount, or (C) a combination thereof, sufficient, in the
         opinion of a nationally recognized firm of independent public
         accountants or a nationally reconized investment banking firm
         acceptable to the Company expressed in a written certification thereof
         delivered to the Trustee, to pay and discharge, and which shall be
         applied by the Trustee (or other qualifying trustee) to pay and
         discharge, (i) the principal of (and premium, if any) and each
         installment of principal of (and premium, if any) and interest on the
         Outstanding Securities of such series on any Redemption Date, if the
         Company has irrevocably elected to cause the Outstanding Securities of
         such series subject to redemption to be redeemed on a specific
         Redemption Date by giving notice to the Trustee of such election at the
         time it exercises its option pursuant to Section 1302, or on the Stated
         Maturity of such principal or installment of principal or interest and
         (ii) any mandatory sinking fund payments or analogous payments
         applicable to the Outstanding Securities of such series on the day on
         which such payments are due and payable in

                                       54
<PAGE>

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

                  (b) (i) No Event of Default or event which with notice or
         lapse of time or both would become an Event of Default with respect to
         the Securities of such series shall have occurred and be continuing on
         the date of such deposit, and (ii) with respect to a Defeasance and
         discharge under Section 1302, no such Event of Default or event shall
         have occurred and be continuing under subsection 501(5) or (6) hereof
         at any time during the period ending on the 91st day after the date of
         such deposit or, if longer, ending on the day following the expiration
         of the longest preference period applicable to the Company in respect
         of such deposit (it being understood that this condition shall not be
         deemed satisfied until the expiration of such period); PROVIDED that in
         connection with a Defeasance under Section 1302 the Company will be
         released from its covenant under Section 1004 immediately upon the
         making of the deposit under subsection (a) without reference to the
         additional period of time referred to in this subsection (ii); and
         PROVIDED, FURTHER, HOWEVER, that if (x) a bank with an investment
         rating of at least A by each of Standard & Poor's Corporation and
         Moody's Investors Service, Inc. shall issue in favor of the Trustee,
         for the benefit of the Holders of the Outstanding Securities to be
         defeased hereunder, an unsecured letter of credit to guarantee the
         deposit referred to in subparagraph (a) above and (y) the Company shall
         provide to the Trustee an Opinion of Counsel (which shall be nationally
         recognized Counsel experienced in bankruptcy matters) satisfactory to
         the Trustee to the effect that no payments pursuant to the letter of
         credit to be made for the benefit of the Holders of the Outstanding
         Securities to be defeased hereunder would be subject to recapture, as a
         preference or otherwise, by any trustee in bankruptcy of the Company,
         then this condition shall be satisfied without regard to the period of
         time referred to in subsection (ii) above.

                  (c) Such Defeasance shall not cause the Trustee for the
         Securities of such series to have a conflicting interest as defined in
         Section 608 and for purposes of the Trust Indenture Act with respect to
         any securities of the Company.

                                       55
<PAGE>

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

                  (e) Such Defeasance shall not cause any Securities of such
         series then listed on any registered national securities exchange under
         the Securities Exchange Act of 1934, as amended, to be delisted.

                  (f) Such Defeasance shall be effected in compliance with any
         additional terms, conditions or limitations which may be imposed on the
         Company in connection therewith pursuant to Section 301.

                  (g) The Company shall have delivered to the Trustee an
         Officers' Certificate and an Opinion of Counsel, each stating that all
         conditions precedent provided for relating to the Defeasance under
         Section 1302 have been complied with.

         SECTION 1304. DEPOSITED MONEY AND U.S. GOVERNMENT OBLIGATIONS TO BE
                       HELD IN TRUST; OTHER MISCELLANEOUS PROVISIONS.

         Subject to the provisions of the last paragraph of Section 1003, all
money and U.S. Government Obligations (including the proceeds thereof) deposited
with the Trustee (or other qualifying trustee -- collectively, for purposes of
this Section 1304, the "TRUSTEE") pursuant to Section 1304 in respect of the
Outstanding Securities of such series shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own paying agent) as the Trustee may
determine, to the Holders of such Securities, of all sums due and to become due
thereon in respect of principal (and premium, if any) and interest, but such
money need not be segregated from other funds except to the extent required by
law.

         The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 1304 or the principal and interest received in
respect thereof other than any such tax, fee or other charge which by law is for
the account of the Holders of the Outstanding Securities of such series.

         Anything in this Article Thirteen to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or U.S. Government Obligations held by it as provided in
Section 1304 which, in the opinion of a nationally recognized firm of
independent public accountants or a nationally recognized investment banking
firm acceptable to the Company expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect an equivalent Defeasance or covenant
Defeasance.

         SECTION 1305. REINSTATEMENT.

         If the Trustee is unable to apply any money in accordance with Section
401 or Section 1302 by reason of any legal proceeding or by reason of any order
or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application,

                                       56
<PAGE>

the Company's obligations under this Indenture and the Securities of such series
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 401 or Section 1302 until such time as the Trustee is permitted to apply
all such money in accordance with Section 401 or Section 1302; PROVIDED,
HOWEVER, that if the Company has made any payment of interest on or principal of
(and premium, if any, on) any Securities of such series because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such series of Securities to receive such payment from the
money held by the Trustee.

                                     * * * *

         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.

              [The balance of this page intentionally left blank.]

                                       57
<PAGE>

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

                                    TECO ENERGY, INC.

                                    By: /s/ Gordon L. Gillette
                                        ----------------------------------------
                                        Name:  Gordon L. Gillette
                                        Title: Vice President-Finance and
                                               Chief Financial Officer

[Corporate Seal]

                                    THE BANK OF NEW YORK,

                                    as Trustee

                                    By: /s/ N.S. Signoretta
                                        ----------------------------------------
                                        Name:  N.S. Signoretta
                                        Title: Vice President

[Corporate Seal]
<PAGE>

State of New York           )
                            ) SS.:
County of Queens            )

         On the 10th day of September, 1998 before me personally came Gordon L.
Gillette, to me known, who, being by me duly sworn, did depose and say that he
is Vice President - Finance and Chief Financial Officer of TECO ENERGY, INC.,
one of the corporations described in and which executed the foregoing
instrument; that he knows the seal of said corporation; that the seal affixed to
said instrument is such corporate seal; that it was so affixed by authority of
the Board of Directors of said corporation, and that he signed his name thereto
by like authority.

                                      /s/ Audrey J. Spengenberg
                                      --------------------------------------
                                      Notary Public

State of  New York          )
                            ) SS.:
County of  New York         )

         On the 14th day of September 1998 before me personally came N.S.
Signoretta to me known, who, being by me duly sworn, did depose and say that
he/she is Vice President of THE BANK OF NEW YORK, one of the corporations
described in and which executed the foregoing instrument; that he/she knows the
seal of said corporation; that the seal affixed to said instrument is such
corporate seal; that it was so affixed by authority of the Board of Directors of
said corporation, and that he/she signed his/her names thereto by like
authority.

                                      /s/ Robert Schneck
                                      -------------------------------------
                                      Notary Public<PAGE>

                                                                    Exhibit 4.2

                                                                 EXECUTION COPY

                                TECO ENERGY, INC.

                                       and

                              THE BANK OF NEW YORK
                                   As Trustee

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

                          SECOND SUPPLEMENTAL INDENTURE

                         dated as of September 15, 2000

                           Supplementing the Indenture

                           dated as of August 17, 1998

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

                                  $200,000,000

                7% Remarketable or Redeemable Securities Due 2015

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               PAGE

<S>      <C>          <C>                                                                                       <C>
ARTICLE ONE           DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION....................................2
         Section 101.      Definitions...........................................................................2

         Section 102.      Section References....................................................................8

ARTICLE TWO           DESIGNATION AND TERMS OF THE NOTES.........................................................8

         Section 201.      Establishment of Series...............................................................8

         Section 202.      Variations in Terms of Notes..........................................................8

         Section 203.      Amount and Denominations; the Depositary..............................................8

         Section 204.      Interest Rates, Interest Payment Dates and Interest Rate Periods......................9

         Section 205.      Determination of Interest Rates......................................................11

         Section 206.      Election and Determination of a Floating Interest Rate by the Company................12

         Section 207.      Conversion  Between Interest Rate Modes by the Company...............................21

         Section 208.      Automatic Tender of Notes on the Interest Rate Adjustment Date.......................22

         Section 209.      Remarketing..........................................................................22

         Section 210.      Purchase and Redemption of Notes.....................................................24

         Section 211.      Form and Other Terms of the Notes....................................................25

ARTICLE THREE         THE ROARS MODE............................................................................26

         Section 301.      Applicability of Article.............................................................26

         Section 302.      Initial ROARS Rate Period............................................................26

         Section 303.      Interest to ROARS Remarketing Date...................................................26

         Section 304.      Tender to and Remarketing by the Callholder..........................................26

         Section 305.      Conversion or Redemption Following Election by the Callholder to Remarket............28

ARTICLE FOUR          ADDITIONAL EVENTS OF DEFAULT WITH RESPECT TO THE NOTES....................................29

         Section 401.      Definition...........................................................................29

ARTICLE FIVE          AUTHENTICATION AND DELIVERY OF THE NOTES..................................................29

         Section 501.      Authentication and Delivery..........................................................29

</TABLE>
                                      -i-
<PAGE>

                                TABLE OF CONTENTS

                                  (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                               PAGE

<S>      <C>          <C>                                                                                       <C>
ARTICLE SIX           SUPPLEMENTAL INDENTURES...................................................................30

         Section 601.      Effect On Original Indenture.........................................................30

ARTICLE SEVEN         AMENDMENTS................................................................................30

         Section 701.      Amendment to Correct Section 610 of Original Indenture...............................30

ARTICLE EIGHT         MISCELLANEOUS.............................................................................30

         Section 801.      Counterparts.........................................................................30

         Section 802.      Recitals.............................................................................30

         Section 803.      Governing Law........................................................................30
</TABLE>

                                      -ii-

<PAGE>

         This Second Supplemental Indenture, dated as of the 15th day of
September, 2000 between TECO Energy, Inc., a corporation duly organized and
existing under the laws of the State of Florida (hereinafter called the
"COMPANY") and having its principal office at TECO Plaza, 702 North Franklin
Street, Tampa, Florida 33602, and The Bank of New York, (hereinafter called
the "TRUSTEE") and having its principal corporate trust office at 101 Barclay
Street, 21st Floor, New York, New York, 10286.

                                   WITNESSETH:

         WHEREAS, the Company and the Trustee entered into an Indenture,
dated as of August 17, 1998 (the "ORIGINAL INDENTURE"), pursuant to which one
or more series of debt of the Company (the "SECURITIES") may be issued from
time to time; and

         WHEREAS, Section 201 of the Original Indenture permits the terms of
any series of Securities to be established in an indenture supplemental to
the Original Indenture; and

         WHEREAS, Section 901(7) of the Original Indenture provides that a
supplemental indenture may be entered into by the Company and the Trustee
without the consent of any Holders of the Securities to establish the form
and terms of the Securities of any series; and

         WHEREAS, the Company and the Trustee entered into a First
Supplemental Indenture, dated as of September 1, 1998 (the "FIRST
SUPPLEMENTAL INDENTURE"), pursuant to which the Company issued Remarketed
Notes Due 2038 with an aggregate principal amount of $150,000,000; and

         WHEREAS, the Company has requested the Trustee to join with it in
the execution and delivery of this Second Supplemental Indenture in order to
supplement and amend the Original Indenture by, among other things,
establishing the form and terms of one series of Securities to be known as
the Company's "7% Remarketable or Redeemable Securities Due 2015" (the
"NOTES") and amending and adding certain provisions thereof for the benefit
of the Holders of the Notes; and

         WHEREAS, the Company and the Trustee desire to enter into this
Second Supplemental Indenture for the purposes set forth in Sections 201 and
901 of the Original Indenture as referred to above; and

         WHEREAS, the Company has furnished the Trustee with a Board
Resolution authorizing the execution of this Second Supplemental Indenture;
and

         WHEREAS, all things necessary to make this Second Supplemental
Indenture a valid agreement of the Company and the Trustee and a valid
supplement to the Original Indenture have been done,

         NOW, THEREFORE, THIS SECOND SUPPLEMENTAL INDENTURE WITNESSETH:

         For and in consideration of the premises and the purchase of the
Notes to be issued hereunder by holders thereof, the Company and the Trustee
mutually covenant and agree, for the equal and proportionate benefit of the
respective holders from time to time of the Notes, as follows: <PAGE>

                                  ARTICLE ONE

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

         SECTION 101. DEFINITIONS

         All capitalized terms that are used herein and not otherwise defined
herein shall have the meanings assigned to them in the Original Indenture.
The Original Indenture together with this Second Supplemental Indenture are
hereinafter sometimes collectively referred to as the "INDENTURE."

