Document:

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                                                                     Exhibit 4.1

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                          THE ST. PAUL COMPANIES, INC.

                                       TO

                            THE CHASE MANHATTAN BANK

                                     Trustee

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

                                    INDENTURE

                                  Dated as of -

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

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<PAGE>

                          The St. Paul Companies, Inc.
           Reconciliation and tie between Trust Indenture Act of 1939
                          and Indenture, dated as of -

<TABLE>
<CAPTION>

 Trust Indenture                                                       Indenture
   Act Section                                                          Section
<S>                                                                       <C>
Section 310(a)(1)     ....................................................609
           (a)(2)     ....................................................609
           (a)(3)     ....................................................Not Applicable
           (a)(4)     ....................................................Not Applicable
           (b)        ....................................................608
                                                                          610

Section 311(a)        ....................................................613(a)
           (b)        ....................................................613(b)
           (b)(2)     ....................................................703(a)(2)
                                                                          703(b)

Section 312(a)        ....................................................701
                                                                          702(a)
           (b)        ....................................................702(b)
           (c)        ....................................................702(a)
Section 313(a)        ....................................................703(a)
           (b)        ....................................................703(b)
           (c)        ....................................................703(a), 703(b)
           (d)        ....................................................703(c)
Section 314(a)        ....................................................704
           (b)        ....................................................Not applicable
           (c)(1)     ....................................................102
           (c)(2)     ....................................................102
           (c)(3)     ....................................................Not applicable
           (d)        ....................................................Not applicable
           (e)        ....................................................102
Section 315(a)        ....................................................601(a)
           (b)        ....................................................602
                                                                          703(a)(6)
           (c)        ....................................................601(b)
           (d)        ....................................................601(c)
           (d)(1)     ....................................................601(a)(1)
           (d)(2)     ....................................................601(c)(2)
           (d)(3)     ....................................................601(c)(3)
           (e)        ....................................................514
Section 316(a)        ....................................................101
           (a)(1)(A)  ....................................................502
                                                                          512
           (a)(1)(B)  ....................................................513
           (a)(2)     ....................................................Not Applicable
           (b)        ....................................................508
Section 317(a)(1)     ....................................................503
           (a)(2)     ....................................................504
           (b)        ....................................................1003

</TABLE>

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<TABLE>
<CAPTION>

 Trust Indenture                                                       Indenture
   Act Section                                                          Section
<S>                                                                       <C>
Section 318(a)        ....................................................107

</TABLE>

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

<PAGE>

                                TABLE OF CONTENTS

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

<TABLE>
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PARTIES........................................................................1
RECITALS OF THE COMPANY........................................................1

                                   ARTICLE ONE
                        Definitions and Other Provisions
                             of General Application

Section 101.   Definitions.....................................................1
               Act.............................................................2
               Affiliate.......................................................2
               Authenticating Agent............................................2
               Board of Directors..............................................2
               Board Resolution................................................2
               Business Day....................................................3
               Commission......................................................3
               Company.........................................................3
               Company Request.................................................3
               Corporate Trust Office..........................................3
               corporation.....................................................3
               Defaulted Interest..............................................3
               Depository......................................................3
               Event of Default................................................4
               Exchange Act....................................................4
               Global Security.................................................4
               Holder..........................................................4
               Indenture.......................................................4
               interest........................................................4
               Interest Payment Date...........................................4
               Maturity........................................................4
               Officers' Certificate...........................................4
               Opinion of Counsel..............................................4
               Original Issue Discount Security................................4
               Outstanding.....................................................5
               Paying Agent....................................................6
               Person..........................................................6
               Place of Payment................................................6

</TABLE>

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

                                      -i-

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                                TABLE OF CONTENTS

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

<TABLE>
<CAPTION>

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<S>                                                                           <C>
               Predecessor Security............................................6
               Redemption Date.................................................6
               Redemption Price................................................6
               Regular Record Date.............................................7
               Responsible Officer.............................................7
               Securities......................................................7
               Security Register...............................................7
               Security Registrar..............................................7
               Special Record Date.............................................7
               Stated Maturity.................................................7
               Subsidiary......................................................7
               Trustee.........................................................7
               Trust Indenture Act.............................................8
               U.S. Government Obligations.....................................8
               Vice President..................................................8
Section 102.   Compliance Certificates and Opinions............................8
Section 103.   Form of Documents Delivered to Trustee..........................9
Section 104.   Acts of Holders................................................10
Section 105.   Notices, Etc., to Trustee and Company..........................11
Section 106.   Notice to Holders; Waiver......................................11
Section 107.   Conflict with Trust Indenture Act..............................12
Section 108.   Effect of Headings and Table of Contents.......................12
Section 109.   Successors and Assigns.........................................12
Section 110.   Separability Clause............................................12
Section 111.   Benefits of Indenture..........................................12
Section 112.   Governing Law..................................................12
Section 113.   Legal Holidays.................................................13

                                ARTICLE TWO
                              Security Forms

Section 201.   Forms Generally................................................13
Section 202.   Form of Face of Security.......................................14
Section 203.   Form of Reverse of Security....................................16
Section 204.   Form of Legend for Global Securities...........................21
Section 205.   Form of Trustee's Certificate
                of Authentication.............................................21

                               ARTICLE THREE
                              The Securities

Section 301.   Amount Unlimited; Issuable in Series...........................22
Section 302.   Denominations..................................................24

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                                      -ii-

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<TABLE>
<CAPTION>

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Section 303.   Execution, Authentication, Delivery
                and Dating....................................................24
Section 304.   Temporary Securities...........................................27
Section 305.   Registration, Registration of
                Transfer and Exchange.........................................27
Section 306.   Mutilated, Destroyed, Lost and
                Stolen Securities.............................................29
Section 307.   Payment of Interest; Interest
                Rights Preserved..............................................30
Section 308.   Persons Deemed Owners..........................................32
Section 309.   Cancellation...................................................32
Section 310.   Computation of Interest........................................33

                               ARTICLE FOUR
                        Satisfaction and Discharge

Section 401.   Satisfaction and Discharge of
                Indenture.....................................................33
Section 402.   Application of Trust Money.....................................35

                               ARTICLE FIVE

                                 Remedies

Section 501.   Events of Default..............................................35
Section 502.   Acceleration of Maturity;
                Rescission and Annulment......................................38
Section 503.   Collection of Indebtedness and Suits for
                Enforcement by Trustee........................................40
Section 504.   Trustee May File Proofs of Claim...............................41
Section 505.   Trustee May Enforce Claims Without Possession of
                Securities....................................................42
Section 506.   Application of Money Collected.................................42
Section 507.   Limitation on Suits............................................43
Section 508.   Unconditional Right of Holders to Receive
                Principal, Premium and Interest...............................44
Section 509.   Restoration of Rights and Remedies.............................44
Section 510.   Rights and Remedies Cumulative.................................44
Section 511.   Delay or Omission Not Waiver...................................45
Section 512.   Control by Holders.............................................45
Section 513.   Waiver of Past Defaults........................................46
Section 514.   Undertaking for Costs..........................................47
Section 515.   Waiver of Usury, Stay or Extension Laws........................47

</TABLE>

                                     -iii-

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<TABLE>
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                                ARTICLE SIX
                                The Trustee

Section 601.   Certain Duties and Responsibilities............................47
Section 602.   Notice of Defaults.............................................49
Section 603.   Certain Rights of Trustee......................................50
Section 604.   Not Responsible for Recitals or
                Issuance of Securities........................................51
Section 605.      May Hold Securities.........................................52
Section 606.   Money Held in Trust............................................52
Section 607.   Compensation and Reimbursement.................................52
Section 608.   Disqualification; Conflicting Interests........................53
Section 609.   Corporate Trustee Required; Eligibility........................61
Section 610.   Resignation and Removal;
                Appointment of Successor......................................61
Section 611.   Acceptance of Appointment by Successor.........................63

Section 612.   Merger, Conversion, Consolidation or Succession to
                Business......................................................65
Section 613.   Preferential Collection of Claims
                Against Company...............................................65
Section 614.   Appointment of Authenticating Agent............................70

                                  ARTICLE SEVEN
                Holders' Lists and Reports by Trustee and Company

Section 701.   Company to Furnish Trustee Names and Addresses of
                Holders.......................................................72
Section 702.   Preservation of Information;
                Communications to Holders.  ..................................73
Section 703.   Reports by Trustee.............................................75
Section 704.   Reports by Company.............................................76

                                  ARTICLE EIGHT
              Consolidation, Merger, Conveyance, Transfer or Lease

Section 801.   Company May Consolidate, Etc., Only on
                Certain Terms.................................................77

Section 802.   Successor Person Substituted...................................79

                               ARTICLE NINE
                          Supplemental Indentures

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                                      -iv-

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<TABLE>
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<S>                                                                           <C>
Section 901.   Supplemental Indentures Without Consent
                of Holders....................................................79

Section 902.   Supplemental Indentures with Consent
                of Holders....................................................81

Section 903.   Execution of Supplemental Indentures...........................82
Section 904.   Effect of Supplemental Indentures..............................83
Section 905.   Conformity with Trust Indenture Act............................83
Section 906.   Reference in Securities to Supplemental
                Indentures....................................................83

                                ARTICLE TEN
                                 Covenants

Section 1001.  Payment of Principal, Premium and Interest.....................83
Section 1002.  Maintenance of Office or Agency................................84
Section 1003.  Money for Securities Payments to Be Held
                in Trust......................................................84
Section 1004.  Corporate Existence............................................86
Section 1005.  Limitation on Liens............................................86
Section 1006.  Statement by Officers as to Default............................87
Section 1007.  Waiver of Certain Covenants....................................87

                              ARTICLE ELEVEN
                         Redemption of Securities

Section 1101.  Applicability of Article.......................................88
Section 1102.  Election to Redeem; Notice to Trustee..........................88
Section 1103.  Selection by Trustee of Securities to
                Be Redeemed...................................................89

Section 1104.  Notice of Redemption...........................................89
Section 1105.  Deposit of Redemption Price....................................90
Section 1106.  Securities Payable on Redemption Date..........................90
Section 1107.  Securities Redeemed in Part....................................91

                              ARTICLE TWELVE
                               Sinking Funds

Section 1201.  Applicability of Article.......................................91
Section 1202.  Satisfaction of Sinking Fund Payments with
                Securities....................................................92
Section 1203.  Redemption of Securities for Sinking Fund......................92

</TABLE>

                                      -v-

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<TABLE>
<CAPTION>

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<S>                                                                           <C>
                             ARTICLE THIRTEEN
                    Defeasance and Covenant Defeasance

Section 1301.  Applicability of Article; Company's Option to
                Effect Defeasance or Covenant Defeasance......................93
Section 1302.  Defeasance and Discharge.......................................93
Section 1303.  Covenant Defeasance............................................94
Section 1304.  Conditions to Defeasance or Covenant
                Defeasance....................................................94
Section 1305.  Deposited Money and U.S. Government
                Obligations to be Held in Trust; Other
                Miscellaneous Provisions......................................97
Section 1306.  Reinstatement..................................................98

</TABLE>

                                      -vi-

<PAGE>

                  INDENTURE, dated as of -, between The St. Paul Companies,
Inc., a corporation duly organized and existing under the laws of the State of
Minnesota (herein called the "Company"), having its principal office at 385
Washington Street, St. Paul, Minnesota 55102, and The Chase Manhattan Bank, a
New York banking corporation duly organized and existing under the laws of the
State of New York, as Trustee (herein called the "Trustee").

                             RECITALS OF THE COMPANY

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

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

                   NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

                                   ARTICLE ONE
                        Definitions and Other Provisions
                             of General Application

Section 101.      DEFINITIONS.

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

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

<PAGE>

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

                           (3) all accounting terms not otherwise defined herein
         have the meanings assigned to them in accordance with generally
         accepted accounting principles, and, except as otherwise herein
         expressly provided, the term "generally accepted accounting principles"
         with respect to any computation required or permitted hereunder shall
         mean such accounting principles as are generally accepted at the date
         of such computation; and

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

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

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

                  "Affiliate" of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. 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 Authenticating Agent
appointed pursuant to Section 614 to authenticate Securities.

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

                                      -2-

<PAGE>

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

                  "Business Day", when used with respect to any Place of
Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which is not
a day on which banking institutions in that Place of Payment are authorized or
obligated by law to close.

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

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

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

                  "Corporate Trust Office" means the principal office of the
Trustee in the Borough of Manhattan, The City of New York, at which at any
particular time its corporate trust business shall be administered.

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

                  "Defaulted Interest" has the meaning specified in
Section 307.

                                      -3-

<PAGE>

                  "Depository" means, with respect to the Securities of any
series issuable or issued in whole or in part in the form of one or more Global
Securities, the clearing agency registered under the Exchange Act specified for
that purpose as contemplated by Section 301.

                  "Event of Default" has the meaning specified in
Section 501.

                  "Exchange Act" means the Securities Exchange Act of 1934 as it
may be amended and any successor act thereto.

                  "Global Security" means a security bearing the legend
specified in Section 204 evidencing all or part of a series of Securities,
authenticated and delivered to the Depository for such series or its nominee,
and registered in the name of such Depository or nominee.

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

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

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

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

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

                                      -4-

<PAGE>

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

                  "Opinion of Counsel" means a written opinion of counsel, who
may be counsel for the Company.

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

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

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

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

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

                                      -5-

<PAGE>

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

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

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

                  "Place of Payment", when used with respect to the Securities
of any series, means the place or places where the principal of (and premium, if
any) and interest

                                      -6-

<PAGE>

on the Securities of that series are payable as specified as contemplated by
Section 301.

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

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

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

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

                  "Responsible Officer", when used with respect to the Trustee,
means any officer of the Trustee with direct responsibility for the
administration of this Indenture and also means, with respect to a particular
corporate trust matter, any other officer of the Trustee 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.

                  "Security Register" and "Security Registrar" have the
respective meanings specified in Section 305.

                  "Special Record Date" for the payment of any Defaulted
Interest means a date fixed by the Trustee pursuant to Section 307.

                                      -7-

<PAGE>

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

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

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

                  "Trust Indenture Act" means the Trust Indenture Act of 1939 as
in force at the date as of which this instrument was executed, except as
provided in Section 905.

