Document:

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                                                                    Exhibit 10.1

                         CREDIT AND SECURITY AGREEMENT

     This Credit and Security Agreement ("Agreement") is entered into as of
June 6, 2001, by and between SIMON WORLDWIDE, INC., a Delaware corporation
("BORROWER"), and CITY NATIONAL BANK, a national banking association ("CNB").

     1.   DEFINITIONS. As used in this Agreement, these terms have the
following meanings:

          1.1   "ACCOUNT" or "ACCOUNTS" means any right to payment for goods
sold or leased or for services rendered which is not evidenced by an instrument
or chattel paper from any Person, whether now existing or hereafter arising or
acquired, whether or not it has been earned by performance.

          1.2   "ACCOUNT DEBTOR" means the Person obligated on an Account.

          1.3   "BANKER'S ACCEPTANCE" shall mean a time draft accepted by CNB
upon the drawing of a Letter of Credit issued under this Agreement.

          1.4   "BORROWER'S DEMAND DEPOSIT ACCOUNT" shall mean account number
101 779 068 maintained by Borrower with CNB.

          1.5   "BUSINESS DAY" means a day that CNB's Head Office is open and
conducts a substantial portion of its business.

          1.6   "CODE" means the Uniform Commercial Code of California as it
may be amended from time to time, except where the Uniform Commercial Code of
another state governs the perfection of a security interest in Collateral
located in that state.

          1.7   "COLLATERAL" means all property securing the Obligations, as
described in Section 7.

          1.8   "COMMERCIAL LETTERS OF CREDIT" means letters of credit issued
pursuant to this Agreement and in response to Borrower's submission of the CNB
form entitled Irrevocable Letter of Credit Application and Security Agreement.

          1.9   "COMMITMENT" means CNB's commitment to issue or consider
issuing the Letters of Credit in the aggregate principal amount outstanding at
any one time of up to Twenty One Million Dollars ($21,000,000).

          1.10  "DEBT" means, at any date, the aggregate amount of, without
duplication, (a) all obligations of Borrower for borrowed money, or
reimbursement for open letters of credit and banker's acceptances, (b) all
obligations of Borrower evidenced by bonds, debentures, notes or other similar
instruments, (c) all obligations of Borrower to pay the deferred purchase price
of property or services, (d) all capitalized lease obligations of Borrower, (e)
all obligations or liabilities of others secured by a lien on any asset of
Borrower, whether or not such obligation or liability is assumed, (f) all
obligations guaranteed by Borrower, (g) all obligations, direct or indirect,
for letters of credit, and (h) any other obligations or liabilities which are
required by GAAP to be shown as liabilities on the balance sheet of Borrower.

          1.11  "EVENT OF DEFAULT" is an event described in Section 8.1 after
any applicable cure period.

          1.12  "GAAP" means generally accepted accounting principles,
consistently applied.

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     1.13 "GUARANTOR" shall mean Simon Marketing, Inc.

     1.14 "GUARANTY" shall be in the form attached hereto as Exhibit A.

     1.15 "GUIDANCE LINE FACILITY" is Fifteen Million Dollars ($15,000,000).

     1.16 "INVENTORY" means goods owned by Borrower and held for sale or lease
in the ordinary course of business, work in process and any and all raw
materials used in connection with the foregoing.

     1.17 "LETTERS OF CREDIT" means Commercial Letters of Credit and Standby
Letters of Credit.

     1.18 "LIQUID ASSETS" shall mean the sum of cash, cash equivalents and
Marketable Securities held in Guarantor's name upon which there is no security
interest, lien or other encumbrance, other than in favor of CNB.

     1.19 "LOAN DOCUMENTS" means, individually and collectively, this
Agreement, any note, guaranty, security or pledge agreement, financing
statement and all other contracts, instruments, and documents executed in
connection with or related to extensions of credit under this Agreement.

     1.20 "MARKETABLE SECURITIES" shall mean "margin stock" as defined in
Regulation U of the Federal Reserve Board; mutual funds; and bonds and other
debt securities of United States corporations not falling within the definition
of "margin stock" with a credit quality rating of at least A by Standard &
Poors or A-2 by Moody's; commercial paper with a credit quality rating of at
least A-2 by Standard & Poors or P-2 by Moody's; obligations issued by or
guaranteed by the United States government or agencies thereof; and obligations
of any state, territory, municipality or other local governmental subdivision
or entity of the United States, with a credit quality rating of at least A by
Standard & Poors or A-2 by Moody's.

     1.21 "OBLIGATIONS" means all present and future liabilities and
obligations of Borrower to CNB hereunder, including any extensions and renewals
thereof and substitutions therefor.

     1.22 "PERSON" means any individual or entity.

     1.23 "PRIME RATE" means the rate most recently announced by CNB at its
principal office in Beverly Hills, California as its "Prime Rate." Any change
in the interest rate with respect to Prime Loans resulting from a change in the
Prime Rate will become effective on the day on which each change in the Prime
Rate is announced by CNB.

     1.24 "STANDBY LETTERS OF CREDIT" means standby letters of credit issued
pursuant to this Agreement and in response to Borrower's submission of an
Irrevocable Standby Letter of Credit Application and Letter of Credit Agreement.

     1.25 "STANDBY LETTER OF CREDIT COMMITMENT" is Six Million Dollars
($6,000,000.00).

     1.26 "TERMINATING EVENT" is an event set forth in Section 8.2 after any
applicable cure period.

     1.27 "TERMINATION DATE" means May 15, 2002, unless the term of this
Agreement is renewed by CNB for an additional period under Section 3, or such
earlier termination date under

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Section 8.3 upon the occurrence of an Event of Default. Upon any renewal, the
Termination Date will be the renewed maturity date determined by CNB. Provided,
however, this Agreement may be terminated at any time by Borrower when there are
no Obligations outstanding and, upon such termination by Borrower, CNB shall
promptly comply with the requirements of Code Section 9404(1), or any successor
statute, with respect to termination of any UCC-1 Financing Statement on file.

2.   THE CREDIT.

     2.1  STANDBY LETTER OF CREDIT FACILITY. CNB will, at the request of
Borrower any time up to the Termination Date, issue Standby Letters of Credit
for the account of Borrower. The aggregate face amount of outstanding Standby
Letters of Credit at any time will not exceed the Standby Letter of Credit
Commitment.

          2.1.1     ISSUANCE OF STANDBY LETTERS OF CREDIT.

                    (a) Standby Letters of Credit will be issued in accordance
with an Irrevocable Standby Letter of Credit Application and Letter of Credit
Agreement submitted by Borrower and incorporated herein by this reference,
subject to the terms of this Agreement in the event of any conflict herewith.
The reimbursement obligation with respect to each Standby Letter of Credit will
be secured by cash held in the form of a CNB Certificate of Deposit prior to
issuance of the Standby Letter of Credit. Standby Letters of Credit will be
issued on the normal documentation used by CNB from time to time in accord with
the International Standby Practices 1998. Published CNB fees and charges, as
delivered to Borrower from time to time, will apply to the issuance of Standby
Letters of Credit, provided, however, each Standby Letter of Credit shall be
subject to a fee of one percent (1%) per annum of the amount of the Standby
Letter of Credit, prorated over the term of the Standby Letter of Credit, but in
no event less than $250.00 for each Standby Letter of Credit.

                    (b)  For Borrower's convenience and pursuant to its request,
Borrower may submit the Irrevocable Standby Letter of Credit Application by
telephone facsimile ("FAX") which will include FAX signatures. CNB is authorized
to accept faxed documents without any need, requirement or responsibility to
verify in any way the genuineness or authenticity of the faxed documents or
signatures. Borrower will deliver to CNB an originally executed Irrevocable
Standby Letter of Credit Application within fifteen (15) days of each faxing.
CNB's failure to receive an original set of documents shall not be deemed or
construed in any way to affect the propriety of issuing the Letters of Credit or
Borrower's liability to reimburse CNB for the amount of any drawings under the
issued Letter of Credit.

                    (c)  Borrower hereby authorizes the following persons, or
others designated in writing by two of the three following persons, to request
the issuance of Letters of Credit under this Agreement: Dominic F. Mammola,
Richard Lamishaw, and Richard David. Provided, however, CNB may, in its sole
discretion, obtain telephonic clarification, guidance, instruction or
confirmation concerning the issuance or other aspects of any Letter of Credit
issued hereunder from any one of the following persons on behalf of the
Borrower: Dominic F. Mammola, Richard Lamishaw, and Richard David, or any other
person designated by Dominic F. Mammola, Richard Lamishaw, and Richard David in
writing.

          2.1.2     REIMBURSEMENT FOR FUNDING A STANDBY LETTER OF CREDIT.
Borrower's obligation to reimburse CNB shall be satisfied by charging Borrower's
certificate of deposit given to secure the reimbursement obligation pursuant to
Section 7.1.9

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     2.2  GUIDANCE LINE FACILITY. CNB shall, at the request of Borrower,
consider requests for issuance of Commercial Letters of Credit ("Guidance Line
Letters of Credit") and Banker's Acceptances arising from the drawing of such
Letters of Credit, from time to time, to, but not including, the Termination
Date, which, in the aggregate, including Guidance Line Letters of Credit made,
committed and requested, do not exceed the amount of the Guidance Line Facility.

        2.2.1  NO COMMITMENT. This Agreement shall not evidence an agreement to
issue Letters of Credit by CNB under this Section 2.2 Borrower acknowledges
that CNB, by entering into this Agreement agrees to consider, in good faith,
requests for issuance of Letters of Credit made by Borrower pursuant to the
Guidance Line Facility. CNB shall have the sole and exclusive option to accept
or decline requests for issuance of Letters of Credit made by Borrower; however,
provided there is no Terminating Event or Event of Default hereunder, CNB agrees
to consider requests for Guidance Line Letters of Credit in good faith.
Provided, however, CNB's declination of a request to issue a Guidance Line
Letter of Credit will not affect Borrower's right to have a Letter of Credit
issued under the Standby Letter of Credit Facility, or Borrower's ability to
prepay a Letter of Credit.

        2.2.2  ISSUANCE OF LETTERS OF CREDIT.

               (a)  Commercial Letters of Credit will be issued to finance the
purchase of merchandise, for resale to Phillip Morris, Inc. or Ty, Inc., in
accordance with an Irrevocable Letter of Credit Application and Security
Agreement submitted by Borrower and incorporated herein by this reference,
subject to the terms of this Agreement in the event of any conflict herewith.
Letters of Credit will be issued on the normal documentation used by CNB from
time to time in accord with the Uniform Customs and Practices for Documentary
Credits (1993 Revision) International Chamber of Commerce Publication No. 500.
Commercial Letters of Credit will expire no more than one hundred and eighty
(180) days after the Termination Date. Published CNB fees and charges, as
delivered to Borrower from time to time, will apply to the issuance of Letters
of Credit, provided, however, the issuance of each Commercial Letter of Credit
shall be subject to a minimum fee of $115.00.

               (b)  For Borrower's convenience and pursuant to its request,
Borrower may submit the Irrevocable Letter of Credit Application by telephone
facsimile ("FAX") which will include FAX signatures. CNB is authorized to accept
faxed documents without any need, requirement or responsibility to verify in any
way the genuineness of authenticity of the faxed documents or signatures.
Borrower will deliver to CNB an originally executed Irrevocable Letter of Credit
Application with fifteen (15) days of each faxing. CNB's failure to receive an
original set of documents shall not be deemed or construed in any way to affect
the propriety of issuing the Letters of Credit or Borrower's liability to
reimburse CNB for the amount of any drawings under the issued Letter of Credit.

               (c)  Borrower hereby authorizes the following persons, or others
designated in writing by two of the three following persons, to request the
issuance of Letters of Credit under this Agreement: Dominic F. Mammola, Richard
Lamishaw, and Richard David. Provided, however, CNB may, in its sole discretion,
obtain telephonic clarification, guidance, instruction or confirmation
concerning the issuance or other aspects of any Letter of Credit issued
hereunder from any one of the following persons on behalf of the Borrower:
Dominic F. Mammola, Richard Lamishaw, and Richard David, or any other person
designated by Dominic F. Mammola, Richard Lamishaw, and Richard David in
writing.

        2.2.3  PROCEDURE FOR GUIDANCE LINE LETTERS OF CREDIT. Borrower shall
give CNB at least five (5) Business Days advanced written notice of its request
for a Guidance Line Letter of

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Credit ("Notice of Request"), which Notice of Request shall specify (a) the
amount of the Guidance Line Letter of Credit; (b) the proposed issuance date;
(c) the proposed termination date; (d) the proposed drawing language, (e) the
written consent of Guarantor, in its sole discretion, to the issuance of the
Letter of Credit and (f) the purpose of the Guidance Line Letter of Credit.

          2.2.4     CNB'S REVIEW OF SUBMISSIONS. CNB agrees to review the
Notice of Request in good faith and respond thereto within three (3) Business
Days from CNB's receipt of the Notice of Request unless Borrower is notified
within said time that more information is required. CNB's failure to respond
shall be deemed a denial of the requested Guidance Line Letter of Credit. CNB
shall not be obligated to grant or accept any Notice of Request and may, in its
sole discretion, reject any Notice of Request.

          2.2.5     ACCEPTANCE OF REQUEST.   Only CNB's written notice to
Borrower of its unconditional acceptance of a Notice of Request shall
constitute a commitment on the part of CNB to issue a Guidance Line Letter of
Credit; and provided further that prior to there being any obligation to issue
a Letter of Credit on the part of CNB, the conditions precedent set forth in
Section 4 below must also be satisfied.

          2.2.6     REIMBURSEMENT FOR FUNDING A COMMERCIAL LETTER OF CREDIT.
Any sight drawing under a Letter of Credit shall be satisfied by (a) charging
Borrower's Demand Deposit Account, (b) immediate wire transfer of funds
following demand therefor, or (c) creation of a Banker's Acceptance. All
drawings under Letters of Credit which are not payable at sight will be deemed
to be requests for the creation of Banker's Acceptances hereunder.

          2.2.7     CREATION OF BANKER'S ACCEPTANCES.  Banker's Acceptances
will be created in response to Borrower's request or the acceptance by CNB of a
draft drawn against a Letter of Credit not payable at sight, on the normal
documentation used by CNB, and will mature within 120 days. Creation of
Banker's Acceptances will be subject to standard CNB fees and charges plus, if
applicable, a payment equal to the published CNB Banker's Acceptance discount
rate plus one percent (1%). There will be no obligation to accept drafts which
would:

               (a)  not be eligible for discount by a Federal Reserve Bank;

               (b)  become a liability subject to reserve requirements under
any regulation of the Board of Governors of the Federal Reserve System; or

               (c)  cause CNB to violate any lending limit imposed upon CNB by
any law, regulation or administrative order.

          2.2.8     REIMBURSEMENT FOR PAYMENT OF BANKER'S ACCEPTANCES.
Borrower's obligation to reimburse CNB for payment under any Banker's
Acceptance shall be satisfied by charging Borrower's Demand Deposit Account or
by immediate wire transfer of funds, following demand therefor, in the event
insufficient collected funds are in Borrower's Demand Deposit Account.

     2.3  DEFAULT INTEREST RATE.   In the event Borrower does not reimburse CNB
for payment of any Letter of Credit or Banker's Acceptance, when due hereunder,
and, from and after written notice by CNB to Borrower of the occurrence of an
Event of Default (and without constituting a waiver of such Event of Default),
any amounts due CNB hereunder (and interest to the extent permitted by law)
will bear interest at a fluctuating rate equal to the Prime Rate of CNB plus
five

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percent (5.0%) per year, until the Event of Default has been cured. All
interest provided for in this Section will be compounded monthly and payable on
demand.

     2.4  PAYMENTS. All payments will be in United States Dollars and in
immediately available funds. Interest will accrue daily and will be computed on
the basis of a 360-day year, actual days elapsed.

3.   TERM AND TERMINATION

     3.1  ESTABLISHMENT OF TERMINATION DATE. The term of this Agreement will
begin as of the date hereof and continue until the Termination Date, unless the
term is renewed upon mutual agreement for an additional period by CNB giving
Borrower prior written notice, in which event the Termination Date will mean
the renewed maturity date set forth in such notice. Notwithstanding the
foregoing, CNB may, at its option, terminate this Agreement pursuant to Section
8.3; the date of any such termination will become the Termination Date as that
term is used in this Agreement.

     3.2  OBLIGATIONS UPON THE TERMINATION DATE. Borrower will, upon the
Termination Date:

          3.2.1  Pay the amount of the balance due for reimbursement of the
funding of a Letter of Credit or Banker's Acceptance plus any accrued interest,
fees and charges; and

          3.2.2  Pay CNB cash in the aggregate face amount of the Letters of
Credit or Banker's Acceptances outstanding to be held as cash collateral for
Borrower's obligation to reimburse CNB upon the funding of such Letters of
Credit; and

          3.2.3  Pay the amounts due on all other Obligations owing to CNB. In
this connection and notwithstanding anything to the contrary contained in the
instruments evidencing such Obligations, the Termination Date hereunder will
constitute the maturity date of such other Obligations.

     3.3  SURVIVAL OF RIGHTS. Any termination of this Agreement will not affect
the rights, liabilities and obligations of the parties with respect to any
Obligations outstanding on the date of such termination. Until all Obligations
have been fully repaid, CNB will retain its security interest in all existing
Collateral and Collateral arising thereafter, and Borrower will continue to
assign all Accounts to CNB and to immediately turn over to CNB, in kind, all
collections received on the Accounts.

4.   CONDITIONS PRECEDENT.

     4.1  EXTENSION OF CREDIT. The obligation of CNB to issue any Letter of
Credit hereunder is subject to CNB's receipt of each of the following, in form
and substance reasonably satisfactory to CNB, and duly executed as required by
CNB:

          4.1.1  All Loan Documents required by CNB, including but not limited
to this Agreement and any guaranties required hereunder;

          4.1.2  (a) a copy of Borrower's Articles of Incorporation; (b) a
Resolution of Borrower's Board of Directors approving and authorizing the
execution, delivery and performance of this Agreement and any other documents
required pursuant to this Agreement, certified by

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Borrower's corporate secretary; and, (c) a copy of the last certificate filed
on behalf of Borrower in the state of its incorporation containing the
information with respect to officer, directors agent for service of process, as
required by the laws of the state of incorporation;

          4.1.3  (a) executed copies (and acknowledgement copies to the extent
reasonably available) of financing statements (Form UCC-1) duly filed under the
Code in all such jurisdictions as may be necessary or, in CNB's reasonable
opinion, desirable to perfect CNB's security interests created under this
Agreement; and (b) evidence that all filings, recordings and other actions that
are necessary or advisable, in CNB's reasonable opinion, to establish, preserve
and perfect CNB's security interests and liens as legal, valid and enforceable
first security interests and liens in the Collateral have been effected; and

          4.1.4  The Guaranty executed by the Guarantor.

     4.2  CONDITIONS TO EACH EXTENSION OF CREDIT. The obligation of CNB to
issue any Letter of Credit hereunder will be subject to the fulfillment of
each of the following conditions to CNB's reasonable satisfaction:

          4.2.1  The representations and warranties of Borrower set forth in
Section 5 will be true and correct on the date of the making of each Loan or
other extension of credit with the same effect as though such representations
and warranties had been made on and as of such date;

          4.2.2  There will be in full force and effect in favor of CNB a
legal, valid and enforceable first security interest in, and a valid and
binding first lien on the Collateral; and CNB will have received evidence, in
form and substance acceptable to CNB, that all filings, recordings and other
actions that are necessary or advisable, in the reasonable opinion of CNB, in
order to establish, protect, preserve and perfect CNB's security interests and
liens as legal, valid and enforceable first security interests and liens in the
Collateral have been effected;

          4.2.3  There will have occurred no Event of Default or Terminating
Event; and

          4.2.4  All other documents and legal matters in connection with the
transactions described in this Agreement will be reasonably satisfactory in
form and substance to CNB.

5.   REPRESENTATIONS AND WARRANTIES. Borrower makes the following
representations and warranties, which will survive the making and repayment of
the reimbursement obligation under any Letter of Credit or Banker's Acceptance.

     5.1  FINANCIAL CONDITION. The most recent financial statements of
Borrower, copies of which have been delivered to CNB, have been prepared in
accordance with GAAP and are true, complete and correct and fairly present the
financial condition of Borrower, including operating results, as of the
accounting period referenced therein. There has been no material adverse change
in the financial condition or business of Borrower since the date of such
financial statements. Borrower has no material liabilities for taxes or
long-term leases or commitments, except as disclosed in the financial
statements.

     5.2  NO VIOLATIONS. Borrower is not in violation of any law, ordinance,
rule or regulation to which it or any of its properties is subject, which would
have a material adverse affect on the property or operations of Borrower.

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     5.3 COLLATERAL. Borrower owns and has possession of and has the right and
power to grant a security interest in the Collateral, and the Collateral is
genuine and free from material liens, adverse claims, set-offs, defaults,
prepayments, defenses and encumbrances except those in favor of CNB. No bills
of lading, warehouse receipts or other documents or instruments of title are
outstanding with respect to the Collateral or any portion of the Collateral, in
favor of a Person other than Borrower. The office where Borrower keeps its
records concerning all Accounts is set forth in Section 9.6.

     5.4  ERISA. Borrower is in compliance in all material respects with all
applicable provisions of the Employee Retirement Income Security Act of 1974
("ERISA"). No "Reportable Event" (as defined in ERISA and the regulations
issued thereunder [other than a "Reportable Event" not subject to the provision
for thirty (30) day notice to the Pension Benefit Guaranty Corporation ("PBGC")
under such regulations]) has occurred with respect to any benefit plan of
Borrower nor are there any unfunded vested liabilities under any benefit plan
of Borrower. Borrower has met its minimum funding requirements under ERISA with
respect to each of its plans and has not incurred any material liability to the
PBGC in connection with any such plan.

6.   AFFIRMATIVE COVENANTS. Borrower agrees that until payment in full of all
Obligations, Borrower will comply with the following covenants:

     6.1  COLLATERAL. Borrower shall execute and deliver to CNB any instrument,
document, financing statement, assignment or other writing which CNB may
reasonably deem necessary or desirable to carry out the terms of this
Agreement, to perfect CNB's security interest in any Collateral for the
Obligations, or to enable CNB to enforce its security interest in any of the
foregoing.

     6.2  FINANCIAL STATEMENTS. Borrower will furnish to CNB on a continuing
basis;

          6.2.1 Within sixty (60) days after the end of each of the first three
quarterly accounting periods of each fiscal year, a financial statement
consisting of not less than a balance sheet and income statement, prepared in
accordance with GAAP, which financial statement may be internally prepared;

          6.2.2 Within one hundred and twenty (120) days after the close of
Borrower's fiscal year, a copy of the annual audit report for Borrower
including therein a balance sheet, income statement, reconciliation of net
worth and statement of cash flows, with notes thereto, the balance sheet,
income statement and statement of cash flows to be audited by a certified
public accountant reasonably acceptable to CNB, certified by such accountant to
have been prepared in accordance with GAAP and accompanied by Borrower's
certification as to whether any event has occurred which constitutes an Event
of Default or Terminating Event, and if so, stating the facts with respect
thereto;

     6.3  TAXES AND PREMIUMS. Borrower will, pay and discharge all taxes,
assessments, governmental charges, and real and personal taxes including, but
not limited to, federal and state income taxes, employee withholding taxes and
payroll taxes, and all premiums for insurance required hereunder, prior to the
date upon which penalties are attached thereto, except those being contested in
good faith.

     6.4  NOTICE. Borrower will promptly advise CNB in writing of (a) the
opening of any new, or the closing of any existing, principal place of
business, each location at which Inventory or equipment is or will be kept, and
any change of Borrower's name, trade name or other name under which it does
business or of any such new or additional name; (b) the occurrence of any Event
of Default or Terminating Event; (c) any litigation pending or threatened where
the non-insured amount

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or amounts in controversy exceed $500,000 other than those matters described in
Schedule 1, attached hereto; (d) any unpaid taxes in excess of $100,000 which
are more than fifteen (15) days delinquent and not being contested in good
faith; and (e) any other matter which, in Borrower's reasonable opinion, might
materially or adversely affect Borrower's financial condition, property or
business.

     6.5  FAIR LABOR STANDARDS ACT. Borrower will comply with the requirements
of, and all regulations promulgated under, the Fair Labor Standards Act.

     6.6  CORPORATE EXISTENCE. Borrower will maintain its corporate existence
and all of its rights, privileges and franchises necessary or desirable in the
normal course of its business.