         "APPLICABLE SPREAD" shall mean the lowest bid indication, expressed
as a spread (in the form of a percentage or in basis points) above the Base
Rate, obtained by the Callholder on the applicable Determination Date from
the bids quoted by up to five Reference Corporate Dealers for the full
aggregate outstanding principal amount of the Notes at the Dollar Price, but
assuming (i) a settlement date that is the applicable ROARS Remarketing Date,
with settlement on such date without accrued interest, (ii) a maturity date
equal to the next succeeding Interest Rate Adjustment Date of the Notes,
(iii) a stated annual interest rate, payable semiannually on each Interest
Payment Date, equal to the Base Rate plus the spread bid by the applicable
Reference Corporate Dealer, and (iv) the benefit of any credit support
provided by the Company, if the Company elects to provide credit support. If
fewer than five Reference Corporate Dealers bid as described above, then the
Applicable Spread shall be the lowest of such bid indications obtained as
described above. The ROARS Coupon Reset Rate announced by the Callholder,
absent manifest error, shall be binding and conclusive upon the Beneficial
Owners and holders of the Notes, the Company and the Trustee.

         "BASE RATE" shall mean the interest rate established by the
Callholder, after consultation with the Company, as the applicable "base
rate" at commencement of the applicable ROARS Mode.

         "BENEFICIAL OWNER" shall mean, for Notes in book-entry form, the
Person who acquires an interest in the Notes, which is reflected on the
records of the Depositary through its participants.

         "BOND EQUIVALENT YIELD" shall have the meaning specified in Section
206(b)(6) hereof.

         "BUSINESS DAY" shall mean any day other than a Saturday or Sunday
that is (a) neither a legal holiday nor a day on which banking institutions
are authorized or required by law or regulations to close (x) in the City of
New York or (y) for Notes denominated in a specified currency other than U.S.
dollars, Australian dollars or Euro, in the principal financial center of the
country of the specified currency or (z) for Notes denominated in Australian
dollars, in Sydney and (b) for Notes denominated in Euro, that is also a day
on which the Trans-European Automated Real-time Gross Settlement Express
Transfer System, commonly referred to as "TARGET", is operating.

         "CALCULATION AGENT" shall have the meaning specified in Section
206(a) hereof.

         "CALCULATION DATE" shall have the meaning specified in Section
206(a) hereof.

                                      -2-
<PAGE>

         "CALLHOLDER" shall mean the remarketing agent granted the option
under a ROARS Remarketing Agreement to purchase Notes in the ROARS Mode and
subsequently remarket the repurchased Notes at a ROARS Coupon Reset Rate.

         "CD RATE" shall have the meaning specified in Section 206(b)(1)
hereof.

         "CMT RATE" shall have the meaning specified in Section 206(b)(2)
hereof.

         "COMMERCIAL PAPER TERM MODE" shall mean, with respect to any Note,
the Interest Rate Mode in which the interest rate on such Note is reset on a
periodic basis that shall not be less than one calendar day nor more than 364
consecutive calendar days and interest is paid as provided for such Interest
Rate Mode in Section 204(e)(1) hereof.

         "COMMERCIAL PAPER TERM PERIOD" shall mean, with respect to any Note,
the Interest Rate Period in the Commercial Paper Term Mode that is a period
of not less than one nor more than 364 consecutive calendar days, as
determined by the Company or, if not so determined, by the Remarketing Agent
for such Note (in its best judgment in order to obtain the lowest interest
cost for the Note). Each Commercial Paper Term Period will commence on the
Interest Rate Adjustment Date therefor and end on the day preceding the date
specified by such Remarketing Agent as the first day of the next Interest
Rate Period for the Notes. The interest rate for any Commercial Paper Term
Period relating to any Note will be determined not later than 11:50 a.m., New
York City time, on the Interest Rate Adjustment Date for the Note, which is
the first day of each Interest Rate Period for such Note.

         "COMPARABLE TREASURY ISSUES" shall mean the United States Treasury
security or securities selected by the Callholder as having an actual or
interpolated maturity or maturities comparable or applicable to the remaining
term to the next succeeding Interest Rate Adjustment Date of the Notes being
purchased, except that for the purposes of determining the initial ROARS
Coupon Reset Rate, Comparable Treasury Issues shall mean the United States
Treasury security or securities selected by the Callholder as being the
current on-the-run ten year United States Treasury security.

         "COMPARABLE TREASURY PRICE" shall mean, with respect to the ROARS
Remarketing Date, (a) the offer prices for the Comparable Treasury Issues
(expressed in each case as a percentage of its principal amount) at 11:00
a.m. on the Determination Date, as set forth on Telerate Page 500 (or such
other page as may replace Telerate Page 500) or (b) if such page (or any
successor page) is not displayed or does not contain such offer prices on
such Determination Date, (i) the average of the Reference Treasury Dealer
Quotations for such ROARS Remarketing Date, after excluding the highest and
lowest of such Reference Treasury Dealer Quotations, or (ii) if the
Callholder obtains fewer than four such Reference Treasury Dealer Quotations,
the average of all such Reference Treasury Dealer Quotations. "TELERATE PAGE
500" shall mean the display designated as "Telerate Page 500" on Dow Jones
Markets (or such other page as may replace Telerate Page 500 on such service)
or such other service displaying the offer prices specified in (a) above as
may replace Dow Jones Markets.

         "DEPOSITARY" shall have the meaning specified in Section 203 hereof.

                                      -3-
<PAGE>

         "DESIGNATED CMT TELERATE PAGE" shall mean the display on the Dow
Jones Markets (or any successor service) on the page specified in the
applicable Floating Interest Rate Notice (or any other page as may replace
such page on such service for the purpose of displaying Treasury Constant
Maturities as reported in H.15(519)) for the purpose of displaying Treasury
Constant Maturities as reported in H.15(519). If no such page is specified in
the applicable Floating Interest Rate Notice, the page shall be 7052 for the
most recent week.

         "DESIGNATED CMT MATURITY INDEX" shall mean the original period to
maturity of the United States Treasury securities (either 1, 2, 3, 5, 7, 10,
20 or 30 years) specified in the applicable Floating Interest Rate Notice
with respect to which the CMT Rate will be calculated. If no such maturity is
specified in the applicable Floating Interest Rate Notice, the Designated CMT
Maturity Index shall be 2 years.

         "DESIGNATED LIBOR PAGE" shall mean (a) if "LIBOR Reuters" is
specified in the applicable Floating Interest Rate Notice, the display on the
Reuters Monitor Money Rates Service for the purpose of displaying the London
interbank rates of major banks for the applicable Index Currency, or (b) if
"LIBOR Telerate" is specified in the applicable Floating Interest Rate
Notice, the display on the Bridge Telerate, Inc. (or any successor service)
on the page specified in the applicable Floating Interest Rate Notice (or any
other page as may replace such page on such service) for the purpose of
displaying the London interbank rates of major banks for the applicable Index
Currency.

         "DETERMINATION DATE" shall mean the third Business Day immediately
preceding the applicable ROARS Remarketing Date.

         "DOLLAR PRICE" shall mean the present value determined by the
Callholder, as of the applicable ROARS Remarketing Date, of the Remaining
Scheduled Payments discounted to such ROARS Remarketing Date, on a semiannual
basis (assuming a 360-day year consisting of twelve 30-day months), at the
Treasury Rate.

         "DTC PARTICIPANT" shall mean an account maintained by an institution
with the Depositary through which securities are held by such institution and
accounted for by a book-entry registration and transfer system.

         "FEDERAL FUNDS RATE" shall have the meaning specified in Section
206(b)(3) hereof.

         "FLOATING INTEREST RATE NOTICE" shall have the meaning specified in
Section 206(a) hereof. The form of Floating Rate Interest Notice is set forth
as EXHIBIT C to this Second Supplemental Indenture.

         "FLOATING RATE MAXIMUM INTEREST RATE" and "FLOATING RATE MINIMUM
INTEREST RATE" have the respective meanings specified in Section 206(a)
hereof.

         "H.15(519)" shall mean "Statistical Release H.15(519), Selected
Interest Rates" published by the Board of Governors of the Federal Reserve
System or any successor publication.

                                      -4-
<PAGE>

         "INDEX CURRENCY" shall mean the currency or composite currency
specified in the applicable Floating Interest Rate Notice as to which LIBOR
will be calculated. If no such currency or composite currency is specified in
the applicable Floating Interest Rate Notice, the Index Currency will be
United States dollars.

         "INDEX MATURITY" shall mean the period to maturity of the instrument
or obligation with respect to which the related Interest Rate Basis or Bases
will be calculated.

         "INITIAL INTEREST RATE" shall mean the annual rate of interest
applicable to the Notes during the Initial Interest Rate Period.

         "INITIAL INTEREST RATE PERIOD" shall mean the period from the
Original Issue Date to, but excluding, Initial ROARS Remarketing Date.

         "INITIAL CALLHOLDER" shall mean the Callholder with the option to
purchase the Notes on the Initial ROARS Remarketing Date.

         "INITIAL ROARS REMARKETING DATE" shall mean the date designated by
the Initial Callholder, after consultation with the Company, upon which the
Initial Callholder may, if it has so elected, remarket the Notes at the ROARS
Coupon Reset Rate.

         "INTEREST DETERMINATION DATE" shall have the meaning specified in
Section 206(a) hereof.

         "INTEREST PAYMENT DATE" shall have the meaning set forth in Section
204(c) hereof.

         "INTEREST RATE ADJUSTMENT DATE" shall mean (i) for a particular
Interest Rate Period in any Interest Rate Mode, each date, which shall be a
Business Day, on which interest and, in the case of a floating interest rate,
the Spread (if any) and the Spread Multiplier (if any) on the Notes subject
thereto commences to accrue at the rate determined and announced by the
applicable Remarketing Agent for such Interest Rate Period, and (ii) for
Notes in the Initial Interest Rate Period, the Original Issue Date.

         "INTEREST RATE BASIS" shall have the meaning specified in Section
206(a) hereof.

         "INTEREST RATE MODE" shall mean the mode in which the interest rate
on a Note is being determined, I.E., the Commercial Paper Term Mode, the Long
Term Rate Mode or the ROARS Mode.

         "INTEREST RATE PERIOD" shall mean (a) with respect to any Note in
the Commercial Paper Term Mode or Long Term Rate Mode, the period of time
commencing on the Interest Rate Adjustment Date and extending either (i) to,
but not including, the immediately succeeding Interest Rate Adjustment Date
or (ii) if there is no succeeding Interest Rate Adjustment Date, to, but not
including, the Stated Maturity, and during which such Note bears interest at
a particular fixed interest rate or floating interest rate, and (b) with
respect to any Note in the ROARS Mode, the ROARS Rate Period.

                                      -5-
<PAGE>

         "INTEREST RESET DATE" and "INTEREST RESET PERIOD" have the
respective meanings specified in Section 206(a) hereof.

         "LIBOR" shall have the meaning specified in Section 206(b)(4) hereof.

         "LONDON BUSINESS DAY" shall mean any day on which dealings in
deposits in the relevant index currency are transacted in the London
interbank market.

         "LONG TERM RATE MODE" shall mean, with respect to any Note, the
Interest Rate Mode in which the interest rate on such Note is reset in a Long
Term Rate Period and interest is paid as provided for such Interest Rate Mode
in Section 204(e)(2) hereof.

         "LONG TERM RATE PERIOD" shall mean, with respect to any Note, any
period of more than 364 days and not exceeding the remaining term to the
Stated Maturity of such Note.

         "NOTIFICATION DATE" shall mean a Business Day not later than five
(5) Business Days prior to the applicable ROARS Remarketing Date.

         "OPTIONAL REDEMPTION" shall mean the redemption of any Note prior to
its maturity at the option of the Company as described herein.

         "OPTIONAL REDEMPTION PRICE" shall have the meaning specified in
Section 305(c) hereof.

         "ORIGINAL ISSUE DATE" shall mean the date upon which the Notes are
initially issued by the Company, such date to be set forth on the face of the
Note.

         "PRIME RATE" shall have the meaning specified in Section 206(b)(5)
hereof.

         "REFERENCE CORPORATE DEALERS" shall mean such corporate dealers as
shall be appointed by the Callholder after consultation with the Company.

         "REFERENCE TREASURY DEALERS" shall mean such treasury dealers as
shall be appointed by the Callholder after consultation with the Company.

         "REFERENCE TREASURY DEALER QUOTATION" shall mean, with respect to
each Reference Treasury Dealer and the ROARS Remarketing Date, the offer
prices for the Comparable Treasury Issues (expressed in each case as a
percentage of its principal amount) quoted in writing to the Callholder by
such Reference Treasury Dealer by 3:30 p.m., New York City time, on the
Determination Date.