                  "U.S. Government Obligations" has the meaning
specified in Section 1304.

                  "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".

Section 102.      COMPLIANCE CERTIFICATES AND OPINIONS.

                  Except as otherwise expressly provided by this Indenture, upon
any application or request by the Company to the Trustee to take any action
under any provision of this Indenture, the Company shall furnish to the Trustee

                                      -8-

<PAGE>

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

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

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

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

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

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

Section 103.      FORM OF DOCUMENTS DELIVERED TO TRUSTEE.

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

                                      -9-

<PAGE>

and one or more other such Persons as to other matters, and any such Person may
certify or give an opinion as to such matters in one or several documents.

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

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

Section 104.      ACTS OF HOLDERS.

                  (a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and

                                      -10-

<PAGE>

(subject to Section 601) conclusive in favor of the Trustee and the Company, if
made in the manner provided in this Section.

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

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

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

Section 105.      NOTICES, ETC., TO TRUSTEE AND COMPANY.

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

                           (1) the Trustee by any Holder or 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,
         Attention: Capital Markets Fiduciary Services, 450 West 33rd Street,
         15th Floor, New York, New York 10001, or

                                      -11-

<PAGE>

                           (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 instrument or at any
         other address previously furnished in writing to the Trustee by the
         Company.

Section 106.      NOTICE TO HOLDERS; WAIVER.

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

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

                                      -12-

<PAGE>

Section 107.      CONFLICT WITH TRUST INDENTURE ACT.

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

Section 108.      EFFECT OF HEADINGS AND TABLE OF CONTENTS.

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

Section 109.      SUCCESSORS AND ASSIGNS.

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

Section 110.      SEPARABILITY CLAUSE.

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

Section 111.      BENEFITS OF INDENTURE.

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

Section 112.      GOVERNING LAW.

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

                                      -13-

<PAGE>

Section 113.      LEGAL HOLIDAYS.

                  In any case where any Interest Payment Date, Redemption Date
or Stated Maturity of any Security shall not be a Business Day at any Place of
Payment, then (notwithstanding any other provision of this Indenture or of the
Securities) 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 at the Stated
Maturity, provided that no interest shall accrue for the period from and after
such Interest Payment Date, Redemption Date or Stated Maturity, as the case may
be.

                                   ARTICLE TWO

                                 Security Forms

Section 201.      FORMS GENERALLY.

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

                                      -14-

<PAGE>

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

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

Section 202.      FORM OF FACE OF SECURITY.

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

                          The St. Paul Companies, Inc.

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

No.                                                               $
   -----------                                                     ------------

                  The St. Paul Companies, Inc., a corporation duly organized and
existing under the laws of the State of Minnesota (herein called the "Company",
which term includes any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay to_____________________
_____________________________or registered assigns, the principal sum of
__________________________ Dollars on ________________________________[IF
THE SECURITY IS TO BEAR INTEREST PRIOR TO MATURITY, INSERT____, and to pay
interest thereon from ______________ or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, semi-annually
on _____________________ and __________________ in each year, commencing
______________________, at the rate of _____% per annum, until the principal
hereof is paid or made available for payment [IF APPLICABLE INSERT _____,
provided that any principal and premium, and any such instalment of interest,
which is overdue shall bear interest at the rate of ____% per annum (to the
extent that the payment of such interest shall be legally enforceable), from
the dates such amounts are due until they are paid or made available for
payment, and such interest shall be payable on demand]. The interest so payable,
and punctually paid

                                      -15-

<PAGE>

or duly provided for, on any Interest Payment Date will, as provided in such
Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, which shall be the ________ or _______ (whether
or not a Business Day), as the case may be, next preceding such Interest Payment
Date. Any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities of this series
not less than 10 days prior to such Special Record Date, or be paid at any time
in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully provided
in said Indenture]. [IF THE SECURITY IS NOT TO BEAR INTEREST PRIOR TO MATURITY,
INSERT ____. The principal of this Security shall not bear interest except in
the case of a default in payment of principal upon acceleration, upon redemption
or at Stated Maturity and in such case the overdue principal and any overdue
premium shall bear interest at the rate of ...% per annum (to the extent that
the payment of such interest shall be legally enforceable), from the dates such
amounts are due until they are paid or made available for payment. Interest on
any overdue principal or premium shall be payable on demand. [Any such interest
on overdue principal or premium which is not paid on demand shall bear interest
at the rate of ______% per annum (to the extent that the payment of such
interest on interest shall be legally enforceable), from the date of such demand
until the amount so demanded is paid or made available for payment. Interest on
any overdue interest shall be payable on demand.]

                  Payment of the principal of (and premium, if any) and [IF
APPLICABLE, INSERT ____ any such] interest on this Security will be made at the
office or agency of the Company maintained for that purpose in ____________, in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of

                                      -16-

<PAGE>

public and private debts [IF APPLICABLE, INSERT _____; PROVIDED, HOWEVER, that
at the option of the Company payment of interest may be made by check mailed
to the address of the Person entitled thereto as such address shall appear in
the Security Register].

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

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

                  IN WITNESS WHEREOF, the Company has caused this instrument to
be duly executed under its corporate seal.

Dated:

                                  THE ST. PAUL COMPANIES, INC.

                                  By
                                    --------------------------

Attest:

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

Section 203.      FORM OF REVERSE OF SECURITY.

                  This Security is one of a duly authorized issue of securities
of the Company (herein called the "Securities"), issued and to be issued in one
or more series under an Indenture, dated as of - (herein called the "Indenture",
which term shall have the meaning assigned to it in such instrument), between
the Company and ____________________, as Trustee (herein called the "Trustee",
which term includes any successor trustee under the Indenture), and reference is
hereby made to the Indenture for a statement of the

                                      -17-

<PAGE>

respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Securities and of the terms
upon which the Securities are, and are to be, authenticated and delivered.
This Security is one of the series designated on the face hereof
[IF APPLICABLE, INSERT ___, limited in aggregate principal amount to
$___________].

                  [IF APPLICABLE, INSERT -- The Securities of this series are
subject to redemption upon not more than 60 or less than 30 days' notice by
mail, [IF APPLICABLE, INSERT -- (1) on _________ in any year commencing with the
year ______ and ending with the year ______ through operation of the sinking
fund for this series at a Redemption Price equal to 100% of the principal
amount, and (2)] at any time [on or after ___________, 20__], as a whole or in
part, at the election of the Company, at the following Redemption Prices
(expressed as percentages of the principal amount): If redeemed [on or before
_______________, __%, and if redeemed] during the 12-month period beginning
___________ of the years indicated.

<TABLE>
<CAPTION>

                    Redemption                         Redemption
     Year             Price             Year              Price
  ----------       -----------       ---------       -------------
<S>                <C>               <C>             <C>
</TABLE>

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

                                      -18-

<PAGE>

                  [IF APPLICABLE, INSERT -- The Securities of this series are
subject to redemption upon not more than 60 or less than 30 days' notice by
mail, (1) on ______________ in any year commencing with the year _______ and
ending with the year ______ through operation of the sinking fund for this
series at the Redemption Prices for redemption through operation of the sinking
fund (expressed as percentages of the principal amount) set forth in the table
below, and (2) at any time [on or after ____________, as a whole or in part, at
the election of the Company, at the Redemption Prices for redemption otherwise
than through operation of the sinking fund (expressed as percentages of the
principal amount) set forth in the table below: If redeemed during the 12-month
period beginning ________________ of the years indicated,

<TABLE>
<CAPTION>

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

</TABLE>

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

                                      -19-

<PAGE>

                  [Notwithstanding the foregoing, the Company may not, prior to
_________________, redeem any Securities of this series as contemplated by
[Clause (2) of] the preceding paragraph as a part of, or in anticipation of, any
refunding operation by the application, directly or indirectly, of moneys
borrowed having an interest cost to the Company (calculated in accordance with
generally accepted financial practice) of less than ___________% per annum.]

                  [The sinking fund for this series provides for the redemption
on ____________ in each year beginning with the year _______ and ending with the
year ________ of [not less than] $________ [("mandatory sinking fund") and not
more than $__________] aggregate principal amount of Securities of this series.
[Securities of this series acquired or redeemed by the Company otherwise than
through [mandatory] sinking fund payments may be credited against subsequent
[mandatory] sinking fund payments otherwise required to be made -- in the
inverse order in which they become due.]

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

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

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

                                      -20-

<PAGE>

legally enforceable), all of the Company's obligations in respect of the payment
of the principal of and premium and interest, if any, on the Securities of this
series shall terminate.]

                  [The Indenture contains provisions for defeasance at any time
of [the entire indebtedness of this Security or] [certain restrictive covenants
and Events of Default with respect to this Security] [, in each case] upon
compliance with certain conditions set forth therein.]

                  The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Securities of
each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of 662/3% in principal amount of the
Securities at the time Outstanding of each series to be affected. The Indenture
also contains provisions permitting the Holders of specified percentages in
principal amount of the Securities of each series at the time Outstanding, on
behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the
Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

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

                  As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in
the Security Register,

                                      -21-

<PAGE>

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

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

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

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

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

                                      -22-

<PAGE>

Section 204.      FORM OF LEGEND FOR GLOBAL SECURITIES.

                  Any Global Security authenticated and delivered hereunder
shall bear a legend in substantially the following form:

                           "This Security is a Global Security within the
         meaning of the Indenture hereinafter referred to and is registered in
         the name of a Depository or a nominee thereof. This Security may not be
         exchanged in whole or in part for a Security registered, and no
         transfer of this Security in whole or in part may be registered in the
         name of any person other than such Depository or a nominee thereof,
         except in the limited circumstances described in the Indenture."

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

                  The Trustee's certificates 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.

                                  THE CHASE MANHATTAN BANK,
                                  as Trustee

                                  By
                                    -----------------------------
                                    AUTHORIZED OFFICER

                                  ARTICLE THREE

                                 The Securities

Section 301.      AMOUNT UNLIMITED; ISSUABLE IN SERIES.

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

                  The Securities may be issued in one or more series. There
shall be established in or pursuant to a

                                      -23-

<PAGE>

Board Resolution and, subject to Section 303, set forth, 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,

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

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

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

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

                  (5) the rate or rates at which the Securities of the series
         shall bear interest, if any, the date or dates from which such interest
         shall accrue, the Interest Payment Dates on which such interest shall
         be payable and the Regular Record Date for the interest payable on any
         Interest Payment Date;

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

                                      -24-

<PAGE>

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

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

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

                  (10) the currency or currencies, including composite
         currencies, in which payment of the principal of and any premium and
         interest on the Securities of the series shall be payable if other than
         the currency of the United States of America;

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

                  (12) whether the Securities of the series shall be issued in
         whole or in part in the form of one or more Global Securities and, in
         such case, the Depository with respect to such Global Security or
         Securities and the circumstances under which any such Global Security
         may be exchanged for Securities registered in the name of, and any
         transfer of such Global Security may be registered in the name of, a
         Person other than such Depository or its nominee, if other than as set
         forth in Section 305;

                                      -25-

<PAGE>

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

                  (14)     the application, if any, of Section 1302
         or 1303 to the Securities of any series; and

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

                  All Securities of any one series shall be substantially
identical except as to denomination and except as may otherwise be provided in
or pursuant to the Board Resolution referred to above and (subject to Section
303) set forth in the Officers' Certificate or in any such indenture
supplemental hereto.

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

Section 302.      DENOMINATIONS.

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

Section 303.      EXECUTION, AUTHENTICATION,
                  DELIVERY AND DATING.

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

                                      -26-

<PAGE>

these officers on the Securities may be manual or facsimile.

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

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

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

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

                  (c) that such Securities, when authenticated and delivered by
         the Trustee and issued by the Company in the manner and subject to any
         conditions specified in such Opinion of Counsel, will constitute valid
         and legally binding obligations of the Company, enforceable

                                      -27-

<PAGE>

         in accordance with their terms, subject to bankruptcy, insolvency,
         fraudulent transfer, reorganization, moratorium and similar laws of
         general applicability relating to or affecting the enforcement of
         creditors' rights and to general equity principles.

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

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

                  Each Security shall be dated the date of its authentication.

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

                                      -28-

<PAGE>

stating that such Security has never been issued and sold by the Company, for
all purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

Section 304.      TEMPORARY SECURITIES.

                  Pending the preparation of definitive Securities of any
series, the Company may execute, and upon Company Order 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 and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
evidenced by their execution of such Securities.

                  If temporary Securities 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 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 and of a like tenor of
authorized denominations. Until so exchanged the temporary Securities of any
series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of such series.

                                      -29-

<PAGE>

Section 305.      REGISTRATION, REGISTRATION OF
                  TRANSFER AND EXCHANGE.

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

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

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

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

                  Every Security presented or surrendered for registration of
transfer or for exchange shall (if so required by the Company or the Trustee) be
duly endorsed,

                                      -30-

<PAGE>

or be accompanied by a written instrument of transfer in form satisfactory to
the Company and the Security Registrar duly executed, by the Holder thereof or
his attorney duly authorized in writing.

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

                  The Company shall not be required (i) to issue, register the
transfer of or exchange Securities of any series during a period beginning at
the opening of business 15 days before the day of the mailing of a notice of
redemption of Securities of that series selected for redemption under Section
1103 and ending at the close of business on the day of such mailing, or (ii) to
register the transfer of or exchange any Security so selected for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed
in part.

                  Notwithstanding the foregoing, no Global Security shall be
registered for transfer or exchange, or authenticated or delivered, pursuant to
this Section 305 or Sections 304, 306, 906 or 1107 in the name of a Person other
than the Depository for such Security or its nominee until (i) the Depository
with respect to a Global Security notifies the Company that it is unwilling or
unable to continue as Depository for such Global Security or the Depository
ceases to be a clearing agency registered under the Exchange Act, (ii) the
Company executes and delivers to the Trustee a Company Order that such Global
Security shall be so transferable and exchangeable or (iii) there shall have
occurred and be continuing an Event of Default with respect to the Securities of
such series. Upon the occurrence in respect of any Global Security of any series
of any one or more of the conditions specified in clauses (i), (ii) or (iii) of
the preceding sentence or such other conditions as may be specified as
contemplated by Section 301 for such series, such Global Security may be
registered for transfer or exchange for Securities

                                      -31-

<PAGE>

registered in the names of, or authenticated and delivered to, such Persons as
the Depository with respect to such series shall direct.