     6.7  COMPLIANCE WITH LAW. Borrower will comply in all material respects
with all requirements of all applicable laws, rules, regulations (including,
but not limited to, ERISA with respect to each of their benefit plans, and all
environmental and hazardous materials laws), orders and all material agreements
with any governmental agency to which they are a party.

     6.8  EVENT OF DEFAULT. Borrower and Guarantor will not permit a default to
occur under any document or instrument evidencing Debt incurred under any
indenture, agreement or other instrument under which such Debt may be issued,
including but not limited to those in favor of CNB, or any event to occur under
any of the foregoing which would permit any holder of the Debt outstanding
thereunder to declare the same due and payable before its stated maturity,
whether or not such acceleration occurs or such default be waived.

     6.9  MINIMUM LIQUIDITY. Guarantor shall maintain Liquid Assets of at least
the greater of (a) $20,000,000.00, or (b) the face amount of outstanding Letters
of Credit, Banker's Acceptances and Revolving Credit Loans, outstanding
pursuant to (and as each is defined in) the Amended and Restated Credit and
Security Agreement dated as of December 15, 1999, between Guarantor and CNB, as
amended, excluding therefrom such obligations which are secured by cash or a
deposit account. Compliance with this provision shall be tested quarterly, or
at such other time as CNB may determine upon reasonable notice to Borrower.

7.   SECURITY AGREEMENT.

     7.1  GRANT OF SECURITY INTEREST. To secure all Obligations hereunder
arising under the Guidance Line Facility, Borrower hereby grants and transfers
to CNB a continuing security interest in the following property whether now
owned or hereafter acquired, which security interest shall remain in existence
until this Agreement has been terminated when there are no Obligations
outstanding and, upon such termination, CNB shall promptly comply with the
requirements of Code Section 9404(1), or any successor statute, with respect to
termination of any UCC-1 Financing Statement on file.:

          7.1.1     All of Borrower's Inventory;

          7.1.2     All of Borrower's Accounts;

          7.1.3     All of Borrower's general intangibles as that term is
                    defined in the Code;

          7.1.4     All of Borrower's equipment, as that term is defined in the
                    Code;

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          7.1.5  All of Borrower's interest in any patents (now existing or
pending), copyrights, trade names, trademarks and service marks useful to the
operation of Borrower's business;

          7.1.6  All notes, drafts, acceptances, instruments, documents of
title, policies and certificates of insurance, chattel paper, guaranties and
securities now or hereafter received by Borrower or in which Borrower has or
acquires an interest;

          7.1.7  All cash and noncash proceeds of the foregoing property,
including, without limitation, proceeds of policies of fire, credit or other
insurance;

          7.1.8  All of Borrower's books and records pertaining to any of the
Collateral described in this Section 7.1; and

          7.1.9  Any other Collateral which CNB and Borrower may designate as
additional security from time to time by separate instruments.

     7.2  NOTIFICATION OF ACCOUNT DEBTORS. CNB will have the right to notify
any Account Debtor to make payments directly to CNB, take control of the cash
and noncash proceeds of any Account, and settle any Account, which right CNB
may exercise at any time an Event of Default has occurred regardless of whether
Borrower was theretofore making collections thereon. Until CNB elects to
exercise such right, Borrower is authorized on behalf of CNB to collect and
enforce the Accounts.

     7.3  ATTORNEY-IN-FACT. Upon the occurrence of an Event of Default, CNB or
any of its officers is hereby irrevocably made the true and lawful attorney for
Borrower with full power of substitution to do the following: (a) endorse the
name of Borrower upon any and all checks, drafts, money orders and other
instruments for the payment of moneys which are payable to Borrower and
constitute collections on Accounts; (b) execute in the name of Borrower any
schedules, assignments, instruments, documents and statements which Borrower is
obligated to give CNB hereunder; (c) receive, open and dispose of all mail
addressed to Borrower; (d) notify the Post Office authorities to change the
address for delivery of mail addressed to Borrower to such address as CNB will
designate; and (e) do such other acts in the name of Borrower which CNB may
deem necessary or desirable to enforce any Account or other Collateral. The
powers granted CNB hereunder are solely to protect its interests in the
Collateral and will not impose any duty upon CNB to exercise any such powers.

8.   EVENTS OF DEFAULT AND PROCEEDINGS UPON DEFAULT.

     8.1  EVENTS OF DEFAULT. Borrower's fails to pay when due any reimbursement
obligation arising under this Agreement or any other amount payable under this
Agreement, subject to the provisions of Section 8.4, CNB will give Borrower at
least ten (10) days' written notice of any event which constitutes an Event of
Default, during which time Borrower will be entitled to cure same.

     8.2  TERMINATING EVENTS. Borrower's right to request the issuance of
Letters of Credit shall be suspended during the existence of any the following
Terminating Events, and shall be permanently terminated if such Terminating
Event is not cured within thirty (30) Business Days after Borrower's receipt of
written notice from CNB specifying the Terminating Event which has occurred:

          8.2.1  Any Person, which is a party to any Loan Document fails to
perform or observe any of the terms, provisions, covenants, agreements or
obligations;

                                       10

<PAGE>   11
          8.2.2     Any financial statement, representation or warranty made or
furnished by Borrower in connection with the Loan Documents proves to be in any
material respect incorrect;

          8.2.3     The entry of an order for relief or the filing of an
involuntary petition, which remains undismissed after sixty (60) days, with
respect to Borrower under the United States Bankruptcy Code; the appointment of
a receiver, trustee, custodian or liquidator of or for any part of the assets
or property of Borrower or Borrower makes a general assignment for the benefit
of creditors;

          8.2.4     CNB's security interest in or lien on any portion of the
Collateral becomes impaired or otherwise unenforceable;

          8.2.5     Any Person obtains an order or decree in any court of
competent jurisdiction enjoining or prohibiting Borrower or CNB from performing
any material term of this Agreement, and such proceedings are not dismissed or
such decree is not vacated within ten (10) days after the granting thereof;

          8.2.6     Borrower neglects, fails or refuses to keep in full force
and effect any governmental permit, license or approval which is necessary to
the operation of its business and such failure has a material impact on the
ability of Borrower to operate its business;

          8.2.7     All or substantially all of the property of Borrower is
condemned, seized or otherwise appropriated;

          8.2.8     The occurrence of (a) a Reportable Event (as defined in
ERISA) which CNB determines in good faith constitutes grounds for the
institution of proceedings to terminate any pension plan by the PBGC, (b) an
appointment of a trustee to administer any pension plan of Borrower, or (c) any
other event or condition which might constitute grounds under ERISA for the
involuntary termination of any pension plan of Borrower, where such event set
forth in (a), (b) or (c) results in a significant monetary liability to
Borrower; or

          8.2.9     The Termination Date is not extended.

     8.3  CNB's REMEDIES. Upon the occurrence of an Event of Default, at the
sole and exclusive option of CNB, and upon written notice to Borrower, CNB may
(a) demand amounts set forth in Section 3.2 immediately due and payable in
full, whereupon the same will immediately become due and payable; (b) terminate
this Agreement as to any future liability or obligation of CNB, but without
affecting CNB's rights and security interest in the Collateral and without
affecting the Obligations owing by Borrower to CNB; and/or (c) exercise its
rights and remedies under the Loan Documents and all rights and remedies of a
secured party under the Code and other applicable laws with respect to the
Collateral.

     8.4  ADDITIONAL REMEDIES. Notwithstanding any other provision of this
Agreement, upon the occurrence of any event, action or inaction by Borrower, or
if any action or inaction is threatened which CNB reasonably believes will
materially affect the value of the Collateral, CNB may take such legal actions
as it deems necessary to protect the Collateral, including, but not limited to,
seeking injunctive relief and the appointment of a receiver, whether an Event
of Default or Terminating Event has occurred under this Agreement.

                                       11
<PAGE>   12
9.   MISCELLANEOUS

     9.1  REIMBURSEMENT OF COSTS AND EXPENSES. Borrower will reimburse CNB for
all costs and expenses relating to this Agreement including, but not limited
to, filing, recording or search fees, audit or verification fees, appraisals of
the Collateral and other out-of-pocket expenses, and reasonable attorney's fees
and expenses expended or incurred by CNB in collecting any sum which becomes
due CNB under the Loan Documents, irrespective of whether suit is filed, or in
the protection, perfection, preservation or enforcement of any and all rights
of CNB in connection with the Loan Documents, including, without limitation,
the fees and costs incurred in any out-of-court workout or a bankruptcy or
reorganization proceeding.

     9.2  DISPUTE RESOLUTION

          9.2.1  MANDATORY ARBITRATION. At the request of CNB or Borrower, any
dispute, claim or controversy of any kind (whether in contract or tort,
statutory or common law, legal or equitable) now existing or hereafter arising
between CNB and Borrower and in any way arising out of, pertaining to or in
connection with: (1) this Agreement, and/or any renewals, extensions, or
amendments thereto; (2) any of the Loan Documents; (3) any violation of this
Agreement or the Loan Documents; (4) all past, present and future loans; (5) any
incidents, omissions, acts, practices or occurrences arising out of or related
to this Agreement or the Loan Documents causing injury to either party whereby
the other party or its agents, employees or representatives may be liable, in
whole or in part, or (6) any aspect of the present or future relationships of
the parties, will be resolved through final and binding arbitration conducted at
a location determined by the arbitrator in Los Angeles County, California, and
administered by the American Arbitration Association ("AAA") in accordance with
the California Arbitration Act (Title 9, California Code of Civil Procedure
Section 1280 et. seq.) and the then existing Commercial Rules of the AAA.
Judgement upon any award rendered by the arbitrator(s) may be entered in any
state or federal court having jurisdiction thereof.

          9.2.2  PROVISIONAL REMEDIES, SELF HELP AND FORECLOSURE. No provision
of this Agreement will limit the right of any party to: (1) exercise any rights
or remedies as a secured party against any personal property collateral pursuant
to the terms of a security agreement or pledge agreement, or applicable law, (2)
exercise self help remedies such as setoff, or (3) obtain provisional or
ancillary remedies such as injunctive relief or the appointment of a receiver
from a court having jurisdiction before, during or after the pendency of any
arbitration or referral. The institution and maintenance of an action for
judicial relief or pursuit of provisional or ancillary remedies, or exercise of
self help remedies will not constitute a waiver of the right of any party,
including the plaintiff, to submit any dispute to arbitration or judicial
reference.

          9.2.3  POWERS AND QUALIFICATIONS OF ARBITRATORS. The arbitrator(s)
will give effect to statutes of limitation, waiver and estoppel and other
affirmative defenses in determining any claim. Any controversy concerning
whether an issue is arbitratable will be determined by the arbitrator(s). The
laws of the State of California will govern. The arbitration award may include
equitable and declaratory relief. All arbitrator(s) selected will be required to
be a practicing attorney or retired judge licensed to practice law in the State
of California and will be required to be experienced and knowledgeable in the
substantive laws applicable to the subject matter of the controversy or claim at
issue.

          9.2.4  DISCOVERY. The provisions of California Code of Civil Procedure
Section 1283.05 or its successor section(s) are incorporated herein and made a
part of this Agreement.

                                       12

<PAGE>   13
Depositions may be taken and discovery may be obtained in any arbitration
under this Agreement in accordance with said section(s).

               9.2.5     MISCELLANEOUS. The arbitrator(s) will determine which
is the prevailing party and will include in the award that party's reasonable
attorneys' fees and costs (including allocated costs of in-house legal counsel).
Each party agrees to keep all controversies and claims and the arbitration
proceedings strictly confidential, except for disclosures of information
required in the ordinary course of business of the parties or by applicable law
or regulation.

          9.3  CUMULATIVE RIGHTS AND NO WAIVER. All rights and remedies granted
to CNB under the Loan Documents are cumulative and no one such right or remedy
is exclusive of any other. No failure or delay on the part of CNB in exercising
any right or remedy will operate as a waiver thereof, and no single or partial
exercise or waiver by CNB of any such right or remedy will preclude any further
exercise thereof or the exercise of any other right or remedy.

          9.4  APPLICABLE LAW. This Agreement will be governed by California
law.

          9.5  LIEN AND RIGHT OF SET-OFF. Subject to Section 7.1, Borrower
grants to CNB a continuing lien for all Obligations of Borrower to CNB, arising
under the Guidance Line Facility, upon any and all moneys, securities and other
property of Borrower and the proceeds thereof, now or hereafter held or received
by or in transit to CNB from or for Borrower, whether for safekeeping, custody,
pledge, transmission, collection or otherwise, and also upon any and all
deposits (general or special) and credits of Borrower with, and any and all
claims of Borrower against, CNB at any time existing. Upon the occurrence of any
Event of Default, CNB is hereby authorized at any time and from time to time,
without notice to Borrower or any other Person to setoff, appropriate and apply
any or all items hereinabove referred to against all Obligations of Borrower,
arising under the Guidance Line Facility, and whether now existing or hereafter
arising.

          9.6  NOTICES. Any notice required or permitted under any Loan Document
will be given in writing and will be deemed to have been given when personally
delivered or when sent by the U.S. mail, postage prepaid, certified, return
receipt requested, properly addressed. For the purposes hereof, the addresses of
the parties will, until further notice given as herein provided, be as follows:

CNB:                City National Bank
                    Westside Commercial Banking Center
                    400 N. Roxbury Drive, Second Floor
                    Beverly Hills, CA 90210
                    Attention: May Poole, Vice President

with copy to:       City National Bank, Legal Department
                    400 North Roxbury Drive
                    Beverly Hills, California 90210-5021
                    Attention: Managing Counsel, Credit Unit

Borrower:           Simon Worldwide, Inc.
                    101 Edgewater Drive
                    Wakefield, MA 01880
                    Attention: Nick Mammola

                                       13
<PAGE>   14
with copies to:     Simon Marketing, Inc.
                    1900 Avenue of the Stars, Suite 550,
                    Los Angeles, CA 90067-4301
                    Attention: Chief Financial Officer
                    Attention: General Counsel

     9.7   ASSIGNMENTS.  The provisions of this Agreement are hereby made
applicable to and will inure to the benefit of CNB's successor and assigns and
Borrower's successors and assigns; provided, however, that Borrower may not
assign or transfer its rights or obligations under this Agreement without the
prior written consent of CNB.

     9.8   INDEMNIFICATION.  Borrower will, at all times, defend and indemnify
and hold CNB harmless from and against any and all claims arising out of or
resulting from (a) any breach of the representations, warranties, agreements or
covenants made by Borrower herein; (b) any suit or proceeding of any kind or
nature whatsoever against CNB arising from or connected with the transactions
contemplated by this Agreement, the Loan Documents or any of the rights and
properties assigned to CNB hereunder, other than to the extent arising from
CNB's gross negligence or willful misconduct; and/or (c) any suit or proceeding
that CNB reasonably may deem necessary or advisable to institute, in the name
of CNB, Borrower or both, against any other Person, for any reason whatsoever
to protect the substantive rights of CNB hereunder or under any of the
documents, instruments or agreements executed or to be executed pursuant
hereto, including reasonable attorneys' fees and court costs and all other
costs and expenses incurred by CNB (or allocable to CNB's in-house counsel),
all of which will be charged to and paid by Borrower and will be secured by the
Collateral. Any obligation or liability of Borrower to CNB under this Section
will survive the Termination Date and the repayment of all Loans and other
extensions of credit and the payment or performance of all other Obligations of
Borrower to CNB.

     9.9   COMPLETE AGREEMENT.  This Agreement, together with other Loan
Documents, constitutes the entire agreement of the parties and supersedes any
prior or contemporaneous oral or written agreements or understandings, if any,
which are merged into this Agreement. This Agreement may be amended only in
a writing signed by Borrower and CNB.

     9.10  HEADINGS.  Section headings in this Agreement are included for
convenience of reference only and do not constitute a part of the Agreement for
any purpose.

     9.11  ACCOUNTING TERMS.  Except as otherwise stated in this Agreement, all
accounting terms and financial covenants and information will be construed in
conformity with, and all financial data required to be submitted will be
prepared in conformity with, GAAP as in effect on the date hereof.

     9.12  SEVERABILITY.  Any provision of the Loan Documents which is
prohibited or unenforceable in any jurisdiction, will be, only as to such
jurisdiction, ineffective to the extent of

                                       14

<PAGE>   15
such prohibition or unenforceability, but all the remaining provisions of the
Loan Documents will remain valid.

     9.13 COUNTERPARTS.  This Agreement may be signed in any number of
counterparts which, when taken together, will constitute but one agreement.

     IN WITNESS WHEREOF, CNB and Borrower have caused this Agreement to be
executed as of the date first specified at the beginning of this Agreement.

BORROWER                                SIMON WORLDWIDE, INC.,
                                        a Delaware corporation

                                        By: ___________________________________
                                            Dominic F. Mammola, Executive Vice
                                            President/Chief Financial Officer

CNB                                     CITY NATIONAL BANK, a
                                        national banking association

                                        By: ___________________________________
                                            May Poole, Vice President

ACKNOWLEDGED AND AGREED:

SIMON MARKETING, INC.,
a Delaware corporation

By: ___________________________________

    Richard Lamishaw, Executive Vice President/Chief Financial Officer

                                       15<PAGE>

                               CENDANT CORPORATION

                                       TO

                               [name of trustee],

                                     Trustee

                                    Indenture

                            Dated as of ______, 2001

                         CONVERTIBLE AND NON-CONVERTIBLE

                             SENIOR DEBT SECURITIES

<PAGE>

                               CENDANT CORPORATION

               Reconciliation and tie between Trust Indenture Act
                    of 1939 and Indenture, dated as of , 2001
                    -----------------------------------------
<TABLE>
<CAPTION>

Trust Indenture                                                                                  Indenture
  Act Section
---------------                                                                                  -----
<S>                                                                                              <C>

ss. 310(a)(1) ...............................................................................    6.07(a)
       (a)(2) ...............................................................................    6.07(a)
       (b)    ...............................................................................    6.08
ss. 312(c)    ...............................................................................    7.01
ss. 314(a)    ...............................................................................    7.03
       (a)(4) ...............................................................................    10.04
       (c)(1) ...............................................................................    1.02
       (c)(2) ...............................................................................    1.02
       (e) ..................................................................................    1.02
ss. 315(b) ..................................................................................    6.01
ss. 316(a)(last
       sentence) ............................................................................    1.01 ("Outstanding")
       (a)(1)(A) ............................................................................    5.02, 5.12
       (a)(1)(B) ............................................................................    5.13
       (b) ..................................................................................    5.08
       (c) ..................................................................................    1.04(e)
ss. 317(a)(1) ...............................................................................    5.03
       (a)(2) ...............................................................................    5.04
       (b) ..................................................................................    10.03
ss. 318(a) ..................................................................................    1.11

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

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

<PAGE>

Table of Contents1

                                                                                                                        Page

PARTIES....................................................................................................................1
RECITALS OF THE COMPANY....................................................................................................1
ARTICLE IDEFINITIONS AND OTHER PROVISIONSOF GENERAL APPLICATION............................................................1
                  Section 1.01      Definitions............................................................................1
                  Section 1.02      Compliance Certificates and Opinions..................................................10
                  Section 1.03      Form of Documents Delivered to Trustee................................................11
                  Section 1.04      Acts of Holders.......................................................................11
                  Section 1.05      Notices, Etc. to Trustee and Company..................................................13
                  Section 1.06      Notice to Holders; Waiver.............................................................13
                  Section 1.07      Effect of Headings and Table of Contents..............................................15
                  Section 1.08      Successors and Assigns................................................................15
                  Section 1.09      Separability Clause...................................................................15
                  Section 1.10      Benefits of Indenture.................................................................15
                  Section 1.11      Governing Law.........................................................................15
                  Section 1.12      Legal Holidays........................................................................15
                  Section 1.13      Trust Indenture Act...................................................................16
ARTICLE II  SECURITY FORMS................................................................................................16
                  Section 2.01      Forms Generally.......................................................................16
                  Section 2.02      Form of Trustee's Certificate of Authentication.......................................16
                  Section 2.03      Securities Issuable in Global Form....................................................17
ARTICLE III  THE SECURITIES...............................................................................................18
                  Section 3.01      Amount Unlimited; Issuable in Series..................................................18
                  Section 3.02      Denominations.........................................................................21
                  Section 3.03      Execution, Authentication, Delivery and Dating........................................21
                  Section 3.04      Temporary Securities..................................................................24
                  Section 3.05      Registration, Registration of Transfer and Exchange...................................25
                  Section 3.06      Mutilated, Destroyed, Lost and Stolen Securities......................................27
                  Section 3.07      Payment of Interest; Interest Rights Preserved; Optional Interest Reset...............28
                  Section 3.08      Persons Deemed Owners.................................................................30
                  Section 3.09      Cancellation..........................................................................31
                  Section 3.10      Computation of Interest...............................................................31
                  Section 3.11      Currency and Manner of Payments in Respect of Securities..............................31
                  Section 3.12      Appointment and Resignation of Successor Exchange Rate Agent..........................35
                  Section 3.13      Designation as Senior Indebtedness....................................................35
ARTICLE IV  SATISFACTION AND DISCHARGE....................................................................................35

                                       i

<PAGE>

                  Section 4.01      Satisfaction and Discharge of Indenture...............................................35
                  Section 4.02      Application of Trust Money............................................................37
ARTICLE V  REMEDIES.......................................................................................................37
                  Section 5.01      Events of Default.....................................................................37
                  Section 5.02      Acceleration of Maturity; Rescission and Annulment....................................38
                  Section 5.03      Collection of Indebtedness and Suits for Enforcement by Trustee.......................39
                  Section 5.04      Trustee May File Proofs of Claim......................................................40
                  Section 5.05      Trustee May Enforce Claims Without Possession of Securities...........................41
                  Section 5.06      Application of Money Collected........................................................41
                  Section 5.07      Limitation on Suits...................................................................41
                  Section 5.08      Unconditional Right of Holders to Receive Principal, Premium and Interest.............42
                  Section 5.09      Restoration of Rights and Remedies....................................................43
                  Section 5.10      Rights and Remedies Cumulative........................................................43
                  Section 5.11      Delay or Omission Not Waiver..........................................................43
                  Section 5.12      Control by Holders....................................................................43
                  Section 5.13      Waiver of Past Defaults...............................................................44
                  Section 5.14      Waiver of Stay or Extension Laws......................................................44
ARTICLE VI  THE TRUSTEE...................................................................................................44
                  Section 6.01      Notice of Defaults....................................................................44
                  Section 6.02      Certain Rights of Trustee.............................................................45
                  Section 6.03      Trustee Not Responsible for Recitals or Issuance of Securities........................46
                  Section 6.04      May Hold Securities...................................................................46
                  Section 6.05      Money Held in Trust...................................................................46
                  Section 6.06      Compensation and Reimbursement........................................................46
                  Section 6.07      Corporate Trustee Required; Eligibility; Conflicting Interest.........................47
                  Section 6.08      Resignation and Removal; Appointment of Successor.....................................47
                  Section 6.09      Acceptance of Appointment by Successor................................................49
                  Section 6.10      Merger, Conversion, Consolidation or Succession to Business...........................50
                  Section 6.11      Appointment of Authenticating Agent...................................................50
ARTICLE VII HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY.............................................................52
                  Section 7.01      Disclosure of Names and Addresses of Holders..........................................52
                  Section 7.02      Reports by Trustee....................................................................52
                  Section 7.03      Reports by Company....................................................................52
ARTICLE VIII  MERGER, CONSOLIDATION AND SALE OF ASSETS....................................................................53
                  Section 8.01      Company May Consolidate, Etc., Only on Certain Terms..................................53
                  Section 8.02      Successor Person Substituted..........................................................54
ARTICLE IX  SUPPLEMENTAL INDENTURES.......................................................................................54
                  Section 9.01      Supplemental Indentures Without Consent of Holders....................................54
                  Section 9.02      Supplemental Indentures with Consent of Holders.......................................55
                  Section 9.03      Execution of Supplemental Indentures..................................................56
                  Section 9.04      Effect of Supplemental Indentures.....................................................57

                                       ii

<PAGE>

                  Section 9.05      Conformity with Trust Indenture Act...................................................57
                  Section 9.06      Reference in Securities to Supplemental Indentures....................................57
                  Section 9.07      Notice of Supplemental Indentures.....................................................57
ARTICLE X  COVENANTS......................................................................................................57
                  Section 10.01     Payment of Principal, Premium, if any, and Interest...................................57
                  Section 10.02     Maintenance of Office or Agency.......................................................57
                  Section 10.03     Money for Securities Payments to Be Held in Trust.....................................59
                  Section 10.04     Statement as to Compliance............................................................60
                  Section 10.05     Additional Amounts....................................................................60
                  Section 10.06     Payment of Taxes and Other Claims.....................................................61
                  Section 10.07     Corporate Existence...................................................................61
                  Section 10.08     Waiver of Certain Covenants...........................................................61
ARTICLE XI  REDEMPTION OF SECURITIES......................................................................................62
                  Section 11.01     Applicability of Article..............................................................62
                  Section 11.02     Election to Redeem; Notice to Trustee.................................................62
                  Section 11.03     Selection by Trustee of Securities to Be Redeemed.....................................62
                  Section 11.04     Notice of Redemption..................................................................63
                  Section 11.05     Deposit of Redemption Price...........................................................64
                  Section 11.06     Securities Payable on Redemption Date.................................................64
                  Section 11.07     Securities Redeemed in Part...........................................................65
ARTICLE XII  SINKING FUNDS................................................................................................65
                  Section 12.01     Applicability of Article..............................................................65
                  Section 12.02     Satisfaction of Sinking Fund Payments with Securities.................................65
                  Section 12.03     Redemption of Securities for Sinking Fund.............................................66

ARTICLE XIII REPAYMENT AT OPTION OF HOLDERS...............................................................................67
                  Section 13.01     Applicability of Article..............................................................67
                  Section 13.02     Repayment of Securities...............................................................67
                  Section 13.03     Exercise of Option....................................................................67
                  Section 13.04     When Securities Presented for Repayment Become Due and Payable........................67
                  Section 13.05     Securities Repaid in Part.............................................................68
ARTICLE XIV  DEFEASANCE AND COVENANT DEFEASANCE...........................................................................69
                  Section 14.01     Company's Option to Effect Defeasance or Covenant Defeasance..........................69
                  Section 14.02     Defeasance and Discharge..............................................................69
                  Section 14.03     Covenant Defeasance...................................................................69
                  Section 14.04     Conditions to Defeasance or Covenant Defeasance.......................................70
                  Section 14.05     Deposited Money and Government Obligations to Be Held in Trust; Other
                                       Miscellaneous Provisions...........................................................71
                  Section 14.06     Reinstatement.........................................................................72
ARTICLE XV  MEETINGS OF HOLDERS OF SECURITIES.............................................................................72
                  Section 15.01     Purposes for Which Meetings May Be Called.............................................72
                  Section 15.02     Call, Notice and Place of Meetings....................................................73
                  Section 15.03     Persons Entitled to Vote at Meetings..................................................73

                                      iii

<PAGE>

                  Section 15.04     Quorum; Action........................................................................73
                  Section 15.05     Determination of Voting Rights; Conduct and Adjournment of Meetings...................74
                  Section 15.06     Counting Votes and Recording Action of Meetings.......................................75
</TABLE>

TESTIMONIUM

SIGNATURES AND SEALS

EXHIBIT A-1       FORM OF CERTIFICATE TO BE GIVEN BY PERSON ENTITLED TO RECEIVE
                  BEARER SECURITY OR TO OBTAIN INTEREST PAYABLE PRIOR TO THE
                  EXCHANGE DATE

1    Note: This table of contents shall not, for any purpose, be deemed to be a
     part of the Indenture.

<PAGE>

                                     PARTIES

         INDENTURE, dated as of _____________, 2001, between CENDANT
CORPORATION, a corporation duly organized and existing under the laws of the
State of Delaware (herein called the "Company"), having its principal office at
9 West 57th Street, New York, New York, and ___________, a [state] banking
corporation duly organized and existing under the laws of the State of ____, as
Trustee (herein called the "Trustee") having its principal office at __________.