         "REMAINING SCHEDULED PAYMENTS" shall mean, with respect to the
Notes, the remaining scheduled payments of the principal thereof and interest
thereon, calculated at the Base Rate only, that would be due after the ROARS
Remarketing Date to and including the next succeeding Interest Rate
Adjustment Date.

         "REMARKETING AGENT" shall mean such agent or agents, including any
standby remarketing agent (each a "STANDBY REMARKETING AGENT"), as the
Company may appoint from time to time for

                                      -6-
<PAGE>

the purpose of remarketing of the Notes, as set forth in the remarketing
agreement that the Company shall enter into prior to the remarketing of such
Notes.

     "ROARS COUPON RESET RATE" shall mean the rate equal to the Base Rate
established by a Callholder, after consultation with the Company, at or prior
to the commencement of the applicable ROARS Mode, plus the Applicable Spread,
which will be based on the Dollar Price.

     "ROARS MODE" shall mean, with respect to any Note, the Interest Rate
Mode in which such Note shall bear interest and be subject to remarketing as
"Remarketable or Redeemable Securities" ("ROARS") as provided for in Article
Three hereof.

     "ROARS PERIOD" shall mean, with respect to any Note remarketed by the
Initial Callholder on the Initial ROARS Remarketing Date, that portion of the
ROARS Rate Period commencing on the Initial ROARS Remarketing Date up to, but
excluding, the next succeeding Interest Rate Adjustment Date.

     "ROARS RATE PERIOD" shall mean an Interest Rate Period for any Note in
the ROARS Mode established by the Company as a period of more than 364 days
and less than the remaining term to the Stated Maturity of such Note;
PROVIDED, HOWEVER, that such Interest Rate Period must end on the day prior
to an Interest Payment Date for such Note. The ROARS Rate Period shall
consist of the period to and excluding the ROARS Remarketing Date and the
period from and including the ROARS Remarketing Date to, but excluding, the
next succeeding Interest Rate Adjustment Date.

     "ROARS REMARKETING AGREEMENT" shall mean the agreement by and between
the Company and the Callholder dated as of the date commencing the applicable
ROARS Rate Period that sets forth the rights and obligations of the Company
and the Callholder with respect to the remarketing of Notes in the ROARS Mode.

     "ROARS REMARKETING DATE" shall mean the date designated by the
Callholder, after consultation with the Company, upon which the Callholder
may elect to remarket the Notes at the ROARS Coupon Reset Rate.

     "REUTERS SCREEN U.S. PRIME 1 PAGE" shall mean the display designated as
page "U.S. PRIME 1" on the Reuters Monitor Money Rates Service (or any
successor service) on the U.S. PRIME 1 Page (or such other page as may
replace the U.S. PRIME 1 Page on such service) for the purpose of displaying
prime rates or base lending rates of major United States banks.

     "SPECIAL INTEREST RATE" shall have the meaning set forth in Section 205
hereof.

     "SPECIAL MANDATORY PURCHASE" shall have the meaning specified in Section
210(a) hereof.

     "SPREAD" shall mean the number of basis points to be added to or
subtracted from the related Interest Rate Basis or Bases applicable to an
Interest Rate Period for such Note.

                                      -7-
<PAGE>

     "SPREAD MULTIPLIER" shall mean the percentage of the related Interest
Rate Basis or Bases applicable to an Interest Rate Period by which such
Interest Rate Basis or Bases will be multiplied to determine the applicable
interest rate from time to time for an Interest Rate Period.

     "STATED MATURITY" shall mean October 1, 2015.

     "TREASURY BILLS" shall have the meaning specified in Section 206(b)(6)
hereof.

     "TREASURY RATE" shall have the meaning specified in Section 206(b)(6)
hereof, except that with respect to the Initial ROARS Remarketing Date,
"Treasury Rate" shall mean the rate per annum equal to the semi-annual
equivalent yield to maturity of the Comparable Treasury Issues, assuming a
price for the Comparable Treasury Issues (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for the Initial
ROARS Remarketing Date..

     "WEEKLY RATE PERIOD" shall have the meaning specified in Section
204(e)(1) hereof.

         SECTION 102.  SECTION REFERENCES

         Each reference to a particular section set forth in this Second
Supplemental Indenture shall, unless the context otherwise requires, refer to
this Second Supplemental Indenture.

                                  ARTICLE TWO

                       DESIGNATION AND TERMS OF THE NOTES

         SECTION 201.  ESTABLISHMENT OF SERIES

         There is hereby created a series of Securities to be known and
designated as the "7% Remarketable or Redeemable Securities Due 2015" (the
"NOTES"), which shall rank equally with each other and all other unsecured
and unsubordinated indebtedness of the Company. For the purposes of the
Original Indenture, the Notes shall constitute a single series of Securities.

         SECTION 202.  VARIATIONS IN TERMS OF NOTES

         Subject to the terms and conditions set forth in the Original
Indenture and in this Second Supplemental Indenture, the terms of any
particular Note may vary from the terms of any other Note as contemplated by
Section 301 of the Original Indenture, and the terms for a particular Note
will be set forth in such Note as delivered to the Trustee or an
Authenticating Agent for authentication pursuant to Section 303 of the
Original Indenture.

         SECTION 203.  AMOUNT AND DENOMINATIONS; THE DEPOSITARY

         The aggregate principal amount of Notes that may be issued under
this Second Supplemental Indenture is limited to $200,000,000.

         The Notes shall be issuable only in fully registered form and will
initially be registered in the name of The Depository Trust Company or its
successor ("DEPOSITARY"), or its nominee who is

                                      -8-
<PAGE>

hereby designated as "U.S. Depositary" under the Original Indenture. The
authorized denominations of Notes shall be $100,000 and integral multiples of
$1,000 in excess thereof.

         SECTION 204.  INTEREST RATES, INTEREST PAYMENT DATES AND INTEREST RATE
                       PERIODS

         (a) INITIAL INTEREST RATE. The Notes shall initially bear interest
at the annual rate set forth in Annex A thereof (the "INITIAL INTEREST RATE")
from the Original Issue Date to, but excluding, the Initial ROARS Remarketing
Date.

         (b) INTEREST RATE(S) SUBSEQUENT TO THE INITIAL INTEREST RATE. If the
Initial Callholder elects to purchase the Notes as described in Section 304
hereof, the Notes shall be subject to mandatory tender to the Initial
Callholder on the Initial ROARS Remarketing Date, except in the limited
circumstances described in Section 304 hereof, and shall for the ROARS Period
bear interest at the ROARS Coupon Reset Rate as described in Section 304(b)
hereof.

         If the Initial Callholder does not purchase the Notes on the Initial
ROARS Remarketing Date, thereafter each Note shall bear interest at a rate or
rates in a new ROARS Mode, a Long Term Rate Mode or a Commercial Paper Term
Mode if remarketed as provided for in Section 209 hereof, or otherwise shall
be redeemed by the Company as provided for under Section 210(b) hereof. Each
Note may bear interest for designated Interest Rate Periods in the same or a
different Interest Rate Mode from other Notes. The interest rate for the
Notes shall be established periodically by the applicable Remarketing Agent
as provided for in Section 209 hereof. Each Note will set forth on Annex A
thereof the then applicable Interest Rate Mode of such Note, its interest
rate, each Interest Rate Adjustment Date, the Interest Rate Period and such
other information indicated in the form of Annex A attached to EXHIBIT A
hereto.

         (c) PAYMENT OF INTEREST. Interest shall be payable on any Note at
maturity and (i) for the Initial Interest Rate Period, on the dates set forth
on the face thereof; (ii) for any Interest Rate Period in the Commercial
Paper Term Mode, on the Interest Rate Adjustment Date commencing the next
succeeding Interest Rate Period for such Note and on such other dates (if
any) as shall be established upon conversion of such Note to the Commercial
Paper Term Mode or upon remarketing of the Note in a new Interest Rate Period
in the Commercial Paper Term Mode and set forth in Annex A to the applicable
Note; and (iii) in the Long Term Rate Mode or ROARS Mode, no less frequently
than semiannually on such dates as will be established upon conversion of
such Note to the Long Term Rate Mode or the ROARS Mode (or upon remarketing
of the Note in a new Interest Rate Period in the Long Term Rate Mode or the
ROARS Mode, as the case may be) and set forth in Annex A to the applicable
Note in the case of a fixed interest rate, or as described below in Section
206 in the case of a floating interest rate, and on the Interest Rate
Adjustment Date commencing the next succeeding Interest Rate Period (each
such date, an "INTEREST PAYMENT DATE"). Such interest will be payable to the
holder thereof as of the related Record Date, which, for any Note (x) during
the Initial Interest Rate Period is the fifteenth calendar day (whether or
not a Business Day) immediately preceding the related Interest Payment Date,
except that the Record Date for the October 1, 2000 interest payment shall be
the day on which the Company delivers the Notes; (y) in the Commercial Paper
Term Mode, is the Business Day prior to the related Interest Payment Date;
and (z) in the Long Term Rate Mode or the ROARS Mode, is the fifteenth
calendar day (whether or not a Business Day) immediately

                                      -9-
<PAGE>

preceding the related Interest Payment Date. If any Interest Payment Date
would otherwise be a day that is not a Business Day, such Interest Payment
Date will be postponed to the next succeeding Business Day, and no interest
will accrue on such payment for the period from and after such Interest
Payment Date to the date of such payment on the next succeeding Business Day.

         (d) COMPUTATION OF INTEREST. Interest on Notes bearing interest in
the Commercial Paper Term Mode or at a floating interest rate during an
Interest Rate Period in the Long Term Rate Mode or the ROARS Mode will be
computed on the basis of actual days elapsed over 360; PROVIDED that, if an
applicable Interest Rate Basis is the CMT Rate or Treasury Rate (each as
defined in Section 206 hereof), interest will be computed on the basis of
actual days elapsed over the actual number of days in the year. Interest on
Notes bearing interest at a fixed rate in the Long Term Rate Mode or ROARS
Mode will be computed on the basis of a year of 360 days consisting of twelve
30-day months. Interest on Notes at the Initial Interest Rate will be
computed on the basis of a year of 360 days consisting of twelve 30-day
months.

         (e) INTEREST RATE MODES. The Interest Rate Period for each interest
rate mode shall be determined in accordance with this subsection (e) subject
to possibility of extension of such period pursuant to standby remarketing
arrangements, if any, as described in Section 209(b) hereof.

                  (1) COMMERCIAL PAPER TERM MODE. The Interest Rate Period
for any Note in the Commercial Paper Term Mode will be a period of not less
than one nor more than 364 consecutive calendar days (a "COMMERCIAL PAPER
TERM PERIOD"), as determined by the Company (as described in Section 207
below) or, if not so determined, by the Remarketing Agent for such Note (in
its best judgment in order to obtain the lowest interest cost for such Note).
Each Commercial Paper Term Period will commence on the Interest Rate
Adjustment Date therefor and end on the day preceding the date specified by
such Remarketing Agent as the first day of the next Interest Rate Period for
such Note. A "WEEKLY RATE PERIOD" is a Commercial Paper Term Period and shall
be a period of seven days commencing on any Interest Rate Adjustment Date and
ending on the day preceding the first day of the next Interest Rate Period
for such Note. The interest rate for any Commercial Paper Term Period
relating to a Note shall be determined not later than 11:50 a.m., New York
City time, on the Interest Rate Adjustment Date for such Note (subject to
Section 209 hereof), which is the first day of each Interest Rate Period for
such Note.

                  (2) LONG TERM RATE MODE. The Interest Rate Period for any
Note in the Long Term Rate Mode shall be established by the Company (as
described in Section 207 hereof) as a period of more than 364 days and not
exceeding the remaining term to the Stated Maturity of such Note (a "LONG
TERM RATE PERIOD"). The interest rate, or Spread (if any) and Spread
Multiplier (if any), for any Note in the Long Term Rate Mode shall be
determined not later than 11:50 a.m., New York City time, on the Interest
Rate Adjustment Date for such Note, which is the first day of each Interest
Rate Period for such Note.

                  (3) ROARS MODE. So long as any Note is in a ROARS Mode
during the period up to, but excluding, the applicable ROARS Remarketing
Date, the provisions set forth in this Article Two

                                      -10-
<PAGE>

are applicable to the remarketing of Notes generally, but only to the extent
expressly provided in Article Three. The Interest Rate Period for any Note in
the ROARS Mode shall be established by the Company (as described in Section
207 hereof) as a period of more than 364 days and not exceeding the remaining
term to the Stated Maturity of such Note (a "ROARS RATE PERIOD"). A ROARS
Rate Period shall consist of the period to and excluding the ROARS
Remarketing Date and the period from and including the ROARS Remarketing Date
to, but excluding, the next succeeding Interest Rate Adjustment Date, as
described in Article Three and subject to the conditions therein and
otherwise herein described. The interest rate and, in the case of a floating
interest rate, the Spread (if any), and the Spread Multiplier (if any) to the
ROARS Remarketing Date for any Note in the ROARS Mode shall be determined not
later than 11:50 a.m., New York City time, on the Interest Rate Adjustment
Date for such Note, which for the ROARS Mode is the first day of each
Interest Rate Period for such Note.