                  Except as provided in the preceding paragraph, any Security
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, any Global Security, whether pursuant to this Section,
Section 304, 306, 906 or 1107 or otherwise, shall also be a Global Security and
bear the legend specified in Section 205.

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

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

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

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

                  Upon the issuance of any new Security under this Section, the
Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other

                                      -32-

<PAGE>

expenses (including the fees and expenses of the Trustee) connected therewith.

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

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

Section 307.      PAYMENT OF INTEREST; INTEREST
                  RIGHTS PRESERVED.

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

                  Any interest on any Security of any series which is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date
(herein called "Defaulted Interest") shall forthwith cease to be payable to the
Holder on the relevant Regular Record Date by virtue of having been such Holder,
and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:

                  (1) The Company may elect to make payment of any Defaulted
         Interest to the Persons in whose names the Securities of such series
         (or their respective Predecessor Securities) are registered at the
         close of business on a Special Record Date for the payment of such
         Defaulted Interest, which shall be fixed in the following manner. The
         Company shall notify the Trustee in writing of the amount of Defaulted
         Interest proposed to be paid on each Security of such series and the
         date of the proposed payment, and at the same time the Company shall
         deposit with the Trustee an amount of money equal to the aggregate
         amount proposed to be paid in respect of such Defaulted

                                      -33-

<PAGE>

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

                  (2) The Company may make payment of any Defaulted Interest on
         the Securities of any series in any other lawful manner not
         inconsistent with the requirements of any securities exchange on which
         such Securities may be listed, and upon such notice as may be

                                      -34-

<PAGE>

         required by such exchange, if, after notice given by the Company to the
         Trustee of the proposed payment pursuant to this Clause, such manner of
         payment shall be deemed practicable by the Trustee.

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

Section 308.      PERSONS DEEMED OWNERS.

                  Prior to due presentment of a Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name such Security is registered as the owner of
such Security for the purpose of receiving payment of principal of (and premium,
if any) and (subject to Section 307) interest on such Security and for all other
purposes whatsoever, whether or not such Security be overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

Section 309.      CANCELLATION.

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

                                      -35-
<PAGE>

All cancelled Securities held by the Trustee shall be disposed of in accordance
with its normal procedures unless otherwise directed by a Company Order.

Section 310.      COMPUTATION OF INTEREST.

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

                                  ARTICLE FOUR

                           Satisfaction and Discharge

Section 401.      SATISFACTION AND DISCHARGE OF
                  INDENTURE.

                  This Indenture shall upon Company Request cease to be of
further effect (except as to any surviving rights of registration of transfer or
exchange of Securities herein expressly provided for), and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

                  (1)      either

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

                                      -36-

<PAGE>

                           (B) all such Securities 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) 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
                  deposited or caused to be deposited with the Trustee as trust
                  funds in trust for the purpose an amount sufficient to pay and
                  discharge the entire indebtedness on such Securities not
                  theretofore delivered to the Trustee for cancellation, for
                  principal (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 have been complied with.

                                      -37-

<PAGE>

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

Section 402.      APPLICATION OF TRUST MONEY.

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

                                  ARTICLE FIVE

                                    Remedies

Section 501.      EVENTS OF DEFAULT.

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

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

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

                                      -38-

<PAGE>

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

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

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

                  (6) the commencement by the Company of a voluntary case or
         proceeding under any

                                      -39-

<PAGE>

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

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

                  Upon receipt by the Trustee of any Notice of Default pursuant
to this Section 501 with respect to Securities of a series all or part of which
is represented by a Global Security, a record date shall be established for
determining Holders of Outstanding Securities of such series entitled to join in
such Notice of Default, which record date shall be at the close of business on
the day the Trustee receives such Notice of Default. The Holders on such record
date, or their duly designated proxies, and only such Persons, shall be entitled
to join in such Notice of Default, whether or not such Holders remain Holders
after such record date; PROVIDED, HOWEVER, that unless Holders of at least 25%
in principal amount of the Outstanding Securities of such series, or their
proxies, shall have joined in such Notice of Default prior to the date which is
the ninetieth day after such record date, such Notice of

                                      -40-

<PAGE>

Default shall automatically and without further action by any Holder be
cancelled and of no further effect. Nothing in this paragraph shall prevent a
Holder, or a proxy of a Holder, from giving, (i) after expiration of such
90-day period, a new Notice of Default identical to a Notice of Default which
has been cancelled pursuant to the proviso to the preceding sentence or (ii)
during any such 90-day period, an additional Notice of Default with respect
to any new or different fact or circumstance permitting the giving of a
Notice of Default with respect to Securities of such series, in either of
which events a new record date shall be established pursuant to the
provisions of this Section 501.

Section 502.      ACCELERATION OF MATURITY;
                  RESCISSION AND ANNULMENT.

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

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

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

                                      -41-

<PAGE>

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

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

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

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

         and

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

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

                  Upon receipt by the Trustee of written notice declaring such
an acceleration, or rescission and annulment thereof, with respect to Securities
of a series all or part of which is represented by a Global Security, a record
date shall be established for determining Holders of Outstanding Securities of
such series entitled to join in such notice, which record date shall be at the
close of business on the day the Trustee receives such notice. The Holders on
such record date, or their duly designated proxies, and only such Persons, shall
be entitled to join in such notice, whether or not such

                                      -42-

<PAGE>

Holders remain Holders after such record date; PROVIDED, HOWEVER, that
unless such declaration of acceleration, or rescission and annulment, as the
case may be, shall have become effective by virtue of the requisite percentage
having joined in such notice prior to the day which is the ninetieth day after
such record date, such notice of declaration of acceleration, or rescission and
annulment, as the case may be, shall automatically and without further action by
any Holder be cancelled and of no further effect. Nothing in this paragraph
shall prevent a Holder, or a proxy of a Holder, of Securities of any series from
giving, (i) after expiration of such 90-day period, a new written notice of
declaration of acceleration, or rescission and annulment thereof, as the case
may be, that is identical to a written notice which has been cancelled pursuant
to the proviso to the preceding sentence or (ii) during any such 90-day period
an additional written notice of declaration of acceleration with respect to any
other Event of Default with respect to Securities of such series, or an
additional written notice of rescission or annulment of any declaration of
acceleration with respect to any other Event of Default with respect to
Securities of such series, in either of which events a new record date shall be
established pursuant to the provisions of this Section 502.

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

                  The Company covenants that if

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

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

the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal (and premium, if any) and interest and, to the extent
that payment of such interest shall be legally

                                      -43-

<PAGE>

enforceable, interest on any overdue principal (and premium, if any) and on any
overdue interest, at the rate or rates prescribed thereof or in such Securities,
and, in addition thereto, such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

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

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

Section 504.      TRUSTEE MAY FILE PROOFS OF CLAIM.

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

                                      -44-

<PAGE>

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

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

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

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

Section 505.      TRUSTEE MAY ENFORCE CLAIMS WITHOUT
                  POSSESSION OF SECURITIES.

                  All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the

                                      -45-

<PAGE>

reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, be for the ratable benefit of the Holders of the
Securities in respect of which such judgment has been recovered.

Section 506.      APPLICATION OF MONEY COLLECTED.

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

                  FIRST:  To the payment of all amounts due the
         Trustee under Section 607, including the
         reasonable fees and expenses of its counsel; and

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

Section 507.      LIMITATION ON SUITS.

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

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

                  (2) the Holders of not less than 25% in principal amount of
         the Outstanding Securities of that series shall have made written
         request

                                      -46-

<PAGE>

         to the Trustee to institute proceedings in respect of such Event of
         Default in its own name as Trustee hereunder;

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

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

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

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

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

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

                                      -47-

<PAGE>

Section 509.      RESTORATION OF RIGHTS AND REMEDIES.

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

Section 510.      RIGHTS AND REMEDIES CUMULATIVE.

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

Section 511.      DELAY OR OMISSION NOT WAIVER.

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

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<PAGE>

Section 512.      CONTROL BY HOLDERS.

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

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

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

                  Upon receipt by the Trustee of any written notice directing
the time, method or place of conducting any such proceeding or exercising any
such trust or power, with respect to Securities of a series all or part of which
is represented by a Global Security, a record date shall be established for
determining Holders of Outstanding Securities of such series entitled to join in
such notice, which record date shall be at the close of business on the day the
Trustee receives such notice. The Holders on such record date, or their duly
designated proxies, and only such Persons, shall be entitled to join in such
notice, whether or not such Holders remain Holders after such record date;
PROVIDED, HOWEVER, that unless the Holders of a majority in principal amount of
the Outstanding Securities of such series shall have joined in such notice prior
to the day which is the ninetieth day after such record date, such notice shall
automatically and without further action by any Holder be cancelled and of no
further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of
a Holder, from giving, (i) after expiration of such 90-day period, a new notice
identical to a notice which has been cancelled pursuant to the proviso to the
preceding sentence or (ii) during any such 90-day period, a new direction
contrary to or different from such direction, in either of which events a new
record date shall be established pursuant to the provisions of this Section 512.

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<PAGE>

Section 513.      WAIVER OF PAST DEFAULTS.

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

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

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

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

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

Section 514.      UNDERTAKING FOR COSTS.

                  All parties to this Indenture agree, and each Holder of any
Security by his acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of

                                      -50-

<PAGE>

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

Section 515.      WAIVER OF USURY, 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 usury, stay or
extension law wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performance of this Indenture; and the Company (to
the extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law and covenants that it will not hinder, delay or impede
the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been enacted.

                                   ARTICLE SIX

                                   The Trustee

Section 601.      CERTAIN DUTIES AND RESPONSIBILITIES.

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

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<PAGE>

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

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

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

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

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

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

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

                                      -52-

<PAGE>

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

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

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

Section 602.      NOTICE OF DEFAULTS.

                  Within 90 days after the occurrence of any default hereunder
with respect to the Securities of any series, the Trustee shall transmit by mail
to all Holders of Securities of such series, as their names and addresses appear
in the Security Register, notice of such default hereunder known to the Trustee,
unless such default shall have been cured or waived; PROVIDED, HOWEVER, that,
except in the case of a default in the payment of the principal of (or premium,
if any) or interest on any Security of such series or in the payment of any
sinking fund instalment with respect to Securities of such series, the Trustee
shall be protected in withholding such notice if and so long as the board of
directors, the executive committee or a trust committee of directors or
Responsible Officers of the Trustee in good faith determine that the withholding
of such notice is in the interest of the Holders of Securities of such series;
and PROVIDED, FURTHER, that in the case of any default of the character
specified in Section 501(4) with

                                      -53-

<PAGE>

respect to Securities of such series, no such notice to Holders shall be given
until at least 30 days after the occurrence thereof. For the purpose of this
Section, the term "default" means any event which is, or after notice or lapse
of time or both would become, an Event of Default with respect to Securities of
such series.

Section 603.      CERTAIN RIGHTS OF TRUSTEE.

                  Subject to the provisions of Section 601:

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

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

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

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

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<PAGE>

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

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

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

                  (h) the Trustee shall not be charged with knowledge of any
         default or Event of Default with respect to the Securities unless
         either (1) a Responsible Officer shall have actual knowledge of such
         default or Event of Default or (2) written notice of such default or
         Event of Default shall have been given to the Trustee by the Company or
         by any Holder of the Securities.

                                      -55-

<PAGE>

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

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

Section 605.      MAY HOLD SECURITIES.

                  The Trustee, any Authenticating Agent, any Paying Agent, any
Security Registrar or any other agent of the Company, in its individual or any
other capacity, may become the owner or pledgee of Securities and, subject to
Sections 608 and 613, 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 606.      MONEY HELD IN TRUST.

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

Section 607.      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

                                      -56-

<PAGE>

         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 reasonable compensation and the expenses and
         disbursements of its counsel), 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.

                  When the Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 501(5) and 501(6), the
expenses (including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Federal or State bankruptcy, insolvency,
reorganization, or other similar law.

                  To secure the Company's payment obligations in this Section
607, the Trustee shall have a lien prior to the Securities on all money or
property held or collected by the Trustee, in its capacity as Trustee, except
money or property held in trust to pay principal of, premium, if any, and
interest on particular Securities.

                  The provisions of this Section 607 shall survive the
resignation or removal of the Trustee and the termination of this Indenture.

                                      -57-

<PAGE>

Section 608.      DISQUALIFICATION; CONFLICTING INTERESTS.

                  (a) If the Trustee has or shall acquire any conflicting
         interest, as defined in this Section, with respect to the Securities of
         any series, it shall, within 90 days after ascertaining that it has
         such conflicting interest, either eliminate such conflicting interest
         or resign with respect to the Securities of that series in the manner
         and with the effect hereinafter specified in this Article.

                  (b) In the event that the Trustee shall fail to comply with
         the provisions of Subsection (a) of this Section with respect to the
         Securities of any series, the Trustee shall, within 10 days after the
         expiration of such 90-day period, transmit by mail to all Holders of
         Securities of that series, as their names and addresses appear in the
         Security Register, notice of such failure.