                             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"), which may or may not be convertible into or exchangeable for any
securities of any Person (including the Company), to be issued in one or more
series as provided in this Indenture.

         This Indenture is subject to the provisions of the Trust Indenture Act
of 1939, as amended, that are required to be part of this Indenture and shall,
to the extent applicable, be governed by such provisions.

         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 any
series thereof, as follows:

                                    ARTICLE I

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

         Section 1.1 Definitions.

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

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

         (2)     all 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, and the terms "cash transaction" and "self-liquidating
paper", as used in TIA Section 311, shall have the meanings assigned to them in
the rules of the Commission adopted under the Trust Indenture Act;

                                       1

<PAGE>

         (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.

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

"Act", when used with respect to any Holder, has the meaning specified in
Section 1.04.

"Additional Amounts" has the meaning specified in Section 10.05.

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

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

"Authorized Newspaper" means a newspaper, in the English language or in an
official language of the country of publication, customarily published on each
Business Day, whether or not published on Saturdays, Sundays or holidays, and of
general circulation in each place in connection with which the term is used or
in the financial community of each such place. Where successive publications are
required to be made in Authorized Newspapers, the successive publications may be
made in the same or in different newspapers in the same city meeting the
foregoing requirements and in each case on any Business Day.

         "Bearer Security" means any Security except a Registered Security.

         "Beneficial Owner" of shares of Capital Stock means, with respect to
any Person, any such shares:

              (a) which such Person or any of such Person's Affiliates or
         Associates, directly or indirectly, has the sole or shared right to
         vote or dispose of or has "beneficial ownership" of (as determined
         pursuant to Rule 13d-3 promulgated under the Exchange Act or pursuant
         to any successor provision), including, but not limited to, pursuant to
         any agreement, arrangement or understanding, whether or not in writing;
         provided, that a Person shall not be deemed the "Beneficial Owner" of,
         or to "Beneficially Own", any security under this subparagraph as a
         result of an agreement, arrangement or understanding to vote such
         security that both (y) arises solely from a revocable proxy given in
         response to a public proxy or consent solicitation made pursuant to,
         and in accordance with, the

                                       2

<PAGE>

         applicable provisions of the rules and regulations promulgated under
         the Exchange Act and (z) is not reportable by such person on Schedule
         13D promulgated under the Exchange Act (or any comparable or successor
         report) without giving effect to any applicable waiting period, or
         Exchange Act (or any comparable or successor report) without giving
         effect to any applicable waiting period; or

              (b) which are Beneficially Owned, directly or indirectly, by any
         other person (or any Affiliate or Associate thereof) with which such
         person (or any of such person's Affiliates or Associates) has any
         agreement, arrangement or understanding, whether or not in writing, for
         the purpose of acquiring, holding, voting (except pursuant to a
         revocable proxy as described in the proviso to subparagraph (a) above)
         or disposing of any Capital Stock;

         provided, that (i) no director or officer of the Corporation (nor any
         Affiliate or Associate of any such director or officer) shall, solely
         by reason of any or all of such directors or officers acting in their
         capacities as such, be deemed the "Beneficial Owner" of or to
         "Beneficially Own" any shares of Capital Stock that are Beneficially
         Owned by any other such director or officer, and (ii) no person shall
         be deemed the "Beneficial Owner" of or to "Beneficially Own" any shares
         of Capital Stock held in any voting trust, any employee stock ownership
         plan or any similar plan or trust if such person does not possess the
         right to vote, to direct the voting of or to be consulted with respect
         to the voting of such shares.

              For the purposes of this definition, the terms "Affiliate" and
         "Associate" shall have the respective meanings ascribed to such terms
         in Rule 12b-2 promulgated under the Securities Exchange Act of 1934, as
         amended as in effect on ____________ (the term "registrant" in said
         Rule 12b-2 meaning in this case the Company).

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

         "Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors (or a committee of the Board of Directors empowered to
exercise all of the powers of 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 City of New York
or in the city in which the Corporate Trust Office is located are authorized or
obligated by law or executive order to close.

         "Capital Stock" means any and all shares, interests, participations,
rights or other equivalents (however designated) of corporate stock of the
Company or any Subsidiary.

         "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 Indenture such Commission is not
existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.

         "Common Depositary" has the meaning specified in Section 3.04.

                                       3

<PAGE>

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

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

         "Corporate Trust Office" means the principal corporate trust office of
the Trustee, at which at any particular time its corporate trust business shall
be administered, which office on the date of execution of this Indenture is
located at_________ , except that with respect to presentation of Securities for
payment or for registration of transfer or exchange, such term shall mean the
office or agency of the Trustee at which, at any particular time, its corporate
agency business shall be conducted.

         "corporation" includes corporations, associations, companies and
business trusts.

         "coupon" means any interest coupon appertaining to a Bearer Security.

         "Currency" means any currency or currencies, composite currency or
currency unit or currency units, including, without limitation, the Euro, issued
by the government of one or more countries or by any recognized confederation or
association of such governments.

         "Currency Conversion Date" has the meaning specified in Section
3.11(d).

         "Currency Conversion Event" means the cessation of use of (i) a Foreign
Currency both by the government of the country which issued such Currency and by
a central bank or other public institution of or within the international
banking community for the settlement of transactions, or (ii) any currency unit
(or composite currency) for the purposes for which it was established.

         "Debt" means notes, bonds, debentures or other similar evidences of
indebtedness for money borrowed.

         "Default" means any event which is, or after notice or passage of time
or both would be, an Event of Default.

         "Defaulted Interest" has the meaning specified in Section 3.07.

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

         "Dollar Equivalent of the Currency Unit" has the meaning specified in
Section 3.11(g).

         "Dollar Equivalent of the Foreign Currency" has the meaning specified
in Section 3.11(f).

         "Election Date" has the meaning specified in Section 3.11(h).

         "Euro" means the currency introduced at the start of the third stage of
European economic and monetary union pursuant to the Treaty establishing the
European Community (signed in Rome on 25th March, 1957) as amended by the
Treaty on European Union (signed in Maastricht on 7th February, 1991) and as
further amended by the Treaty of Amsterdam.

                                       4

<PAGE>

         "Event of Default" has the meaning specified in Section 5.01.

         "Exchange Date" has the meaning specified in Section 3.04.

         "Exchange Rate Agent" means, with respect to Securities of or within
any series, unless otherwise specified with respect to any Securities pursuant
to Section 3.01, a New York Clearing House bank, designated pursuant to Section
3.01 or Section 3.12.

         "Exchange Rate Officer's Certificate" means a tested telex or a
certificate setting forth (i) the applicable Market Exchange Rate and (ii) the
Dollar or Foreign Currency amounts of principal (and premium, if any) and
interest, if any (on an aggregate basis and on the basis of a Security having
the lowest denomination principal amount determined in accordance with Section
3.02 in the relevant Currency), payable with respect to a Security of any series
on the basis of such Market Exchange Rate, sent (in the case of a telex) or
signed (in the case of a certificate) by the Treasurer, any Vice President or
any Assistant Treasurer of the Company.

         "Federal Bankruptcy Code" means the Bankruptcy Act of Title 11 of the
United States Code, as amended from time to time.

         "Foreign Currency" means any Currency other than Currency of the United
States.

         "Government Obligations" means, unless otherwise specified with respect
to any series of Securities pursuant to Section 3.01, securities which are (i)
direct obligations of the government which issued the Currency in which the
Securities of a particular series are payable or (ii) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the
government which issued the Currency in which the Securities of such series are
payable, the payment of which is unconditionally guaranteed by such government,
which, in either case, are full faith and credit obligations of such government
payable in such Currency and are not callable or redeemable at the option of the
issuer thereof and shall also include a depository receipt issued by a bank or
trust company as custodian with respect to any such Government Obligation or a
specific payment of interest on or principal of any such Government Obligation
held by such custodian for the account of the holder of a 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 Government
Obligation or the specific payment of interest or principal of the Government
Obligation evidenced by such depository receipt.

         "Holder" means, in the case of a Registered Security, the Person in
whose name a Security is registered in the Security Register and, in the case of
a Bearer Security, the bearer thereof and, when used with respect to any coupon,
shall mean the bearer thereof.

         "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,
and shall include the terms of any particular series of Securities established
as contemplated by Section 3.01; provided, however, that, if at any time more
than one Person is acting as Trustee under this instrument, "Indenture" shall
mean, with respect to any one or more series of Securities for which such

                                       5

<PAGE>

Person is Trustee, this instrument as originally executed or as it may from time
to time be supplemented or amended by one or more indentures supplemental hereto
entered into pursuant to the applicable provisions hereof and shall include the
terms of particular series of Securities for which such Person is Trustee
established as contemplated by Section 3.01, exclusive, however, of any
provisions or terms which relate solely to other series of Securities for which
such Person is not Trustee, regardless of when such terms or provisions were
adopted, and exclusive of any provisions or terms adopted by means of one or
more indentures supplemental hereto executed and delivered after such Person had
become such Trustee but to which such Person, as such Trustee, was not a party.

         "Indexed Security" means a Security the terms of which provide that the
principal amount thereof payable at Stated Maturity may be more or less than the
principal face amount thereof at original issuance.

         "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 at the rate prescribed in such Original Issue Discount
Security.

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

         "Issue Date" with respect to a Security means the date of first
issuance of such Security under this Indenture.

         "Lien" means any pledge, mortgage, lien, charge, encumbrance or
security interest except that a Lien shall not mean any license or right to use
intellectual property of the Company or a Subsidiary granted by the Company or a
Subsidiary.

         "Market Exchange Rate" means, unless otherwise specified with respect
to any Securities pursuant to Section 3.01, (i) for any conversion involving a
currency unit on the one hand and Dollars or any Foreign Currency on the other,
the exchange rate between the relevant currency unit and Dollars or such Foreign
Currency calculated by the method specified pursuant to Section 3.01 for the
Securities of the relevant series, (ii) for any conversion of Dollars into any
Foreign Currency, the noon (New York City time) buying rate for such Foreign
Currency for cable transfers quoted in New York City as certified for customs
purposes by the Federal Reserve Bank of New York and (iii) for any conversion of
one Foreign Currency into Dollars or another Foreign Currency, the spot rate at
noon local time in the relevant market at which, in accordance with normal
banking procedures, the Dollars or Foreign Currency into which conversion is
being made could be purchased with the Foreign Currency from which conversion is
being made from major banks located in either New York City, London or any other
principal market for Dollars or such purchased Foreign Currency, in each case
determined by the Exchange Rate Agent. Unless otherwise specified with respect
to any Securities pursuant to Section 3.01, in the event of the unavailability
of any of the exchange rates provided for in the foregoing clauses (i), (ii) and
(iii), the Exchange Rate Agent shall use, in its sole discretion and without
liability on its part, such quotation of the Federal Reserve Bank of New York as
of the most recent available date, or quotations from one or more major banks in
New York City, London or another principal market for the Currency in question,
or such other quotations as the Exchange Rate Agent shall deem appropriate.
Unless otherwise specified by the Exchange Rate Agent, if there is more than one
market for dealing in any Currency by reason of foreign exchange regulations or
otherwise, the market to be used in respect of such Currency shall be that upon
which a non-resident issuer of securities designated in such Currency would
purchase such Currency in order to make payments in respect of such securities.

                                       6

<PAGE>

         "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, notice of redemption, notice of option to elect
repayment or otherwise.

         "Officers' Certificate" means a certificate signed by the Chairman, 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.

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

         "Optional Reset Date" has the meaning specified in Section 3.07(b).

         "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 5.02.

         "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, or portions thereof, for whose payment or redemption
               or repayment at the option of the Holder money in the necessary
               amount has been theretofore deposited with the Trustee or any
               Paying Agent (other than the Company) in trust or set aside and
               segregated in trust by the Company (if the Company shall act as
               its own Paying Agent) for the Holders of such Securities and any
               coupons appertaining thereto; 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;

          (iii) Securities, except to the extent provided in Sections 14.02 and
               14.03, with respect to which the Company has effected defeasance
               and/or covenant defeasance as provided in Article Fourteen; and

          (iv) Securities which have been paid pursuant to Section 3.06 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 or are present at
a meeting of Holders for quorum purposes, and for the purpose of making the
calculations required by TIA Section 313, (i) the principal amount of an
Original Issue Discount Security that may be counted in making such
determination or calculation and that shall be deemed to be Outstanding for

                                       7

<PAGE>

such purpose shall be equal to the amount of principal thereof that would be (or
shall have been declared to be) due and payable, at the time of such
determination, upon a declaration of acceleration of the maturity thereof
pursuant to Section 5.02, (ii) the principal amount of any Security denominated
in a Foreign Currency that may be counted in making such determination or
calculation and that shall be deemed Outstanding for such purpose shall be equal
to the Dollar equivalent, determined as of the date such Security is originally
issued by the Company as set forth in an Exchange Rate Officer's Certificate
delivered to the Trustee, of the principal amount (or, in the case of an
Original Issue Discount Security, the Dollar equivalent as of such date of
original issuance of the amount determined as provided in clause (i) above), of
such Security, (iii) the principal amount of any Indexed Security that may be
counted in making such determination or calculation and that shall be deemed
outstanding for such purpose shall be equal to the principal face amount of such
Indexed Security at original issuance, unless otherwise provided with respect to
such Security pursuant to Section 3.01, and (iv) 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 making such
calculation or 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 right so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon the
Securities or any Affiliate of the Company or such other obligor.

         "Paying Agent" means any Person (including the Company acting as Paying
Agent) authorized by the Company to pay the principal of (or premium, if any,
on) or interest on any Securities on behalf of the Company.

         "Person" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

         "Place of Payment" means, when used with respect to the Securities of
or within any series, the place or places where the principal of (and premium,
if any, on) and interest on such Securities are payable as specified as
contemplated by Sections 3.01 and 10.02.

         "Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 3.06 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Security or a Security to which a
mutilated, destroyed, lost or stolen coupon appertains shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security or
the Security to which the mutilated, destroyed, lost or stolen coupons
appertains, as the case may be.

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

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

         "Registered Security" means any Security registered in the Security
Register.

                                       8

<PAGE>

         "Regular Record Date" for the interest payable on any Interest Payment
Date on the Registered Securities of or within any series means the date
specified for that purpose as contemplated by Section 3.01.

         "Repayment Date" means, when used with respect to any Security to be
repaid at the option of the Holder, the date fixed for such repayment pursuant
to this Indenture.

         "Repayment Price" means, when used with respect to any Security to be
repaid at the option of the Holder, the price at which it is to be repaid
pursuant to this Indenture.

         "Responsible Officer", when used with respect to the Trustee, means the
chairman or any vice-chairman of the board of directors, the chairman or any
vice-chairman of the executive committee of the board of directors, the chairman
of the trust committee, the president, any vice president, the secretary, any
assistant secretary, the treasurer, any assistant treasurer, the cashier, any
assistant cashier, any trust officer or assistant trust officer, the controller
or any assistant controller or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above-designated
officers, and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject.

         "Securities" has the meaning stated in the first recital of this
Indenture and more particularly means any Securities authenticated and delivered
under this Indenture; provided, however, that if at any time there is more than
one Person acting as Trustee under this Indenture, "Securities" with respect to
the Indenture as to which such Person is Trustee shall have the meaning stated
in the first recital of this Indenture and shall more particularly mean
Securities authenticated and delivered under this Indenture, exclusive, however,
of Securities of any series as to which such Person is not Trustee.

         "Security Register" and "Security Registrar" have the respective
meanings specified in Section 3.05.

         "Special Record Date" for the payment of any Defaulted Interest on the
Registered Securities of or within any series means a date fixed by the Trustee
pursuant to Section 3.07.

         "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 or a coupon representing such installment of interest as the
fixed date on which the principal of such Security or such installment of
principal or interest is due and payable.

         "Subordinated Indenture" means the indenture to be entered into between
the Company and in connection with the July 2001 shelf registration of the
Company.

         "Subsidiary" means any corporation of which at the time of
determination the Company, directly and/or indirectly through one or more
Subsidiaries, owns more than 50% of the shares of Voting Stock.

         "Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939 as
in force at the date as of which this Indenture was executed, except as provided
in Section 9.05.

                                       9

<PAGE>

         "Trustee" means the Person named as the "Trustee" in the first
paragraph of this Indenture 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;
provided, however, that if at any time there is more than one such Person,
"Trustee" as used with respect to the Securities of any series shall mean only
the Trustee with respect to Securities of that series.

         "United States" means, unless otherwise specified with respect to any
Securities pursuant to Section 3.01, the United States of America (including the
states and the District of Columbia), its territories, its possessions and other
areas subject to its jurisdiction.

         "United States person" means, unless otherwise specified with respect
to any Securities pursuant to Section 3.01, an individual who is a citizen or
resident of the United States, a corporation, partnership or other entity
created or organized in or under the laws of the United States or an estate or
trust the income of which is subject to United States federal income taxation
regardless of its source.

         "Valuation Date" has the meaning specified in Section 3.11(c).

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

         "Voting Stock" means stock of the class or classes having general
voting power under ordinary circumstances to elect at least a majority of the
board of directors, managers or trustees of a corporation (irrespective of
whether or not at the time stock of any other class or classes shall have or
might have voting power by reason of the happening of any contingency).

         "Yield to Maturity" means the yield to maturity, computed at the time
of issuance of a Security (or, if applicable, at the most recent redetermination
of interest on such Security) and as set forth in such Security in accordance
with generally accepted United States bond yield computation principles.

         Section 1.02 Compliance Certificates and Opinions.

         Upon any application or request by the Company to the Trustee to take
any action under any provision of this Indenture, the Company shall furnish to
the Trustee an Officers' Certificate stating that all conditions precedent, if
any, provided for in this Indenture (including any covenant compliance with
which constitutes a condition precedent) 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, including, without
limitation, the certificate of authentication provided pursuant to Section 3.03,
no additional certificate or opinion need be furnished.

         Every certificate or opinion with respect to compliance with a covenant
or condition provided for in this Indenture (other than pursuant to Section
10.04) 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;

                                       10

<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 covenant or condition has been complied with.

         Section 1.03 Form of Documents Delivered to Trustee.

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

         Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which 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 1.04       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 of the Outstanding Securities of all series or one or more series,
    as the case may be, may be embodied in and evidenced by one or more
    instruments of substantially similar tenor signed by such Holders in person
    or by agents duly appointed in writing. If Securities of a series are
    issuable as Bearer Securities, any request, demand, authorization,
    direction, notice, consent, waiver or other action provided by this
    Indenture to be given or taken by Holders of such series may, alternatively,
    be embodied in and evidenced by the record of Holders of Securities of such
    series voting in favor thereof, either in person or by proxies duly
    appointed in writing, at any meeting of Holders of Securities of such series
    duly called and held in accordance with the provisions of Article Fifteen,
    or a combination of such instruments and any such record. Except as herein
    otherwise expressly provided, such action shall become effective when such
    instrument or instruments or record or both are delivered to the Trustee
    and, where it is hereby

                                       11

<PAGE>

expressly required, to the Company. Such instrument or instruments and any such
record (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the "Act" of the Holders signing such instrument or
instruments or so voting at any such meeting. Proof of execution of any such
instrument or of a writing appointing any such agent, or of the holding by any
Person of a Security, shall be sufficient for any purpose of this Indenture and
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section. The record of any meeting of Holders of Securities
shall be proved in the manner provided in Section 15.06.

         (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 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 principal amount and serial numbers of Registered
Securities held by any Person, and the date of holding the same, shall be proved
by the Security Register.

         (d)     The principal amount and serial numbers of Bearer Securities
held by any Person, and the date of holding the same, may be proved by the
production of such Bearer Securities or by a certificate executed, as
depositary, by any trust company, bank, banker or other depositary, wherever
situated, if such certificate shall be deemed by the Trustee to be satisfactory,
showing that at the date therein mentioned such Person had on deposit with such
depositary, or exhibited to it, the Bearer Securities therein described; or such
facts may be proved by the certificate or affidavit of the Person holding such
Bearer Securities, if such certificate or affidavit is deemed by the Trustee to
be satisfactory. The Trustee and the Company may assume that such ownership of
any Bearer Security continues until (1) another certificate or affidavit bearing
a later date issued in respect of the same Bearer Security is produced, or (2)
such Bearer Security is produced to the Trustee by some other Person, or (3)
such Bearer Security is surrendered in exchange for a Registered Security, or
(4) such Bearer Security is no longer Outstanding. The principal amount and
serial numbers of Bearer Securities held by any Person, and the date of holding
the same, may also be proved in any other manner which the Trustee deems
sufficient.

         (e)      If the Company shall solicit from the Holders of Registered
Securities any request, demand, authorization, direction, notice, consent,
waiver or other Act, the Company may, at its option, by or pursuant to Board
Resolution, fix in advance a record date for the determination of Holders
entitled to give such request, demand, authorization, direction, notice,
consent, waiver or other Act, but the Company shall have no obligation to do so.
Notwithstanding TIA Section 316(c), such record date shall be the record date
specified in or pursuant to such Board Resolution, which shall be a date not
earlier than the date 30 days prior to the first solicitation of Holders
generally in connection therewith and not later than the date such solicitation
is completed. If such a record date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other Act may be given
before or after such record date, but only the Holders of record at the close of
business on such record date shall be deemed to be Holders for the purposes of
determining whether Holders of the requisite proportion of Outstanding
Securities have authorized or agreed or consented to such request,

                                       12

<PAGE>

demand, authorization, direction, notice, consent, waiver or other Act, and for
that purpose the Outstanding Securities shall be computed as of such record
date; provided that no such authorization, agreement or consent by the Holders
on such record date shall be deemed effective unless it shall become effective
pursuant to the provisions of this Indenture not later than eleven months after
the record date.