     SECTION 205. DETERMINATION OF INTEREST RATES

         The interest rate and, in the case of a floating interest rate, the
Spread (if any), and the Spread Multiplier (if any), for any Note shall be
established by the applicable Remarketing Agent in a remarketing as provided
for in Section 207 hereof or otherwise not later than the first day of each
succeeding Interest Rate Period for such Note, which must be a Business Day
(each an "INTEREST RATE ADJUSTMENT DATE"), and will be the minimum rate of
interest and, in the case of a floating interest rate, Spread (if any) and
Spread Multiplier (if any) necessary in the judgment of such Remarketing
Agent to produce a par bid in the secondary market for such Note on the date
the interest rate is established. Such rate will be effective for the next
succeeding Interest Rate Period for such Note commencing on such Interest
Rate Adjustment Date.

         In the event that (i) the applicable Remarketing Agent has been
removed or has resigned and no successor has been appointed; or (ii) such
Remarketing Agent has failed to announce the appropriate interest rate,
Spread (if any) or Spread Multiplier (if any), as the case may be, on the
Interest Rate Adjustment Date for any Note for whatever reason; or (iii) the
appropriate interest rate, Spread (if any) or Spread Multiplier (if any), as
the case may be, or Interest Rate Period cannot be determined for any Note
for whatever reason, then the next succeeding Interest Rate Period for such
Note shall be automatically converted to a Weekly Rate Period, and the rate
of interest thereon will be equal to the Federal Funds Rate (such rate of
interest being referred to herein as the "SPECIAL INTEREST RATE").

         After any Interest Rate Adjustment Date any Beneficial Owner may
contact the Trustee or the Remarketing Agent in order to be advised of the
interest rate applicable to such Beneficial Owner's remarketed Notes. No
notice of the applicable interest rate will be sent to Beneficial Owners.

         The interest rate and other terms announced by the Remarketing
Agent, absent manifest error, shall be binding and conclusive upon the
Beneficial Owners, the Company and the Trustee.

                                      -11-
<PAGE>

     SECTION 206. Election and Determination of a Floating Interest Rate by the
                  Company

         (a) While any Note bears interest in the Long Term Rate Mode or the
ROARS Mode (with respect to the period from, and including, the Interest Rate
Adjustment Date commencing such period to, but excluding, the ROARS
Remarketing Date), the Company may elect a floating interest rate by
providing notice, which shall be submitted or promptly confirmed in writing
(which includes facsimile or appropriate electronic media), received by the
Trustee and the Remarketing Agent for such Note (the "FLOATING INTEREST RATE
NOTICE") not less than ten (10) days prior to the Interest Rate Adjustment
Date for such Long Term Rate Period or ROARS Rate Period. The Floating
Interest Rate Notice must identify by CUSIP number or otherwise the portion
of the Note to which it relates and state the Interest Rate Period (or
portion thereof, in the case of the ROARS Mode) therefor to which it relates.
Each Floating Interest Rate Notice must also state the Interest Rate Basis or
Bases, the initial Interest Reset Date, the Interest Reset Period and
Interest Reset Dates, the Interest Rate Period and Interest Payment Dates,
the Index Maturity and the Floating Rate Maximum Interest Rate and/or
Floating Rate Minimum Interest Rate, if any. If one or more of the applicable
Interest Rate Bases is LIBOR or the CMT Rate, the Floating Interest Rate
Notice shall also specify the Index Currency and Designated LIBOR Page or the
Designated CMT Maturity Index and Designated CMT Telerate Page, respectively.
A form of Floating Interest Rate Notice is attached hereto as EXHIBIT C.

         If any Note bears interest at a floating rate in a Long Term Rate
Period or ROARS Rate Period, such Note shall bear interest at the rate
determined by reference to the applicable Interest Rate Basis or Bases (a)
plus or minus the Spread (if any) and/or (b) multiplied by the Spread
Multiplier (if any) specified by the Remarketing Agent, in the case of a Long
Term Rate Period, or the Callholder, in the case of a ROARS Rate Period.
Commencing on the Interest Rate Adjustment Date for such Interest Rate
Period, the rate at which interest on such Note will be payable shall be
reset as of each Interest Reset Date during such Interest Rate Period
specified in the applicable Floating Interest Rate Notice.

         The applicable floating interest rate on any Note during any
Interest Rate Period shall be determined by reference to the applicable
Interest Rate Basis or Bases, which may include (i) the CD Rate, (ii) the CMT
Rate, (iii) the Federal Funds Rate, (iv) LIBOR, (v) the Prime Rate, (vi) the
Treasury Rate or (vii) such other Interest Rate Basis or interest rate
formula as may be specified in the applicable Floating Interest Rate Notice
(each, an "INTEREST RATE BASIS").

         Unless otherwise specified in the applicable Floating Interest Rate
Notice, the interest rate with respect to each Interest Rate Basis shall be
determined in accordance with the applicable provisions of this Section 206.
Except as set forth above or in the applicable Floating Interest Rate Notice,
the interest rate in effect on each day shall be (i), if such day is an
Interest Reset Date, the interest rate determined as of the Interest
Determination Date immediately preceding such Interest Reset Date or (ii), if
such day is not an Interest Reset Date, the interest rate determined as of
the Interest Determination Date immediately preceding the most recent
Interest Reset Date. If any Interest Reset Date would otherwise be a day that
is not a Business Day, such Interest Reset Date shall be postponed to the
next succeeding Business Day, unless LIBOR is an applicable Interest Rate
Basis and such Business Day falls in the next succeeding calendar month, in
which case such Interest Reset Date shall be the immediately preceding
Business Day. In addition, if the Treasury Rate is an applicable Interest
Rate Basis and the Interest

                                      -12-
<PAGE>

Determination Date would otherwise fall on an Interest Reset Date, then such
Interest Reset Date shall be postponed to the next succeeding Business Day.

         The applicable Floating Interest Rate Notice will specify whether
the rate of interest will be reset daily, weekly, monthly, quarterly,
semiannually or annually or on such other specified basis (each, an "INTEREST
RESET PERIOD") and the dates on which such rate of interest will be reset
(each, an "INTEREST RESET DATE"). Unless otherwise specified in the
applicable Floating Interest Rate Notice, the Interest Reset Dates will be,
in the case of a floating interest rate which resets: (i) daily, each
Business Day; (ii) weekly, the Wednesday of each week (unless the Treasury
Rate is an applicable Interest Rate Basis, in which case the Tuesday of each
week except as described below); (iii) monthly, the third Wednesday of each
month; (iv) quarterly, the third Wednesday of March, June, September and
December of each year; (v) semiannually, the third Wednesday of the two
months specified in the applicable Floating Interest Rate Notice; and (vi)
annually, the third Wednesday of the month specified in the applicable
Floating Interest Rate Notice.

         The interest rate applicable to each Interest Reset Period
commencing on the related Interest Reset Date shall be the rate determined as
of the applicable Interest Determination Date. The "INTEREST DETERMINATION
DATE" shall mean (i), with respect to the CD Rate, the CMT Rate, the Federal
Funds Rate and the Prime Rate, the second Business Day immediately preceding
the applicable Interest Reset Date; (ii) with respect to LIBOR, the second
London Business Day immediately preceding the applicable Interest Reset Date,
unless the Index Currency is British pounds sterling, in which case it shall
mean the applicable Interest Reset Date; and (iii) with respect to the
Treasury Rate, the day within the week in which the applicable Interest Reset
Date falls upon which day Treasury Bills are normally auctioned; PROVIDED,
HOWEVER, that if an auction is held on the Friday of the week preceding the
applicable Interest Reset Date, the "INTEREST DETERMINATION DATE" shall mean
such preceding Friday. If the interest rate of any Note is a floating
interest rate determined with reference to two or more Interest Rate Bases
specified in the applicable Floating Interest Rate Notice, the Interest
Determination Date pertaining to the Note shall be the most recent Business
Day which is at least two Business Days prior to the applicable Interest
Reset Date on which each Interest Rate Basis shall determinable. Each
Interest Rate Basis will be determined as of such date, and the applicable
interest rate shall take effect on the related Interest Reset Date.

         Either or both of the following may also apply to the floating
interest rate on any Note for an Interest Rate Period: (i) a floating rate
maximum interest rate, or ceiling, that may accrue during any Interest Reset
Period (the "FLOATING RATE MAXIMUM INTEREST RATE") and (ii) a floating rate
minimum interest rate, or floor, that may accrue during any Interest Reset
Period (the "FLOATING RATE MINIMUM INTEREST RATE"). In addition to any
Floating Rate Maximum Interest Rate that may apply, the interest rate on any
Note shall in no event be higher than the maximum rate permitted under the
law of the State of New York, as the same may be modified by United States
laws of general application.

         Except as provided below or in the applicable Floating Interest Rate
Notice, interest will be payable, in the case of floating interest rates
which reset: (i) daily, weekly or monthly, on the third Wednesday of each
month; (ii) quarterly, on the third Wednesday of March, June, September and
December of each year; (iii) semiannually, on the third Wednesday of the two

                                      -13-
<PAGE>

months of each year specified in the applicable Floating Interest Rate
Notice; and (iv) annually, on the third Wednesday of the month of each year
specified in the applicable Floating Interest Rate Notice and, in each case,
on the Business Day immediately following the applicable Long Term Rate
Period or ROARS Rate Period, as the case may be. If any Interest Payment Date
for the payment of interest at a floating rate (other than following the end
of the applicable Long Term Rate Period or ROARS Rate Period, as the case may
be) would otherwise be a day that is not a Business Day, such Interest
Payment Date will be postponed to the next succeeding Business Day, except
that if LIBOR is an applicable Interest Rate Basis and such Business Day
falls in the next succeeding calendar month, such Interest Payment Date will
be the immediately preceding Business Day.

         All percentages resulting from any calculation of floating interest
rates will be rounded to the nearest one hundred thousandth of a percentage
point, with five one-millionths of a percentage point rounded upwards (e.g.,
9.876545% (or .09876545) would be rounded to 9.87655% (or .0987655)), and all
amounts used in or resulting from such calculation will be rounded, in the
case of United States dollars, to the nearest cent or, in the case of a
foreign currency or composite currency, to the nearest unit (with one-half
cent or unit being rounded upwards).

         Accrued floating rate interest will be calculated by multiplying the
principal amount of the applicable Note by an accrued interest factor. Such
accrued interest factor will be computed by adding the interest factor
calculated for each day in the applicable Interest Reset Period. Unless
otherwise specified in the applicable Floating Interest Rate Notice, the
interest factor for each such day will be computed by dividing the interest
rate applicable to such day by 360, if an applicable Interest Rate Basis is
the CD Rate, the Federal Funds Rate, LIBOR or the Prime Rate, or by the
actual number of days in the year if an applicable Interest Rate Basis is the
CMT Rate or the Treasury Rate. Unless otherwise specified in the applicable
Floating Interest Rate Notice, if the floating interest rate is calculated
with reference to two or more Interest Rate Bases, the interest factor will
be calculated in each period in the same manner as if only one of the
applicable Interest Rate Bases applied as specified in the applicable
Floating Interest Rate Notice.

         For any Note bearing interest at a floating rate, the applicable
Remarketing Agent shall determine the interest rate in effect from the
Interest Rate Adjustment Date for such Note to the initial Interest Reset
Date. The interest rate in effect for each Interest Reset Period thereafter
shall be determined by a calculation agent selected by the Company (a
"CALCULATION AGENT"). Upon request of the Beneficial Owner of a Note, after
any Interest Rate Adjustment Date, the Calculation Agent or the Remarketing
Agent shall disclose the interest rate and, in the case of a floating
interest rate, Interest Rate Basis or Bases, Spread (if any) and Spread
Multiplier (if any), and in each case the other terms applicable to such Note
then in effect and, if determined, the interest rate that will become
effective as a result of a determination made for the next succeeding
Interest Reset Date with respect to such Note. Except as described herein
with respect to a Note earning interest at floating rates, the Beneficial
Owner of a note shall not be entitled to receive notice of the applicable
interest rate, Spread (if any) or Spread Multiplier (if any).

                                      -14-
<PAGE>

         Unless otherwise specified in the applicable Floating Interest Rate
Notice, the "CALCULATION DATE," if applicable, pertaining to any Interest
Determination Date will be the earlier of (i) the tenth calendar day after
such Interest Determination Date or, if such day is not a Business Day, the
next succeeding Business Day or (ii) the Business Day immediately preceding
the applicable Interest Payment Date or the Stated Maturity, as the case may
be.