                  (c) For the purposes of this Section, the Trustee shall be
         deemed to have a conflicting interest with respect to the Securities of
         any series if

                  (1) the Trustee is trustee under this Indenture with respect
         to the Outstanding Securities of any series other than that series or
         is trustee under another indenture under which any other securities, or
         certificates of interest or participation in any other securities, of
         the Company are outstanding, unless such other indenture is a
         collateral trust indenture under which the only collateral consists of
         Securities issued under this Indenture, PROVIDED that there shall be
         excluded from the operation of this paragraph this Indenture with
         respect to the Securities of any series other than that series or any
         indenture or indentures under which other securities, or certificates
         of interest or participation in other securities, of the Company are
         outstanding, if

                           (i) this Indenture and such other indenture or
                  indentures are wholly unsecured and such other indenture or
                  indentures are hereafter qualified under

                                      -58-

<PAGE>

                  the Trust Indenture Act, unless the Commission shall have
                  found and declared by order pursuant to Section 305(b) or
                  Section 307(c) of the Trust Indenture Act that differences
                  exist between the provisions of this Indenture with respect to
                  Securities of that series and one or more other series or the
                  provisions of such other indenture or indentures which are so
                  likely to involve a material conflict of interest as to make
                  it necessary in the public interest or for the protection of
                  investors to disqualify the Trustee from acting as such under
                  this Indenture with respect to the Securities of that series
                  and such other series or under such other indenture or
                  indentures, or

                           (ii) the Company shall have sustained the burden of
                  proving, on application to the Commission and after
                  opportunity for hearing thereon, that trusteeship under this
                  Indenture with respect to the Securities of that series and
                  such other series or such other indenture or indentures is not
                  so likely to involve a material conflict of interest as to
                  make it necessary in the public interest or for the protection
                  of investors to disqualify the Trustee from acting as such
                  under this Indenture with respect to the Securities of that
                  series and such other series or under such other indenture or
                  indentures;

                  (2) the Trustee or any of its directors or executive officers
         is an obligor upon the Securities or an underwriter for the Company;

                  (3) the Trustee directly or indirectly controls or is directly
         or indirectly controlled by or is under direct or indirect common
         control with the Company or an underwriter for the Company;

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<PAGE>

                  (4) the Trustee or any of its directors or executive officers
         is a director, officer, partner, employee, appointee or representative
         of the Company, or of an underwriter (other than the Trustee itself)
         for the Company who is currently engaged in the business of
         underwriting, except that (i) one individual may be a director or an
         executive officer, or both, of the Trustee and a director or an
         executive officer, or both, of the Company but may not be at the same
         time an executive officer of both the Trustee and the Company; (ii) if
         and so long as the number of directors of the Trustee in office is more
         than nine, one additional individual may be a director or an executive
         officer, or both, of the Trustee and a director of the Company; and
         (iii) the Trustee may be designated by the Company or by any
         underwriter for the Company to act in the capacity of transfer agent,
         registrar, custodian, paying agent, fiscal agent, escrow agent or
         depositary, or in any other similar capacity, or, subject to the
         provisions of paragraph (1) of this Subsection, to act as trustee,
         whether under an indenture or otherwise;

                  (5) 10% or more of the voting securities of the Trustee is
         beneficially owned either by the Company or by any director, partner or
         executive officer thereof, or 20% or more of such voting securities is
         beneficially owned, collectively, by any two or more of such persons;
         or 10% or more of the voting securities of the Trustee is beneficially
         owned either by an underwriter for the Company or by any director,
         partner or executive officer thereof, or is beneficially owned,
         collectively, by any two or more such persons;

                  (6) the Trustee is the beneficial owner of, or holds as
         collateral security for an obligation which is in default (as
         hereinafter in this Subsection defined), (i) 5% or more of the voting
         securities, or 10% or more of any other class of security, of the
         Company not including the Securities issued under this

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<PAGE>

         Indenture and securities issued under any other indenture under which
         the Trustee is also trustee, or (ii) 10% or more of any class of
         security of an underwriter f or the Company;

                  (7) the Trustee is the beneficial owner of, or holds as
         collateral security for an obligation which is in default (as
         hereinafter in this Subsection defined), 5% or more of the voting
         securities of any person who, to the knowledge of the Trustee, owns 10%
         or more of the voting securities of, or controls directly or indirectly
         or is under direct or indirect common control with, the Company;

                  (8) the Trustee is the beneficial owner of, or holds as
         collateral security for an obligation which is in default (as
         hereinafter in this Subsection defined), 10% or more of any class of
         security of any person who, to the knowledge of the Trustee, owns 50%
         or more of the voting securities of the Company; or

                  (9) the Trustee owns, on May 15 in any calendar year, in the
         capacity of executor, administrator, testamentary or inter vivos
         trustee, guardian, committee or conservator, or in any other similar
         capacity, an aggregate of 25% or more of the voting securities, or of
         any class of security, of any person, the beneficial ownership of a
         specified percentage of which would have constituted a conflicting
         interest under paragraph (6), (7) or (8) of this Subsection. As to any
         such securities of which the Trustee acquired ownership through
         becoming executor, administrator or testamentary trustee of an estate
         which included them, the provisions of the preceding sentence shall not
         apply, for a period of two years from the date of such acquisition, to
         the extent that such securities included in such estate do not exceed
         25% of such voting securities or 25% of any such class of security.
         Promptly after May 15 in each calendar year, the Trustee shall make a
         check of its holdings of such securities in any of the above-mentioned
         capacities as of such May 15.

                                      -61-

<PAGE>

         If the Company fails to make payment in full of the principal of (or
         premium, if any) or interest on any of the Securities when and as the
         same becomes due and payable, and such failure continues for 30 days
         thereafter, the Trustee shall make a prompt check of its holdings of
         such securities in any of the above-mentioned capacities as of the date
         of the expiration of such 30-day period, and after such date,
         notwithstanding the foregoing provisions of this paragraph, all such
         securities so held by the Trustee, with sole or joint control over such
         securities vested in it, shall, but only so long as such failure shall
         continue, be considered as though beneficially owned by the Trustee for
         the purposes of paragraphs (6), (7) and (8) of this Subsection.

                  The specification of percentages in paragraphs (5) to (9),
inclusive, of this Subsection shall not be construed as indicating that the
ownership of such percentages of the securities of a person is or is not
necessary or sufficient to constitute direct or indirect control for the
purposes of paragraph (3) or (7) of this Subsection.

                  For the purposes of paragraphs (6), (7), (8) and (9) of this
Subsection only, (i) the terms "security" and "securities" shall include only
such securities as are generally known as corporate securities, but shall not
include any note or other evidence of indebtedness issued to evidence an
obligation to repay moneys lent to a person by one or more banks, trust
companies or banking firms, or banking firms, or certificate of interest or
participation in any such note or evidence of indebtedness; (ii) an obligation
shall be deemed to be "in default" when a default in payment of principal shall
have continued for 30 days or more and shall not have been cured; and (iii) the
Trustee shall not be deemed to be the owner or holder of (A) any security which
it holds as collateral security, as trustee or otherwise, for an obligation
which is not in default as defined in clause (ii) above, or (B) any security
which it holds as collateral security under this Indenture, irrespective of any
default hereunder, or (C) any security which it holds

                                      -62-

<PAGE>

as agent for collection, or as custodian, escrow agent or depositary, or in any
similar representative capacity.

                  (d)      For the purposes of this Section:

                  (1) The term "underwriter", when used with reference to the
         Company, means every person who, within three years prior to the time
         as of which the determination is made, has purchased from the Company
         with a view to, or has offered or sold for the Company in connection
         with, the distribution of any security of the Company outstanding at
         such time, or has participated or has had a direct or indirect
         participation in any such undertaking, or has participated or has had a
         participation in the direct or indirect underwriting of any such
         undertaking, but such term shall not include a person whose interest
         was limited to a commission from an underwriter or dealer not in excess
         of the usual and customary distributors' or sellers' commission.

                  (2) The term "director" means any director of a corporation or
         any individual performing similar functions with respect to any
         organization, whether incorporated or unincorporated.

                  (3) The term "person" means an individual, a corporation, a
         partnership, an association, a joint-stock company, a trust, an
         unincorporated organization or a government or political subdivision
         thereof. As used in this paragraph, the term "trust" shall include only
         a trust where the interest or interests of the beneficiary or
         beneficiaries are evidenced by a security.

                  (4) The term "voting security" means any security presently
         entitling the owner or holder thereof to vote in the direction or
         management of the affairs of a person, or any security issued
         under or pursuant to any trust, agreement or arrangement whereby a
         trustee or trustees or agent or agents for the owner or holder of such
         security are presently entitled to vote in the

                                      -63-

<PAGE>

         direction or management of the affairs of a person.

                  (5) The term "Company" means any obligor upon the Securities,

                  (6) The term "executive officer" means the president, every
         vice president, every trust officer, the cashier, the secretary and the
         treasurer of a corporation, and any individual customarily performing
         similar functions with respect to any organization whether incorporated
         or unincorporated, but shall not include the chairman of the board of
         directors.

                  (e) The percentages of voting securities and other securities
specified in this Section shall be calculated in accordance with the following
provisions:

                  (1) A specified percentage of the voting securities of the
         Trustee, the Company or any other person referred to in this Section
         (each of whom is referred to as a "person" in this paragraph) means
         such amount of the outstanding voting securities of such person as
         entitles the holder or holders thereof to cast such specified
         percentage of the aggregate votes which the holders of all the
         outstanding voting securities of such person are entitled to cast in
         the direction or management of the affairs of such person.

                  (2) A specified percentage of a class of securities of a
         person means such percentage of the aggregate amount of securities of
         the class outstanding.

                  (3) The term "amount", when used in regard to securities,
         means the principal amount if relating to evidences of indebtedness,
         the number of shares if relating to capital shares and the number of
         units if relating to any other kind of security.

                  (4) The term "outstanding" means issued and not held by or for
         the account of the

                                      -64-

<PAGE>

         issuer. The following securities shall not be deemed outstanding
         within the meaning of this definition:

                           (i) securities of an issuer held in a sinking fund
                  relating to securities of the issuer of the same class;

                           (ii)securities of an issuer held in a sinking fund
                  relating to another class of securities of the issuer, if the
                  obligation evidenced by such other class of securities is not
                  in default as to principal or interest or otherwise;

                           (iii) securities pledged by the issuer thereof as
                  security for an obligation of the issuer not in default as to
                  principal or interest or otherwise; and

                           (iv)securities held in escrow if placed
                  in escrow by the issuer thereof;

         PROVIDED, HOWEVER, that any voting securities of an issuer shall be
         deemed outstanding if any person other than the issuer is entitled to
         exercise the voting rights thereof.

                  (5) A security shall be deemed to be of the same class as
         another security if both securities confer upon the holder or holders
         thereof substantially the same rights and privileges; PROVIDED,
         HOWEVER, that, in the case of secured evidences of indebtedness, all of
         which are issued under a single indenture, differences in the interest
         rates or maturity dates of various series thereof shall not be deemed
         sufficient to constitute such series different classes and PROVIDED,
         FURTHER, that, in the case of unsecured evidences or indebtedness,
         differences in the interest rates or maturity dates thereof shall not
         be deemed sufficient to constitute them securities of different
         classes, whether or not they are issued under a single indenture.

                                      -65-

<PAGE>

Section 609.      CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.

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

Section 610.      Resignation and Removal;
                  APPOINTMENT OF SUCCESSOR.

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

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

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

                                      -66-

<PAGE>

         Outstanding Securities of such series, delivered to the Trustee and to
         the Company.

                  (d) If at any time:

                  (1) the Trustee shall fail to comply with Section 608(a) after
         written request there for 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 609
         and shall fail to resign after written request thereof or by the
         Company or by any such Holder, or

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

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

                  (e) If the Trustee shall resign, be removed or become
         incapable of acting, or if a vacancy shall occur in the office of
         Trustee for any cause, with respect to the Securities of one or more
         series, the Company, by a Board Resolution, shall promptly appoint a
         successor Trustee or Trustees with respect to the Securities of that or
         those series (it being understood that any such successor Trustee may
         be appointed with respect to the Securities of one or more or all of
         such series and that

                                      -67-

<PAGE>

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

                  (f) The Company shall give notice of each resignation and each
         removal of the Trustee with respect to the Securities of any series and
         each appointment of a successor Trustee with respect to the Securities
         of any series by mailing written notice of such event by first-class
         mail, postage prepaid, to all Holders of Securities of such series as
         their names and addresses appear in the Security Register. Each notice
         shall include the name of the successor Trustee with respect to the
         Securities of such series and the address of its Corporate Trust
         Office.

Section 611.      ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

                  (a) In case of the appointment hereunder of a successor
         Trustee with respect to all Securities, every such successor Trustee so
         appointed shall execute, acknowledge and deliver to the Company and to
         the retiring Trustee an instrument accepting such appointment, and
         thereupon the resignation or removal of the retiring Trustee shall
         become effective and such

                                      -68-

<PAGE>

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

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

                                      -69-

<PAGE>

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

                  (c) Upon request of any such successor Trustee, the Company
         shall execute any and all instruments for more fully and certainly
         vesting in and confirming to such successor Trustee all such rights,
         powers and trusts referred to in paragraph (a) and (b) of this Section,
         as the case may be.

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

Section 612.      MERGER, CONVERSION, CONSOLIDATION OR
                  SUCCESSION TO BUSINESS.

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

                                      -70-
<PAGE>

Section 613.      PREFERENTIAL COLLECTION OF
                  CLAIMS AGAINST COMPANY.

                  (a) Subject to Subsection (b) of this Section, if the Trustee
shall be or shall become a creditor, directly or indirectly, secured or
unsecured, of the Company within four months prior to a default, as defined in
Subsection (c) of this Section, or subsequent to such a default, then, unless
and until such default shall be cured, the Trustee shall set apart and hold in a
special account for the benefit of the Trustee individually, the Holders of the
Securities and the holders of other indenture securities, as defined in
Subsection (c) of this Section:

                  (1) an amount equal to any and all reductions in the amount
         due and owing upon any claim as such creditor in respect of principal
         or interest, effected after the beginning of such four months' period
         and valid as against the Company and its other creditors, except any
         such reduction resulting from the receipt or disposition of any
         property described in paragraph (2) of this Subsection, or from the
         exercise of any right of set-off which the Trustee could have exercised
         if a petition in bankruptcy had been filed by or against the Company
         upon the date of such default; and

                  (2) all property received by the Trustee in respect of any
         claims as such creditor, either as security therefor, or in
         satisfaction or composition thereof, or otherwise, after the beginning
         of such four months' period, or an amount equal to the proceeds of any
         such property, if disposed of, SUBJECT, HOWEVER, to the rights, if any,
         of the Company and its other creditors in such property or such
         proceeds.