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

         Section 1.05      Notices, Etc. to Trustee and Company.

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

             (1) the Trustee by any Holder or by the Company shall be sufficient
    for every purpose hereunder if made, given, furnished or filed in writing to
    or with the Trustee at its Corporate Trust Office, 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 principal office specified in the first
    paragraph of this Indenture or at any other address previously furnished in
    writing to the Trustee by the Company.

        Section 1.06        Notice to Holders; Waiver.

         Where this Indenture provides for notice of any event to Holders of
Registered Securities by the Company or the Trustee, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class postage prepaid, to each such Holder affected by such
event, at his address as it appears in the Security Register within the time
prescribed for the giving of such notice. In any case where notice to Holders of
Registered Securities 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 of Registered
Securities or the sufficiency of any notice to Holders of Bearer Securities
given as provided. Any notice mailed to a Holder in the manner herein prescribed
shall be conclusively deemed to have been received by such Holder, whether or
not such Holder actually receives such notice.

         In case, by reason of the suspension of or irregularities in regular
mail service or by reason of any other cause, it shall be impractical to mail
notice of any event to Holders of Registered Securities when such notice is
required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Trustee shall be
deemed to be sufficient giving of such notice for every purpose hereunder.

                                       13

<PAGE>

         Except as otherwise expressly provided herein or otherwise specified
with respect to any Securities pursuant to Section 3.01, where this Indenture
provides for notice to Holders of Bearer Securities of any event, such notice
shall be sufficiently given to Holders of Bearer Securities if published in an
Authorized Newspaper in The City of New York and in such other city or cities as
may be specified in such Securities on a Business Day at least twice, the first
such publication to be not earlier than the earliest date, and not later than
the latest date, prescribed for the giving of such notice. Any such notice shall
be deemed to have been given on the date of the first such publication.

         In case by reason of the suspension of publication of any Authorized
Newspaper or Authorized Newspapers or by reason of any other cause it shall be
impracticable to publish any notice to Holders of Bearer Securities as provided
above, then such notification to Holders of Bearer Securities as shall be given
with the approval of the Trustee shall constitute sufficient notice to such
Holders for every purpose hereunder. Neither the failure to give notice by
publication to Holders of Bearer Securities as provided above, nor any defect in
any notice so published, shall affect the sufficiency of such notice with
respect to other Holders of Bearer Securities or the sufficiency of any notice
to Holders of Registered Securities given as provided herein.

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

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

          Section 1.07       Effect of Headings and Table of Contents.

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

         Section 1.08        Successors and Assigns.

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

         Section 1.09       Separability Clause.

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

         Section 1.10      Benefits of Indenture.

         Nothing in this Indenture or in the Securities or coupons, express or
implied, shall give to any Person, other than the parties hereto, any
Authenticating Agent, any Paying Agent, any Securities Registrar

                                       14

<PAGE>

and their successors hereunder and the Holders of Securities or coupons, any
benefit or any legal or equitable right, remedy or claim under this Indenture.

         Section 1.11      Governing Law.

         THIS INDENTURE AND THE SECURITIES AND COUPONS SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK. THIS INDENTURE IS
SUBJECT TO THE PROVISIONS OF THE TRUST INDENTURE ACT OF 1939, AS AMENDED, THAT
ARE REQUIRED TO BE PART OF THIS INDENTURE AND SHALL, TO THE EXTENT APPLICABLE,
BE GOVERNED BY SUCH PROVISIONS.

         Section 1.12      Legal Holidays.

         In any case where any Interest Payment Date, Redemption Date, sinking
fund payment date or Stated Maturity or Maturity of any Security shall not be a
Business Day at any Place of Payment, then (notwithstanding any other provision
of this Indenture or of any Security or coupon other than a provision in the
Securities of any series which specifically states that such provision shall
apply in lieu of this Section) payment of interest or principal (and premium, if
any) need not be made at such Place of Payment on such date, but may be made on
the next succeeding Business Day at such Place of Payment with the same force
and effect as if made on the Interest Payment Date or Redemption Date or sinking
fund payment date, or at the Stated Maturity or Maturity; provided that no
interest shall accrue for the period from and after such Interest Payment Date,
Redemption Date, sinking fund payment date, Stated Maturity or Maturity, as the
case may be.

         Section 1.13      Trust Indenture Act.

         This Indenture is subject to the provisions of the Trust Indenture Act
that are required to be part of this Indenture and shall, to the extent
applicable, be governed by such provisions.

                                   ARTICLE II

                                 SECURITY FORMS

         Section 2.01      Forms Generally.

         The Registered Securities, if any, of each series and the Bearer
Securities, if any, of each series and related coupons shall be in substantially
the forms 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
or coupons, as evidenced by their execution of the Securities or coupons. If the
forms of Securities or coupons of any 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 Company Order
contemplated by Section 3.03 for the authentication and

                                       15

<PAGE>

delivery of such Securities or coupons. Any portion of the text of any Security
may be set forth on the reverse thereof, with an appropriate reference thereto
on the face of the Security.

         Unless otherwise specified as contemplated by Section 3.01, Securities
in bearer form shall have interest coupons attached.

         The Trustee's certificate of authentication on all Securities shall be
in substantially the form set forth in this Article.

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

         Section 2.02      Form of Trustee's Certificate of Authentication.

         Subject to Section 6.11, the Trustee's certificate of authentication
shall be in substantially the following form:

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

                                                     [name of trustee],
                                                     as Trustee

                                                     By________________________
                                                          Authorized Officer

         Section 2.03      Securities Issuable in Global Form.

         If Securities of or within a series are issuable in global form, as
specified as contemplated by Section 3.01, then, notwithstanding clause (8) of
Section 3.01, any such Security shall represent such of the Outstanding
Securities of such series as shall be specified therein and may provide that it
shall represent the aggregate amount of Outstanding Securities of such series
from time to time endorsed thereon and that the aggregate amount of Outstanding
Securities of such series represented thereby may from time to time be increased
or decreased to reflect exchanges. Any endorsement of a Security in global form
to reflect the amount, or any increase or decrease in the amount, of Outstanding
Securities represented thereby shall be made by the Trustee in such manner and
upon instructions given by such Person or Persons as shall be specified therein
or in the Company Order to be delivered to the Trustee pursuant to Section 3.03
or Section 3.04. Subject to the provisions of Section 3.03 and, if applicable,
Section 3.04, the Trustee shall deliver and redeliver any Security in permanent
global form in the manner and upon instructions given by the Person or Persons
specified therein or in the applicable Company Order. If a Company Order
pursuant to Section 3.03 or Section 3.04 has been, or simultaneously is,
delivered, any instructions by the Company with respect to endorsement or
delivery or redelivery of a Security in global form shall be in writing but need
not comply with Section 1.02 and need not be accompanied by an Opinion of
Counsel.

                                       16

<PAGE>

         The provisions of the last sentence of Section 3.03 shall apply to any
Security represented by a Security in global form if such Security was never
issued and sold by the Company and the Company delivers to the Trustee the
Security in global form together with written instructions (which need not
comply with Section 1.02 and need not be accompanied by an Opinion of Counsel)
with regard to the reduction in the principal amount of Securities represented
thereby, together with the written statement contemplated by the last sentence
of Section 3.03.

         Notwithstanding the provisions of Section 3.07, unless otherwise
specified as contemplated by Section 3.01, payment of principal of and any
premium and interest on any Security in permanent global form shall be made to
the Person or Persons specified therein.

         Notwithstanding the provisions of Section 3.08 and except as provided
in the preceding paragraph, the Company, the Trustee and any agent of the
Company and the Trustee shall treat as the Holder of such principal amount of
Outstanding Securities represented by a permanent global Security (i) in the
case of a permanent global Security in registered form, the Holder of such
permanent global Security in registered form, or (ii) in the case of a permanent
global Security in bearer form, _____ as specified by the common depositary for
such global securities.

                                   ARTICLE III

                                 THE SECURITIES

         Section 3.01      Amount Unlimited; Issuable in Series.

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

         The Securities may be issued in one or more series. There shall be
established in one or more Board Resolutions or pursuant to authority granted by
one or more Board Resolutions and, subject to Section 3.03, set forth in, or
determined in the manner provided in, an Officers' Certificate, or established
in one or more indentures supplemental hereto, prior to the issuance of
Securities of any series, any or all of the following, as applicable (each of
which (except for the matters set forth in clauses (1), (2) and (17) below), if
so provided, may be determined from time to time by the Company with respect to
unissued Securities of the series and set forth in such Securities of the series
when issued from time to time):

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

         (2)      any limit upon the aggregate principal amount of the
Securities of the series that 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 3.04, 3.05, 3.06, 9.06, 11.07 or 13.05);

         (3)      the date or dates, or the method by which such date or dates
will be determined or extended, on which the principal of the Securities of the
series is payable;

                                       17

<PAGE>

         (4)      the rate or rates at which the Securities of the series shall
bear interest, if any, or the method by which such rate or rates shall be
determined, the date or dates from which such interest shall accrue, or the
method by which such date or dates shall be determined, the Interest Payment
Dates on which such interest shall be payable and the Regular Record Date, if
any, for the interest payable on any Registered Security on any Interest Payment
Date, or the method by which such date or dates shall be determined, and the
basis upon which interest shall be calculated if other than on the basis of a
360-day year of twelve 30-day months;

         (5)      the place or places, if any, other than or in addition to the
Borough of Manhattan, The City of New York, where the principal of (and premium,
if any, on) and any interest on Securities of the series shall be payable, any
Registered Securities of the series may be surrendered for registration of
transfer, Securities of the series may be surrendered for exchange and, if
different than the location specified in Section 1.06, the place or places where
notices or demands to or upon the Company in respect of the Securities of the
series and this Indenture may be served;

         (6)      the period or periods within which, the price or prices at
which, the Currency in which, and other terms and conditions upon which
Securities of the series may be redeemed, in whole or in part, at the option of
the Company, if the Company is to have that option;

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

         (8)      if other than denominations of $1,000 and any integral
multiple thereof, the denominations in which any Registered Securities of the
series shall be issuable and, if other than the denomination of $5,000, the
denomination or denominations in which any Bearer Securities of the series shall
be issuable;

         (9)      if other than the Trustee, the identity of each Security
Registrar and/or Paying Agent;

         (10)     if other than the principal amount thereof, the portion of the
principal amount of Securities of the series that shall be payable upon
declaration of acceleration of the Maturity thereof pursuant to Section 5.02 or
the method by which such portion shall be determined;

         (11)     if other than Dollars, the Currency in which payment of the
principal of (and premium, if any, on) or interest, if any, on the Securities of
the series shall be payable or in which the Securities of the series shall be
denominated and the particular provisions applicable thereto in accordance with,
in addition to or in lieu of any of the provisions of Section 3.11;

                                       18

<PAGE>

         (12)     whether the amount of payments of principal of (and premium,
if any, on) or interest on the Securities of the series may be determined with
reference to an index, formula or other method (which index, formula or method
may be based, without limitation, on one or more Currencies, commodities, equity
indices or other indices), and the manner in which such amounts shall be
determined;

         (13)     whether the principal of (and premium, if any, on) and
interest, if any, on the Securities of the series are to be payable, at the
election of the Company or a Holder thereof, in a Currency other than that in
which such Securities are denominated or stated to be payable, the period or
periods within which (including the Election Date), and the terms and conditions
upon which, such election may be made, and the time and manner of determining
the exchange rate between the Currency in which such Securities are denominated
or stated to be payable and the Currency in which such Securities are to be so
payable, in each case in accordance with, in addition to or in lieu of any of
the provisions of Section 3.11;

         (14)     the designation of the initial Exchange Rate Agent, if any;

         (15)     any provisions in modification of, in addition to or in lieu
of the provisions of Article Fourteen that shall be applicable to the Securities
of the series;

         (16)     provisions, if any, granting special rights to the Holders of
Securities of the series upon the occurrence of such events as may be specified;

         (17)     any deletions from, modifications of or additions to the
Events of Default or covenants of the Company with respect to Securities of the
series, whether or not such Events of Default or covenants are consistent with
the Events of Default or covenants set forth herein;

         (18)     whether Securities of the series are to be issuable as
Registered Securities, Bearer Securities (with or without coupons) or both, any
restrictions applicable to the offer, sale or delivery of Bearer Securities,
whether any Securities of the series are to be issuable initially in temporary
global form and whether any Securities of the series are to be issuable in
permanent global form with or without coupons and, if so, whether beneficial
owners of interests in any such permanent global Security may exchange such
interests for Securities of such series and of like tenor of any authorized form
and denomination and the circumstances under which any such exchanges may occur,
if other than in the manner provided in Section 3.05, whether Registered
Securities of the series may be exchanged for Bearer Securities of the series
(if permitted by applicable laws and regulations), whether Bearer Securities of
the series may be exchanged for Registered Securities of the series, and the
circumstances under which and the place or places where such exchanges may be
made and if Securities of the series are to be issuable in global form, the
identity of any initial depository therefor;

                                       19

<PAGE>

         (19)     the date as of which any Bearer Securities of the series and
any temporary global Security representing Outstanding Securities of the series
shall be dated if other than the date of original issuance of the first Security
of the series to be issued;

         (20)     the Person to whom any interest on any Registered 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, the manner in which, or
the Person to whom, any interest on any Bearer Security of the series shall be
payable, if otherwise than upon presentation and surrender of the coupons
appertaining thereto as they severally mature, and the extent to which, or the
manner in which, any interest payable on a temporary global Security on an
Interest Payment Date will be paid if other than in the manner provided in
Section 3.04;

         (21)     if Securities of the series are to be issuable in definitive
form (whether upon original issue or upon exchange of a temporary Security of
such series) only upon receipt of certain certificates or other documents or
satisfaction of other conditions, the form and/or terms of such certificates,
documents or conditions;

         (22)     if the Securities of the series are to be issued upon the
exercise of warrants or upon the conversion or exchange of other securities, the
time, manner and place for such Securities to be authenticated and delivered;

         (23)     whether and under what circumstances the Company will pay
Additional Amounts as contemplated by Section 10.05 on the Securities of the
series to any Holder who is not a United States person (including any
modification to the definition of such term) in respect of any tax, assessment
or governmental charge and, if so, whether the Company will have the option to
redeem such Securities rather than pay such Additional Amounts (and the terms of
any such option);

         (24)     if the Securities of the series are to be convertible into or
exchangeable for any securities of any Person (including the Company), the terms
and conditions upon which such Securities will be so convertible or
exchangeable;

         (25)     any other terms, conditions, rights and preferences (or
limitations on such rights and preferences) relating to the series (which terms
shall not be inconsistent with the requirements of the Trust Indenture Act or
the provisions of this Indenture).

         All Securities of any one series and the coupons appertaining to any
Bearer Securities of such series shall be substantially identical except, in the
case of Registered Securities, as to denomination and except as may otherwise be
provided in or pursuant to such Board Resolution (subject to Section 3.03) and
set forth in such Officers' Certificate or in any such indenture supplemental
hereto. Not all Securities of any one series need be issued at the same time,
and, unless otherwise provided, a series may be reopened for issuances of
additional Securities of such series.

         If any of the terms of the series are established by action taken
pursuant to one or more Board Resolutions, such Board Resolutions shall be
delivered to the Trustee at or prior to the delivery of the Officers'
Certificate setting forth the terms of the series.

                                       20

<PAGE>

         Section 3.02      Denominations.

         All Securities shall be issuable in such denominations as shall be
specified as contemplated by Section 3.01. With respect to Securities of any
series denominated in Dollars, in the absence of any such provisions, the
Registered Securities of such series, other than Registered Securities issued in
global form (which may be of any denomination), shall be issuable in
denominations of $1,000 and any integral multiple thereof and the Bearer
Securities of such Series, other than the Bearer Securities issued in global
form (which may be of any denomination), shall be issuable in a denomination of
$5,000.

         Section 3.03      Execution, Authentication, Delivery and Dating.

         The Securities and any coupons appertaining thereto shall be executed
on behalf of the Company by its Chairman, its President or a Vice President,
under its corporate seal reproduced thereon attested by its Secretary or an
Assistant Secretary. The signature of any of these officers on the Securities or
coupons may be the manual or facsimile signatures of the present or any future
such authorized officer and may be imprinted or otherwise reproduced on the
Securities.

         Securities or coupons 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 or coupons.

         At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series together with
any coupon appertaining thereto, 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 deliver such Securities; provided, however, that,
in connection with its original issuance, no Bearer Security shall be mailed or
otherwise delivered to any location in the United States; and provided further
that, unless otherwise specified with respect to any series of Securities
pursuant to Section 3.01, a Bearer Security may be delivered in connection with
its original issuance only if the Person entitled to receive such Bearer
Security shall have furnished a certificate in the form set forth in Exhibit A-1
to this Indenture, dated no earlier than 15 days prior to the earlier of the
date on which such Bearer Security is delivered and the date on which any
temporary Security first becomes exchangeable for such Bearer Security in
accordance with the terms of such temporary Security and this Indenture. If any
Security shall be represented by a permanent global Bearer Security, then, for
purposes of this Section and Section 3.04, the notation of a beneficial owner's
interest therein upon original issuance of such Security or upon exchange of a
portion of a temporary global Security shall be deemed to be delivered in
connection with its original issuance of such beneficial owner's interest in
such permanent global Security. Except as permitted by Section 3.06, the Trustee
shall not authenticate and deliver any Bearer Security unless all appurtenant
coupons for interest then matured have been detached and cancelled. If not all
the Securities of any series are to be issued at one time and if the Board
Resolution or supplemental indenture establishing such series shall so permit,
such Company Order may set forth procedures acceptable to the Trustee for the
issuance of such Securities and determining terms of particular Securities of
such series such as interest rate, maturity date, date of issuance and date from
which interest shall accrue.

                                       21

<PAGE>

         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 TIA Sections 315(a)
through 315(d)) shall be fully protected in relying upon, an Opinion of Counsel
stating:

         (a)    that the form or forms of such Securities and any coupons have
     been established in conformity with the provisions of this Indenture;

         (b)    that the terms of such Securities and any coupons have been
     established in conformity with the provisions of this Indenture;

         (c)    that such Securities, together with any coupons appertaining
     thereto, when completed by appropriate insertions and executed and
     delivered by the Company to the Trustee for authentication in accordance
     with this Indenture, authenticated and delivered by the Trustee in
     accordance with this Indenture and issued by the Company in the manner and
     subject to any conditions specified in such Opinion of Counsel, will
     constitute the legal, valid and binding obligations of the Company,
     enforceable in accordance with their terms, subject to applicable
     bankruptcy, insolvency, reorganization and other similar laws of general
     applicability relating to or affecting the enforcement of creditors'
     rights, to general equitable principles and to such other qualifications as
     such counsel shall conclude do not materially affect the rights of Holders
     of such Securities and any coupons;

         (d)    that all laws and requirements in respect of the execution and
     delivery by the Company of such Securities, any coupons and of the
     supplemental indentures, if any, have been complied with (except for the
     federal securities laws, the Trust Indenture Act of 1939, as amended, and
     the securities or blue sky laws of the various states, as to which no
     opinion need be expressed) and that authentication and delivery of such
     Securities and any coupons and the execution and delivery of the
     supplemental indenture, if any, by the Trustee will not violate the terms
     of the Indenture;

         (e)    that the Company has the corporate power to issue such
     Securities and any coupons, and has duly taken all necessary corporate
     action with respect to such issuance; and

         (f)    that the issuance of such Securities and any coupons will not
     contravene the articles of incorporation or by-laws of the Company or
     result in any violation of any of the terms or provisions of any law or
     regulation or of any indenture, mortgage or other agreement known to such
     Counsel by which the Company is bound.

         Notwithstanding the provisions of Section 3.01 and of the preceding two
paragraphs, if less than all the Securities of any series are to be issued at
one time, it shall not be necessary to deliver the Officers' Certificate
otherwise required pursuant to Section 3.01 or the Company Order and Opinion of
Counsel otherwise required pursuant to the preceding two paragraphs prior to or
at the time of issuance of each Security, but such documents shall be delivered
prior to or at the time of issuance of the first Security of such series.

         The Trustee shall not be required to authenticate and deliver any such
Securities if the issue of such Securities pursuant to this Indenture will
affect the Trustee's own rights, duties or immuni-

                                       22

<PAGE>

ties under the Securities and this Indenture or otherwise in a manner which is
not reasonably acceptable to the Trustee.

         Each Registered Security shall be dated the date of its authentication;
and each Bearer Security shall be dated as of the date specified as contemplated
by Section 3.01.

         No Security or coupon 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 duly executed by the Trustee by manual signature of an authorized
officer, 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 3.09 together with a written statement (which need not comply with
Section 1.02 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 3.04      Temporary Securities.

         Pending the preparation of definitive Securities of any series, the
Company may execute, and upon Company Order the Trustee shall authenticate and
deliver, temporary Securities which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued, in registered form or, if authorized, in bearer form with one or
more coupon or without coupons, and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Securities may
determine, as conclusively evidenced by their execution of such Securities. In
the case of Securities of any series, such temporary Securities may be in global
form.

         Except in the case of temporary Securities in global form (which shall
be exchanged in accordance with the provisions of the following paragraphs), if
temporary Securities of any series are issued, the Company will cause definitive
Securities of that series to be prepared without unreasonable delay. After the
preparation of definitive Securities of such series, the temporary Securities of
such series shall be exchangeable for definitive Securities of such series, upon
surrender of the temporary Securities of such series at the office or agency of
the Company in a Place of Payment for that series, without charge to the Holder.
Upon surrender for cancellation of any one or more temporary Securities of any
series (accompanied by any unmatured coupons appertaining thereto), the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like principal amount of definitive Securities of the same series of
authorized denominations; provided, however, that no definitive Bearer Security
shall be delivered in exchange for a temporary Registered Security; and provided
further that a definitive Bearer Security shall be delivered in exchange for a
temporary Bearer Security only in compliance with the conditions set forth in
Section 3.03. 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.

         Without unnecessary delay, but in any event not later than the date
specified in, or determined pursuant to the terms of, any such temporary global
Security (the "Exchange Date"), the

                                     23

<PAGE>

Company shall deliver to the Trustee definitive Securities, in aggregate
principal amount equal to the principal amount of such temporary global
Security, executed by the Company. On or after the Exchange Date such temporary
global Security shall be surrendered by the Common Depositary to the Trustee, as
the Company's agent for such purpose, to be exchanged, in whole or from time to
time in part, for definitive Securities without charge and the Trustee shall
authenticate and deliver, in exchange for each portion of such temporary global
Security, an equal aggregate principal amount of definitive Securities of the
same series of authorized denominations and of like tenor as the portion of such
temporary global Security to be exchanged. The definitive Securities to be
delivered in exchange for any such temporary global Security shall be in bearer
form, registered form, permanent global bearer form or permanent global
registered form, or any combination thereof, as specified as contemplated by
Section 3.01, and, if any combination thereof is so specified, as requested by
the beneficial owner thereof.

         Section 3.05      Registration, Registration of Transfer and Exchange.

         The Company shall cause to be kept at the Corporate Trust Office of the
Trustee a register for each series of Securities (the registers maintained in
the Corporate Trust Office of the Trustee 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
Registered Securities and of transfers of Registered Securities. The Security
Register shall be in written form or any other form capable of being converted
into written form within a reasonable time. At all reasonable times, the
Security Register shall be open to inspection by the Trustee. The Trustee is
hereby initially appointed as security registrar (the "Security Registrar") for
the purpose of registering Registered Securities and transfers of Registered
Securities as herein provided.

         Upon surrender for registration of transfer of any Registered 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 deliver, in the
name of the designated transferee, one or more new Registered Securities of the
same series, of any authorized denominations and of a like aggregate principal
amount and tenor.

         At the option of the Holder, Registered Securities of any series may be
exchanged for other Registered Securities of the same series, of any authorized
denomination and of a like aggregate principal amount, upon surrender of the
Registered Securities to be exchanged at such office or agency. Whenever any
Registered Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Registered
Securities which the Holder making the exchange is entitled to receive. Unless
otherwise specified with respect to any series of Securities as contemplated by
Section 3.01, Bearer Securities may not be issued in exchange for Registered
Securities.