         (b) INTEREST RATE BASES FOR FLOATING INTEREST RATES. The basis for
the floating interest rate on any Note during any Interest Rate Period may
include, but is not limited to, any of the following bases (each, an
"INTEREST RATE BASIS"):

                  (1) If an Interest Rate Basis for any Note is specified in
the applicable Floating Interest Rate Notice as the "CD RATE," the CD Rate
shall mean, with respect to any Interest Determination Date relating to a
Note for which the interest rate is determined with reference to the CD Rate
(a "CD RATE INTEREST DETERMINATION DATE"), the rate on such date for
negotiable United States dollar certificates of deposit having the Index
Maturity specified in the applicable Floating Interest Rate Notice as
published in H.15(519) under the heading "CDs (Secondary Market)," or, if not
published by 9:00 a.m., New York City time, on the related Calculation Date,
the CD Rate will be the rate on such CD Rate Interest Determination Date set
forth in the daily update of H.15(519) , available through the world wide
website of the Board of Governors of the Federal Reserve System at
http://www.bog.frb.fed.us/releases/h15/update, or any successor site or
publication ("H.15 Daily Update") for the day in respect of certificates of
deposit having the Index Maturity specified in the applicable Floating
Interest Rate Notice under the caption "CDs (Secondary Market)." If such rate
is not yet published in either H.15(519) or the H.15 Daily Update by 3:00
p.m., New York City time, on the related Calculation Date, then the CD Rate
on such CD Rate Interest Determination Date shall be calculated by the
Calculation Agent and shall be the arithmetic mean of the secondary market
offered rates as of 10:00 a.m., New York City time, on such CD Rate Interest
Determination Date, of three leading nonbank dealers in negotiable United
States dollar certificates of deposit in the City of New York (which may
include the Remarketing Agent or its affiliates) selected by the Calculation
Agent, after consultation with the Company, for negotiable United States
dollars certificates of deposit of major United States money center banks of
the highest credit standing in the market for negotiable certificates of
deposit with a remaining maturity closest to the Index Maturity specified in
the applicable Floating Interest Rate Notice in an amount that is
representative for a single transaction in that market at that time;
PROVIDED, HOWEVER, that if the dealers so selected by the Calculation Agent
are not quoting as mentioned in this sentence, the CD Rate determined as of
such CD Rate Interest Determination Date will be the CD Rate in effect on
such CD Rate Interest Determination Date.

                  (2) If an Interest Rate Basis for any Note is specified in
the applicable Floating Interest Rate Notice as the "CMT RATE," the CMT Rate
shall mean, with respect to any Interest Determination Date relating to a
Note for which the interest rate is determined with reference to the CMT Rate
(a "CMT RATE INTEREST DETERMINATION DATE"), the rate displayed on the
Designated CMT Telerate Page under the caption "...Treasury Constant
Maturities ... Federal Reserve Board Release H.15 ... Mondays Approximately
3:45 P.M.," under the column for the Designated CMT Maturity Index for (i),
if the Designated CMT Telerate Page is 7055, the rate on such CMT Rate
Interest Determination Date and (ii) if the Designated CMT Telerate Page is
7052, the weekly or

                                      -15-
<PAGE>

monthly average, as specified in the Floating Interest Rate Notice, for the
week or the month, as applicable, ended immediately preceding the week or the
month, as applicable, in which the related CMT Rate Interest Determination
Date occurs. If such rate is no longer displayed on the relevant page or is
not displayed by 3:00 p.m., New York City time, on the related Calculation
Date, then the CMT Rate for such CMT Rate Interest Determination Date shall
be such treasury constant maturity rate for the Designated CMT Maturity Index
as published in H.15(519). If such rate is no longer published or is not
published by 3:00 p.m., New York City time, on the related Calculation Date,
then the CMT Rate on such CMT Rate Interest Determination Date shall be such
treasury constant maturity rate for the Designated CMT Maturity Index (or
other United States Treasury rate for the Designated CMT Maturity Index) for
the CMT Rate Interest Determination Date with respect to such Interest Reset
Date as may then be published by either the Board of Governors of the Federal
Reserve System or the United States Department of the Treasury that the
Calculation Agent determines to be comparable to the rate formerly displayed
on the Designated CMT Telerate Page and published in H.15(519). If such
information is not provided by 3:00 p.m., New York City time, on the related
Calculation Date, then the CMT Rate on the CMT Rate Interest Determination
Date shall be calculated by the Calculation Agent and shall be a yield to
maturity, based on the arithmetic mean of the secondary market closing offer
side prices as of approximately 3:30 p.m., New York City time, on such CMT
Rate Interest Determination Date reported, according to their written
records, by three leading primary United States government securities dealers
(each, a "REFERENCE DEALER") in the City of New York (which may include the
Remarketing Agent or its affiliates) selected by the Calculation Agent after
consultation with the Company (from five such Reference Dealers selected by
the Calculation Agent, after consultation with the Company, and eliminating
the highest quotation (or, in the event of equality, one of the highest) and
the lowest quotation (or, in the event of equality, one of the lowest)), for
the most recently issued direct noncallable fixed rate obligations of the
United States ("TREASURY NOTES") with an original maturity of approximately
the Designated CMT Maturity Index and a remaining term to maturity of not
less than such Designated CMT Maturity Index minus one year. If the
Calculation Agent is unable to obtain three such Treasury Note quotations,
the CMT Rate on such CMT Rate Interest Determination Date shall be calculated
by the Calculation Agent and shall be a yield to maturity based on the
arithmetic mean of the secondary market offer side prices as of approximately
3:30 p.m., New York City time, on such CMT Rate Interest Determination Date
of three Reference Dealers in the City of New York (from five such Reference
Dealers selected by the Calculation Agent, after consultation with the
Company, and eliminating the highest quotation (or, in the event of equality,
one of the highest) and the lowest quotation (or, in the event of equality,
one of the lowest)), for Treasury Notes with an original maturity of the
number of years that is the next highest to the Designated CMT Maturity Index
and a remaining term to maturity closest to the Designated CMT Maturity Index
and in an amount of at least U.S. $100 million. If three or four (and not
five) of such Reference Dealers are quoting as described above, then the CMT
Rate shall be based on the arithmetic mean of the offer prices obtained and
neither the highest nor the lowest of such quotes shall be eliminated;
PROVIDED, HOWEVER, that if fewer than three Reference Dealers so selected by
the Calculation Agent, after consultation with the Company, are quoting as
mentioned herein, the CMT Rate determined as of such CMT Rate Interest
Determination Date shall be the CMT Rate in effect on such CMT Rate Interest
Determination Date. If two Treasury Notes with an original maturity as
described in the second preceding sentence have

                                      -16-
<PAGE>

remaining terms to maturity equally close to the Designated CMT Maturity
Index, the Calculation Agent, after consultation with the Company, shall
obtain from five Reference Dealers quotations for the Treasury Note with the
shorter remaining term to maturity.

                  (3) If an Interest Rate Basis for any Note is specified in
the applicable Floating Interest Rate Notice as the "FEDERAL FUNDS RATE," the
Federal Funds Rate shall mean, with respect to any Interest Determination
Date relating to a Note for which the interest rate is determined with
reference to the Federal Funds Rate (a "FEDERAL FUNDS RATE INTEREST
DETERMINATION DATE"), the rate on such date for United States dollar federal
funds as published in H.15(519) under the heading "Federal Funds (Effective)"
as displayed on Bridge Telerate, Inc. (or any successor service) on page 120
or any other page as may replace the applicable page on that service
("Telerate Page 120"). If such rate is not displayed on Telerate Page 120 or
is not published by 9 a.m., New York City time, on the related Calculation
Date, the Federal Funds Rate will be the rate on such Federal Funds Rate
Interest Determination Date as published in the H.15 Daily Update under the
heading "Federal Funds/(Effective)." If no such rate is published in either
H.15(519) or H.15 Daily Update by 3 p.m., New York City time, on the related
Calculation Date, then the Federal Funds Rate on such Federal Funds Rate
Interest Determination Date shall be calculated by the Calculation Agent and
shall be the arithmetic mean of the rates for the last transaction in
overnight United States dollar federal funds arranged by three leading
brokers of federal funds transactions in The City of New York (which may
include the Remarketing Agent or its affiliates) selected by the Calculation
Agent after consultation with the Company, prior to 9:00 a.m., New York City
time, on such Federal Funds Rate Interest Determination Date; PROVIDED,
HOWEVER, that if the brokers so selected by the Calculation Agent are not
quoting as mentioned in this sentence, the Federal Funds Rate determined as
of such Federal Funds Rate Interest Determination Date shall be the Federal
Funds Rate in effect on such Federal Funds Rate Interest Determination Date.

                  (4) If an Interest Rate Basis for any Note is specified in
the applicable Floating Interest Rate Notice as "LIBOR," LIBOR shall mean the
rate determined by the Calculation Agent as of the applicable Interest
Determination Date (a "LIBOR INTEREST DETERMINATION DATE") in accordance with
the following provisions:

                           (i) If (a) "LIBOR Reuters" is specified in the
                  applicable Floating Interest Rate Notice, the arithmetic
                  mean of the offered rates (unless the Designated LIBOR Page
                  by its terms provides only for a single rate, in which case
                  such single rate will be used) for deposits in the Index
                  Currency having the Index Maturity specified in the
                  applicable Floating Interest Rate Notice, commencing on the
                  second London Business Day immediately following such LIBOR
                  Interest Determination Date, that appear on the Designated
                  LIBOR Page as of 11:00 a.m., London time, on that LIBOR
                  Interest Determination Date, if at least two such offered
                  rates appear (unless, as aforesaid, only a single rate is
                  required) on such Designated LIBOR Page, or (b) "LIBOR
                  Telerate" is specified in the applicable Floating Interest
                  Rate Notice, the rate for deposits in the Index Currency
                  having the Index Maturity designated in the applicable
                  Floating Interest Rate Notice, commencing on the second
                  London Business Day immediately following such LIBOR
                  Interest Rate Determination Date, that appears on such
                  Designated
                                      -17-
<PAGE>

                  LIBOR Page as of 11:00 a.m., London time, on that LIBOR
                  Interest Determination Date. If fewer than two such offered
                  rates appear (if "LIBOR Reuters" is specified in the
                  applicable Floating Interest Rate Notice), or if no such
                  rate appears (if "LIBOR Telerate" is specified in the
                  applicable Floating Interest Rate Notice), LIBOR on such
                  LIBOR Interest Determination Date will be determined in
                  accordance with the provisions described below.

                           (ii) With respect to a LIBOR Interest Determination
                  Date on which fewer than two such offered rates appear (if
                  "LIBOR Reuters" is specified in the applicable Floating
                  Interest Rate Notice), or if no such rate appears (if "LIBOR
                  Telerate" is specified in the applicable Floating Interest
                  Rate Notice), the Calculation Agent shall request the
                  principal London offices of each of four major reference
                  banks in the London interbank market, as selected by the
                  Calculation Agent, to provide the Calculation Agent with its
                  offered quotation for deposits in the Index Currency for the
                  period of the Index Maturity specified in the applicable
                  Floating Interest Rate Notice, commencing on the second
                  London Business Day immediately following such LIBOR
                  Interest Determination Date, to prime banks in the London
                  interbank market at approximately 11:00 a.m., London time,
                  on such LIBOR Interest Determination Date and in a principal
                  amount that is representative of a single transaction in
                  such Index Currency in such market at such time.

                           (iii) If at least two such quotations are provided,
                  LIBOR determined on such LIBOR Interest Determination Date
                  will be the arithmetic mean of such quotations, If fewer than
                  two quotations are provided, LIBOR determined on such LIBOR
                  Interest Determination Date will be the arithmetic mean of
                  the rates quoted at approximately 11:00 am (or such other
                  time specified in the applicable Floating Interest Rate
                  Notice), in the applicable principal financial center for the
                  country of the Index Currency on such LIBOR Interest
                  Determination Date, by three major banks in such principal
                  financial center selected by the Calculation Agent for the
                  loans in the Index Currency to leading European banks, having
                  the Index Maturity designated in the applicable Floating
                  Interest Rate Notice and in a principal amount that is
                  representative for a single transaction in such Index
                  Currency in such market at such time; provided, however, that
                  if the banks so selected by the Calculation Agent are not
                  quoting as mentioned in this sentence, LIBOR in effect for
                  the applicable period will be the same as LIBOR for the
                  immediately preceding Interest Reset Period (or, if there was
                  no such Interest Reset Period, the rate of interest payable
                  on the Notes for which such LIBOR is being determined shall
                  be the Initial Interest Rate).