Nothing herein contained, however, shall affect the right of the Trustee:

                  (A) to retain for its own account (i) payments made on account
         of any such claim by any Person (other than the Company) who is liable
         thereon, and (ii) the proceeds of the

                                      -71-
<PAGE>

         bona fide sale of any such claim by the Trustee to a third Person, and
         (iii) distributions made in cash, securities or other property in
         respect of claims filed against the Company in bankruptcy or
         receivership or in proceedings for reorganization pursuant to the
         Federal Bankruptcy Act or applicable State law;

                  (B) to realize, for its own account, upon any property held by
         it as security for any such claim, if such property was so held prior
         to the beginning of such four months' period;

                  (C) to realize, for its own account, but only to the extent of
         the claim hereinafter mentioned, upon any property held by it as
         security for any such claim, if such claim was created after the
         beginning of such four months' period and such property was received as
         security thereof or simultaneously with the creation thereof, and if
         the Trustee shall sustain the burden of proving that at the time such
         property was so received the Trustee had no reasonable cause to believe
         that a default, as defined in Subsection (c) of this Section, would
         occur within four months; or

                  (D) to receive payment on any claim referred to in paragraph
         (B) or (C), against the release of any property held as security for
         such claim as provided in paragraph (B) or (C), as the case may be, to
         the extent of the fair value of such property.

                  For the purposes of paragraphs (B), (C) and (D), property
substituted after the beginning of such four months' period for property held as
security at the time of such substitution shall, to the extent of the fair value
of the property released, have the same status as the property released, and, to
the extent that any claim referred to in any of such paragraphs is created in
renewal of or in substitution for or for the purpose of repaying or refunding
any pre-existing claim of the Trustee as such creditor, such claim shall have
the same status as such pre-existing claim.

                                      -72-
<PAGE>

                  If the Trustee shall be required to account, the funds and
property held in such special account and the proceeds thereof shall be
apportioned among the Trustee, the Holders and the holders of other indenture
securities in such manner that the Trustee, the Holders and the holders of other
indenture securities realize, as a result of payments from such special account
and payments of dividends on claims filed against the Company in bankruptcy or
receivership or in proceedings for reorganization pursuant to the Federal
Bankruptcy Act or applicable State law, the same percentage of their respective
claims, figured before crediting to the claim of the Trustee anything on account
of the receipt by it from the Company of the funds and property in such special
account and before crediting to the respective claims of the Trustee and the
Holders and the holders of other indenture securities dividends on claims filed
against the Company in bankruptcy or receivership or in proceedings for
reorganization pursuant to the Federal Bankruptcy Act or applicable State law,
but after crediting thereon receipts on account of the indebtedness represented
by their respective claims from all sources other than from such dividends and
from the funds and property so held in such special account. As used in this
paragraph, with respect to any claim, the term "dividends" shall include any
distribution with respect to such claim, in bankruptcy or receivership or
proceedings for reorganization pursuant to the Federal Bankruptcy Act or
applicable State law, whether such distribution is made in cash, securities or
other property, but shall not include any such distribution with respect to the
secured portion, if any, of such claim. The court in which such bankruptcy,
receivership or proceedings for reorganization is pending shall have
jurisdiction (i) to apportion among the Trustee, the Holders and the holders of
other indenture securities, in accordance with the provisions of this paragraph,
the funds and property held in such special account and proceeds thereof, or
(ii) in lieu of such apportionment, in whole or in part, to give to the
provisions of this paragraph due consideration in determining the fairness of
the distributions to be made to the Trustee and the Holders and the holders of
other indenture securities with respect to their respective claims, in which
event it shall not be necessary to liquidate or to appraise the value of any
securities or other property held in such

                                      -73-
<PAGE>

special account or as security for any such claim, or to make a specific
allocation of such distributions as between the secured and unsecured portions
of such claims, or otherwise to apply the provisions of this paragraph as a
mathematical formula.

                  Any Trustee which has resigned or been removed after the
beginning of such four months' period shall be subject to the provisions of this
Subsection as though such resignation or removal had not occurred. If any
Trustee has resigned or been removed prior to the beginning of such four months'
period, it shall be subject to the provisions of this Subsection if and only if
the following conditions exist:

                  (i) the receipt of property or reduction of claim, which would
         have given rise to the obligation to account, if such Trustee had
         continued as Trustee, occurred after the beginning of such four months'
         period; and

                  (ii) such receipt of property or reduction of claim occurred
         within four months after such resignation or removal.

                  (b) There shall be excluded from the operation of Subsection
(a) of this Section a creditor relationship arising from:

                  (1) the ownership or acquisition of securities issued under
         any indenture, or any security or securities having a maturity of one
         year or more at the time of acquisition by the Trustee;

                  (2) advances authorized by a receivership or bankruptcy court
         of competent jurisdiction or by this Indenture, for the purpose of
         preserving any property which shall at any time be subject to the lien
         of this Indenture or of discharging tax liens or other prior liens or
         encumbrances thereon, if notice of such advances and of the
         circumstances surrounding the making thereof is given to the Holders at
         the time and in the manner provided in this Indenture;

                                      -74-
<PAGE>

                  (3) disbursements made in the ordinary course of business in
         the capacity of trustee under an indenture, transfer agent, registrar,
         custodian, paying agent, fiscal agent or depositary, or other similar
         capacity;

                  (4) an indebtedness created as a result of services rendered
         or premises rented; or an indebtedness created as a result of goods or
         securities sold in a cash transaction, as defined in Subsection (c) of
         this Section;

                  (5) the ownership of stock or of other securities of a
         corporation organized under the provisions of Section 25(a) of the
         Federal Reserve Act, as amended, which is directly or indirectly a
         creditor of the Company; and

                  (6) the acquisition, ownership, acceptance or negotiation of
         any drafts, bills of exchange, acceptances or obligations which fall
         within the classification of self-liquidating paper, as defined in
         Subsection (c) of this Section.

                  (c) For the purposes of this Section only:

                  (1) the term "default" means any failure to make payment in
         full of the principal of or interest on any of the Securities or upon
         the other indenture securities when and as such principal or interest
         becomes due and payable;

                  (2) the term "other indenture securities" means securities
         upon which the company is an obligor outstanding under any other
         indenture (i) under which the Trustee is also trustee, (ii) which
         contains provisions substantially similar to the provisions of this
         Section, and (iii) under which a default exists at the time of the
         apportionment of the funds and property held in such special account;

                  (3) the term "cash transaction" means any transaction in which
         full payment for goods or securities sold is made within seven days
         after delivery of the goods or securities in currency

                                      -75-
<PAGE>

         or in checks or other orders drawn upon banks or bankers and payable
         upon demand;

                  (4) the term "self-liquidating paper" means any draft, bill of
         exchange, acceptance or obligation which is made, drawn, negotiated or
         incurred by the Company for the purpose of financing the purchase,
         processing, manufacturing, shipment, storage or sale of goods, wares or
         merchandise and which is secured by documents evidencing title to,
         possession of, or a lien upon, the goods, wares or merchandise or the
         receivables or proceeds arising from the sale of the goods, wares or
         merchandise previously constituting the security, provided the security
         is received by the Trustee simultaneously with the creation of the
         creditor relationship with the Company arising from the making,
         drawing, negotiating or incurring of the draft, bill of exchange,
         acceptance or obligation;

                  (5) the term "Company" means any obligor upon the Securities;
         and

                  (6) the term "Federal Bankruptcy Act" means the Bankruptcy Act
         or Title 11 of the United States Code.

Section 614.      APPOINTMENT OF AUTHENTICATING AGENT.

                  At any time when any of the Securities remain Outstanding the
Company may appoint an Authenticating Agent or Agents with respect to one or
more series of Securities which shall be authorized to act on behalf of the
Trustee to authenticate Securities of such series issued upon exchange,
registration of transfer or partial redemption thereof or pursuant to Section
306, and Securities so authenticated shall be entitled to the benefits of this
Indenture and shall be valid and obligatory for all purposes as if authenticated
by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication and delivery on behalf of the Trustee by

                                      -76-
<PAGE>

an Authenticating Agent and a certificate of authentication executed on
behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent
shall at all times be a corporation organized and doing business under the
laws of the United States of America, any State thereof or the District of
Columbia, authorized under such laws to act as Authenticating Agent, having a
combined capital and surplus of not less than $50,000,000 and subject to
supervision or examination by Federal or State authority. If such
Authenticating Agent publishes reports of condition at least annually,
pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such Authenticating Agent shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. If at any time an Authenticating Agent shall cease to be eligible
in accordance with the provisions of this Section, such Authenticating Agent
shall resign immediately in the manner and with the effect specified in this
Section.

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

                  An Authenticating Agent may resign at any time by giving
written notice thereof to the Trustee and to the Company. The Company may at any
time terminate the agency of an Authenticating Agent by giving written notice
thereof to such Authenticating Agent and to the Trustee. 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 Company may appoint a successor Authenticating
Agent and shall mail written notice of such appointment by first-class mail,
postage prepaid, to all Holders of

                                      -77-
<PAGE>

Securities of the series with respect to which such Authenticating Agent will
serve, as their names and addresses appear in the Security Register. Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

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

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

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

                                                    THE CHASE MANHATTAN BANK,
                                                    as Trustee

                                                    By
                                                      --------------------------
                                                       As Authenticating Agent

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

                                  ARTICLE SEVEN

         Holders' Lists and Reports by Trustee and Company

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

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

                                      -78-
<PAGE>

                  (a) semi-annually, not later than June 30 and December 31 in
         each year, a list, in such form as the Trustee may reasonably require,
         of the names and addresses of the Holders as of the preceding June 15
         or December 15, as the case may be, and

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

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

Section 702.      PRESERVATION OF INFORMATION;
                  COMMUNICATIONS TO HOLDERS.

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

                  (b) If three or more Holders (herein referred to as
         "applicants") apply in writing to the Trustee, and furnish the Trustee
         reasonable proof that each such applicant has owned a Security for a
         period of at least six months preceding the date of such application,
         and such application states that the applicants desire to communicate
         with the other Holders with respect to their rights under this
         Indenture or under the Securities and is accompanied by a copy of the
         form of proxy or other communication which such applicants propose to
         transmit, then the Trustee shall, within five business days after the
         receipt of such application, at its election, either

                                      -79-
<PAGE>

                           (i) afford such applicants access to the information
                  preserved at the time by the Trustee in accordance with
                  Section 702(a), or

                           (ii)inform such applicants as to the approximate
                  number of Holders whose names and addresses appear in the
                  information preserved at the time by the Trustee in accordance
                  with Section 702(a), and as to the approximate cost of mailing
                  to such Holders the form of proxy or other communication, if
                  any, specified in such application.

                  If the Trustee shall elect not to afford such applicants
access to such information, the Trustee shall, upon the written request of such
applicants, mail to each Holder whose name and address appear in the information
preserved at the time by the Trustee in accordance with Section 702(a) a copy of
the form of proxy or other communication which is specified in such request,
with reasonable promptness after a tender to the Trustee of the material to be
mailed and of payment, or provision for the payment, of the reasonable expenses
of mailing, unless within five days after such tender the Trustee shall mail to
such applicants and file with the Commission, together with a copy of the
material to be mailed, a written statement to the effect that, in the opinion of
the Trustee, such mailing would be contrary to the best interest of the Holders
or would be in violation of applicable law. Such written statement shall specify
the basis of such opinion. If the Commission, after opportunity for a hearing
upon the objections specified in the written statement so filed, shall enter an
order refusing to sustain any of such objections or if, after the entry of an
order sustaining one or more of such objections, the Commission shall find,
after notice and opportunity for hearing, that all the objections so sustained
have been met and shall enter an order so declaring, the Trustee shall mail
copies of such material to all such Holders with reasonable promptness after the
entry of such order and the renewal of such tender; otherwise the Trustee shall
be relieved of any obligation or duty to such applicants respecting their
application.

                                      -80-
<PAGE>

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

Section 703.      REPORTS BY TRUSTEE.

                  (a) Within 60 days after May 15 of each year commencing
with the year -, the Trustee shall transmit by mail to all Holders, as their
names and addresses appear in the Security Register, a brief report dated as of
such May 15 with respect to:

                  (1) its eligibility under Section 609 and its qualifications
         under Section 608, or in lieu thereof, if to the best of its knowledge
         it has continued to be eligible and qualified under said Sections, a
         written statement to such effect;

                  (2) the character and amount of any advances (and if the
         Trustee elects so to state, the circumstances surrounding the making
         thereof) made by the Trustee (as such) which remain unpaid on the date
         of such report, and for the reimbursement of which it claims or may
         claim a lien or charge, prior to that of the Securities, on any
         property or funds held or collected by it as Trustee, except that the
         Trustee shall not be required (but may elect) to report such advances
         if such advances so remaining unpaid aggregate not more than 1/2 of 1%
         of the principal amount of the Securities Outstanding on the date of
         such report;

                  (3) the amount, interest rate and maturity date of all other
         indebtedness owing by the Company (or by any other obligor on the
         Securities) to the Trustee in its individual capacity, on the date of
         such report, with a

                                      -81-
<PAGE>

         brief description of any property held as collateral security therefor,
         except an indebtedness based upon a creditor relationship arising in
         any manner described in Section 613(b)(2), (3), (4) or (6);

                  (4) the property and funds, if any, physically in the
         possession of the Trustee as such on the date of such report;

                  (5) any additional issue of Securities which the Trustee has
         not previously reported; and

                  (6) any action taken by the Trustee in the performance of its
         duties hereunder which it has not previously reported and which in its
         opinion materially affects the Securities, except action in respect of
         a default, notice of which has been or is to be withheld by the Trustee
         in accordance with Section 602.

                  (b) The Trustee shall transmit by mail to all Holders, as
their names and addresses appear in the Security Register, a brief report with
respect to the character and amount of any advances (and if the Trustee elects
so to state, the circumstances surrounding the making thereof) made by the
Trustee (as such) since the date of the last report transmitted pursuant to
Subsection (a) of this Section (or if no such report has yet been so
transmitted, since the date of execution of this instrument) for the
reimbursement of which it claims or may claim a lien or charge, prior to that of
the Securities, on property or funds held or collected by it as Trustee and
which it has not previously reported pursuant to this Subsection, except that
the Trustee shall not be required (but may elect) to report such advances if
such advances remaining unpaid at any time aggregate 10% or less of the
principal amount of the Securities Outstanding at such time, such report to be
transmitted within 90 days after such time.