         If (but only if) expressly permitted in or pursuant to the applicable
Board Resolution and (subject to Section 3.03) set forth in the applicable
Officers' Certificate, or in any indenture supplemental hereto, delivered as
contemplated by Section 3.01, at the option of the Holder, Bearer Securities of
any series may be exchanged for Registered Securities of the same series of any
authorized denomination and of a like aggregate principal amount and tenor, upon
surrender of the Bearer Securities to be exchanged at any such office or agency,
with all unmatured coupons and all matured coupons in default thereto
appertaining. If the Holder of a Bearer Security is unable to produce any such
unmatured coupon or coupons or matured coupon or coupons in default, any such
permitted exchange may be effected if the Bearer Securities are accompanied by
payment in funds acceptable to the Company in an amount equal to

                                       24

<PAGE>

the face amount of such missing coupon or coupons, or the surrender of such
missing coupon or coupons may be waived by the Company and the Trustee if there
is furnished to them such security or indemnity as they may require to save each
of them and any Paying Agent harmless. If thereafter the Holder of such Security
shall surrender to any Paying Agent any such missing coupon in respect of which
such a payment shall have been made, such Holder shall be entitled to receive
the amount of such payment; provided, however, that, except as otherwise
provided in Section 10.02, interest represented by coupons shall be payable only
upon presentation and surrender of those coupons at an office or agency located
outside the United States. Notwithstanding the foregoing, in case a Bearer
Security of any series is surrendered at any such office or agency in a
permitted exchange for a Registered Security of the same series and like tenor
after the close of business at such office or agency on (i) any Regular Record
Date and before the opening of business at such office or agency on the relevant
Interest Payment Date, or (ii) any Special Record Date and before the opening of
business at such office or agency on the related proposed date for payment of
Defaulted Interest, such Bearer Security shall be surrendered without the coupon
relating to such Interest Payment Date or proposed date for payment, as the case
may be, and interest or Defaulted Interest, as the case may be, will not be
payable on such Interest Payment Date or proposed date for payment, as the case
may be, in respect of the Registered Security issued in exchange for such Bearer
Security, but will be payable only to the Holder of such coupon when due in
accordance with the provisions of this Indenture.

         Whenever any Securities are so surrendered for exchange, the Company
shall execute, and the Trustee shall authenticate and deliver, the Securities
which the Holder making the exchange is entitled to receive.

         Notwithstanding the foregoing, except as otherwise specified as
contemplated by Section 3.01, any permanent global Security shall be
exchangeable only as provided in this paragraph. If any beneficial owner of an
interest in a permanent global Security is entitled to exchange such interest
for Securities of such series and of like tenor and principal amount of another
authorized form and denomination, as specified as contemplated by Section 3.01
and provided that any applicable notice provided in the permanent global
Security shall have been given, then without unnecessary delay but in any event
not later than the earliest date on which such interest may be so exchanged, the
Company shall deliver to the Trustee definitive Securities in aggregate
principal amount equal to the principal amount of such beneficial owner's
interest in such permanent global Security, executed by the Company. On or after
the earliest date on which such interests may be so exchanged, such permanent
global Security shall be surrendered by the Common Depositary or such other
depositary as shall be specified in the Company Order with respect thereto to
the Trustee, as the Company's agent for such purpose, to be exchanged, in whole
or from time to time in part, for definitive Securities without charge, and the
Trustee shall authenticate and deliver, in exchange for each portion of such
permanent global Security, an equal aggregate principal amount of definitive
Securities of the same series of authorized denominations and of like tenor as
the portion of such permanent global Security to be exchanged which, unless the
Securities of the series are not issuable both as Bearer Securities and as
Registered Securities, as specified as contemplated by Section 3.01, shall be in
the form of Bearer Securities or Registered Securities, or any combination
thereof, as shall be specified by the beneficial owner thereof; provided,
however, that no such exchanges may occur during a period beginning at the
opening of business 15 days before any selection of Securities to be redeemed
and ending on the relevant Redemption Date if the Security for which exchange is
requested may be among those selected for redemption; and provided further that
no Bearer Security delivered in exchange for a portion of a permanent global
Security shall be mailed or otherwise delivered to any location in the United
States. If a Registered Security is issued in exchange

                                       25

<PAGE>

for any portion of a permanent global Security after the close of business at
the office or agency where such exchange occurs on (i) any Regular Record Date
and before the opening of business at such office or agency on the relevant
Interest Payment Date, or (ii) any Special Record Date and the opening of
business at such office or agency on the related proposed date for payment of
interest or Defaulted Interest, as the case may be, will not be payable on such
Interest Payment Date or proposed date for payment, as the case may be, in
respect of such Registered Security, but will be payable on such Interest
Payment Date or proposed date for payment, as the case may be, only to the
Person to whom interest in respect of such portion of such permanent global
Security is payable in accordance with the provisions of this Indenture.

         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 Registered Security presented or surrendered for registration of
transfer or for exchange shall (if so required by the Company or the Security
Registrar) be duly endorsed, or be accompanied by a written instrument of
transfer, in form satisfactory to the 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 3.04, 9.06, 11.07 or 13.05 not involving any
transfer.

         The Company shall not be required (i) to issue, to register the
transfer of or to exchange Securities of any series during a period beginning at
the opening of business 15 days before the day of the selection for redemption
of Securities of that series under Section 11.03 or 12.03 and ending at the
close of business on (A) if Securities of the series are issuable only as
Registered Securities, the day of the mailing of the relevant notice of
redemption and (B) if Securities of the series are issuable as Bearer
Securities, the day of the first publication of the relevant notice of
redemption or, if Securities of the series are also issuable as Registered
Securities and there is no publication, the mailing of the relevant notice of
redemption, or (ii) to register the transfer of or exchange any Registered
Security so selected for redemption in whole or in part, except the unredeemed
portion of any Security being redeemed in part, or (iii) to exchange any Bearer
Security so selected for redemption except that such a Bearer Security may be
exchanged for a Registered Security of that series and like tenor; provided that
such Registered Security shall be simultaneously surrendered for redemption, or
(iv) to issue, to register the transfer of or to exchange any Security which has
been surrendered for repayment at the option of the Holder, except the portion,
if any, of such Security not to be so repaid.

         Section 3.06      Mutilated, Destroyed, Lost and Stolen Securities.

         If any mutilated Security or a Security with a mutilated coupon
appertaining to it is surrendered to the Trustee, the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor a new Security
of the same series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding, with coupons corresponding to the coupons, if
any, appertaining to the surrendered Security, or, in case any such mutilated
Security or coupon has become or is about to become due and payable, the Company
in its discretion may, instead of issuing a new Security,

                                       26

<PAGE>

with coupons corresponding to the coupons, if any, appertaining to the
surrendered Security, pay such Security or coupon.

         If there shall be delivered to the Company and to the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any Security
or coupon and (ii) such security or indemnity as may be required by them to save
each of them and any agent of either of them harmless, then, in the absence of
notice to the Company or the Trustee that such Security or coupon has been
acquired by a bona fide purchaser, the Company shall execute and upon Company
Order the Trustee shall authenticate and deliver, in lieu of any such destroyed,
lost or stolen Security or in exchange for the Security for which a destroyed,
lost or stolen coupon appertains (with all appurtenant coupons not destroyed,
lost or stolen), a new Security of the same series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding, with
coupons corresponding to the coupons, if any, appertaining to such destroyed,
lost or stolen Security or to the Security to which such destroyed, lost or
stolen coupon appertains, or, in case any such destroyed, lost or stolen
Security or coupon has become or is about to become due and payable, the Company
in its discretion may, instead of issuing a new Security, with coupons
corresponding to the coupons, if any, appertaining to such destroyed, lost or
stolen Security or to the Security to which such destroyed, lost or stolen
coupon appertains, pay such Security or coupon.

         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 with its coupons, if any, issued
pursuant to this Section in lieu of any destroyed, lost or stolen Security or in
exchange for a Security to which a destroyed, lost or stolen coupon appertains,
shall constitute an original additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Security and its coupons, if any,
or the destroyed, lost or stolen coupon 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 and their
coupons, if any, 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 or coupons.

         Section 3.07    Payment of Interest; Interest Rights Preserved;
Optional Interest Reset.

         (a)    Unless otherwise provided as contemplated by Section 3.01 with
     respect to any series of Securities, interest on any Registered Security
     which is payable, and is punctually paid or duly provided for, on any
     Interest Payment Date shall be paid to the Person in whose name such
     Security (or one or more Predecessor Securities) is registered at the close
     of business on the Regular Record Date for such interest at the office or
     agency of the Company maintained for such purpose pursuant to Section
     10.02; provided, however, that each installment of interest on any
     Registered Security may at the Company's option be paid by (i) mailing a
     check for such interest, payable to or upon the written order of the Person
     entitled thereto pursuant to Section 3.08, to the address of such Person as
     it appears on the Security Register or (ii) transfer to an account
     maintained by the payee located in the United States.

                                       27

<PAGE>

         Unless otherwise provided as contemplated by Section 3.01 with respect
to the Securities of any series, payment of interest may be made, in the case of
a Bearer Security, by transfer to an account maintained by the payee with a bank
located outside the United States.

         Any interest on any Registered Security of any series which is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date
shall forthwith cease to be payable to the Holder on the relevant Regular Record
Date by virtue of having been such Holder, and such defaulted interest and, if
applicable, interest on such defaulted interest (to the extent lawful) at the
rate specified in the Securities of such series (such defaulted interest and, if
applicable, interest thereon herein collectively called "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 Registered 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 Registered 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 in the Currency in which the Securities of such
     series are payable (except as otherwise specified pursuant to Section 3.01
     for the Securities of such series and except, if applicable, as provided in
     Sections 3.11(b), 3.11(d) and 3.11(e)) equal to the aggregate amount
     proposed to be paid in respect of such Defaulted Interest or shall make
     arrangements satisfactory to the Trustee for such deposit on or prior to
     the date of the proposed payment, such money when deposited to be held in
     trust for the benefit of the Persons entitled to such Defaulted Interest as
     in this clause provided. Thereupon the Trustee shall fix a Special Record
     Date for the payment of such Defaulted Interest which shall be not more
     than 15 days and not less than 10 days prior to the date of the proposed
     payment and not less than 10 days after the receipt by the Trustee of the
     notice of the proposed payment. The Trustee shall promptly notify the
     Company of such Special Record Date and, in the name and at the expense of
     the Company, shall cause notice of the proposed payment of such Defaulted
     Interest and the Special Record Date therefor to be given in the manner
     provided in Section 1.06, 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 given, such Defaulted
     Interest shall be paid to the Persons in whose name the Registered
     Securities of such series (or their respective Predecessor Securities) are
     registered at the close of business on such Special Record Date and shall
     no longer be payable pursuant to the following clause (2).

         (2)    The Company may make payment of any Defaulted Interest on the
     Registered 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.

                                       28

<PAGE>

         (b)    The provisions of this Section 3.07(b) may be made applicable to
     any series of Securities pursuant to Section 3.01 (with such modifications,
     additions or substitutions as may be specified pursuant to such Section
     3.01). The interest rate (or the spread or spread multiplier used to
     calculate such interest rate, if applicable) on any Security of such series
     may be reset by the Company on the date or dates specified on the face of
     such Security (each an "Optional Reset Date"). The Company may exercise
     such option with respect to such Security by notifying the Trustee of such
     exercise at least 50 but not more than 60 days prior to an Optional Reset
     Date for such Note. Not later than 40 days prior to each Optional Reset
     Date, the Trustee shall transmit, in the manner provided for in Section
     1.06, to the Holder of any such Security a notice (the "Reset Notice")
     indicating whether the Company has elected to reset the interest rate (or
     the spread or spread multiplier used to calculate such interest rate, if
     applicable), and if so (i) such new interest rate (or such new spread or
     spread multiplier, if applicable) and (ii) the provisions, if any, for
     redemption during the period from such Optional Reset Date to the next
     Optional Reset Date or if there is no such next Optional Reset Date, to the
     Stated Maturity Date of such Security (each such period a "Subsequent
     Interest Period"), including the date or dates on which or the period or
     periods during which and the price or prices at which such redemption may
     occur during the Subsequent Interest Period.

         Notwithstanding the foregoing, not later than 20 days prior to the
Optional Reset Date, the Company may, at its option, revoke the interest rate
(or the spread or spread multiplier used to calculate such interest rate, if
applicable) provided for in the Reset Notice and establish an interest rate (or
a spread or spread multiplier used to calculate such interest rate, if
applicable) that is higher than the interest rate (or the spread or spread
multiplier, if applicable) provided for in the Reset Notice, for the Subsequent
Interest Period by causing the Trustee to transmit, in the manner provided for
in Section 1.06, notice of such higher interest rate (or such higher spread or
spread multiplier, if applicable) to the Holder of such Security. Such notice
shall be irrevocable. All Securities with respect to which the interest rate (or
the spread or spread multiplier used to calculate such interest rate, if
applicable) is reset on an Optional Reset Date, and with respect to which the
Holders of such Securities have not tendered such Securities for repayment (or
have validly revoked any such tender) pursuant to the next succeeding paragraph,
will bear such higher interest rate (or such higher spread or spread multiplier,
if applicable).

         The Holder of any such Security will have the option to elect repayment
by the Company of the principal of such Security on each Optional Reset Date at
a price equal to the principal amount thereof plus interest accrued to such
Optional Reset Date. In order to obtain repayment on an Optional Reset Date, the
Holder must follow the procedures set forth in Article Thirteen for repayment at
the option of Holders except that the period for delivery or notification to the
Trustee shall be at least 25 but not more than 35 days prior to such Optional
Reset Date and except that, if the Holder has tendered any Security for
repayment pursuant to the Reset Notice, the Holder may, by written notice to the
Trustee, revoke such tender or repayment until the close of business on the
tenth day before such Optional Reset Date.

         Subject to the foregoing provisions of this Section and Section 3.05,
each Security delivered under this Indenture upon registration of transfer of or
in exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.

         Section 3.08      Persons Deemed Owners.

                                       29

<PAGE>

         Prior to due presentment of a Registered Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name such Registered Security is registered as the
owner of such Registered Security for the purpose of receiving payment of
principal of (and premium, if any, on) and (subject to Sections 3.05 and 3.07)
interest on such Security and for all other purposes whatsoever, whether or not
such Security be overdue, and none of the Company, the Trustee or any agent of
the Company or the Trustee shall be affected by notice to the contrary.

         Title to any Bearer Security and any coupons appertaining thereto shall
pass by delivery. The Company, the Trustee and any agent of the Company or the
Trustee may treat the bearer of any Bearer Security and the bearer of any coupon
as the absolute owner of such Security or coupon for the purpose of receiving
payment thereof or on account thereof and for all other purposes whatsoever,
whether or not such Security or coupons be overdue, and none of the Company, the
Trustee or any agent of the Company or the Trustee shall be affected by notice
to the contrary.

         None of the Company, the Trustee, any Paying Agent or the Security
Registrar will have any responsibility or liability for any aspect of the
records relating to or payments made on account of beneficial ownership
interests of a Security in global form or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests.

         Notwithstanding the foregoing, with respect to any global Security,
nothing herein shall prevent the Company, the Trustee, or any agent of the
Company or the Trustee, from giving effect to any written certification, proxy
or other authorization furnished by any depositary, as a Holder, with respect to
such global Security or impair, as between such depositary and owners of
beneficial interests in such global Security, the operation of customary
practices governing the exercise of the rights of such depositary (or its
nominee) as Holder of such global Security.

         Section 3.09      Cancellation.

         All Securities and coupons surrendered for payment, redemption,
repayment at the option of the Holder, registration of transfer or exchange or
for credit against any current or future sinking fund payment shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee.
All Securities and coupons so delivered to the Trustee 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. If the Company shall so acquire any of the Securities,
however, such acquisition shall not operate as a redemption or satisfaction of
the indebtedness represented by such Securities unless and until the same are
surrendered to the Trustee for cancellation. No Securities shall be
authenticated in lieu of or in exchange for any Securities cancelled as provided
in this Section, except as expressly permitted by this Indenture. All cancelled
Securities held by the Trustee shall be disposed of by the Trustee in accordance
with its customary procedures and certification of their disposal delivered to
the Company unless by Company Order the Company shall direct that cancelled
Securities be returned to it.

                                       30

<PAGE>

         Section 3.10      Computation of Interest.

         Except as otherwise specified as contemplated by Section 3.01 with
respect to any Securities, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.

         Section 3.11  Currency and Manner of Payments in Respect of Securities.

         (a)    Unless otherwise specified with respect to any Securities
     pursuant to Section 3.01, with respect to Registered Securities of any
     series not permitting the election provided for in paragraph (b) below or
     the Holders of which have not made the election provided for in paragraph
     (b) below, and with respect to Bearer Securities of any series, except as
     provided in paragraph (d) below, payment of the principal of (and premium,
     if any, on) and interest, if any, on any Registered or Bearer Security of
     such series will be made in the Currency in which such Registered Security
     or Bearer Security, as the case may be, is payable. The provisions of this
     Section 3.11 may be modified or superseded with respect to any Securities
     pursuant to Section 3.01.

         (b)    It may be provided pursuant to Section 3.01 with respect to
     Registered Securities of any series that Holders shall have the option,
     subject to paragraphs (d) and (e) below, to receive payments of principal
     of (and premium, if any, on) or interest, if any, on such Registered
     Securities in any of the Currencies which may be designated for such
     election by delivering to the Trustee a written election with signature
     guarantees and in the applicable form established pursuant to Section 3.01,
     not later than the close of business on the Election Date immediately
     preceding the applicable payment date. If a Holder so elects to receive
     such payments in any such Currency, such election will remain in effect for
     such Holder or any transferee of such Holder until changed by such Holder
     or such transferee by written notice to the Trustee (but any such change
     must be made not later than the close of business on the Election Date
     immediately preceding the next payment date to be effective for the payment
     to be made on such payment date and no such change of election may be made
     with respect to payments to be made on any Registered Security of such
     series with respect to which an Event of Default has occurred or with
     respect to which the Company has deposited funds pursuant to Article Four
     or with respect to which a notice of redemption has been given by the
     Company or a notice of option to elect repayment has been sent by such
     Holder or such transferee). Any Holder of any such Registered Security who
     shall not have delivered any such election to the Trustee not later than
     the close of business on the applicable Election Date will be paid the
     amount due on the applicable payment date in the relevant Currency as
     provided in Section 3.11(a). The Trustee shall notify the Exchange Rate
     Agent as soon as practicable after the Election Date of the aggregate
     principal amount of Registered Securities for which Holders have made such
     written election.

         (c)    Unless otherwise specified pursuant to Section 3.01, if the
     election referred to in paragraph (b) above has been provided for pursuant
     to Section 3.01, then, unless otherwise specified pursuant to Section 3.01,
     not later than the fourth Business Day after the Election Date for each
     payment date for Registered Securities of any series, the Exchange Rate
     Agent will deliver to the Company a written notice specifying, in the
     Currency in which Registered Securities of such series are payable, the
     respective aggregate amounts of principal of (and premium, if any, on) and
     interest, if any, on the Registered Securities to be paid on such payment
     date, specifying the amounts in such Currency so payable in respect of the
     Registered Securities as to

                                       31

<PAGE>

     which the Holders of Registered Securities of such series shall have
     elected to be paid in another Currency as provided in paragraph (b) above.
     If the election referred to in paragraph (b) above has been provided for
     pursuant to Section 3.01 and if at least one Holder has made such election,
     then, unless otherwise specified pursuant to Section 3.01, on the second
     Business Day preceding such payment date the Company will deliver to the
     Trustee for such series of Registered Securities an Exchange Rate Officer's
     Certificate in respect of the Dollar or Foreign Currency payments to be
     made on such payment date. Unless otherwise specified pursuant to Section
     3.01, the Dollar or Foreign Currency amount receivable by Holders of
     Registered Securities who have elected payment in a Currency as provided in
     paragraph (b) above shall be determined by the Company on the basis of the
     applicable Market Exchange Rate in effect on the third Business Day (the
     "Valuation Date") immediately preceding each payment date, and such
     determination shall be conclusive and binding for all purposes, absent
     manifest error.

         (d)    If a Currency Conversion Event occurs with respect to a Foreign
     Currency in which any of the Securities are denominated or payable other
     than pursuant to an election provided for pursuant to paragraph (b) above,
     then with respect to each date for the payment of principal of (and
     premium, if any, on) and interest, if any, on the applicable Securities
     denominated or payable in such Foreign Currency occurring after the last
     date on which such Foreign Currency was used (the "Currency Conversion
     Date"), the Dollar shall be the Currency of payment for use on each such
     payment date. Unless otherwise specified pursuant to Section 3.01, the
     Dollar amount to be paid by the Company to the Trustee and by the Trustee
     or any Paying Agent to the Holders of such Securities with respect to such
     payment date shall be, in the case of a Foreign Currency other than a
     currency unit, the Dollar Equivalent of the Foreign Currency or, in the
     case of a currency unit, the Dollar Equivalent of the Currency Unit, in
     each case as determined by the Exchange Rate Agent in the manner provided
     in paragraph (f) or (g) below.

         (e)    Unless otherwise specified pursuant to Section 3.01, if the
     Holder of a Registered Security denominated in any Currency shall have
     elected to be paid in another Currency as provided in paragraph (b) above,
     and a Currency Conversion Event occurs with respect to such elected
     Currency, such Holder shall receive payment in the Currency in which
     payment would have been made in the absence of such election; and if a
     Currency Conversion Event occurs with respect to the Currency in which
     payment would have been made in the absence of such election, such Holder
     shall receive payment in Dollars as provided in paragraph (d) above.

         (f)    The "Dollar Equivalent of the Foreign Currency" shall be
     determined by the Exchange Rate Agent and shall be obtained for each
     subsequent payment date by converting the specified Foreign Currency into
     Dollars at the Market Exchange Rate on the Currency Conversion Date.

         (g)    The "Dollar Equivalent of the Currency Unit" shall be determined
     by the Exchange Rate Agent and subject to the provisions of paragraph (h)
     below shall be the sum of each amount obtained by converting the Specified
     Amount of each Component Currency into Dollars at the Market Exchange Rate
     for such Component Currency on the Valuation Date with respect to each
     payment.

         (h)    For purposes of this Section 3.11 the following terms shall have
     the following meanings:

                                       32

<PAGE>

         A "Component Currency" shall mean any Currency which, on the Currency
     Conversion Date, was a component currency of the relevant currency unit,
     including, but not limited to, the Euro.

         A "Specified Amount" of a Component Currency shall mean the number of
     units of such Component Currency or fractions thereof which were
     represented in the relevant currency unit, including, but not limited to,
     the Euro, on the Currency Conversion Date. If after the Currency Conversion
     Date the official unit of any Component Currency is altered by way of
     combination or subdivision, the Specified Amount of such Component Currency
     shall be divided or multiplied in the same proportion. If after the
     Currency Conversion Date two or more Component Currencies are consolidated
     into a single currency, the respective Specified Amounts of such Component
     Currencies shall be replaced by an amount in such single Currency equal to
     the sum of the respective Specified Amounts of such consolidated Component
     Currencies expressed in such single Currency, and such amount shall
     thereafter be a Specified Amount and such single Currency shall thereafter
     be a Component Currency. If after the Currency Conversion Date any
     Component Currency shall be divided into two or more currencies, the
     Specified Amount of such Component Currency shall be replaced by amounts of
     such two or more currencies, having an aggregate Dollar Equivalent value at
     the Market Exchange Rate on the date of such replacement equal to the
     Dollar Equivalent value of the Specified Amount of such former Component
     Currency at the Market Exchange Rate immediately before such division and
     such amounts shall thereafter be Specified Amounts and such currencies
     shall thereafter be Component Currencies. If, after the Currency Conversion
     Date of the relevant currency unit, including, but not limited to, the
     Euro, a Currency Conversion Event (other than any event referred to above
     in this definition of "Specified Amount") occurs with respect to any
     Component Currency of such currency unit and is continuing on the
     applicable Valuation Date, the Specified Amount of such Component Currency
     shall, for purposes of calculating the Dollar Equivalent of the Currency
     Unit, be converted into Dollars at the Market Exchange Rate in effect on
     the Currency Conversion Date of such Component Currency.

         "Election Date" shall mean the date for any series of Registered
     Securities as specified pursuant to clause (13) of Section 3.01 by which
     the written election referred to in paragraph (b) above may be made.

         All decisions and determinations of the Exchange Rate Agent regarding
the Dollar Equivalent of the Foreign Currency, the Dollar Equivalent of the
Currency Unit, the Market Exchange Rate and changes in the Specified Amounts as
specified above shall be in its sole discretion and shall, in the absence of
manifest error, be conclusive for all purposes and irrevocably binding upon the
Company, the Trustee and all Holders of such Securities denominated or payable
in the relevant Currency. The Exchange Rate Agent shall promptly give written
notice to the Company and the Trustee of any such decision or determination.