                  (5) If an Interest Rate Basis for any Note is specified in the
applicable Floating Interest Rate Notice as the "PRIME RATE," Prime Rate shall
mean, with respect to any Interest Determination Date relating to a Note for
which the interest rate is determined with reference to the Prime Rate (a "PRIME
RATE INTEREST DETERMINATION DATE"), the rate on such date as such rate is
published in H.15(519) under the heading "Bank Prime Loan." If such rate is not
published prior

                                      -18-
<PAGE>

to 3:00 p.m., New York City time, on the related Calculation Date, then the
Prime Rate shall be the arithmetic mean of the rates of interest publicly
announced by each bank that appears on the Reuters Screen U.S. PRIME 1 Page
(as defined below) as such bank's prime rate or base lending rate as in
effect for such Prime Rate Interest Determination Date. If fewer than four
such rates appear on the Reuters Screen U.S. PRIME 1 Page for such Prime Rate
Interest Determination Date, the Prime Rate shall be the arithmetic mean of
the prime rates quoted on the basis of the actual number of days in the year
divided by a 360-day year as of the close of business on such Prime Rate
Interest Determination Date by four major money center banks (which may
include the Calculation Agent) in the City of New York selected by the
Calculation Agent, after consultation with the Company. If fewer than four
such quotations are so provided, the Prime Rate shall be the arithmetic mean
of four prime rates quoted on the basis of the actual number of days in the
year divided by a 360-day year as of the close of business on such Prime Rate
Interest Determination Date as furnished in the City of New York by the major
money center banks, if any, that have provided such quotations and by as many
substitute banks or trust companies (which may include the Calculation Agent)
as necessary in order to obtain four such prime rate quotations, PROVIDED
such substitute banks or trust companies are organized and doing business
under the laws of the United States, or any State thereof, have total equity
capital of at least U.S. $500 million and are each subject to supervision or
examination by Federal or State authority, selected by the Calculation Agent,
after consultation with the Company, to provide such rate or rates; PROVIDED,
HOWEVER, that if the banks or trust companies so selected by the Calculation
Agent are not quoting as mentioned in this sentence, the Prime Rate
determined as of such Prime Rate Interest Determination Date shall be the
Prime Rate in effect on such Prime Rate Interest Determination Date.

     (6) If an Interest Rate Basis for any Note is specified in the
applicable Floating Interest Rate Notice as the "TREASURY RATE," Treasury
Rate shall mean, with respect to any Interest Determination Date relating to
a Note for which the interest rate is determined with reference to the
Treasury Rate (a "TREASURY RATE INTEREST DETERMINATION DATE"), the following:

                           (i) the rate from the auction held on the applicable
                  Treasury Rate Interest Determination Date (the "AUCTION") of
                  direct obligations of the United States ("TREASURY Bills")
                  having the Index Maturity specified in the applicable
                  Floating Interest Rate Notice that rate appears under the
                  caption "INVESTMENT RATE" on the display of Bridge Telerate,
                  Inc., or any successor service, on page 56 or any other page
                  as may replace page 56 on that service ("TELERATE PAGE 56")
                  or page 57 or any other page as may replace page 57 on that
                  service ("TELERATE PAGE 57"); or

                           (ii) if the rate described above is not published by
                  3:00 p.m., New York City time, on the Calculation Date, the
                  Bond Equivalent Yield of the rate for the applicable Treasury
                  Bills as published in the H.15 Daily Update, or other
                  recognized electronic source used for the purpose of
                  displaying the applicable rate, under the captions "U.S.
                  Government Securities/Treasury Bills/Auction High;" or

                                      -19-
<PAGE>

                           (iii) if the rate described above is not published
                  by 3:00 p.m., New York City time, on the related Calculation
                  Date, the Bond Equivalent Yield of the Auction rate of the
                  applicable Treasury Bills, announced by the United States
                  Department of the Treasury; or

                           (iv) in the event that the rate described above is
                  not announced by the United States Department of the
                  Treasury, or if the Auction is not held, the Bond Equivalent
                  Yield of the rate on the applicable Interest Determination
                  Date of Treasury Bills having the Index Maturity specified
                  in the applicable Floating Interest Rate Notice published in
                  H.15(519) under the caption "U.S. Government
                  Securities/Treasury Bills/Secondary Market;" or

                           (v) if the rate described above is not so published
                  by 3:00 p.m., New York City time, on the related Calculation
                  Date, the rate on the applicable Interest Determination Date
                  of the applicable Treasury Bills as published in H.15 Daily
                  Update, or other recognized electronic source used for the
                  purpose of displaying the applicable rate, under the caption
                  "U.S. Government Securities/Treasury Bills/Secondary Market;"
                  or

                           (vi) if the rate described above is not so published
                  by 3:00 p.m., New York City time, on the related Calculation
                  Date, the rate on the applicable Interest Determination Date
                  calculated by the Calculation Agent as the Bond Equivalent
                  Yield of the arithmetic mean of the secondary market bid
                  rates, as of approximately 3:30 p.m., New York City time, on
                  the applicable Interest Determination Date, of three primary
                  United States government securities dealers, which may include
                  the Calculation Agent or its affiliates, selected by the
                  Calculation Agent, for the issue of Treasury Bills with a
                  remaining maturity closest to the Index Maturity specified in
                  the applicable Floating Interest Rate Notice; or

                           (vii) if the dealers selected by the Calculation
                  Agent are not quoting as described above, the Treasury Rate
                  for the immediately preceding Interest Reset Period, or, if
                  there was no Interest Reset Period, the rate of interest
                  payable shall be the Initial Interest Rate.

         The "BOND EQUIVALENT YIELD" shall mean a yield calculated in accordance
with the following formula and expressed as a percentage:

                  Bond Equivalent Yield =     D x N
                                          -------------
                                          360 - (D x M)

where "D" refers to the applicable per annum rate for Treasury Bills quoted
on a bank discount basis, "N" refers to 365 or 366, as the case may be, and
"M" refers to the actual number of days in the interest period for which
interest is being calculated.

                                      -20-
<PAGE>

         SECTION 207. CONVERSION BETWEEN INTEREST RATE MODES BY THE COMPANY

     The Company may, at its option, convert the Interest Rate Mode of the
Notes upon (i) any Interest Rate Adjustment Date, (ii) election of a
Callholder to remarket the Notes, subject to the provisions of Section 305
hereof, or (iii) failure of the Callholder to purchase the Notes on the
applicable ROARS Remarketing Date as described in Section 304 hereof, in each
case in accordance with the procedures provided for in this Section.

         (a) CONVERSION BETWEEN COMMERCIAL PAPER TERM PERIODS. Each Note in a
Commercial Paper Term Period may be remarketed into the same Interest Rate
Period or converted at the option of the Company to a different Commercial
Paper Term Period on any Interest Rate Adjustment Date upon either receipt by
the Remarketing Agent and the Trustee of a notice, which will be submitted
promptly confirmed in writing (which includes facsimile or appropriate
electronic media), from the Company (a "CONVERSION NOTICE") prior to 9:30
a.m., New York City time, or the remarketing of such Note, whichever occurs
later, on such Interest Rate Adjustment Date.

         (b) CONVERSION FROM THE COMMERCIAL PAPER TERM MODE TO THE LONG TERM
RATE MODE OR THE ROARS MODE. Each Note in the Commercial Paper Term Mode may
be converted at the option of the Company to the Long Term Rate Mode or the
ROARS Mode on any Interest Rate Adjustment Date upon receipt not less than
ten (10) days prior to such Interest Rate Adjustment Date by the Remarketing
Agent and the Trustee of a Conversion Notice from the Company.

         (c) CONVERSION BETWEEN LONG TERM RATE PERIODS OR FROM THE LONG TERM
RATE MODE OR THE ROARS MODE TO THE COMMERCIAL PAPER TERM MODE, LONG TERM RATE
MODE OR THE ROARS MODE. Each Note in a Long Term Rate Period may be
remarketed in the same Interest Rate Period or converted at the option of the
Company to a different Long Term Rate Period or from the Long Term Rate Mode
to the Commercial Paper Term Mode or the ROARS Mode, or from the ROARS Mode
to a different ROARS Mode or to the Long Term Rate Mode or the Commercial
Paper Term Mode, on any Interest Rate Adjustment Date for such Note upon
receipt by the Trustee and the Remarketing Agent for such Note of a
Conversion Notice from the Company not less than ten (10) days prior to such
Interest Rate Adjustment Dates; PROVIDED that the notice required for
conversion from the initial ROARS Mode shall not be required until the latest
of the day after the Initial Callholder fails to notify the Company that it
will purchase the Notes for remarketing, the day the Initial Callholder fails
to so purchase the Notes or the day the Company elects to convert the Notes
to a new Interest Rate Mode after the Initial Callholder has elected to
remarket the Notes.

         (d) CONVERSION NOTICE. Each Conversion Notice must state each Note
to which it relates and the new Interest Rate Mode (if applicable), the new
Interest Rate Period, the date of the applicable conversion (the "CONVERSION
DATE") and, with respect to any Long Term Rate Period, any optional
redemption or repayment terms for each such Note.

         (e) REVOCATION OR CHANGE OF CONVERSION NOTICE OR FLOATING INTEREST
RATE NOTICE. The Company may, upon written notice received by the Trustee and
the applicable Remarketing Agent, revoke any Conversion Notice or Floating
Interest Rate Notice or change the Interest Rate Mode to which such
Conversion Notice relates or change any Floating Interest Rate Notice

                                      -21-
<PAGE>

up to 9:30 a.m., New York City time, on the Conversion Date, subject to the
limitation set forth in subsection (f) of this Section. If the Company
revokes a Conversion Notice or the Trustee and the Remarketing Agent fail to
receive a Conversion Notice from the Company by the specified date in advance
of the Interest Rate Adjustment Date for a Note, the Note shall be converted
automatically to the Weekly Rate Period.

         (f) LIMITATION ON CONVERSION, CHANGE OF CONVERSION NOTICE OR
FLOATING INTEREST RATE NOTICE AND REVOCATION. Notwithstanding the foregoing
subsections (a), (b), (c), (d) and (e), the Company may not, without the
consent of the applicable Remarketing Agent, convert any Note or revoke or
change any Conversion Notice or Floating Interest Rate Notice at or after the
time at which such Remarketing Agent has determined the interest rate, or
Spread (if any) and Spread Multiplier (if any), for any Note being remarketed
(I.E., the time at which such Note has been successfully remarketed, subject
to settlement on the related Interest Rate Adjustment Date). The Remarketing
Agent may advise the Company of indicative rates from time to time, or at any
time upon the request of the Company, prior to making such determination of
the interest rate, Spread or Spread Multiplier, as the case may be.

         SECTION 208. AUTOMATIC TENDER OF NOTES ON THE INTEREST RATE ADJUSTMENT
                      DATE

         Each Note shall be automatically tendered for purchase, or deemed
tendered for purchase, on each Interest Rate Adjustment Date relating
thereto. Notes shall be purchased or redeemed on the Interest Rate Adjustment
Date relating thereto as described in Section 209 or 210 hereof.

         SECTION 209. REMARKETING

         (a) APPOINTMENT OF REMARKETING AGENT. In connection with the
conversion by the Company of any Note as set forth in Section 207 hereof, the
Company shall enter into a remarketing agreement with a Remarketing Agent on
or prior to the remarketing of such Notes, which Remarketing Agent shall be
responsible for the remarketing of such Notes. When any Note is tendered
under Section 208 hereof to the Remarketing Agent for remarketing, the
Remarketing Agent will use its reasonable efforts to remarket such Note on
behalf of the Beneficial Owner thereof at a price equal to 100% of the
principal amount thereof. The Remarketing Agent may purchase tendered Notes
for its own account in a remarketing, but will not be obligated to do so. The
Company may offer to purchase Notes in a remarketing, PROVIDED that the
interest rate established with respect to Notes in such remarketing is not
different from the interest rate that would have been established if the
Company had not purchased such Notes. Any Notes for which the Company shall
have given a notice of redemption to the Trustee and the Remarketing Agent
will not be considered in a remarketing.

         (b) REMARKETING PROCEDURES. With respect to each Note for which
there is to be established an interest rate from time to time by a
Remarketing Agent responsible for the remarketing thereof, such interest rate
shall be set in accordance with the procedures of paragraphs (i) and (ii)
below.

                  (i) DETERMINATION OF INTEREST RATE. By 11:00 a.m., New York
City time, on the Interest Rate Adjustment Date for any Note, the applicable
Remarketing Agent will

                                      -22-
<PAGE>

determine the interest rate for such Note being remarketed to the nearest one
hundred thousandth (0.00001) of one percent per annum for the next Interest
Rate Period in the case of a fixed interest rate, and the Spread (if any) and
Spread Multiplier (if any) in the case of a floating interest rate; PROVIDED,
that between 11:00 a.m., New York City time, and 11:50 a.m., New York City
time, the Remarketing Agent and the Standby Remarketing Agent, if any, will
use their reasonable efforts to determine the interest rate for any Notes not
successfully remarketed as of the applicable deadline specified in this
paragraph. In determining the applicable interest rate for such Note and
other terms, such Remarketing Agent will, after taking into account market
conditions as reflected in the prevailing yields on fixed and variable rate
taxable debt securities, (i) consider the principal amount of all Notes
tendered or to be tendered on such date and the principal amount of such
Notes prospective purchasers are or may be willing to purchase and (ii)
contact, by telephone or otherwise, prospective purchasers and ascertain the
interest rates therefor at which they would be willing to hold or purchase
such Notes.