                  (c) A copy of each such report shall, at the time of such
transmission to Holders, be filed by the Trustee with each stock exchange upon
which any Securities are listed, with the Commission and with the

                                      -82-
<PAGE>

Company. The Company will notify the Trustee when any Securities are listed on
any stock exchange.

Section 704.      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 Exchange Act; or, if the Company is not required
         to file information, documents or reports pursuant to either of said
         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 Exchange Act 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 by mail to all Holders, as their names and
         addresses appear in the Security Register, within 30 days after the
         filing thereof with the Trustee, such summaries of any information,
         documents and reports required to be filed by the Company pursuant to
         paragraphs (1) and (2) of this Section as may be required

                                      -83-
<PAGE>

         by rules and regulations prescribed from time to time by the
         Commission.

                                  ARTICLE EIGHT

         Consolidation, Merger, Conveyance, Transfer or Lease

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

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

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

                  (2) immediately after giving effect to such transaction and
         treating any indebtedness which becomes an obligation of the Company or
         a Subsidiary as a result of such transaction as having been incurred by
         the Company or such

                                      -84-
<PAGE>

         Subsidiary at the time of such transaction, no Event of Default, and no
         event which, after notice or lapse of time or both, would become an
         Event of Default, shall have happened and be continuing;

                  (3) if, as a result of any such consolidation or merger or
         such conveyance, transfer or lease, properties or assets of the Company
         would become subject to a mortgage, pledge, lien, security interest or
         other encumbrance which would not be permitted by this Indenture, the
         Company or such successor corporation or Person, as the case may be,
         shall take such steps as shall be necessary effectively to secure the
         Securities equally and ratably with (or prior to) all indebtedness
         secured thereby; and

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

Section 802.      SUCCESSOR PERSON SUBSTITUTED.

                  Upon any consolidation by the Company with or merger by the
Company into any other Person or any conveyance, transfer or lease of the
properties and assets of the Company substantially as an entirety in accordance
with Section 801, 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 thereafter, except in
the case of a lease, the predecessor Person shall be relieved of all obligations
and covenants under this Indenture and the Securities.

                                      -85-
<PAGE>

                                  ARTICLE NINE

                             Supplemental Indentures

Section 901.      SUPPLEMENTAL INDENTURES WITHOUT CONSENT
                  OF HOLDERS.

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

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

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

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

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

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

                                      -86-
<PAGE>

         execution of such supplemental indenture which is entitled to the
         benefit of such provision; or

                  (6) to secure the Securities pursuant to the requirements of
         Section 1008 or otherwise; or

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

                  (8) to evidence and provide for the acceptance of appointment
         hereunder by a successor Trustee with respect to the Securities of one
         or more series 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 611(b); or

                  (9) to cure any ambiguity, to correct or supplement any
         provision herein which may be inconsistent with any other provision
         herein, or to make any other provisions with respect to matters or
         questions arising under this Indenture, PROVIDED such action shall not
         adversely affect the interests of the Holders of Securities of any
         series in any material respect.

Section 902.      SUPPLEMENTAL INDENTURES WITH CONSENT
                  OF HOLDERS.

                  With the consent of the Holders of more than 50% in principal
amount of the Outstanding Securities affected by such supplemental indenture
voting together as a single class, by Act of said Holders delivered to the
Company and the Trustee, the Company, when authorized by a Board Resolution, and
the Trustee may enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Indenture or of modifying in any manner the rights
of the Holders of Securities of such series under this Indenture; PROVIDED,
HOWEVER, that no such supplemental

                                      -87-
<PAGE>

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

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

                  (3) modify any of the provisions of this Section, Section 513
         or Section 1009, except to increase any such percentage or to provide
         that certain other provisions of this Indenture cannot be modified or
         waived without the consent of the Holder of each Outstanding Security
         affected thereby, PROVIDED, HOWEVER, that this clause shall not be
         deemed to require the consent of any Holder with respect to changes in
         the references to "the Trustee" and concomitant changes in this Section
         and Section 1009, or the deletion of this proviso, in accordance with
         the requirements of Sections 611(b) and 901(8).

                                      -88-
<PAGE>

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.

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

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

Section 903.      EXECUTION OF SUPPLEMENTAL INDENTURES.

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

                                      -89-
<PAGE>

Section 904.      EFFECT OF SUPPLEMENTAL INDENTURES.

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

Section 905.      CONFORMITY WITH TRUST INDENTURE ACT.

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

Section 906.      REFERENCE IN SECURITIES TO SUPPLEMENTAL
                  INDENTURES.

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

                                   ARTICLE TEN

                                    Covenants

Section 1001.     PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.

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

Section 1002.     MAINTENANCE OF OFFICE OR AGENCY.

                                      -90-
<PAGE>

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

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

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

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

                                      -91-
<PAGE>

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

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

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

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

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

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

                                      -92-
<PAGE>

Agent to the Trustee, such Paying Agent shall be released from all further
liability with respect to such money.

                  Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of (and
premium, if any) or interest on any Security of any series and remaining
unclaimed for one year 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 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 a newspaper
published in the English language, customarily published on each Business Day
and of general circulation in the Borough of Manhattan, The City of New York,
notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication,
any unclaimed balance of such money then remaining will be repaid to the
Company.

Section 1004.     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, and
will cause St. Paul Fire and Marine Insurance Company to preserve and keep in
full force and effect, its corporate existence and all licenses and permits
material to the normal conduct of its business; PROVIDED, HOWEVER, that the
Company shall not be required to preserve any such right or franchise if the
Board of Directors shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and that the loss
thereof is not disadvantageous in any material respect to the Holders.

Section 1005.     LIMITATION ON LIENS.

                                      -93-
<PAGE>

                  The Company will not, and will not permit any Designated
Subsidiary to, directly or indirectly, create, issue, assume, incur or guarantee
any indebtedness for money borrowed which is secured by a mortgage, pledge,
lien, security interest or other encumbrance of any nature on any of the Voting
Stock of a Designated Subsidiary unless the Outstanding Securities (together
with such other indebtedness of the Company or such Designated Subsidiary then
existing or thereafter created which is not subordinate to the Outstanding
Securities as the Company may elect) shall be secured equally and ratably with
(or prior to) such secured indebtedness for money borrowed so long as such
secured indebtedness for money borrowed shall be so secured. This Section shall
not prevent the sale or other disposition of a Designated Subsidiary.

                  For purposes of this Section, "Voting Stock" means all classes
of stock (including any and all shares, interests, participations or other
equivalents (however designated) of corporate stock) then outstanding of a
Designated Subsidiary normally entitled to vote in elections of directors. For
purposes of this Section, "Designated Subsidiary" means St. Paul Fire and Marine
Insurance Company and any other Subsidiary the assets of which, determined as of
the last day of the most recent calendar quarter ended at least 30 days prior to
the date of such determination and in accordance with generally accepted
accounting principles as in effect on the last day of such calendar quarter,
exceed 20% of the Consolidated Assets of the Company. For purposes of this
Section, "Consolidated Assets of the Company" means the assets of the Company
and its consolidated subsidiaries, to be determined as of the last day of the
most recent calendar quarter ended at least 30 days prior to the date of such
determination and in accordance with generally accepted accounting principles as
in effect on the last day of such calendar quarter.

Section 1006.     STATEMENT BY OFFICERS AS TO DEFAULT.

                  The Company will deliver to the Trustee, within 120 days after
the end of each fiscal year of the Company ending after the date hereof, an
3Officers' Certificate, stating whether or not to the best knowledge of the
signers thereof the Company is in default in the

                                      -94-
<PAGE>

performance and observance of any of the terms, provisions and conditions of
Sections 1001 to 1008, inclusive, and if the Company shall be in default,
specifying all such defaults and the nature and status thereof of which they may
have knowledge.

Section 1007.     WAIVER OF CERTAIN COVENANTS.

                  The Company may omit in any particular instance to comply with
any term, provision or condition set forth in Sections 1005 to 1007, inclusive,
with respect to the Securities of any series if before the time for such
compliance the Holders of at least a majority in principal amount of the
Outstanding Securities of such series shall, by Act of such Holders, either
waive such compliance in such instance or generally waive compliance 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.

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

                                      -95-
<PAGE>

                                 ARTICLE ELEVEN

                            Redemption of Securities

Section 1101.     APPLICABILITY OF ARTICLE.

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

Section 1102.     ELECTION TO REDEEM; NOTICE TO TRUSTEE.

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

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

                  If less than all the Securities of 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 (equal to the minimum authorized
denomination for Securities of that series or any integral multiple thereof) of
the principal amount of Securities of such series of a denomination larger than
the minimum authorized denomination for Securities of that series.

                                      -96-
<PAGE>

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

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

Section 1104.     NOTICE OF REDEMPTION.

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

                  All notices of redemption shall state:

                  (1) the Redemption Date,

                  (2) the Redemption Price,

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

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

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

                                      -97-
<PAGE>

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

Section 1105.     DEPOSIT OF REDEMPTION PRICE.

                  On or prior to any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 1003) an amount
of money sufficient to pay the Redemption Price of, and (except if the
Redemption Date shall be an Interest Payment Date) accrued interest on, all the
Securities which are to be redeemed on that date.

Section 1106.     SECURITIES PAYABLE ON REDEMPTION DATE.

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

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

Section 1107.     SECURITIES REDEEMED IN PART.

                  Any Security which is to be redeemed only in part shall be
surrendered at a Place of Payment therefor

                                      -98-
<PAGE>

(with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall authenticate and
deliver to the Holder of such Security without service charge, a new Security or
Securities of the same series and of like tenor, of any authorized denomination
as requested by such Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Security so
surrendered.

                                 ARTICLE TWELVE

                                  Sinking Funds

Section 1201.     APPLICABILITY OF ARTICLE.

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

                  The minimum amount of any sinking fund payment provided for by
the terms of Securities of any series is herein referred to as a "mandatory
sinking fund payment", and any payment in excess of such minimum amount provided
for by the terms of Securities of any series is herein referred to as an
"optional sinking fund payment". If provided for by the terms of Securities of
any series, the cash amount of any sinking fund payment may be subject to
reduction as provided in Section 1202. Each sinking fund payment shall be
applied to the redemption of Securities of any series as provided for by the
terms of Securities of such series.

Section 1202.     SATISFACTION OF SINKING FUND PAYMENTS
                  WITH SECURITIES.

                  The Company (1) may deliver Outstanding Securities of a series
(other than any previously called for redemption) and (2) may apply as a credit
Securities of a series which have been redeemed either at the election of the
Company pursuant to the terms of such

                                      -99-
<PAGE>

Securities or through the application of permitted optional sinking fund
payments pursuant to the terms of such Securities, in each case in satisfaction
of all or any part of any sinking fund payment with respect to the Securities of
such series required to be made pursuant to the terms of such Securities as
provided for by the terms of such series; PROVIDED that such Securities have not
been previously so credited. Such Securities shall be received and credited for
such purpose by the Trustee at the Redemption Price specified in such Securities
for redemption through operation of the sinking fund and the amount of such
sinking fund payment shall be reduced accordingly.

Section 1203.     REDEMPTION OF SECURITIES FOR SINKING FUND.

                  Not less than 90 days prior to each sinking fund payment date
for any series of Securities, the Company will deliver to the Trustee an
Officers' Certificate specifying the amount of the next ensuing sinking fund
payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion
thereof, if any, which is to be satisfied by delivering and crediting Securities
of that series pursuant to Section 1202 and will also deliver to the Trustee any
Securities to be so delivered. Not less than 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 1103 and cause
notice of the redemption thereof to be given in the name of and at the expense
of the Company in the manner provided in Section 1104. Such notice having been
duly given, the redemption of such Securities shall be made upon the terms and
in the manner stated in Sections 1106 and 1107.

                                ARTICLE THIRTEEN

                       Defeasance and Covenant Defeasance

Section 1301.     APPLICABILITY OF ARTICLE; COMPANY'S OPTION
                  TO EFFECT DEFEASANCE OR COVENANT DEFEASANCE.

                                     -100-
<PAGE>

                  If pursuant to Section 301 provision is made for either or
both of (a) defeasance of the Securities of a series under Section 1302 or (b)
covenant defeasance of the Securities of a series under Section 1303, then the
provisions of such Section or Sections, as the case may be, together with the
other provisions of this Article Thirteen, shall be applicable to the Securities
of such series, and the Company may at its option by Board Resolution, at any
time, with respect to the Securities of such series, elect to have either
Section 1302 (if applicable) or Section 1303 (if applicable) be applied to the
Outstanding Securities of such series upon compliance with the conditions set
forth below in this Article Thirteen.

Section 1302.     DEFEASANCE AND DISCHARGE.

                  Upon the Company's exercise of the above option applicable to
this Section, the Company shall be deemed to have been discharged from its
obligations with respect to the Outstanding Securities of such series on and
after the date the conditions precedent set forth below are satisfied
(hereinafter, "defeasance"). For this purpose, such defeasance means that the
Company shall be deemed to have paid and discharged the entire indebtedness
represented by the Outstanding Securities of such series and to have satisfied
all its other obligations under such Securities and this Indenture insofar as
such Securities are concerned (and the Trustee, at the expense of the Company,
shall execute proper instruments acknowledging the same), except for the
following which shall survive until otherwise terminated or discharged
hereunder: (A) the rights of Holders of Outstanding Securities of such series to
receive, solely from the trust fund described in Section 1304 as more fully set
forth in such Section, payments of the principal of (and premium, if any) and
interest on such Securities when such payments are due, (B) the Company's
obligations with respect to such Securities under Sections 304, 305, 306, 1002
and 1003 and such obligations as shall be ancillary thereto, (C) the rights,
powers, trusts, duties, immunities and other provisions in respect of the
Trustee hereunder and (D) this Article Thirteen. Subject to compliance with this
Article Thirteen, the Company may exercise its option under this Section 1302
notwithstanding the prior exercise of its option under

                                     -101-
<PAGE>

Section 1303 with respect to the Securities of such series. Following a
defeasance, payment of the Securities of such series may not be accelerated
because of an Event of Default.