         In the event that the Company determines in good faith that a Currency
Conversion Event has occurred with respect to a Foreign Currency, the Company
will immediately give written notice thereof to the Trustee and to the Exchange
Rate Agent (and the Trustee will promptly thereafter give notice in the manner
provided for in Section 1.06 to the affected Holders) specifying the Currency
Conversion Date. In the event the Company so determines that a Currency
Conversion Event has

                                       33

<PAGE>

occurred with respect to the Euro or any other currency unit in which Securities
are denominated or payable, the Company will immediately give written notice
thereof to the Trustee and to the Exchange Rate Agent (and the Trustee will
promptly thereafter give notice in the manner provided for in Section 1.06 to
the affected Holders) specifying the Currency Conversion Date and the Specified
Amount of each Component Currency on the Currency Conversion Date. In the event
the Company determines in good faith that any subsequent change in any Component
Currency as set forth in the definition of Specified Amount above has occurred,
the Company will similarly give written notice to the Trustee and the Exchange
Rate Agent.

         The Trustee shall be fully justified and protected in relying and
acting upon information received by it from the Company and the Exchange Rate
Agent and shall not otherwise have any duty or obligation to determine the
accuracy or validity of such information independent of the Company or the
Exchange Rate Agent.

        Section 3.12    Appointment and Resignation of Successor Exchange Rate
Agent.

         (a)    Unless otherwise specified pursuant to Section 3.01, if and so
     long as the Securities of any series (i) are denominated in a Currency
     other than Dollars or (ii) may be payable in a Currency other than Dollars,
     or so long as it is required under any other provision of this Indenture,
     then the Company will maintain with respect to each such series of
     Securities, or as so required, at least one Exchange Rate Agent. The
     Company will cause the Exchange Rate Agent to make the necessary foreign
     exchange determinations at the time and in the manner specified pursuant to
     Section 3.01 for the purpose of determining the applicable rate of exchange
     and, if applicable, for the purpose of converting the issued Currency into
     the applicable payment Currency for the payment of principal (and premium,
     if any) and interest, if any, pursuant to Section 3.11.

         (b)    No resignation of the Exchange Rate Agent and no appointment of
     a successor Exchange Rate Agent pursuant to this Section shall become
     effective until the acceptance of appointment by the successor Exchange
     Rate Agent as evidenced by a written instrument delivered to the Company
     and the Trustee.

         (c)    If the Exchange Rate Agent shall resign, be removed or become
     incapable of acting, or if a vacancy shall occur in the office of the
     Exchange Rate Agent for any cause with respect to the Securities of one or
     more series, the Company, by or pursuant to a Board Resolution, shall
     promptly appoint a successor Exchange Rate Agent or Exchange Rate Agents
     with respect to the Securities of that or those series (it being understood
     that any such successor Exchange Rate Agent may be appointed with respect
     to the Securities of one or more or all of such series and that, unless
     otherwise specified pursuant to Section 3.01, at any time there shall only
     be one Exchange Rate Agent with respect to the Securities of any particular
     series that are originally issued by the Company on the same date and that
     are initially denominated and/or payable in the same Currency).

         Section 3.13      Designation as Senior Indebtedness.

<PAGE>

         The Company hereby confirms the designation of the Securities as
"Senior Indebtedness" for the purposes of any securities of the Company that may
be issued pursuant to the Subordinated Indenture.

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

         Section 4.01      Satisfaction and Discharge of Indenture.

         This Indenture shall upon Company Request cease to be of further effect
with respect to any series of Securities (except as to any surviving rights of
registration of transfer or exchange of Securities of such series herein
expressly provided for and the obligation of the Company to pay any Additional
Amounts as contemplated by Section 10.05) and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture as to such series when

         (1)  either

              (A) all Securities of such series theretofore authenticated and
         delivered and all coupons, if any, appertaining thereto (other than (i)
         coupons appertaining to Bearer Securities surrendered for exchange for
         Registered Securities and maturing after such exchange, whose surrender
         is not required or has been waived as provided in Section 3.05, (ii)
         Securities and coupons of such series which have been destroyed, lost
         or stolen and which have been replaced or paid as provided in Section
         3.06, (iii) coupons appertaining to Securities called for redemption
         and maturing after the relevant Redemption Date, whose surrender has
         been waived as provided in Section 11.06, and (iv) Securities and
         coupons of such series for whose payment money has theretofore been
         deposited in trust with the Trustee or any Paying Agent or segregated
         and held in trust by the Company and thereafter repaid to the Company,
         as provided in Section 10.03) have been delivered to the Trustee for
         cancellation; or

              (B) all Securities of such series and, in the case of (i) or (ii)
         below, any coupons appertaining thereto not theretofore delivered to
         the Trustee for cancellation

              (i) have become due and payable, or

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

              (iii) if redeemable at the option of the Company, are to be called
         for redemption within one year under arrangements satisfactory to the
         Trustee for the giving of notice of redemption by the Trustee in the
         name, and at the expense, of the Company, and the Company, in the case
         of (i), (ii) or (iii) above, has irrevocably deposited or caused to be
         deposited with the Trustee as trust funds in trust for the purpose an
         amount, in the Currency in which the Securities of such series are

                                       35

<PAGE>

         payable, sufficient 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 Redemption Date, 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 as to such series have been complied with.

         Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 6.06, the obligations of
the Trustee to any Authenticating Agent under Section 6.11 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 4.02 and the last
paragraph of Section 10.03 shall survive.

         Section 4.02      Application of Trust Money.

         Subject to the provisions of the last paragraph of Section 10.03, all
money deposited with the Trustee pursuant to Section 4.01 shall be held in trust
and applied by it, in accordance with the provisions of the Securities, the
coupons and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Persons entitled thereto, of the principal (and
premium, if any) and interest for whose payment such money has been deposited
with the Trustee, but such money need not be segregated from other funds except
to the extent required by law.

                                    ARTICLE V

                                    REMEDIES

         Section 5.01      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 on any Security of that
     series, or any related coupon, when such interest or coupon 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

                                       36

<PAGE>

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

         (4)    default in the performance, or breach, of any covenant or
     warranty of the Company in this Indenture (other than a default in the
     performance, or breach of a covenant or warranty which is specifically
     dealt with elsewhere in this Section), 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 all
     Outstanding Securities a written notice specifying such default or breach
     and requiring it to be remedied and stating that such notice is a "Notice
     of Default" hereunder; or

         (5)    the entry of a decree or order by a court having jurisdiction in
     the premises 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 the Federal Bankruptcy
     Code or any other applicable federal or state law, or appointing a
     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 unstayed and in effect for a period of 90
     consecutive days; or

         (6)    the institution by the Company of proceedings to be adjudicated
     a bankrupt or insolvent, or the consent by it to the institution of
     bankruptcy or insolvency proceedings against it, or the filing by it of a
     petition or answer or consent seeking reorganization or relief under the
     Federal Bankruptcy Code or any other applicable federal or state law, or
     the consent by it to the filing of any such petition or to the appointment
     of a receiver, liquidator, assignee, trustee, sequestrator (or other
     similar official) of the Company or of any substantial part of its
     property, or the making by it of an assignment for the benefit of
     creditors, or the admission by it in writing of its inability to pay its
     debts generally as they become due; or

         (7) (A) there shall have occurred one or more defaults by the Company
     or any Subsidiary in the payment of the principal of or premium, if any, on
     Debt aggregating $100 million or more, when the same becomes due and
     payable at the stated maturity thereof, and such default or defaults shall
     have continued after any applicable grace period and shall not have been
     cured or waived or (B) Debt of the Company or any Subsidiary aggregating
     $100 million or more shall have been accelerated or otherwise declared due
     and payable, or required to be prepaid or repurchased (other than by
     regularly scheduled required prepayment), prior to the stated maturity
     thereof; or

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

         Section 5.02      Acceleration of Maturity; Rescission and Annulment.

         If an Event of Default described in clause (1), (2), (3), (4), (7) or
(8) of Section 5.01 with respect to Securities of any series at the time
Outstanding occurs and is continuing, then in every such

                                       37

<PAGE>

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
the Securities of that series are Original Issue Discount Securities or Indexed
Securities, such portion of the principal amount as may be specified in the
terms of that series) 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 portion thereof) shall become immediately due and payable. If an Event
of Default described in clause (5) or (6) of Section 5.01 occurs and is
continuing, then the principal amount of all the Debt Securities shall ipso
facto become and be immediately due and payable without declaration or other act
on the part of the Trustee or any Holder.

         At any time after a declaration of acceleration with respect to
Securities of any series (or of all series, as the case may be) 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 (or of
all series, as the case may be), 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 in the Currency in which the Securities of such series are payable
     (except as otherwise specified pursuant to Section 3.01 for the Securities
     of such series and except, if applicable, as provided in Sections 3.11(b),
     3.11(d) and 3.11(e)),

                 (A)     all overdue interest on all Outstanding Securities of
         that series (or of all series, as the case may be) and any related
         coupons,

                 (B)     all unpaid principal of (and premium, if any, on) any
         Outstanding Securities of that series (or of all series, as the case
         may be) which has become due otherwise than by such declaration of
         acceleration, and interest on such unpaid principal at the rate or
         rates prescribed therefor in such Securities,

                 (C)     to the extent that payment of such interest is lawful,
         interest on 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 (or
     of all series, as the case may be), other than the non-payment of amounts
     of principal of (or premium, if any, on) or interest on Securities of that
     series (or of all series, as the case may be) which have become due solely
     by such declaration of acceleration, have been cured or waived as provided
     in Section 5.13.

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

         Notwithstanding the preceding paragraph, in the event of a declaration
of acceleration in respect of the Securities because of an Event of Default
specified in Section 5.01(7) shall have occurred

                                       38

<PAGE>

and be continuing, such declaration of acceleration shall be automatically
annulled if the Debt that is the subject of such Event of Default has been
discharged or the holders thereof have rescinded their declaration of
acceleration in respect of such Debt, and written notice of such discharge or
rescission, as the case may be, shall have been given to the Trustee by the
Company and countersigned by the holders of such Debt or a trustee, fiduciary or
agent for such holders, within 30 days after such declaration of acceleration in
respect of the Securities, and no other Event of Default has occurred during
such 30-day period which has not been cured or waived during such period.

         Section 5.03 Collection of Indebtedness and Suits for Enforcement by
     Trustee.

         The Company covenants that if

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

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

then the Company will, upon demand of the Trustee, pay to the Trustee for the
benefit of the Holders of such Securities and coupons, the whole amount then due
and payable on such Securities and coupons for principal (and premium, if any)
and interest, and interest on any overdue principal (and premium, if any) and to
the extent that payment of such interest is lawful 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 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 (or of
all series, as the case may be) 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 (or of all series, as the case may be) 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 5.04      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

                                       39

<PAGE>

due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company
for the payment of overdue principal, premium, if any, 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), or such portion of the principal amount of any series of
     Original Issue Discount Securities or Indexed Securities as may be
     specified in the terms of such series, 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 6.06.

         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 5.05 Trustee May Enforce Claims Without Possession of
     Securities.

         All rights of action and claims under this Indenture or the Securities
or coupons may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or coupons 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 and coupons in respect
of which such judgment has been recovered.

         Section 5.06      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 or coupons, or both, as
the case may be, and the notation thereon of the payment if only partially paid
and upon surrender thereof if fully paid:

         First: To the payment of all amounts due the Trustee under Section
     6.06;

                                       40

<PAGE>

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

         Third: The balance, if any, to the Person or Persons entitled thereto
     including, without limitation, the Company.

         Section 5.07      Limitation on Suits.

         No Holder of any Security of any series or any related coupons 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 in the case of any Event of Default
     described in clause (1), (2), (3), (4), (7) or (8) of Section 5.01, or, in
     the case of any Event of Default described in clause (5) or (6) of Section
     5.01, the Holders of not less than 25% in principal amount of all
     Outstanding Securities, shall have made written request to the Trustee to
     institute proceedings in respect of such Event of Default in its own name
     as Trustee hereunder;

         (3) such Holder or Holders have 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 at least a
     majority or more in principal amount of the Outstanding Securities of that
     series in the case of any Event of Default described in clause (1), (2),
     (3), (4), (7) or (8) of Section 5.01, or, in the case of any Event of
     Default described in clause (5) or (6) of Section 5.01, by the Holders of a
     majority or more in principal amount of all Outstanding Securities;

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
Holders of Securities of the same series, in the case of any Event of Default
described in clause (1), (2), (3), (4), (7) or (8) of Section 5.01, or of
Holders of all Securities in the case of any Event of Default described in
clause (5) or (6) of Section 5.01, 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 Holders of Securities of the same series, in the case of any
Event of Default described in clause (1), (2), (3), (4), (7) or (8)

                                       41

<PAGE>

of Section 5.01, or of Holders of all Securities in the case of any Event of
Default described in clause (5) or (6) of Section 5.01.

         Section 5.08      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, as provided herein (including, if applicable, Article Fourteen)
and in such Security, of the principal of (and premium, if any, on) and (subject
to Section 3.07) interest on, such Security or payment of such coupon on the
respective Stated Maturities expressed in such Security or coupon (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 5.09      Restoration of Rights and Remedies.

         If the Trustee or any Holder has instituted any proceeding to enforce
any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders of
Securities and coupons 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 5.10      Rights and Remedies Cumulative.

         Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities or coupons in the last
paragraph of Section 3.06, no right or remedy herein conferred upon or reserved
to the Trustee or to the Holders of Securities or coupons 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 5.11      Delay or Omission Not Waiver.

         No delay or omission of the Trustee or of any Holder of any Security or
coupon 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.

                                       42
<PAGE>

         Section 5.12      Control by Holders.

         With respect to the Securities of any series, the Holders of not less
than a majority in principal amount of the Outstanding Securities of such series
shall have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred on the Trustee, relating to or arising under clause (1), (2),
(3), (4), (7) or (8) of Section 5.01, and, with respect to all Securities, the
Holders of not less than a majority in principal amount of all Outstanding
Securities shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred on the Trustee, not relating to or arising under
clause (1), (2), (3), (4), (7) or (8) of Section 5.01, provided that in each
case

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

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

         (3) the Trustee need not take any action which might involve it in
     personal liability or be unjustly prejudicial to the Holders of Securities
     of such series not consenting.

         Section 5.13      Waiver of Past Defaults.

         Subject to Section 5.02, 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
described in clause (1), (2), (3), (4), (7) or (8) of Section 5.01 (or, in the
case of a default described in clause (5) or (6) of Section 5.01, the Holders of
not less than a majority in principal amount of all Outstanding Securities may
waive any such past default), and its consequences, except a default

         (1) in respect of the payment of the principal of (or premium, if any,
     on) or interest on any Security or any related coupon, or

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

         Upon any such waiver, any 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 Event of Default or impair any right consequent thereon.

                                       43

<PAGE>

         Section 5.14      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 VI

                                   THE TRUSTEE

         Section 6.01      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 in the
manner and to the extent provided in TIA Section 313(c), 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, on) 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 and/or Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the interest of the
Holders of Securities of such series and any related coupons; and provided
further that in the case of any Default of the character specified in Section
5.01(4) with respect to Securities of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof.

         Section 6.02      Certain Rights of Trustee.

         Subject to the provisions of TIA Sections 315(a) through 315(d):

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

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

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

                                       44

<PAGE>

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

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

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

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

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

         The Trustee shall not be required 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.

          Section 6.03 Trustee Not Responsible for Recitals or Issuance of
               Securities.

         The recitals contained herein and in the Securities, except for the
Trustee's certificates of authentication, and in any coupons shall be taken as
the statements of the Company, and neither the Trustee nor any Authenticating
Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Securities or coupons, except that the Trustee represents that it is duly
authorized to execute and deliver this Indenture, authenticate the Securities
and perform its obligations hereunder and that the statements made by it in a
Statement of Eligibility and Qualification on Form T-1 supplied to the Company
are true and accurate, subject to the qualifications set forth therein. Neither
the Trustee nor any Authenticating Agent shall be accountable for the use or
application by the Company of Securities or the proceeds thereof.

                                       45

<PAGE>

         Section 6.04     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 coupons
and, subject to TIA Sections 310(b) and 311, may otherwise 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 6.05      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 with the Company.

         Section 6.06      Compensation and Reimbursement.

         The Company agrees:

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

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

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

         The obligations of the Company under this Section to compensate the
Trustee, to pay or reimburse the Trustee for expenses, disbursements and
advances and to indemnify and hold harmless the Trustee shall constitute
additional indebtedness hereunder and shall survive the satisfaction and
discharge of this Indenture. As security for the performance of such obligations
of the Company, the Trustee shall have a claim 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 (and premium, if any, on) or interest
on particular Securities or any coupons.

         Section 6.07 Corporate Trustee Required; Eligibility; Conflicting
     Interest.

         There shall at all times be a Trustee hereunder which shall be eligible
to act as Trustee under TIA Section 310(a)(1). Each successor Trustee shall have
a combined capital and surplus of at

                                       46

<PAGE>

least $50,000,000. If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of federal, state, territorial
or District of Columbia 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 6.08      Resignation and Removal; Appointment of Successor.

         (a) No resignation or removal of the Trustee and no appointment of a
     successor Trustee pursuant to this Article shall become effective until the
     acceptance of appointment by the successor Trustee in accordance with the
     applicable requirements of Section 6.09.

         (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
     6.09 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 not less than 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 the provisions of TIA Section
     310(b) after written request therefor by the Company or by any Holder who
     has been a bona fide Holder of a Security for at least six months, or

         (2) the Trustee shall cease to be eligible under Section 6.07(a) and
     shall fail to resign after written request therefor by the Company or by
     any Holder who has been a bona fide Holder of a Security for at least six
     months, or

         (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 TIA Section 315(e),
any Holder who has been a bona fide Holder of a Security for at least six months
may, on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.

         (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

                                       47

<PAGE>

         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). 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, 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 hereinafter
     provided, 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 to the Holders of Securities of such series in the manner provided
     for in Section 1.06. 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 6.09      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 to the retiring Trustee
     an instrument accepting such appointment, and thereupon the resignation or
     removal of the retiring Trustee shall become effective and such successor
     Trustee, without any further act, deed or conveyance, shall become vested
     with all the rights, powers, trusts and duties of the retiring Trustee;
     but, on the request of the Company or the successor Trustee, such retiring
     Trustee shall, upon payment of its charges, execute and deliver an
     instrument transferring to such successor Trustee all the rights, powers
     and trusts of the retiring Trustee and shall duly assign, transfer and
     deliver to such successor Trustee all property and money held by such
     retiring Trustee hereunder.

         (b) In case of the appointment hereunder of a successor Trustee with
     respect to the Securities of one or more (but not all) series, the Company,
     the retiring Trustee and each successor Trustee with respect to the
     Securities of one or more series shall execute and deliver an indenture
     supplemental hereto wherein each successor Trustee shall accept such
     appointment and which (1) shall contain such provisions as shall be
     necessary or desirable to transfer and confirm to, and to vest in, each
     successor Trustee all the rights, powers, trusts and duties of the retiring
     Trustee with respect to the Securities of that or those series to which the
     appointment of such successor Trustee relates, (2) 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

                                       48

<PAGE>

     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 to
     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. Whenever there is a
     successor Trustee with respect to one or more (but less than all) series of
     securities issued pursuant to this Indenture, the terms "Indenture" and
     "Securities" shall have the meanings specified in the provisos to the
     respective definitions of those terms in Section 1.01 which contemplate
     such situation.

         (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 rights, powers and trusts referred
     to in paragraph (a) or (b) of this Section, as the case may be.

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

         Section 6.10    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; and in
case at that time any of the Securities shall not have been authenticated, any
successor Trustee may authenticate such Securities either in the name of any
predecessor hereunder or in the name of the successor Trustee; and in all such
cases such certificates shall have the full force which it is anywhere in the
Securities or in this Indenture provided that the certificate of the Trustee
shall have; provided, however, that the right to adopt the certificate of
authentication of any predecessor Trustee or to authenticate Securities in the
name of any predecessor Trustee shall apply only to its successor or successors
by merger, conversion or consolidation.

                                       49

<PAGE>

         Section 6.11      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 and the Trustee shall give written notice
of such appointment to all Holders of Securities of the series with respect to
which such Authenticating Agent will serve, in the manner provided for in
Section 1.06. 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. Any such appointment shall be evidenced
by an instrument in writing signed by a Responsible Officer of the Trustee, and
a copy of such instrument shall be promptly furnished to the Company. 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 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 an Authenticating Agent shall cease to be eligible
in accordance with the provisions of this Section, it shall resign immediately
in the manner and with the effect specified in this Section.

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

         An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and to the Company. The Trustee may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall give written notice of
such appointment to all Holders of Securities of the series with respect to
which such Authenticating Agent will serve, in the manner provided for in
Section 1.06. 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.

                                       50

<PAGE>

         The Trustee agrees to pay to each Authenticating Agent from time to
time reasonable compensation for its services under this Section, and the
Trustee shall be entitled to be reimbursed for such payments, subject to the
provisions of Section 6.06.

         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.

                                                [name of trustee],
                                                 as Trustee

                                                By
                                                  -----------------------------
                                                  as Authenticating Agent

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

                                   ARTICLE VII

                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

         Section 7.01      Disclosure of Names and Addresses of Holders.

         Every Holder of Securities or coupons, by receiving and holding the
same, agrees with the Company and the Trustee that none of the Company or the
Trustee or 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 TIA Section 312, 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 TIA Section
312(b).

         Section 7.02      Reports by Trustee.

         Within 60 days after May 15 of each year commencing with the first May
15 after the first issuance of Securities pursuant to this Indenture, the
Trustee shall transmit to the Holders of Securities, in the manner and to the
extent provided in TIA Section 313(c), a brief report dated as of such May 15 if
required by TIA Section 313(a).

                                       51

<PAGE>

         Section 7.03      Reports by Company.

         The Company shall:

         (1) file with the Trustee, within 15 days after the Company is required
     to file the same with the Commission, copies of the annual reports and of
     the information, documents and other reports (or copies of such portions of
     any of the foregoing as the Commission may from time to time by rules and
     regulations prescribe) which the Company may be required to file with the
     Commission pursuant to Section 13 or Section 15(d) of the Securities
     Exchange Act of 1934; or, if the Company is not required to file
     information, documents or reports pursuant to either of such Sections, then
     it shall file with the Trustee and the Commission, in accordance with rules
     and regulations prescribed from time to time by the Commission, such of the
     supplementary and periodic information, documents and reports which may be
     required pursuant to Section 13 of the Securities Exchange Act of 1934 in
     respect of a security listed and registered on a national securities
     exchange as may be prescribed from time to time in such rules and
     regulations;

         (2) file with the Trustee and the Commission, in accordance with rules
     and regulations prescribed from time to time by the Commission, such
     additional information, documents and reports with respect to compliance by
     the Company with the conditions and covenants of this Indenture as may be
     required from time to time by such rules and regulations; and

         (3) transmit to all Holders, in the manner and to the extent provided
     in TIA Section 313(c), within 30 days after the filing thereof with the
     Trustee, such summaries of any information, documents and reports required
     to be filed by the Company pursuant to paragraphs (1) and (2) of this
     Section as may be required by rules and regulations prescribed from time to
     time by the Commission.

                                  ARTICLE VIII

                    MERGER, CONSOLIDATION AND SALE OF ASSETS

         Section 8.01      Company May Consolidate, Etc., Only on Certain Terms.

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

         (1) the entity formed by such consolidation or into which the Company
     is merged or the Person which acquires by conveyance or transfer, or which
     leases, the properties and assets of the Company substantially as an
     entirety (A) shall be an entity organized and validly existing under the
     laws of the United States of America, any state thereof or the District of
     Columbia and (B) shall expressly assume, by an indenture supplemental
     hereto, executed and delivered to the Trustee, in form satisfactory to the
     Trustee, the Company's obligation for the due and punctual payment of the
     principal of (and premium, if any, on) and interest on all the Securities
     and the performance and

                                       52

<PAGE>

         observance 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 Default or
     Event of Default shall have occurred and be continuing; and

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

         This Section shall only apply to a merger or consolidation in which the
Company is not the surviving corporation and to conveyances, leases and
transfers by the Company as transferor or lessor.

         Section 8.02      Successor Person Substituted.

         Upon any consolidation by the Company with or merger by the Company
into any other entity or any conveyance, transfer or lease of the properties and
assets of the Company substantially as an entirety to any Person in accordance
with Section 8.01, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is
made shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein, and in the event of any
such conveyance or transfer, the Company (which term shall for this purpose mean
the Person named as the "Company" in the first paragraph of this Indenture or
any successor Person which shall theretofore become such in the manner described
in Section 8.01), except in the case of a lease, shall be discharged of all
obligations and covenants under this Indenture and the Securities and the
coupons and may be dissolved and liquidated.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

         Section 9.01      Supplemental Indentures Without Consent of Holders.