                  (ii) NOTIFICATION OF RESULTS; SETTLEMENT. By 12:30 p.m.,
New York City time, on the Interest Rate Adjustment Date of any Notes, the
applicable Remarketing Agent will notify the Company and the Trustee in
writing (which may include facsimile or other electronic transmission), of
(i) the interest rate or, in the case of a floating interest rate, the
initial interest rate, the Spread and Spread Multiplier and the initial
Interest Reset Date, applicable to such Notes for the next Interest Rate
Period, (ii) the Interest Rate Adjustment Date, (iii) the Interest Payment
Dates for any Notes in the Commercial Paper Term Mode (if other than the
Interest Rate Adjustment Date), the Long Term Rate Mode or the ROARS Mode,
(iv) the optional redemption terms, if any, and early remarketing terms, if
any, in the case of a remarketing into a Long Term Rate Period, (v) the
aggregate principal amount of tendered Notes and (vi) the aggregate principal
amount of such tendered Notes that such Remarketing Agent was able to
remarket, at a price equal to 100% of the principal amount thereof plus
accrued interest, if any. Immediately after receiving such notice and, in any
case, not later than 1:30 p.m., New York City time, the Trustee will transmit
such information and any other settlement information required by the
Depositary, to the extent such information has been provided to the Trustee,
to the Depositary in accordance with the Depositary's procedures as in effect
from time to time.

         By telephone at approximately 1:00 p.m., New York City time, on such
Interest Rate Adjustment Date, the applicable Remarketing Agent will advise
each purchaser of Notes (or the DTC Participant of each such purchaser who it
is expected in turn will advise such purchaser) of the principal amount of
such Notes that such purchaser is to purchase.

         Each purchaser of Notes in a remarketing will be required to give
instructions to its DTC Participant to pay the purchase price therefor in
same day funds to the applicable Remarketing Agent against delivery of the
principal amount of such Notes by book-entry through the Depositary by 3:00
p.m., New York City time, on the Interest Rate Adjustment Date.

         All tendered Notes will be automatically delivered to the account of
the Trustee (or such other account meeting the requirements of the
Depositary's procedures as in effect from time to time), by book-entry
through the Depositary against payment of the purchase price or redemption
price therefor, on the Interest Rate Adjustment Date relating thereto.

                                      -23-
<PAGE>

         The applicable Remarketing Agent will make, or cause the Trustee to
make, payment to the DTC Participant of each tendering Beneficial Owner of
Notes subject to a remarketing, by book-entry through the Depositary by the
close of business on the Interest Rate Adjustment Date against delivery
through the Depositary of such Beneficial Owner's tendered Notes, of the
purchase price for tendered Notes that have been sold in the remarketing. If
any such Notes were purchased pursuant to a Special Mandatory Purchase,
subject to receipt of funds from the Company or, if applicable, an
institution providing credit support, as the case may be, the Trustee will
make such payment of the purchase price of such Notes plus accrued interest,
if any, to such date.

         The transactions described above for a remarketing of any Notes will
be executed on the Interest Rate Adjustment Date for such Notes through the
Depositary in accordance with the procedures of the Depositary, and the
accounts of the respective the DTC Participants will be debited and credited
and such Notes delivered by book-entry as necessary to effect the purchases
and sales thereof, in each case as determined in the related remarketing.

         Except as otherwise set forth in Section 210 hereof, any Notes
tendered in a remarketing will be purchased solely out of the proceeds
received from purchasers of such Notes in such remarketing, and none of the
Trustee, the applicable Remarketing Agent, any Standby Remarketing Agent or
the Company will be obligated to provide funds to make payment upon any
Beneficial Owner's tender in a remarketing.

         Although tendered Notes will be subject to purchase by a Remarketing
Agent in a remarketing, such Remarketing Agent and any Standby Remarketing
Agent will not be obligated to purchase any such Notes.

         The settlement and remarketing procedures described above, including
provisions for payment by purchasers of tendered Notes or for payment to
selling Beneficial Owners of tendered Notes, may be modified to the extent
required by the Depositary. In addition, each Remarketing Agent may, in
accordance with the terms of the Indenture, modify the settlement and
remarketing procedures set forth above in order to facilitate the settlement
and remarketing process.

         As long as the Depositary's nominee holds the certificates
representing the Notes in the book-entry system of the Depositary, no
certificates for such Notes will be delivered by any selling Beneficial Owner
to reflect any transfer of Notes effected in any remarketing.

         The Trustee shall confirm to the Depositary the interest rate for
the following Interest Rate Period in accordance with the Depositary's
procedures as in effect from time to time.

         The interest rate announced by the applicable Remarketing Agent,
absent manifest error, shall be binding and conclusive upon the Beneficial
Owners, the Company and the Trustee.

          (c) FAILED REMARKETING. Notes not successfully remarketed will be
subject to Special Mandatory Purchase by the Company as set forth in Section
210 hereof.

                                      -24-
<PAGE>

         SECTION 210. PURCHASE AND REDEMPTION OF NOTES

         (a) SPECIAL MANDATORY PURCHASE. Subject to certain exceptions, if on
any Interest Rate Adjustment Date for any Notes, the applicable Remarketing
Agent and the applicable Standby Remarketing Agent(s) have not remarketed all
such Notes, the Notes that have not been remarketed are subject to Special
Mandatory Purchase (a "SPECIAL MANDATORY PURCHASE") by the Company. The
Company is obligated to pay all accrued and unpaid interest, if any, on
unremarketed Notes to such Interest Rate Adjustment Date. Payment of the
principal amount of unremarketed Notes by the Company, and payment of accrued
and unpaid interest, if any, by the Company, will be made by deposit of
same-day funds with the Trustee (or such other account meeting the
requirements of the Depositary's procedures as in effect from time to time)
irrevocably in trust for the benefit of the Beneficial Owners of Notes
subject to Special Mandatory Purchase by 3:00 p.m., New York City time, on
such Interest Rate Adjustment Date.

     Failure by the Company to purchase Notes pursuant to a Special Mandatory
Purchase will constitute an Event of Default under the Indenture as set forth
in Section 401 hereof in which event the date of such failure shall
constitute a date of Maturity for such Notes and the principal thereof may be
declared due and payable in the manner and with the effect provided in the
Indenture. Following such failure to pay pursuant to a Special Mandatory
Purchase, such Notes will bear interest at the Special Interest Rate as
provided for in Section 205 hereof.

         (b) OPTIONAL REDEMPTION ON ANY INTEREST RATE ADJUSTMENT DATE. Each
Note will be subject to redemption at the option of the Company in whole or
in part on any Interest Rate Adjustment Date relating thereto without notice
to the holders thereof at a redemption price equal to 100% of the principal
amount thereof.

         (c) REDEMPTION WHILE NOTES ARE IN THE LONG TERM RATE MODE. Any Notes
in the Long Term Rate Mode are subject to redemption at the option of the
Company at the times and upon the terms specified at the time of conversion
to or within such Long Term Rate Mode.

         (d) ALLOCATION. Except in the case of a Special Mandatory Purchase,
if the Notes are to be redeemed in part, the Depositary, after receiving
notice of redemption specifying the aggregate principal amount of Notes to be
so redeemed, will determine by lot (or otherwise in accordance with the
procedures of the Depositary) the principal amount of such Notes to be
redeemed from the account of each DTC Participant. After making its
determination as described above, the Depositary will give notice of such
determination to each DTC Participant from whose account such Notes are to be
redeemed. Each such DTC Participant, upon receipt of such notice will in turn
determine the principal amount of Notes to be redeemed from the accounts of
the Beneficial Owners of such Notes for which it serves as DTC Participant,
and give notice of such determination to the Remarketing Agent.

         SECTION 211. FORM AND OTHER TERMS OF THE NOTES

         (a) Attached hereto as EXHIBIT A is the form of Note, which form is
hereby established as the form in which Notes may be issued bearing interest
at the Initial Interest Rate or in the Commercial Paper Term Mode, the Long
Term Rate Mode or the ROARS Mode. Annex A to EXHIBIT A is deemed to be a part
of such Note and such Annex may be changed upon

                                      -25-
<PAGE>

the mutual agreement of the Company and the Trustee to reflect changes
occasioned by remarketings.

         (b) Subject to (a) above, any Note may be issued in such other form
as may be provided by, or not inconsistent with, the terms of the Original
Indenture and this Second Supplemental Indenture.

                                 ARTICLE THREE

                                 THE ROARS MODE

         SECTION 301. APPLICABILITY OF ARTICLE

         The provisions of this Article Three shall apply to any Note in the
ROARS Mode. To the extent that any provision of this Article Three conflicts
with any provision of Article Two, the provisions set forth in this Article
Three shall govern.

         SECTION 302. INITIAL ROARS RATE PERIOD

     The Notes shall be issued initially in a ROARS Mode with respect to
which the Company shall have on the Original Issue Date entered into a ROARS
Remarketing Agreement. With respect to Notes within a ROARS Rate Period
commencing on the Original Issue Date, references in this Article Three to
(i) the Callholder and ROARS Remarketing Date shall mean the Initial
Callholder and the Initial ROARS Remarketing Date and (ii) the Interest Rate
Adjustment Date upon which the ROARS Rate Period commences shall mean the
Original Issue Date.

         SECTION 303. INTEREST TO ROARS REMARKETING DATE

         Each Note in the ROARS Mode will bear interest at the annual
interest rate established by the Callholder from, and including, the Interest
Rate Adjustment Date commencing the Interest Rate Period for the ROARS Mode
to, but excluding, the ROARS Remarketing Date. Such interest rate will be the
minimum rate of interest and, in the case of a floating interest rate, Spread
(if any) and Spread Multiplier (if any) necessary in the judgment of such
Callholder to produce a par bid in the secondary market for such Note on the
date the interest rate is established. The designated ROARS Remarketing Date
shall be an Interest Payment Date within such Interest Rate Period.

         SECTION 304. TENDER TO AND REMARKETING BY THE CALLHOLDER

         The obligations of the Callholder set forth herein shall be
performed under the applicable ROARS Remarketing Agreement.

         (a) MANDATORY TENDER. Provided that the Callholder gives notice to
the Company and the Trustee on or before the Notification Date of its
intention to purchase the Notes for remarketing, each Note will be
automatically tendered, or deemed tendered, to the Callholder for remarketing
at the ROARS Coupon Reset Rate on the ROARS Remarketing Date, except in the

                                      -26-
<PAGE>

circumstances described in subsection (b)(2) and Section 305 below with
regard to failure of the Callholder to purchase the Notes. The purchase price
for the tendered Notes to be paid by the Callholder will equal 100% of the
principal amount thereof. When the Notes are tendered for remarketing, the
Callholder may remarket the Notes for its own account at varying prices to be
determined by the Callholder at the time of each sale. From and including the
ROARS Remarketing Date to, but excluding, the next succeeding Interest Rate
Adjustment Date, the Notes will bear interest at the ROARS Coupon Reset Rate.
If the Callholder elects to remarket the Notes, the obligation of the
Callholder to purchase the Notes on the ROARS Remarketing Date is subject to
the conditions set forth in the applicable ROARS Remarketing Agreement.

         (b) REMARKETING. The remarketing of the notes purchased by
Callholder under the ROARS Remarketing Agreement shall be carried out in
accordance with the following procedures:

                  (1) THE ROARS COUPON RESET RATE. Subject to the
Callholder's election to remarket the Notes as provided in subsection (a)
above, the ROARS Coupon Reset Rate shall be determined by the Callholder by
3:30 p.m., New York City time, on the third Business Day immediately
preceding the ROARS Remarketing Date (the "DETERMINATION DATE") to the
nearest one hundred-thousandth (0.00001) of one percent per annum and will be
equal to the Base Rate established by the Callholder, after consultation with
the Company, at or prior to the commencement of the ROARS Mode (the "BASE
RATE"), plus the Applicable Spread, which will be based on the Dollar Price
of the Notes.

                  (2) NOTIFICATION OF RESULTS; SETTLEMENT. Provided the
Callholder has previously notified the Company and the Trustee on the
Notification Date of its intention to purchase all tendered Notes on the
ROARS Remarketing Date, the Callholder will notify the Company, the Trustee
and the Depositary by telephone, confirmed in writing, by 4:00 p.m., New York
City time, on the Determination Date, of the ROARS Coupon Reset Rate.