Section 1303.     COVENANT DEFEASANCE.

                  Upon the Company's exercise of the above option applicable to
this Section, the Company shall be released from its obligations under (i)
Sections 1005 through 1007, inclusive, and Clause (5) of Section 501, (ii) the
occurrence of an event specified in Section 501(4) (with respect to any of the
Sections 1005 through 1007, inclusive) shall not be deemed an Event of Default
and (iii) any other section, clause or provision applicable to such Securities
that are determined pursuant to Section 301 to be subject to this provision with
respect to the Outstanding Securities of such series on and after the date the
conditions precedent set forth below are satisfied (hereinafter, "covenant
defeasance"). For this purpose, such covenant defeasance means that, with
respect to the Outstanding Securities of such series, 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 Section or Clause whether directly or
indirectly by reason of any reference elsewhere herein to any such Section or
Clause or by reason of any reference in any such Section or Clause to any other
provision herein or in any other document, but the remainder of this Indenture
and such Securities shall be unaffected thereby. Following a covenant
defeasance, payment of the Securities of such series may not be accelerated
because of an Event of Default specified in Section 501(5) or by reference to
such other Sections specified above in this Section 1303.

Section 1304.     CONDITIONS TO DEFEASANCE OR COVENANT
                  DEFEASANCE.

                  The following shall be the conditions precedent to application
of either Section 1302 or Section 1303 to the Outstanding Securities of such
series:

                  (1) the Company shall irrevocably have deposited or caused to
         be deposited with the Trustee (or another trustee satisfying the
         Trustee (or another trustee satisfying the

                                     -102-
<PAGE>

         requirements of Section 609 who shall agree to comply with the
         provisions of this Article Thirteen applicable to it) as trust funds in
         trust for the purpose of making the following payments, specifically
         pledged as security for, and dedicated solely to, the benefit of the
         Holders of such Securities, (A) money in an amount, or (B) U.S.
         Government Obligations which through the scheduled payment of principal
         and interest in respect thereof in accordance with their terms will
         provide, not later than one day before the due date of any payment,
         money in an amount, or (C) a combination thereof, sufficient, without
         reinvestment, in the opinion of a nationally recognized firm of
         independent public accountants expressed in a written certification
         thereof delivered to the Trustee, to pay and discharge, and which shall
         be applied by the Trustee (or other qualifying trustee) to pay and
         discharge, (i) the principal of (and premium, if any) and interest on
         the Outstanding Securities of such series to maturity or redemption, as
         the case may be, and (ii) any mandatory sinking fund payments or
         analogous payments applicable to the Outstanding Securities of such
         series on the due dates thereof. Before such a deposit the Company may
         make arrangements satisfactory to the Trustee for the redemption of
         Securities at a future date or dates in accordance with Article Eleven,
         which shall be given effect in applying the foregoing. For this
         purpose, "U.S. Government Obligations" means securities that are (x)
         direct obligations of the United States of America for the payment of
         which its full faith and credit is pledged or (y) obligations of a
         Person controlled or supervised by and acting as an agency or
         instrumentality of the United States of America the payment of which is
         unconditionally guaranteed as a full faith and credit obligation by the
         United States of America, which, in either case, are not callable or
         redeemable at the option of the issuer thereof, and shall also include
         a depository receipt issued by a bank (as defined in Section 3(a)(2) of
         the Securities Act of 1933, as

                                      -103-
<PAGE>

         amended) as custodian with respect to any such U.S. Government
         obligation or a specific payment of principal of or interest on any
         such U.S. Government Obligation held by such custodian for the account
         of the holder of such depository receipt, provided that
         (except as required by law) such custodian is not authorized to make
         any deduction from the amount payable to the holder of such depository
         receipt from any amount received by the custodian in respect of the
         U.S. Government Obligation or the specific payment of principal of or
         interest on the U.S. Government Obligation evidenced by such depository
         receipt.

                  (2) No Event of Default or event which with notice or lapse of
         time or both would become an Event of Default with respect to the
         Securities of such series shall have occurred and be continuing (A) on
         the date of such deposit or (B) insofar as subsections 501(6) and (7)
         are concerned, at any time during the period ending on the 121st day
         after the date of such deposit or, if longer, ending on the day
         following the expiration of the longest preference period applicable to
         the Company in respect of such deposit (it being understood that the
         condition in this clause (B) is a condition subsequent and shall not be
         deemed satisfied until the expiration of such period).

                  (3) Such defeasance or covenant defeasance shall not (A) cause
         the Trustee for the Securities of such series to have a conflicting
         interest as defined in Section 608 or for purposes of the Trust
         Indenture Act with respect to any securities of the Company or (B)
         result in the trust arising from such deposit to constitute, unless it
         is qualified as, a regulated investment company under the Investment
         Company Act of 1940, as amended.

                  (4) Such defeasance or covenant defeasance shall not result in
         a breach or violation of, or constitute a default under, this Indenture
         or

                                     -104-
<PAGE>

         any other agreement or instrument to which the Company is a party or by
         which it is bound.

                  (5) In the case of an election under Section 1302, 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 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 the Outstanding Securities of such
         series 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 time
         as would have been the case if such defeasance had not occurred.

                  (6) In the case of an election under Section 1303, the Company
         shall have delivered to the Trustee an Opinion of Counsel to the effect
         that the Holders of the Outstanding Securities of such series 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.

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

                  (8) 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 1302 or the covenant defeasance under Section 1303 (as
         the case may be) have been complied with.

                                     -105-
<PAGE>

Section 1305.     DEPOSITED MONEY AND U.S. GOVERNMENT
                  OBLIGATIONS TO BE HELD IN TRUST; OTHER MISCELLANEOUS
                  PROVISIONS.

                  Subject to the provisions of the last paragraph of Section
1003, all money and U.S. Government Obligations (including the proceeds thereof)
deposited with the Trustee (or other qualifying trustee -- collectively, for
purposes of this Section 1305, the "Trustee") pursuant to Section 1304 in
respect of the Outstanding Securities of such series shall be held in trust and
applied by the Trustee, in accordance with the provisions of such Securities and
this Indenture, to the payment, either directly or through any Paying Agent (but
not including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Securities, of all sums due and to become due
thereon in respect of principal (and premium, if any) and interest, but such
money need not be segregated from other funds except to the extent required by
law.

                  The Company shall pay and indemnify the Trustee against any
tax, fee or other charge imposed on or assessed against the money or U.S.
Government Obligations deposited pursuant to Section 1304 or the principal and
interest received in respect thereof.

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

Section 1306.     REINSTATEMENT.

                  If the Trustee or the Paying Agent is unable to apply any
money in accordance with Section 1302 or 1303 by reason of any order or judgment
or any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Company's obligations under the
Securities of such series

                                     -106-
<PAGE>

shall be revived and reinstated as though no deposit had occurred pursuant to
this Article Thirteen until such time as the Trustee or Paying Agent is
permitted to apply all such money in accordance with Section 1302 or 1303;
PROVIDED, HOWEVER, that if the Company makes any payment of principal of (and
premium, if any) any such Security following the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Securities to receive such payment from the money held by the Trustee or
the Paying Agent.

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

                                     -107-
<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.

                          THE ST. PAUL COMPANIES, INC.

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

Attest:

---------------------------
Title:  Corporate Secretary

                            THE CHASE MANHATTAN BANK

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

Attest:

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

                                     -108-
<PAGE>

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

                  On the o day of o, o, before me personally came o, to me
known, who, being by me duly sworn, did depose and say that he is o of The
St. Paul Companies, Inc., one of the corporations described in and which
executed the foregoing instrument; that he knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Board of Directors of said
corporation, and that he signed his name thereto by like authority.

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

                                     -109-
<PAGE>

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

                  On the o day of o, o, before me personally came o, to me
known, who, being by me duly sworn, did depose and say that she is o of The
Chase Manhattan Bank, one of the corporations described in and which executed
the foregoing instrument; [that o knows the seal of said corporation; that the
seal affixed to said instrument is such corporate seal; that it was so affixed
by authority of the Board of Directors of said corporation, and that she signed
her name thereto by like authority.]

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

                                     -110-<PAGE>

                                                                   Exhibit 4.02
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------

                        NATURAL MICROSYSTEMS CORPORATION

                                     Issuer

                                    INDENTURE

                           Dated as of ______________

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

                                     Trustee

             Providing for the Issuance of Debt Securities in Series

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

<PAGE>

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

                              CROSS-REFERENCE TABLE

<TABLE>
<CAPTION>

     -------------------------------- -----------------------------------
              TIA SECTION                   INDENTURE SECTION
     -------------------------------- -----------------------------------
<S>                                    <C>
                 310(a)(1)                         7.10
     -------------------------------- -----------------------------------
                 310(a)(2)                         7.10
     -------------------------------- -----------------------------------
                 310(a)(3)                         N.A.
     -------------------------------- -----------------------------------
                 310(a)(4)                         N.A.
     -------------------------------- -----------------------------------
                 310(a)(5)                         N.A.
     -------------------------------- -----------------------------------
                 310(b)                         7.08; 7.10
     -------------------------------- -----------------------------------
                 310(c)                            N.A.
     -------------------------------- -----------------------------------
                 311(a)                            7.11
     -------------------------------- -----------------------------------
                 311(b)                            7.11
     -------------------------------- -----------------------------------
                 312(a)                            2.05
     -------------------------------- -----------------------------------
                 312(b)                           13.03
     -------------------------------- -----------------------------------
                 312(c)                           13.03
     -------------------------------- -----------------------------------
                 313(a)                            7.06
     -------------------------------- -----------------------------------
                 313(b)(1)                         N.A.
     -------------------------------- -----------------------------------
                 313(b)(2)                         7.06
     -------------------------------- -----------------------------------
                 313(c)                            7.06
     -------------------------------- -----------------------------------
                 313(d)                            7.06
     -------------------------------- -----------------------------------
                 314(a)                            4.04
     -------------------------------- -----------------------------------

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

     -------------------------------- -----------------------------------
              TIA SECTION                   INDENTURE SECTION
     -------------------------------- -----------------------------------
<S>                                    <C>
                 314(b)                            N.A.
     -------------------------------- -----------------------------------
                 314(c)(1)                        13.04
     -------------------------------- -----------------------------------
                 314(c)(2)                        13.04
     -------------------------------- -----------------------------------
                 314(c)(3)                         N.A.
     -------------------------------- -----------------------------------
                 314(d)                            N.A.
     -------------------------------- -----------------------------------
                 314(e)                           13.05
     -------------------------------- -----------------------------------
                 314(f)                            N.A.
     -------------------------------- -----------------------------------
                 314(a)                            7.01(b)
     -------------------------------- -----------------------------------
                 315(b)                            7.05
     -------------------------------- -----------------------------------
                 315(c)                            7.01(a)
     -------------------------------- -----------------------------------
                 315(d)                            7.01(c)
     -------------------------------- -----------------------------------
                 315(e)                            6.12
     -------------------------------- -----------------------------------
         316(a) (last sentence)                   13.06
     -------------------------------- -----------------------------------
                 316(a)(1)(A)                      6.09
     -------------------------------- -----------------------------------
                 316(a)(1)(B)                      6.10
     -------------------------------- -----------------------------------
                 316(a)(2)                         N.A.
     -------------------------------- -----------------------------------
                 316(b)                            6.07
     -------------------------------- -----------------------------------
                 317(a)(1)                         6.04
     -------------------------------- -----------------------------------
                 317(a)(2)                         6.04
     -------------------------------- -----------------------------------
                 317(b)                            2.04
     -------------------------------- -----------------------------------
                 318(a)                           13.01
     -------------------------------- -----------------------------------

</TABLE>

N.A.  means Not Applicable

Note: This cross-reference table is not part of the Indenture.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                               Page
<S>               <C>                                                                                         <C>
ARTICLE ONE             DEFINITIONS AND INCORPORATION BY REFERENCE                                                1
   Section 1.01.  Definitions                                                                                     1
   Section 1.02.  Incorporation by Reference of Trust Indenture Act                                               6
   Section 1.03.  Rules of Construction                                                                           7

ARTICLE TWO             THE SECURITIES                                                                            7
   Section 2.01.  Terms and Form                                                                                  7
   Section 2.02.  Execution and Authentication                                                                   11
   Section 2.03.  Registrar, Paying Agent and Conversion Agent                                                   14
   Section 2.04.  Paying Agent to Hold Money in Trust                                                            14
   Section 2.05.  Securityholder Lists                                                                           14
   Section 2.06.  Transfer, Registration and Exchange                                                            15
   Section 2.07.  Replacement Securities                                                                         17
   Section 2.08.  Outstanding Securities                                                                         18
   Section 2.09.  Temporary Securities                                                                           19
   Section 2.10.  Securities in Global Form                                                                      19
   Section 2.11.  Cancellation                                                                                   20
   Section 2.12.  Defaulted Interest                                                                             20
   Section 2.13.  Persons Deemed Owners                                                                          21
   Section 2.14.  CUSIP Numbers                                                                                  21

ARTICLE THREE           REDEMPTION                                                                               22
   Section 3.01.  Applicability of Article                                                                       22
   Section 3.02.  Notice to Trustee                                                                              22
   Section 3.03.  Selection of Securities to Be Redeemed                                                         23
   Section 3.04.  Notice of Redemption                                                                           23
   Section 3.05.  Effect of Notice of Redemption                                                                 24
   Section 3.06.  Deposit of Redemption Price or Securities                                                      25
   Section 3.07.  Securities Redeemed in Part                                                                    25

ARTICLE FOUR            COVENANTS                                                                                26
   Section 4.01.  Payment of Securities                                                                          26
   Section 4.02.  Maintenance of Office or Agency                                                                26
   Section 4.03.  Money for Securities Payments to Be Held in Trust                                              27
   Section 4.04.  SEC Reports                                                                                    29
   Section 4.05.  Statement as to Compliance                                                                     29
   Section 4.08.  Additional Amounts                                                                             30
   Section 4.10.  Information Regarding Original Issue Discount                                                  30

ARTICLE FIVE            SUCCESSOR CORPORATION AND ASSUMPTION                                                     31
   Section 5.01.  When Company May Merge, etc.                                                                   31