         Without the consent of any Holders, the Company, when authorized by or
pursuant to 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 Person to the Company and the
     assumption by any such successor of the covenants of the Company contained
     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 any related coupons (and if
     such covenants are to be for the benefit of less than all series of
     Securities, stating that such covenants are being included

                                       53

<PAGE>

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

         (4) to add to or change any of the provisions of this Indenture to
     provide that Bearer Securities may be registrable as to principal, to
     change or eliminate any restrictions on the payment of principal of or any
     premium or interest on Bearer Securities, to permit Bearer Securities to be
     issued in exchange for Registered Securities, to permit Bearer Securities
     to be issued in exchange for Bearer Securities of other authorized
     denominations or to permit or facilitate the issuance of Securities in
     uncertificated form; provided that any such action shall not adversely
     affect the interests of the Holders of Securities of any series or any
     related coupons in any material respect; 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 which is entitled to the benefit
     of such provision; or

         (6) to establish the form or terms of Securities of any series as
     permitted by Sections 2.01 and 3.01; or

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

         (8) to close this Indenture with respect to the authentication and
     delivery of additional series of Securities, 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 that such
     action shall not adversely affect the interests of the Holders of
     Securities of any series and any related coupons in any material respect;

         (9) to supplement any of the provisions of this Indenture to such
     extent as shall be necessary to permit or facilitate the defeasance and
     discharge of any series of Securities pursuant to Sections 4.01, 14.02 and
     14.03; provided that any such action shall not adversely affect the
     interests of the Holders of Securities of such series and any related
     coupons or any other series of Securities in any material respect; or

         (10) to effect or maintain the qualification of the Indenture under the
     Trust Indenture Act.

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<PAGE>

         Section 9.02      Supplemental Indentures with Consent of Holders.

         With the consent of the Holders of not less than a majority in
principal amount of all Outstanding Securities of any series, by Act of said
Holders delivered to the Company and the Trustee, the Company, when authorized
by or pursuant to 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 which affect such series of Securities or of modifying in any
manner the rights of the Holders of Securities under this Indenture; provided,
however, that no such supplemental indenture shall, without the consent of the
Holder of each Outstanding Security affected thereby,

         (1) change the Stated Maturity of the principal of, or any installment
     of interest on, any Security or reduce the principal amount thereof or the
     rate of interest thereon or any premium payable upon the redemption
     thereof, or change any obligation of the Company to pay Additional Amounts
     contemplated by Section 10.05 (except as contemplated by Section 8.01(1)
     and permitted by Section 9.01(1)), 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
     5.02 or the amount thereof provable in bankruptcy pursuant to Section 5.04,
     or adversely affect any right of repayment at the option of any Holder of
     any Security, or change any Place of Payment where, or the 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 or
     repayment at the option of the Holder, on or after the Redemption Date or
     Repayment Date, as the case may be), or adversely affect any right to
     convert or manage any Security as may be provided pursuant to Section 3.01
     herein, or

         (2) reduce the percent in principal amount of the Outstanding
     Securities of any series, the consent of whose Holders is required for any
     such supplemental indenture, for any waiver of compliance with certain
     provisions of this Indenture or certain defaults hereunder and their
     consequences provided for in this Indenture, or reduce the requirements of
     Section 15.04 for quorum or voting.

         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. Any such
supplemental indenture adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture, or modifying in any manner
the rights of the Holders of Securities of such series, shall not affect the
rights under this Indenture of the Holders of Securities of any other series.

         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.

                                       55

<PAGE>

         Section 9.03      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 shall be fully protected in relying upon, an Opinion of Counsel stating that
the execution of such supplemental indenture is authorized or permitted by this
Indenture. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.

         Section 9.04      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 9.05      Conformity with Trust Indenture Act.

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

         Section 9.06      Reference in Securities to Supplemental Indentures.

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

         Section 9.07      Notice of Supplemental Indentures.

         Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of Section 9.02, the Company
shall give notice thereof to the Holders of each Outstanding Security affected,
in the manner provided for in Section 1.06, setting forth in general terms the
substance of such supplemental indenture.

                                    ARTICLE X

                                    COVENANTS

         Section 10.01     Payment of Principal, Premium, if any, and Interest.

         The Company covenants and agrees for the benefit of the Holders of each
series of Securities and any related coupons that it will duly and punctually
pay the principal of (and premium, if any, on) and interest on the Securities of
that series in accordance with the terms of the Securities, any coupons
appertaining thereto and this Indenture. Unless otherwise specified as
contemplated by

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<PAGE>

Section 3.01 with respect to any series of Securities, any interest installments
due on Bearer Securities on or before Maturity shall be payable only upon
presentation and surrender of the several coupons for such interest installments
as are evidenced thereby as they severally mature.

         Section 10.02      Maintenance of Office or Agency.

         If the Securities of a series are issuable only as Registered
Securities, 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, where Securities of that series that
are convertible may be surrendered for conversion, if applicable, and where
notices and demands to or upon the Company in respect of the Securities of that
series and this Indenture may be served.

         If Securities of a series are issuable as Bearer Securities, the
Company will maintain (A) in The City of New York, an office or agency where any
Registered Securities of that series may be presented or surrendered for
payment, where any Registered Securities of that series may be surrendered for
registration of transfer, where Securities of that series may be surrendered for
exchange, where notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be served and where Bearer
Securities of that series and related coupons may be presented or surrendered
for payment in the circumstances described in the following paragraph (and not
otherwise); (B) subject to any laws or regulations applicable thereto, in a
Place of Payment for that series which is located outside the United States, an
office or agency where Securities of that series and related coupons may be
presented and surrendered for payment; provided, however, that, if the
Securities of that series are listed on any stock exchange located outside the
United States and such stock exchange shall so require, the Company will
maintain a Paying Agent for the Securities of that series in any required city
located outside the United States so long as the Securities of that series are
listed on such exchange, and (C) subject to any laws or regulations applicable
thereto, in a Place of Payment for that series located outside the United States
an office or agency where any Registered Securities of that series may be
surrendered for registration of transfer, where Securities of that series may be
surrendered for 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, except that Bearer Securities of any series and the
related coupons may be presented and surrendered for payment at the offices
specified in the Security, in London, and the Company hereby appoints the same
as its agents to receive such respective presentations, surrenders, notices and
demands.

         Unless otherwise specified with respect to any Securities pursuant to
Section 3.01, no payment of principal, premium or interest on Bearer Securities
shall be made at any office or agency of the Company in the United States or by
check mailed to any address in the United States or by transfer to an account
maintained with a bank located in the United States; provided, however, that, if
the Securities of a series are payable in Dollars, payment of principal of (and
premium, if any, on) and interest on any Bearer Security shall be made at the
office of the Company's Paying Agent in The City of New York, if (but only if)
payment in Dollars of the full amount of such principal, premium or interest, as
the case may

                                       57

<PAGE>

be, at all offices or agencies outside the United States maintained for the
purpose by the Company in accordance with this Indenture is illegal or
effectively precluded by exchange controls or other similar restrictions.

         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
any such designation; 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 accordance with the requirements set forth above 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. Unless otherwise specified with respect to
any Securities as contemplated by Section 3.01 with respect to a series of
Securities, the Company hereby designates as a Place of Payment for each series
of Securities the office or agency of the Trustee in the Borough of Manhattan,
The City of New York, and initially appoints the Trustee, as Paying Agent in
such city and as its agent to receive all such presentations, surrenders,
notices and demands.

         Unless otherwise specified with respect to any Securities pursuant to
Section 3.01, if and so long as the Securities of any series (i) are denominated
in a Currency other than Dollars or (ii) may be payable in a Currency other than
Dollars, or so long as it is required under any other provision of the
Indenture, then the Company will maintain with respect to each such series of
Securities, or as so required, at least one Exchange Rate Agent.

         Section 10.03      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 and any related coupons, it will, on or
before each due date of the principal of (and premium, if any, on) 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 in the Currency in which the
Securities of such series are payable (except as otherwise specified pursuant to
Section 3.01 for the Securities of such series and except, if applicable, as
provided in Sections 3.11(b), 3.11(d) and 3.11(e)) 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 action or failure so to act.

         Whenever the Company shall have one or more Paying Agents for any
series of Securities and any related coupons, it will, prior to or on each due
date of the principal of (and premium, if any, on) or interest on any Securities
of that series, deposit with a Paying Agent a sum (in the Currency described in
the preceding paragraph) 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 (other than the Trustee) for
any series of Securities 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, on) and interest on Securities of such series in trust for
the benefit

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<PAGE>

     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 such series) in the making of any payment of
     principal of (or premium, if any, on) or interest on the Securities of such
     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 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 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
sums.

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

         Section 10.04      Statement as to Compliance.

         The Company will deliver to the Trustee, within 120 days after the end
of each fiscal year, a brief certificate from the principal executive officer,
principal financial officer or principal accounting officer as to his or her
knowledge of the Company's compliance with all conditions and covenants under
this Indenture. For purposes of this Section 10.04, such compliance shall be
determined without regard to any period of grace or requirement of notice under
this Indenture.

         Section 10.05      Additional Amounts.

         If any Securities of a series provide for the payment of additional
amounts to any Holder who is not a United States person in respect of any tax,
assessment or governmental charge ("Additional Amounts"), the Company will pay
to the Holder of any Security of such series or any coupon appertaining thereto
such Additional Amounts as may be specified as contemplated by Section 3.01.
Whenever in this Indenture there is mentioned, in any context, the payment of
the principal (or premium, if any, on) or

                                       59

<PAGE>

interest on, or in respect of, any Security of a series or payment of any
related coupon or the net proceeds received on the sale or exchange of any
Security of a series, such mention shall be deemed to include mention of the
payment of Additional Amounts provided for by the terms of such series
established pursuant to Section 3.01 to the extent that, in such context,
Additional Amounts are, were or would be payable in respect thereof pursuant to
such terms and express mention of the payment of Additional Amounts (if
applicable) in any provisions hereof shall not be construed as excluding
Additional Amounts in those provisions hereof where such express mention is not
made.

         Except as otherwise specified as contemplated by Section 3.01, if the
Securities of a series provide for the payment of Additional Amounts, at least
10 days prior to the first Interest Payment Date with respect to that series of
Securities (or if the Securities of that series will not bear interest prior to
Maturity, the first day on which a payment of principal (and premium, if any) is
made), and at least 10 days prior to each date of payment of principal (and
premium, if any) or interest if there has been any change with respect to the
matters set forth in the below-mentioned Officers' Certificate, the Company will
furnish the Trustee and the Company's principal Paying Agent or Paying Agents,
if other than the Trustee, with an Officers' Certificate instructing the Trustee
and such Paying Agent or Paying Agents whether such payment of principal of (and
premium, if any, on) or interest on the Securities of that series shall be made
to Holders of Securities of that series or any related coupons who are not
United States persons without withholding for or on account of any tax,
assessment or other governmental charge described in the Securities of the
series. If any such withholding shall be required, then such Officers'
Certificate shall specify by country the amount, if any, required to be withheld
on such payments to such Holders of Securities of that series or related coupons
and the Company will pay to the Trustee or such Paying Agent the Additional
Amounts required by the terms of such Securities. In the event that the Trustee
or any Paying Agent, as the case may be, shall not so receive the
above-mentioned certificate, then the Trustee or such Paying Agent shall be
entitled to (i) assume that no such withholding or deduction is required with
respect to any payment of principal (and premium, if any) or interest with
respect to any Securities of a series or related coupons until it shall have
received a certificate advising otherwise and (ii) to make all payments of
principal (and premium, if any) and interest with respect to the Securities of a
series or related coupons without withholding or deductions until otherwise
advised. The Company covenants to indemnify the Trustee and any Paying Agent
for, and to hold them harmless against, any loss, liability or expense
reasonably incurred without negligence or bad faith on their part arising out of
or in connection with actions taken or omitted by any of them in reliance on any
Officers' Certificate furnished pursuant to this Section.

         Section 10.06      Payment of Taxes and Other Claims.

         The Company will pay or discharge or cause to be paid or discharged,
before the same shall become delinquent, all material taxes, assessments and
governmental charges levied or imposed upon the Company or any Subsidiary or
upon the income, profits or property of the Company or any Subsidiary; provided,
however, that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings.

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<PAGE>

         Section 10.07      Corporate Existence.

         Subject to Article Eight, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and the rights (charter and statutory) and franchises of the Company
and any Subsidiary; provided, however, that the Company shall not be required to
preserve any such right or franchise if the Company shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and its Subsidiaries as a whole and provided further that the
foregoing does not prohibit any mergers or consolidations between Subsidiaries
or between the Company and one or more Subsidiaries so long as any such merger
or consolidation complies with Article Eight.

         Section 10.08      Waiver of Certain Covenants.

         The Company may, with respect to any series of Securities, omit in any
particular instance to comply with any term, provision or condition which
affects such series set forth in Sections 10.06 to 10.07, inclusive, if before
the time for such compliance the Holders of at least a majority in principal
amount of all Outstanding Securities of any series, by Act of such Holders,
waive such compliance in such instance with such term, provision or condition,
but no such waiver shall extend to or affect such term, provision or condition
except to the extent so expressly waived, and, until such waiver shall become
effective, the obligations of the Company and the duties of the Trustee in
respect of any such term, provision or condition shall remain in full force and
effect.

                                   ARTICLE XI

                            REDEMPTION OF SECURITIES

         Section 11.01      Applicability of Article.

         Securities of any series which are redeemable before their Stated
Maturity shall be redeemable in accordance with the terms of such Securities and
(except as otherwise specified as contemplated by Section 3.01 for Securities of
any series) in accordance with this Article.

         Section 11.02      Election to Redeem; Notice to Trustee.

         The election of the Company to redeem any Securities shall be evidenced
by or pursuant to a Board Resolution. In case of any redemption at the election
of the Company, 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 and shall deliver to the Trustee
such documentation and records as shall enable the Trustee to select the
Securities to be redeemed pursuant to Section 11.03. 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.

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<PAGE>

         Section 11.03      Selection by Trustee of Securities to Be Redeemed.

         If less than all the Securities 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
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 of the principal of Securities of such series; provided,
however, that no such partial redemption shall reduce the portion of the
principal amount of a Security not redeemed to less than the minimum authorized
denomination for Securities of such series established pursuant to Section 3.01.

         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 Security redeemed or to be redeemed only in part, to the
portion of the principal amount of such Security which has been or is to be
redeemed.

         Section 11.04      Notice of Redemption.

         Except as otherwise specified as contemplated by Section 3.01, notice
of redemption shall be given in the manner provided for in Section 1.06 not less
than 30 nor more than 60 days prior to the Redemption Date, to each Holder of
Securities to be redeemed.

         All notices of redemption shall state:

               (1)   the Redemption Date,

               (2)   the Redemption Price,

               (3)   if less than all the Outstanding Securities 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,

               (4)   that on the Redemption Date the Redemption Price (together
with accrued interest, if any, to the Redemption Date payable as provided in
Section 11.06) will become due and payable upon each such Security, or the
portion thereof, to be redeemed and, if applicable, that interest thereon will
cease to accrue on and after said date,

               (5)   the place or places where such Securities, together in the
case of Bearer Securities with all coupons appertaining thereto, if any,
maturing after the Redemption Date, are to be surrendered for payment of the
Redemption Price,

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

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<PAGE>

         (7) that, unless otherwise specified in such notice, Bearer Securities
     of any series, if any, surrendered for redemption must be accompanied by
     all coupons maturing subsequent to the Redemption Date or the amount of any
     such missing coupon or coupons will be deducted from the Redemption Price
     unless security or indemnity satisfactory to the Company, the Trustee and
     any Paying Agent is furnished, and

         (8) if Bearer Securities of any series are to be redeemed and any
     Registered Securities of such series are not to be redeemed, and if such
     Bearer Securities may be exchanged for Registered Securities not subject to
     redemption on such Redemption Date pursuant to Section 3.05 or otherwise,
     the last date, as determined by the Company, on which such exchanges may be
     made.

         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 11.05      Deposit of Redemption Price.

         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 10.03) an amount of
money in the Currency in which the Securities of such series are payable (except
as otherwise specified pursuant to Section 3.01 for the Securities of such
series and except, if applicable, as provided in Sections 3.11(b), 3.11(d) and
3.11(e)) sufficient to pay the Redemption Price of, and accrued interest on, all
the Securities which are to be redeemed on that date.

         Section 11.06      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 in the Currency in which the Securities of
such series are payable (except as otherwise specified pursuant to Section 3.01
for the Securities of such series and except, if applicable, as provided in
Sections 3.11(b), 3.11(d) and 3.11(e)) (together with accrued interest, if any,
to the Redemption Date), and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such
Securities shall, if the same were interest-bearing, cease to bear interest and
the coupons for such interest appertaining to any Bearer Securities so to be
redeemed, except to the extent provided below, shall be void. Upon surrender of
any such Security for redemption in accordance with said notice, together with
all coupons, if any, appertaining thereto maturing after the Redemption Date,
such Security shall be paid by the Company at the Redemption Price, together
with accrued interest, if any, to the Redemption Date; provided, however, that
installments of interest on Bearer Securities whose Stated Maturity is on or
prior to the Redemption Date shall be payable only at an office or agency
located outside the United States (except as otherwise provided in Section
10.02) and, unless otherwise specified as contemplated by Section 3.01, only
upon presentation and surrender of coupons for such interest, and provided
further that installments of interest on Registered Securities whose Stated
Maturity is on or prior to the Redemption Date shall be payable to the Holders
of such Securities, or one or more Predecessor Securities, registered as such at
the close of business on the relevant Record Dates according to their terms and
the provisions of Section 3.07.

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         If any Bearer Security surrendered for redemption shall not be
accompanied by all appurtenant coupons maturing after the Redemption Date, such
Security may be paid after deducting from the Redemption Price an amount equal
to the face amount of all such missing coupons, or the surrender of such missing
coupon or coupons may be waived by the Company and the Trustee if there be
furnished to them such security or indemnity as they may require to save each of
them and any Paying Agent harmless. If thereafter the Holder of such Security
shall surrender to the Trustee or any Paying Agent any such missing coupon in
respect of which a deduction shall have been made from the Redemption Price,
such Holder shall be entitled to receive the amount so deducted; provided,
however, that interest represented by coupons shall be payable only at an office
or agency located outside the United States (except as otherwise provided in
Section 10.02) and, unless otherwise specified as contemplated by Section 3.01,
only upon presentation and surrender of those coupons.

         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 of interest or
Yield to Maturity (in the case of Original Issue Discount Securities) set forth
in the Security.

         Section 11.07     Securities Redeemed in Part.

         Any Security which is to be redeemed only in part (pursuant to the
provisions of this Article or of Article Twelve) 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 such Holder's
attorney duly authorized in writing), and the Company shall execute, and the
Trustee shall authenticate and deliver to the Holder of such Security without
service charge, a new Security or Securities of the same series, of any
authorized denomination as requested by such Holder, in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered.

                                   ARTICLE XII

                                  SINKING FUNDS

         Section 12.01      Applicability of Article.

         Retirements of Securities of any series pursuant to any sinking fund
shall be made in accordance with the terms of such Securities and (except as
otherwise specified as contemplated by Section 3.01 for Securities of any
series) in accordance with this Article.

         The minimum amount of any sinking fund payment provided for by the
terms of Securities of any series is herein referred to as a "mandatory sinking
fund payment", and any payment in excess of such minimum amount provided for by
the terms of Securities of any series is herein referred to as an "optional
sinking fund payment". If provided for by the terms of Securities of any series,
the cash amount of any mandatory sinking fund payment may be subject to
reduction as provided in Section 12.02. 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.

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         Section 12.02    Satisfaction of Sinking Fund Payments with Securities.

         Subject to Section 12.03, in lieu of making all or any part of any
mandatory sinking fund payment with respect to any Securities of a series in
cash, the Company may at its option (1) deliver to the Trustee Outstanding
Securities of a series (other than any previously called for redemption)
theretofore purchased or otherwise acquired by the Company together in the case
of any Bearer Securities of such series with all unmatured coupons appertaining
thereto, and/or (2) receive credit for the principal amount of Securities of
such series which have been previously delivered to the Trustee by the Company
or for Securities of such 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
mandatory sinking fund payment with respect to the Securities of the same series
required to be made pursuant to the terms of such Securities as provided for by
the terms of such series; provided, however, 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
mandatory sinking fund payment shall be reduced accordingly.

         Section 12.03      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 in the Currency in which the
Securities of such series are payable (except as otherwise specified pursuant to
Section 3.01 for the Securities of such series and except, if applicable, as
provided in Sections 3.11(b), 3.11(d) and 3.11(e)) and the portion thereof, if
any, which is to be satisfied by delivering or crediting Securities of that
series pursuant to Section 12.02 (which Securities will, if not previously
delivered, accompany such certificate) and whether the Company intends to
exercise its right to make a permitted optional sinking fund payment with
respect to such series. Such certificate shall be irrevocable and upon its
delivery the Company shall be obligated to make the cash payment or payments
therein referred to, if any, on or before the next succeeding sinking fund
payment date. In the case of the failure of the Company to deliver such
certificate, the sinking fund payment due on the next succeeding sinking fund
payment date for that series shall be paid entirely in cash and shall be
sufficient to redeem the principal amount of such Securities subject to a
mandatory sinking fund payment without the option to deliver or credit
Securities as provided in Section 12.02 and without the right to make any
optional sinking fund payment, if any, with respect to such series.

         Not more than 60 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 11.03 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 11.04. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 11.06 and 11.07.

         Prior to any sinking fund payment date, the Company shall pay to the
Trustee or a Paying Agent (or, if the Company is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 10.03) in cash a sum equal to
any interest that will accrue to the date fixed for redemption of

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Securities or portions thereof to be redeemed on such sinking fund payment
date pursuant to this Section 12.03.

         Notwithstanding the foregoing, with respect to a sinking fund for any
series of Securities, if at any time the amount of cash to be paid into such
sinking fund on the next succeeding sinking fund payment date, together with any
unused balance of any preceding sinking fund payment or payments for such
series, does not exceed in the aggregate $100,000, the Trustee, unless requested
by the Company, shall not give the next succeeding notice of the redemption of
Securities of such series through the operation of the sinking fund. Any such
unused balance of moneys deposited in such sinking fund shall be added to the
sinking fund payment for such series to be made in cash on the next succeeding
sinking fund payment date or, at the request of the Company, shall be applied at
any time or from time to time to the purchase of Securities of such series, by
public or private purchase, in the open market or otherwise, at a purchase price
for such Securities (excluding accrued interest and brokerage commissions, for
which the Trustee or any Paying Agent will be reimbursed by the Company) not in
excess of the principal amount thereof.

                                  ARTICLE XIII

                         REPAYMENT AT OPTION OF HOLDERS

         Section 13.01      Applicability of Article.

         Repayment of Securities of any series before their Stated Maturity at
the option of Holders thereof shall be made in accordance with the terms of such
Securities and (except as otherwise specified as contemplated by Section 3.01
for Securities of any series) in accordance with this Article.

         Section 13.02      Repayment of Securities.

         Securities of any series subject to repayment in whole or in part at
the option of the Holders thereof will, unless otherwise provided in the terms
of such Securities, be repaid at a price equal to the principal amount thereof,
together with interest, if any, thereon accrued to the Repayment Date specified
in or pursuant to the terms of such Securities. The Company covenants that on or
before the Repayment Date it will 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 10.03) an amount of money in the Currency in
which the Securities of such series are payable (except as otherwise specified
pursuant to Section 3.01 for the Securities of such series and except, if
applicable, as provided in Sections 3.11(b), 3.11(d) and 3.11(e)) sufficient to
pay the principal (or, if so provided by the terms of the Securities of any
series, a percentage of the principal) of, and (except if the Repayment Date
shall be an Interest Payment Date) accrued interest on, all the Securities or
portions thereof, as the case may be, to be repaid on such date.

         Section 13.03      Exercise of Option.