         All of the tendered Notes will be automatically delivered to the
account of the Trustee, by book-entry through the Depositary pending payment
of the purchase price therefor, on the ROARS Remarketing Date.

         In the event that the Callholder purchases the tendered Notes on the
ROARS Remarketing Date, the Callholder will make or cause the Trustee to make
payment to the DTC Participant of each tendering Beneficial Owner of Notes,
by book-entry through the Depositary by the close of business on the ROARS
Remarketing Date against delivery through the Depositary of such Beneficial
Owner's tendered Notes. If the Callholder does not purchase all of the Notes
on the ROARS Remarketing Date, the Company may attempt to convert the Notes
to a new Interest Rate Mode, such interest rate to be determined as provided
for in Section 205 hereof, and settlement will be effected as described in
this Section 304(b). In any case, the Company will make or cause the Trustee
to make payment of interest to each Beneficial Owner of Notes due on the
ROARS Remarketing Date by book-entry through the Depositary by the close of
business on the ROARS Remarketing Date.

                                      -27-
<PAGE>

         The transactions in this subsection (b)(2) hereof will be executed
on the ROARS Remarketing Date through the Depositary in accordance with the
procedures of the Depositary, and the accounts of the respective DTC
Participants will be debited and credited and the Notes delivered by
book-entry as necessary to effect the purchases and sales thereof.

         Transactions involving the sale and purchase of Notes remarketed by
the Callholder on and after a ROARS Remarketing Date will settle in
immediately available funds through the Depositary's Same-Day Funds
Settlement System.

         The tender and settlement procedures described above, including
provisions for payment by purchasers of Notes in the remarketing or for
payment to selling Beneficial Owners of tendered Notes, may be modified to
the extent required by the Depositary or to the extent required to facilitate
the tender and remarketing of Notes in certificated form, if the book-entry
system is no longer available for the Notes at the time of the remarketing.
In addition, the Callholder may, in accordance with the terms of the
Indenture, modify the tender and settlement procedures set forth above in
order to facilitate the tender and settlement process.

         As long as the Depositary's nominee holds the certificates
representing any Notes in the book-entry system of the Depositary, no
certificates for such Notes will be delivered by any selling Beneficial Owner
to reflect any transfer of such Notes effected in the remarketing.

         SECTION 305. CONVERSION OR REDEMPTION FOLLOWING ELECTION BY THE
                      CALLHOLDER TO REMARKET

         (a) If the Callholder elects to remarket the Notes on the ROARS
Remarketing Date, the Notes will be subject to mandatory tender to the
Callholder for remarketing on such date, in each case subject to the
conditions set forth in Section 304 hereof, and to the Company's right to
either convert the Notes to a new Interest Rate Mode on the ROARS Remarketing
Date or to redeem the Notes from the Callholder, in each case as described in
the next sentence. The Company will notify the Callholder and the Trustee,
not later than the Business Day immediately preceding the Determination Date,
if the Company irrevocably elects to exercise its right to either convert the
Notes to a new Interest Rate Mode, or to redeem the Notes in whole, but not
in part, from the Callholder at the Optional Redemption Price, in each case
on the ROARS Remarketing Date.

         (b) In the event that the Company irrevocably elects to convert the
Notes to a new Interest Rate Mode, then as of the ROARS Remarketing Date the
Notes will cease to be in the ROARS Mode, the ROARS Remarketing Date will
constitute an Interest Rate Adjustment Date, and the Notes shall be subject
to remarketing on such date by a Remarketing Agent appointed in the
Commercial Paper Term Mode or the Long Term Rate Mode or a new ROARS Mode
established in accordance with the procedures set forth in Section 207
hereof; PROVIDED that, in such case, the notice required for conversion shall
be given no later than 3:30 p.m. New York City time on the Determination
Date. In such case, the Company shall pay to the Callholder the excess of the
Dollar Price of the Notes over 100% of the principal amount of the Notes in
same-day funds by wire transfer to an account designated by the Callholder on
the ROARS Remarketing Date.

                                      -28-
<PAGE>

         (c) In the event that the Company irrevocably elects to redeem the
Notes, the "OPTIONAL REDEMPTION PRICE" shall be the greater of either (i)
100% of the principal amount of the Notes or (ii) the Dollar Price, plus in
either case accrued and unpaid interest from the ROARS Remarketing Date on
the principal amount being redeemed to the date of redemption. If the Company
elects to redeem the Notes, it shall pay the redemption price therefor in
same-day funds by wire transfer to an account designated by the Callholder on
the ROARS Remarketing Date.

         (d) If notice has been given as provided in the Indenture and funds
for the redemption of any Notes called for redemption shall have been made
available on the redemption date referred to in such notice, such Notes shall
cease to bear interest on the date fixed for such redemption specified in
such notice and the only right of the Callholder from and after the
redemption date shall be to receive payment of the Optional Redemption Price
upon surrender of such Notes in accordance with such notice.

                                  ARTICLE FOUR

             ADDITIONAL EVENTS OF DEFAULT WITH RESPECT TO THE NOTES

         SECTION 401. DEFINITION

         All of the events specified in clauses (1), (2) and (4) through (6)
of Section 501(a) of the Original Indenture shall be "Events of Default" with
respect to the Notes. In addition, the following event that shall have
occurred and be continuing shall be an additional Event of Default with
respect to each series of Notes: (7) default in the payment of the purchase
price with respect to the Special Mandatory Purchase on the applicable
Interest Rate Adjustment Date in accordance with Section 210(a) hereof.

                                  ARTICLE FIVE

                    AUTHENTICATION AND DELIVERY OF THE NOTES

         SECTION 501. AUTHENTICATION AND DELIVERY

         As provided in and pursuant to Section 303 of the Original
Indenture, each time that the Company delivers Notes to the Trustee or
Authenticating Agent for authentication, the Company shall deliver a
Supplemental Company Order in the form of EXHIBIT B to this Second
Supplemental Indenture for the authentication and delivery of such Notes and
the Trustee or such Authenticating Agent shall authenticate and deliver such
Notes.

                                      -29-
<PAGE>

                                  ARTICLE SIX

                             SUPPLEMENTAL INDENTURES

         SECTION 601. EFFECT ON ORIGINAL INDENTURE

         The Second Supplemental Indenture is a supplement to the Original
Indenture. As supplemented by this Second Supplemental Indenture, the
Original Indenture is in all respects ratified, approved and confirmed, and
the Original Indenture and this Second Supplemental Indenture shall together
constitute one and the same instrument.

                                  ARTICLE SEVEN

                                   AMENDMENTS

         SECTION 701. AMENDMENT TO CORRECT SECTION 610 OF ORIGINAL INDENTURE

         In order to correct a mistaken reference, pursuant to Section 901(a) of
the Original Indenture, Section 610(d)(1) of the Original Indenture is hereby
amended to read as follows:

         "(d)     If at any time:

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

                                 ARTICLE EIGHT

                                  MISCELLANEOUS

         SECTION 801. COUNTERPARTS

         This Second Supplemental Indenture 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 by one and the same
instrument.

         SECTION 802. RECITALS

         The recitals contained herein shall be taken as the statements of
the Company, and the Trustee assumes no responsibility for their correctness.
The Trustee makes no representations as to the validity or sufficiency of
this Second Supplemental Indenture.

         SECTION 803. GOVERNING LAW

         This Second Supplemental Indenture shall be governed by and
construed in accordance with the laws of the jurisdiction that govern the
Original Indenture and its construction.

                                      -30-

<PAGE>

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

                                      TECO ENERGY, INC.

                                      By: /s/ Sandra W. Callahan
                                          -------------------------------------
                                      Name:   Sandra W. Callahan
                                      Title:  Vice President - Treasurer

[Corporate Seal]

                                      THE BANK OF NEW YORK, AS TRUSTEE

                                      By: /s/ James Hall
                                          -------------------------------------
                                      Name:   James Hall
                                      Title:  Vice President

[Corporate Seal]
<PAGE>

State of Kentucky           )
                            ) SS.:
County of Laurel            )

     On the 13th day of September, 2000 before me personally came Sandra
Callahan, to me known, who, being by me duly sworn, did depose and say that
s/he is Vice President - Treasurer of TECO ENERGY, INC., one of the
corporations described in and which executed the foregoing instrument; that
s/he knows the seal of said corporation; that the seal affixed to said
instrument is such corporate seal; that it was so affixed by authority of the
Board of Directors of said corporation, and that s/he signed his/her name
thereto by like authority.

                                            /s/ Theresa L. McHargue
                                            -----------------------------------
                                            Notary Public

State of New York                   )
                                    ) SS.:
County of New York                  )

         On the 20th day of September 2000 before me personally came James
Hall to me known, who, being by me duly sworn, did depose and say that he/she
is Vice President of THE BANK OF NEW YORK, one of the corporations described
in and which executed the foregoing instrument; that he/she knows the seal of
said corporation; that the seal affixed to said instrument is such corporate
seal; that it was so affixed by authority of the Board of Directors of said
corporation, and that he/she signed his/her names thereto by like authority.

                                            /s/ Jean F. Newman
                                            -----------------------------------
                                            Notary Public
<PAGE>

                                                                       EXHIBIT A

                                  FORM OF NOTE

         The Form of Note has intentionally not been reproduced here. See the
executed version of the complete 7% Remarketable or Redeemable Security Due
2015 filed as Exhibit 4.3 to this Form 8-K.

<PAGE>

                                                                       EXHIBIT B

                                TECO ENERGY, INC.

                7% REMARKETABLE OR REDEEMABLE SECURITIES DUE 2015

                           SUPPLEMENTAL COMPANY ORDER

         Pursuant to Article Five of the Second Supplemental Indenture, dated
as of September 15, 2000, to the Indenture, dated as of August 17, 1998, as
amended, you are instructed to prepare and authenticate a Note, of the series
identified above, in the principal amount of $______________. The Note is
being delivered in exchange for issued and outstanding Notes of the series
identified above.

         IN WITNESS WHEREOF, I have hereunto set my hand this ___ day of
________, ____.

                                            TECO ENERGY, INC.

                                            By: ______________________________
                                                   Name:
                                                   Title:

                                 Exhibit B -- 1
<PAGE>

                                                                       EXHIBIT C

[TECO Energy, Inc. Letterhead]

                          FLOATING INTEREST RATE NOTICE

                                                                          [Date]

To:      [Remarketing Agent(s)]
         [Address]
         The Bank of New York
         10161 Centurion Parkway
         Jacksonville, Florida 32256
         Attention: Corporate Trust Trustee Administration
         Telecopy: (904) 645-1997

         Re: 7% Remarketable or Redeemable Securities Due 2015 (the "Notes")

Ladies and Gentlemen:

         This Floating Interest Rate Notice relates to (i) $_______________
principal amount of the Notes (CUSIP No. ___________) and (ii) the proposed
[Long Term Rate Period] [ROARS Rate Period] of the Note (the "Interest Rate
Period") commencing on ___________ and ending on ___________. Capitalized
terms used and not otherwise defined herein shall have their respective
meanings assigned to them in the Notes.

         We hereby notify you that the above-referenced Notes will bear the
following floating rate terms during the Interest Rate Period specified above:

1.       The Interest Rate Basis(es) shall be:

         [ ]      CD Rate, where the Index Maturity will be ______________;

                  [ ]   CMT Rate, where the Designated CMT Maturity Index
                        will be _____________, and the Designated CMT Telerate
                        Page will be ____________;

         [ ]      Federal Funds Rate;

                  [ ]   LIBOR Reuters, where the Index Currency will be
                        ___________, and the Designated LIBOR Page will be
                        __________;

                  [ ]   LIBOR Telerate, where the Index Currency will be
                        _____________ , and the Designated LIBOR Page will be
                        _____________;

                                 Exhibit C -- 1
<PAGE>

                  [ ]   Prime Rate;

                  [ ]   Treasury Rate

2. The floating interest rate will be reset as follows:

         [ ]      Initial Interest Reset Date will be __________ ;

         [ ]      Interest Reset Dates will be _____________;

         [ ]      Interest Reset Period will be ____________;

3. The interest will be paid as follows:

         [ ]      Interest Payment Dates will be _____________;

         [ ]      Interest Rate Period will be ____________;

         [ ]      Index Maturity will be _________;

         [ ]      Floating Rate Maximum Interest Rate will be ____________;

         [ ]      Floating Rate Minimum Interest Rate will be ______________.

4.       Day Count Convention:

         [ ]      Actual/360;

         [ ]      Actual/Actual;

         [ ]      30/360.

5.       Other terms:      [ ]

     Each Beneficial Owner of the Note will be deemed to have tendered such
Note as of the Interest Rate Adjustment Date and will not be entitled to
further accrual of interest after the Interest Rate Adjustment Date.

                                  TECO ENERGY, INC.

                                  By: _______________________________
                                      Name:
                                      Title:

                                 Exhibit C -- 2

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