         Securities of any series subject to repayment at the option of the
Holders thereof will contain an "Option to Elect Repayment" form on the reverse
of such Securities. To be repaid at the option of the Holder, any Security so
providing for such repayment, with the "Option to Elect Repayment" form on the
reverse of such Security duly completed by the Holder (or by the Holder's
attorney

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duly authorized in writing), must be received by the Company at the Place of
Payment therefor specified in the terms of such Security (or at such other place
or places of which the Company shall from time to time notify the Holders of
such Securities) not earlier than 45 days nor later than 30 days prior to the
Repayment Date. If less than the entire principal amount of such Security is to
be repaid in accordance with the terms of such Security, the principal amount of
such Security to be repaid, in increments of the minimum denomination for
Securities of such series, and the denomination or denominations of the Security
or Securities to be issued to the Holder for the portion of the principal amount
of such Security surrendered that is not to be repaid, must be specified. The
principal amount of any Security providing for repayment at the option of the
Holder thereof may not be repaid in part if, following such repayment, the
unpaid principal amount of such Security would be less than the minimum
authorized denomination of Securities of the series of which such Security to be
repaid is a part. Except as otherwise may be provided by the terms of any
Security providing for repayment at the option of the Holder thereof, exercise
of the repayment option by the Holder shall be irrevocable unless waived by the
Company.

  Section 13.04  When Securities Presented for Repayment Become Due and Payable.

         If Securities of any series providing for repayment at the option of
the Holders thereof shall have been surrendered as provided in this Article and
as provided by or pursuant to the terms of such Securities, such Securities or
the portions thereof, as the case may be, to be repaid shall become due and
payable and shall be paid by the Company on the Repayment Date therein
specified, and on and after such Repayment Date (unless the Company shall
default in the payment of such Securities on such Repayment Date) such
Securities shall, if the same were interest-bearing, cease to bear interest and
the coupons for such interest appertaining to any Bearer Securities so to be
repaid, except to the extent provided below, shall be void. Upon surrender of
any such Security for repayment in accordance with such provisions, together
with all coupons, if any, appertaining thereto maturing after the Repayment
Date, the principal amount of such Security so to be repaid shall be paid by the
Company, together with accrued interest, if any, to the Repayment Date;
provided, however, that coupons whose Stated Maturity is on or prior to the
Repayment Date shall be payable only at an office or agency located outside the
United States (except as otherwise provided in Section 10.02) and, unless
otherwise specified pursuant to Section 3.01, only upon presentation and
surrender of such coupons, and provided further that, in the case of Registered
Securities, installments of interest, if any, whose Stated Maturity is on or
prior to the Repayment Date shall be payable to the Holders of such Securities,
or one or more Predecessor Securities, registered as such at the close of
business on the relevant Record Dates according to their terms and the
provisions of Section 3.07.

         If any Bearer Security surrendered for repayment shall not be
accompanied by all appurtenant coupons maturing after the Repayment Date, such
Security may be paid after deducting from the amount payable therefor as
provided in Section 13.02 an amount equal to the face amount of all such missing
coupons, or the surrender of such missing coupon or coupons may be waived by the
Company and the Trustee if there be furnished to them such security or indemnity
as they may require to save each of them and any Paying Agent harmless. If
thereafter the Holder of such Security shall surrender to the Trustee or any
Paying Agent any such missing coupon in respect of which a deduction shall have
been made as provided in the preceding sentence, such Holder shall be entitled
to receive the amount so deducted; provided, however, that interest represented
by coupons shall be payable only at an office or agency located outside the
United States (except as otherwise provided in Section 10.02) and, unless
otherwise specified as contemplated by Section 3.01, only upon presentation and
surrender of those coupons.

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         If the principal amount of any Security surrendered for repayment shall
not be so repaid upon surrender thereof, such principal amount (together with
interest, if any, thereon accrued to such Repayment Date) shall, until paid,
bear interest from the Repayment Date at the rate of interest or Yield to
Maturity (in the case of Original Issue Discount Securities) set forth in such
Security.

         Section 13.05      Securities Repaid in Part.

         Upon surrender of any Registered Security which is to be repaid in part
only, the Company shall execute and the Trustee shall authenticate and deliver
to the Holder of such Security, without service charge and at the expense of the
Company, a new Registered Security or Securities of the same series, of any
authorized denomination specified by the Holder, in an aggregate principal
amount equal to and in exchange for the portion of the principal of such
Security so surrendered which is not to be repaid.

                                   ARTICLE XIV

                       DEFEASANCE AND COVENANT DEFEASANCE

         Section 14.01   Company's Option to Effect Defeasance or Covenant
Defeasance.

         Except as otherwise specified as contemplated by Section 3.01 for
Securities of any series, the provisions of this Article Fourteen shall apply to
each series of Securities, and the Company may, at its option, effect defeasance
of the Securities of or within a series under Section 14.02, or covenant
defeasance of or within a series under Section 14.03 in accordance with the
terms of such Securities and in accordance with this Article.

         Section 14.02      Defeasance and Discharge.

         Upon the Company's exercise of the above option applicable to this
Section with respect to any Securities of or within a series, the Company shall
be deemed to have been discharged from its obligations with respect to such
Outstanding Securities and any related coupons on the date the conditions set
forth in Section 14.04 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 such Outstanding Securities
and any related coupons, which shall thereafter be deemed to be "Outstanding"
only for the purposes of Section 14.05 and the other Sections of this Indenture
referred to in (A) and (B) below, and to have satisfied all its other
obligations under such Securities and any related coupons and this Indenture
insofar as such Securities and any related coupons 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 such
Outstanding Securities and any related coupons (i) to receive, solely from the
trust fund described in Section 14.04 and as more fully set forth in such
Section, payments in respect of the principal of (and premium, if any, on) and
interest on such Securities and any related coupons when such payments are due,
and (ii) to receive shares of common stock or other Securities from the Company
upon the conversion of any convertible securities issued hereunder, (B) the
Company's obligations with respect to such Securities under Sections 3.04, 3.05,
3.06, 10.02 and 10.03 and with respect to the payment of Additional Amounts, if
any, on such Securities as contemplated by Section 10.05, (C) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and (D) this
Article Fourteen. Subject to compliance with this Article Fourteen, the Company
may exercise its option under this Section

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14.02 notwithstanding the prior exercise of its option under Section 14.03 with
respect to such Securities and any related coupons.

         Section 14.03      Covenant Defeasance.

         Upon the Company's exercise of the above option applicable to this
Section with respect to any Securities of or within a series, the Company shall
be released from its obligations under Sections 10.06 through 10.08, and, if
specified pursuant to Section 3.01, its obligations under any other covenant,
with respect to such Outstanding Securities and any related coupons on and after
the date the conditions set forth in Section 14.04 are satisfied (hereinafter,
"covenant defeasance"), and such Securities and any related coupons shall
thereafter be deemed not to be "Outstanding" for the purposes of any direction,
waiver, consent or declaration or Act of Holders (and the consequences of any
thereof) in connection with such covenants, but shall continue to be deemed
"Outstanding" for all other purposes hereunder. For this purpose, such covenant
defeasance means that, with respect to such Outstanding Securities and any
related coupons, the Company may omit to comply with and shall have no liability
in respect of any term, condition or limitation set forth in any such covenant,
whether directly or indirectly, by reason of any reference elsewhere herein to
any such covenant or by reason of reference in any such covenant to any other
provision herein or in any other document and such omission to comply shall not
constitute a Default or an Event of Default under Section 5.01(4) or Section
5.01(8) or otherwise, as the case may be, but, except as specified above, the
remainder of this Indenture and such Securities and any related coupons shall be
unaffected thereby.

         Section 14.04      Conditions to Defeasance or Covenant Defeasance.

         The following shall be the conditions to application of either Section
14.02 or Section 14.03 to any Outstanding Securities of or within a series and
any related coupons:

         (1) The Company shall irrevocably have deposited or caused to be
     deposited with the Trustee (or another trustee satisfying the requirements
     of Section 6.07 who shall agree to comply with the provisions of this
     Article Fourteen applicable to it) 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 and any related
     coupons, (A) money in an amount (in such Currency in which such Securities
     and any related coupons are then specified as payable at Stated Maturity),
     or (B) Government Obligations applicable to such Securities (determined on
     the basis of the Currency in which such Securities are then specified as
     payable at Stated Maturity) 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 of
     principal (including any premium) and interest, if any, under such
     Securities and any related coupons, money in an amount, or (C) a
     combination thereof, sufficient, in the opinion of a nationally recognized
     firm of independent public accountants expressed in a written certification
     thereof delivered to the Trustee, to pay and discharge, and which shall be
     applied by the Trustee (or other qualifying trustee) to pay and discharge,
     (i) the principal of (and premium, if any, on) and interest on such
     Outstanding Securities and any related coupons on the Stated Maturity (or
     Redemption Date, if applicable) of such principal (and premium, if any) or
     installment or interest and (ii) any mandatory sinking fund payments or
     analogous payments applicable to such Outstanding Securities and any
     related coupons on

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         the day on which such payments are due and payable in accordance with
     the terms of this Indenture and of such Securities and any related coupons;
     provided that the Trustee shall have been irrevocably instructed to apply
     such money or the proceeds of such Government Obligations to said payments
     with respect to such Securities and any related coupons. Before such a
     deposit, the Company may give to the Trustee, in accordance with Section
     11.02 hereof, a notice of its election to redeem all or any portion of such
     Outstanding Securities at a future date in accordance with the terms of the
     Securities of such series and Article Eleven hereof, which notice shall be
     irrevocable. Such irrevocable redemption notice, if given, shall be given
     effect in applying the foregoing.

         (2) No Default or Event of Default with respect to such Securities or
     any related coupons shall have occurred and be continuing on the date of
     such deposit or, insofar as paragraphs (5) and (6) of Section 5.01 are
     concerned, at any time during the period ending on the 91st day after the
     date of such deposit (it being understood that this condition shall not be
     deemed satisfied until the expiration of such period).

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

         (4) In the case of an election under Section 14.02, the Company shall
     have delivered to the Trustee an Opinion of Counsel stating that (x) the
     Company has received from, or there has been published by, the Internal
     Revenue Service a ruling, or (y) since the date of execution of this
     Indenture, there has been a change in the applicable federal income tax
     law, in either case to the effect that, and based thereon such opinion
     shall confirm that, the Holders of such Outstanding Securities and any
     related coupons will not recognize income, gain or loss for federal income
     tax purposes as a result of such defeasance and will be subject to federal
     income tax on the same amounts, in the same manner and at the same times as
     would have been the case if such defeasance had not occurred.

         (5) In the case of an election under Section 14.03, the Company shall
     have delivered to the Trustee an Opinion of Counsel to the effect that the
     Holders of such Outstanding Securities and any related coupons will not
     recognize income, gain or loss for federal income tax purposes as a result
     of such covenant defeasance and will be subject to federal income tax on
     the same amounts, in the same manner and at the same times as would have
     been the case if such covenant defeasance had not occurred.

         (6) Notwithstanding any other provisions of this Section, such
     defeasance or covenant defeasance shall be effected in compliance with any
     additional or substitute terms, conditions or limitations in connection
     therewith pursuant to Section 3.01.

         (7) 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 either the defeasance under Section
     14.02 or the covenant defeasance under Section 14.03 (as the case may be)
     have been complied with.

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       Section 14.05   Deposited Money and Government Obligations to Be Held in
Trust; Other Miscellaneous Provisions.

         Subject to the provisions of the last paragraph of Section 10.03, all
money and Government Obligations (or other property as may be provided pursuant
to Section 3.01) (including the proceeds thereof) deposited with the Trustee (or
other qualifying trustee--collectively for purposes of this Section 14.05, the
"Trustee") pursuant to Section 14.04 in respect of such Outstanding Securities
and any related coupons shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Securities and any related coupons 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 and any related coupons 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.

         Unless otherwise specified with respect to any Security pursuant to
Section 3.01, if, after a deposit referred to in Section 14.04(1) has been made,
(a) the Holder of a Security in respect of which such deposit was made is
entitled to, and does, elect pursuant to Section 3.11(b) or the terms of such
Security to receive payment in a Currency other than that in which the deposit
pursuant to Section 14.04(1) has been made in respect of such Security, or (b) a
Conversion Event occurs as contemplated in Section 3.11(d) or 3.11(e) or by the
terms of any Security in respect of which the deposit pursuant to Section
14.04(1) has been made, the indebtedness represented by such Security and any
related coupons shall be deemed to have been, and will be, fully discharged and
satisfied through the payment of the principal of (premium, if any, on), and
interest, if any, on such Security as they become due out of the proceeds
yielded by converting (from time to time as specified below in the case of any
such election) the amount or other property deposited in respect of such
Security into the Currency in which such Security becomes payable as a result of
such election or Conversion Event based on the applicable Market Exchange Rate
for such Currency in effect on the third Business Day prior to each payment
date, except, with respect to a Conversion Event, for such Currency in effect
(as nearly as feasible) at the time of the Conversion Event.

         The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the Government Obligations deposited
pursuant to Section 14.04 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 such Outstanding Securities and any related coupons.

         Anything in this Article Fourteen to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or Government Obligations (or other property and any proceeds
therefrom) held by it as provided in Section 14.04 which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, are in excess of the
amount thereof which would then be required to be deposited to effect an
equivalent defeasance or covenant defeasance, as applicable, in accordance with
this Article.

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         Section 14.06      Reinstatement.

         If the Trustee or any Paying Agent is unable to apply any money in
accordance with Section 14.05 by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company's obligations under this Indenture and such
Securities and any related coupons shall be revived and reinstated as though no
deposit had occurred pursuant to Section 14.02 or 14.03, as the case may be,
until such time as the Trustee or Paying Agent is permitted to apply all such
money in accordance with Section 14.05; provided, however, that if the Company
makes any payment of principal of (or premium, if any, on) or interest on any
such Security or any related coupon following the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Securities and any related coupons to receive such payment from the money
held by the Trustee or Paying Agent.

                                   ARTICLE XV

                        MEETINGS OF HOLDERS OF SECURITIES

         Section 15.01      Purposes for Which Meetings May Be Called.

         If Securities of a series are issuable as Bearer Securities, a meeting
of Holders of Securities of such series may be called at any time and from time
to time pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be made, given or taken by Holders of Securities of such
series.

         Section 15.02      Call, Notice and Place of Meetings.

         (a) The Trustee may at any time call a meeting of Holders of Securities
     of any series for any purpose specified in Section 15.01, to be held at
     such time and at such place in The City of New York or in London as the
     Trustee shall determine. Notice of every meeting of Holders of Securities
     of any series, setting forth the time and the place of such meeting and in
     general terms the action proposed to be taken at such meeting, shall be
     given, in the manner provided for in Section 1.06, not less than 21 nor
     more than 180 days prior to the date fixed for the meeting.

         (b) In case at any time the Company, pursuant to a Board Resolution, or
     the Holders of at least 10% in principal amount of the Outstanding
     Securities of any series shall have requested the Trustee to call a meeting
     of the Holders of Securities of such series for any purpose specified in
     Section 15.01, by written request setting forth in reasonable detail the
     action proposed to be taken at the meeting, and the Trustee shall not have
     made the first publication of the notice of such meeting within 21 days
     after receipt of such request or shall not thereafter proceed to cause the
     meeting to be held as provided herein, then the Company or the Holders of
     Securities of such series in the amount above specified, as the case may
     be, may determine the time and the place in The City of New York or in
     London for such meeting and may call such meeting for such purposes by
     giving notice thereof as provided in paragraph (a) of this Section.

                                       72

<PAGE>

         Section 15.03     Persons Entitled to Vote at Meetings.

         To be entitled to vote at any meeting of Holders of Securities of any
series, a Person shall be (1) a Holder of one or more Outstanding Securities of
such series, or (2) a Person appointed by an instrument in writing as proxy for
a Holder or Holders of one or more Outstanding Securities of such series by such
Holder or Holders. The only Persons who shall be entitled to be present or to
speak at any meeting of Holders of Securities of any series shall be the Person
entitled to vote at such meeting and their counsel, any representatives of the
Trustee and its counsel and any representatives of the Company and its counsel.

         Section 15.04     Quorum; Action.

         The Persons entitled to vote a majority in principal amount of the
Outstanding Securities of a series shall constitute a quorum for a meeting of
Holders of Securities of such series; provided, however, that, if any action is
to be taken at such meeting with respect to a consent or waiver which this
Indenture expressly provides may be given by the Holders of not less than a
specified percentage in principal amount of the Outstanding Securities of a
series, the Persons entitled to vote such specified percentage in principal
amount of the Outstanding Securities of such series shall constitute a quorum.
In the absence of a quorum within 30 minutes of the time appointed for any such
meeting, the meeting shall, if convened at the request of Holders of Securities
of such series, be dissolved. In any other case the meeting may be adjourned for
a period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such meeting. In the absence of a quorum at any such
adjourned meeting, such adjourned meeting may be further adjourned for a period
of not less than 10 days as determined by the chairman of the meeting prior to
the adjournment of such adjourned meeting. Notice of the reconvening of any
adjourned meeting shall be given as provided in Section 15.02(a), except that
such notice need be given only once not less than five days prior to the date on
which the meeting is scheduled to be reconvened. Notice of the reconvening of
any adjourned meeting shall state expressly the percentage, as provided above,
of the principal amount of the Outstanding Securities of such series which shall
constitute a quorum.

         Subject to the foregoing, at the reconvening of any meeting adjourned
for lack of a quorum the Persons entitled to vote 25% in principal amount of the
Outstanding Securities at the time shall constitute a quorum for the taking of
any action set forth in the notice of the original meeting.

         Except as limited by the proviso to Section 9.02, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum is
present as aforesaid may be adopted by the affirmative vote of the Holders of
not less than a majority in principal amount of the Outstanding Securities of
that series; provided, however, that, except as limited by the proviso to
Section 9.02, any resolution with respect to any request, demand, authorization,
direction, notice, consent, waiver or other action which this Indenture
expressly provides may be made, given or taken by the Holders of a specified
percentage, which is less than a majority, in principal amount of the
Outstanding Securities of a series may be adopted at a meeting or an adjourned
meeting duly reconvened and at which a quorum is present as aforesaid by the
affirmative vote of the Holders of not less than such specified percentage in
principal amount of the Outstanding Securities of that series.

                                       73

<PAGE>

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

         Notwithstanding the foregoing provisions of this Section 15.04, if any
action is to be taken at a meeting of Holders of Securities of any series with
respect to any request, demand, authorization, direction, notice, consent,
waiver or other action that this Indenture expressly provides may be made, given
or taken by the Holders of a specified percentage in principal amount of all
Outstanding Securities affected thereby, or of the Holders of such series and
one or more additional series:

         (i) there shall be no minimum quorum requirement for such meeting; and

         (ii) the principal amount of the Outstanding Securities of such series
     that vote in favor of such request, demand, authorization, direction,
     notice, consent, waiver or other action shall be taken into account in
     determining whether such request, demand, authorization, direction, notice,
     consent, waiver or other action has been made, given or taken under this
     Indenture.

      Section 15.05   Determination of Voting Rights; Conduct and Adjournment of
                      Meetings.

         (a) Notwithstanding any provisions of this Indenture, the Trustee may
     make such reasonable regulations as it may deem advisable for any meeting
     of Holders of Securities of a series in regard to proof of the holding of
     Securities of such series and of the appointment of proxies and in regard
     to the appointment and duties of inspectors of votes, the submission and
     examination of proxies, certificates and other evidence of the right to
     vote, and such other matters concerning the conduct of the meeting as it
     shall deem appropriate. Except as otherwise permitted or required by any
     such regulations, the holding of Securities shall be proved in the manner
     specified in Section 1.04 and the appointment of any proxy shall be proved
     in the manner specified in Section 1.04 or by having the signature of the
     person executing the proxy witnessed or guaranteed by any trust company,
     bank or banker authorized by Section 1.04 to certify to the holding of
     Bearer Securities. Such regulations may provide that written instruments
     appointing proxies, regular on their face, may be presumed valid and
     genuine without the proof specified in Section 1.04 or other proof.

         (b) The Trustee shall, by an instrument in writing appoint a temporary
     chairman of the meeting, unless the meeting shall have been called by the
     Company or by Holders of Securities as provided in Section 15.02(b), in
     which case the Company or the Holders of Securities of the series calling
     the meeting, as the case may be, shall in like manner appoint a temporary
     chairman. A permanent chairman and a permanent secretary of the meeting
     shall be elected by vote of the Persons entitled to vote a majority in
     principal amount of the Outstanding Securities of such series represented
     at the meeting.

         (c) At any meeting each Holder of a Security of such series or proxy
     shall be entitled to one vote for each $1,000 principal amount of
     Outstanding Securities of such series held or represented by him
     (determined as specified in the definition of "Outstanding" in Section
     1.01); provided, however, that no vote shall be cast or counted at any
     meeting in respect of any Security challenged as not Outstanding and ruled
     by the chairman of the meeting to be not Outstanding.

                                       74

<PAGE>

     The chairman of the meeting shall have no right to vote, except as a Holder
     of a Security of such series or proxy.

         (d) Any meeting of Holders of Securities of any series duly called
     pursuant to Section 15.02 at which a quorum is present may be adjourned
     from time to time by Persons entitled to vote a majority in principal
     amount of the Outstanding Securities of such series represented at the
     meeting; and the meeting may be held as so adjourned without further
     notice.

         Section 15.06     Counting Votes and Recording Action of Meetings.

         The vote upon any resolution submitted to any meeting of Holders of
Securities of any series shall be by written ballots on which shall be
subscribed the signatures of the Holders of Securities of such series or of
their representatives by proxy and the principal amounts and serial numbers of
the Outstanding Securities of such series held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the meeting their verified written
reports in duplicate of all votes cast at the meeting. A record, at least in
duplicate, of the proceedings of each meeting of Holders of Securities of any
series shall be prepared by the Secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 15.02 and, if
applicable, Section 15.04. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company, and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated.

         This 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 but one and the same Indenture.

                                       75

<PAGE>

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

                                         CENDANT CORPORATION

                                    By:
                                       ------------------------
                                       Name:  James E. Buckman
                                       Title:   Vice Chairman & General Counsel

Attest:

                                           [name of trustee]
                                                Trustee

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

Attest:

                                       76

<PAGE>

                                   EXHIBIT A-1

                       FORM OF CERTIFICATE TO BE GIVEN BY
                   PERSON ENTITLED TO RECEIVE BEARER SECURITY
                       OR TO OBTAIN INTEREST PAYABLE PRIOR
                              TO THE EXCHANGE DATE

                                   CERTIFICATE

                     [Insert title or sufficient description
                        of Securities to be delivered]

         This is to certify that as of the date hereof, and except as set forth
below, the above-captioned Securities held by you for our account (i) are owned
by person(s) that are not citizens or residents of the United States, domestic
partnerships, domestic corporations or any estate or trust the income of which
is subject to United States federal income taxation regardless of its source
("United States persons(s)"), (ii) are owned by United States person(s) that are
(a) foreign branches of United States financial institutions (financial
institutions, as defined in United States Treasury Regulations Section
2.165-12(c)(1)(v) are herein referred to as "financial institutions") purchasing
for their own account or for resale, or (b) United States person(s) who acquired
the Securities through foreign branches of United States financial institutions
and who hold the Securities through such United States financial institutions on
the date hereof (and in either case (a) or (b), each such United States
financial institution hereby agrees, on its own behalf or through its agent,
that you may advise [Name of Issuer] or its agent that such financial
institution will comply with the requirements of Section 165(j)(3)(A), (B) or
(C) of the United States Internal Revenue Code of 1986, as amended, and the
regulations thereunder), or (iii) are owned by United States or foreign
financial institution(s) for purposes of resale during the restricted period (as
defined in United States Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)),
and, in addition, if the owner is a United States or foreign financial
institution described in clause (iii) above (whether or not also described in
clause (i) or (ii)), this is to further certify that such financial institution
has not acquired the Securities for purposes of resale directly or indirectly to
a United States person or to a person within the United States or its
possessions.

         As used herein, "United States" means the United States of America
(including the states and the District of Columbia); and its "possessions"
include Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island
and the Northern Mariana Islands.

         We undertake to advise you promptly by tested telex on or prior to the
date on which you intend to submit your certification relating to the
above-captioned Securities held by you for our account in accordance with your
Operating Procedures if any applicable statement herein is not correct on such
date, and in the absence of any such notification it may be assumed that this
certification applies as of such date.

         This certificate excepts and does not relate to [U.S.$] _____________
of such interest in the above-captioned Securities in respect of which we are
not able to certify and as to which we understand an exchange for an interest in
a Permanent Global Security or an exchange for and delivery of definitive
Securities (or, if relevant, collection of any interest) cannot be made until we
do so certify.

                                       77

<PAGE>

         We understand that this certificate may be required in connection with
certain tax legislation in the United States. If administrative or legal
proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.

Dated:

         [To be dated no earlier than the 15th day prior to (i) the Exchange
Date or (ii) the relevant Interest Payment Date occurring prior to the Exchange
Date, as applicable]

                                                         [Name of Person Making
                                                            Certification]

                                                         ----------------------
                                                         (Authorized Signatory)
                                                          Name:
                                                          Title:

                                       78

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