</TABLE>

                                       i
<PAGE>

<TABLE>

<S>               <C>                                                                                         <C>
   Section 5.02.  Successor Corporation Substituted                                                              31

ARTICLE SIX             DEFAULTS AND REMEDIES                                                                    32
   Section 6.01.  Events of Default                                                                              32
   Section 6.02.  Collection of Indebtedness by Trustee; Trustee May Prove Debt                                  34
   Section 6.03.  Application of Proceeds                                                                        36
   Section 6.04.  Suits for Enforcement                                                                          37
   Section 6.05.  Restoration of Rights on Abandonments of Proceedings                                           37
   Section 6.06.  Limitations on Suits by Securityholders                                                        37
   Section 6.07.  Unconditional Right of Securityholder to Institute Certain Suits                               38
   Section 6.08.  Powers and Remedies Cumulative; Delay or Omission Not Waiver of Default                        38
   Section 6.09.  Control by Holders of Securities                                                               38
   Section 6.10.  Waiver of Past Defaults                                                                        38
   Section 6.11.  Trustee to Give Notice of Default, But May Withhold in Certain Circumstances                   40
   Section 6.12.  Right of Court to Require Filing of Undertaking to Pay Costs                                   40

ARTICLE SEVEN           TRUSTEE                                                                                  41
   Section 7.01.  Duties of Trustee                                                                              41
   Section 7.02.  Rights of Trustee                                                                              42
   Section 7.03.  Individual Rights of Trustee                                                                   43
   Section 7.04.  Trustee's Disclaimer                                                                           44
   Section 7.05.  Notice of Defaults                                                                             44
   Section 7.06.  Reports by Trustee to Holders                                                                  44
   Section 7.07.  Compensation and Indemnity                                                                     44
   Section 7.08.  Replacement of Trustee                                                                         45
   Section 7.09.  Successor Trustee by Merger, etc.                                                              46
   Section 7.10.  Eligibility; Disqualification                                                                  46
   Section 7.11.  Preferential Collection of Claims against Company                                              46

ARTICLE EIGHT           DISCHARGE OF INDENTURE                                                                   47
   Section 8.01.  Discharge                                                                                      47
   Section 8.02.  Defeasance and Covenant Defeasance                                                             48
   Section 8.03.  Application of Trust Money                                                                     49
   Section 8.04.  Repayment to Company                                                                           50
   Section 8.05.  Reinstatement                                                                                  50
   Section 8.06.  Indemnity for Government Obligations                                                           50

ARTICLE NINE            AMENDMENTS, SUPPLEMENTS AND WAIVERS                                                      50
   Section 9.01.  Without Consent of Holders                                                                     50
   Section 9.02.  With Consent of Holders                                                                        52
   Section 9.03.  Compliance with Trust Indenture Act                                                            54
   Section 9.04.  Revocation and Effect of Consents                                                              54

</TABLE>

                                       ii
<PAGE>

<TABLE>

<S>               <C>                                                                                         <C>
   Section 9.05.  Notation on or Exchange of Securities                                                          54
   Section 9.06.  Trustee to Sign Amendments, etc.                                                               54

ARTICLE TEN             REPAYMENT AT THE OPTION OF HOLDERS                                                       55
   Section 10.01.  Applicability of Article                                                                      55

ARTICLE ELEVEN          CONCERNING THE SECURITYHOLDERS                                                           55
   Section 11.01.  Evidence of Action Taken by Securityholders                                                   55
   Section 11.02.  Proof of Execution of Instruments and of Holding of Securities                                56
   Section 11.03.  Holders to be Treated as Owners                                                               57
   Section 11.04.  Securities Owned by Company Deemed Not Outstanding                                            57
   Section 11.05.  Right of Revocation of Action Taken                                                           58
   Section 11.06.  Meetings of Holders                                                                           58
   Section 11.07.  Call, Notice and Place of Meetings                                                            59
   Section 11.08.  Persons Entitled to Vote at Meetings                                                          59
   Section 11.09.  Quorum; Action                                                                                59
   Section 11.10.  Determination of Voting Rights; Conduct and Adjournment of Meetings                           60
   Section 11.11.  Counting Votes and Recording Action of Meetings                                               61

ARTICLE TWELVE          SINKING FUNDS                                                                            62
   Section 12.01.  Applicability of Article                                                                      62
   Section 12.02.  Satisfaction of Sinking Fund Payments with Securities                                         62
   Section 12.03.  Redemption of Securities for Sinking Fund                                                     63

ARTICLE THIRTEEN        MISCELLANEOUS                                                                            63
   Section 13.01.  Trust Indenture Act Controls                                                                  63
   Section 13.02.  Notices                                                                                       63
   Section 13.03.  Communication by Holders with Other Holders                                                   65
   Section 13.04.  Certificate and Opinion as to Conditions Precedent                                            65
   Section 13.05.  Statements Required in Certificate or Opinion                                                 65
   Section 13.06.  When Treasury Securities Disregarded                                                          66
   Section 13.07.  Legal Holidays                                                                                66
   Section 13.08.  Governing Law                                                                                 66
   Section 13.09.  No Adverse Interpretation of Other Agreements                                                 67
   Section 13.10.  Successors                                                                                    67
   Section 13.11.  No Recourse Against Others                                                                    67
   Section 13.12.  Duplicate Originals                                                                           67
   Section 13.13.  Separability                                                                                  67
   Section 13.14.  Securities in Foreign Currencies                                                              67

</TABLE>

                                      iii
<PAGE>

         INDENTURE dated as of ___________, between Natural MicroSystems
Corporation, a corporation incorporated under the laws of Delaware (the
"Company"), and ________________, a ___________ banking corporation, as trustee
hereunder ("Trustee").

         Each party agrees as follows for the benefit of the other parties and
for the equal and ratable benefit of the Holders of the Company's Securities
issued hereunder:

                                    RECITALS

         The Company has 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 ("Securities") to be issued in one or more
series as herein provided.

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

                                   ARTICLE ONE
                   DEFINITIONS AND INCORPORATION BY REFERENCE

         Section 1.01. DEFINITIONS.

         "Additional Amounts" means any additional amounts which are required by
a Security or by or pursuant to a Board Resolution, under circumstances
specified therein, to be paid by the Company in respect of certain taxes imposed
on Holders who are not United States Persons, or as otherwise specified in the
terms of a Security established pursuant to Section 2.01, and which are owing to
such Holders.

         "Agent" means any Registrar, Paying Agent or co-Registrar or agent for
service of notice and demands. See Section 2.03.

         "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 the meanings correlative to
the foregoing.

         "Authorized Newspaper" means a newspaper printed in the official
language or in the English language of the country of publication and
customarily published at least once a day on each Business Day in each calendar
week and of general circulation in New York, New York or in any other place as
required in this Indenture, whether or not such newspaper is published on Legal
Holidays, or, with respect to the Securities of any series, such other
newspaper(s), as may

                                       1
<PAGE>

be specified in or pursuant to the Board Resolution of the Company or supplement
to this Indenture pursuant to which such series of Securities is issued.
Whenever, under the provisions of this Indenture or such Board Resolutions, two
or more publications of a notice or other communication are required or
permitted, such publications may be in the same or different newspapers. If,
because of temporary or permanent suspension of publication or general
circulation of any newspaper or for any other reason, it is impossible or
impracticable to publish any notices required by this Indenture or a Board
Resolution in the manner provided, then such publication in lieu thereof or such
other notice as shall be made with the approval of the Trustee shall constitute
a sufficient publication of such notice.

         "Bankruptcy Law" shall have the meaning set forth in Section 7.07.

         "Bearer Security" means any Security in the form established pursuant
to Section 2.01 which is payable to bearer.

         "Board of Directors" means the Board of Directors of the Company or the
Executive Committee or any other committee of the Board of Directors duly
authorized to act for the Company hereunder.

         "Board Resolution" means a copy of the resolutions certified by the
Secretary or an Assistant Secretary of the Company as properly adopted by the
Board of Directors of the Company and in full force and effect and delivered to
the Trustee.

         "Business Day", except as may otherwise be provided in the form of
Securities of any particular series pursuant to the provisions of this
Indenture, with respect to any Place of Payment means each Monday, Tuesday,
Wednesday, Thursday and Friday which is not a Legal Holiday in that Place of
Payment.

         "Capital Stock" means any and all shares, interests, rights to
purchase, warrants, options, participations or other equivalents of or interests
in (however designated) corporate stock.

         "Company" means the party named in the first paragraph of this
Indenture until a successor replaces it pursuant to the Indenture and thereafter
means such successor.

         "Company Request" and "Company Order" mean, respectively, a written
request or order signed in the name of the Company by the Chairman of the Board,
the President, the Chief Financial Officer or the Treasurer thereof or any other
officer specifically authorized to act by the Board of Directors of the Company
as certified to the Trustee, and delivered to the Trustee.

         "Conversion Agent" shall have the meaning set forth in Section 2.03.

         "Corporate Trust Office" means the office of the Trustee at which at
any particular time its corporate trust business shall be principally
administered, which office at the date hereof is

                                       2
<PAGE>

located at ________________, _______________, ________________, Attention:
Corporate Trust Administration, Re: Natural MicroSystems Corporation.

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

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

         "Covenant Defeasance" shall have the meaning set forth in Section 8.02.

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

         "Defeasance" shall have the meaning set forth in Section 8.02.

         "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 6.01.

         "Event of Default" shall have the meaning set forth in Section 6.01.

         "Government Obligations" with respect to any series of Securities means
direct noncallable obligations of the government which issued the currency in
which the Securities of that series are denominated, noncallable obligations the
payment of the principal of and interest on which is fully guaranteed by such
government, and noncallable obligations on which the full faith and credit of
such government is pledged to the payment of the principal thereof and interest
thereon, and shall also include a depositary 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 such depositary 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 depositary
receipt from any amount received by the custodian in respect of the Government
Obligation or the specific payment of interest on or principal of the Government
Obligation evidenced by such depositary receipt.

         "Holder" or "Securityholder" means, with respect to a Registered
Security, a Person in whose name such Security is registered on the Security
Register and, with respect to a Bearer Security or any coupon, the bearer
thereof.

         "Indenture" means this Indenture, as it may from time to time be
amended or supplemented and shall include the forms and terms of particular
series of Securities established as contemplated herein.

                                       3
<PAGE>

         "Independent Public Accountants" means independent public accountants
or a firm of independent public accountants who may be the independent public
accountants regularly retained by the Company or who may be other independent
public accountants. Such public accountants or firm shall be entitled to rely
upon any Opinion of Counsel as to the interpretation of any legal matters
relating to the Indenture or certificates required to be provided hereunder.

         "Legal Holiday" shall have the meaning set forth in Section 13.07.

         "Lien" means any mortgage, pledge, security interest or lien, or other
encumbrance of any nature whatsoever.

         "Notice of Default" shall have the meaning set forth in Section 6.01.

         "Officer" means the Chairman of the Board, the President, any Vice
President, the Treasurer or Secretary thereof or any other officer specifically
authorized to act by the Board of Directors of the Company.

         "Officers' Certificate" means a certificate signed by two Officers or
by an Officer other than the Secretary and an Assistant Treasurer or an
Assistant Secretary of the Company.

         "Opinion of Counsel" means a written opinion of legal counsel, who
(except as otherwise expressly provided in this Indenture) may be an employee of
or counsel to or for the Company, or any other legal counsel acceptable to the
Trustee.

         "Outstanding", when used with respect to Securities or a series, shall
have the meaning set forth in Section 2.08.

         "Paying Agent" shall have the meaning set forth in Section 2.03.

         "Periodic Offering" means an offering of Securities of a series from
time to time the specific terms of which Securities, including, without
limitation, the rate or rates of interest, if any, thereon, the maturity or
maturities thereof, the original issue date or dates thereof, the redemption
provisions, if any, and any other terms specified as contemplated by Section
2.01 with respect thereto, are to be determined by the Company, or one or more
of the Company's agents designated in an Officers' Certificate, upon the
issuance of such Securities.

         "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" when used with respect to the Securities of any
series, means the place or places where the principal of and interest and any
Additional Amounts on the Securities of that series are payable as specified as
provided pursuant to Section 2.01.

                                       4
<PAGE>

         "Principal" whenever used with reference to the Securities or any
Security or any portion thereof, shall be deemed to include "and premium, if
any," and, whenever used with reference to any Security which by its terms
provides (or as to which mandatory provisions of law provide) that less than the
principal amount thereof shall be due and payable upon a declaration of the
acceleration of the maturity thereof, and in the contexts of such a declaration,
of proving a claim under bankruptcy, insolvency or similar laws, or of
determining whether the holders of the requisite aggregate principal amount of
the Securities of any or all series then Outstanding have concurred in any
request, demand, authorization, direction, notice, consent, waiver or other
action by Securityholders hereunder, shall mean the portion of such principal
amount so provided to be due and payable upon a declaration of acceleration of
the maturity thereof.

         "Redemption Date" means the date fixed for redemption of any Security
to be redeemed pursuant to this Indenture.

         "Redemption Price" means the principal amount of any Security to be
redeemed.

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

         "Registrar" shall have the meaning set forth in Section 2.03.

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

         "Securities" means the debt securities, as amended or supplemented from
time to time pursuant to this Indenture, that are issued under this Indenture.

         "Security Register" shall have the meaning set forth in Section 2.03.

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

         "TIA" means the Trust Indenture Act of 1939 (15 U.S. Code Section
77aaa-77bbbb), as amended from time to time.

         "Trustee" means the party named as such in this Indenture until a
successor replaces it pursuant to this Indenture and thereafter means such
successor.

         "Trust Officer" means any officer within the corporate trust department
of the Trustee, including any vice president, assistant vice president,
assistant secretary, assistant treasurer, trust

                                       5
<PAGE>

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

         "United States" means the United States of America (including the
States and the District of Columbia), its territories and possessions and other
areas subject to its jurisdiction.

         "U.S. Depository" or "Depository" means, with respect to the Securities
of any series issuable or issued in whole or in part in the form of one or more
global Securities, the Person designated as U.S. Depository pursuant to Section
2.01, which must be a clearing agency registered under the Securities Exchange
Act of 1934, as amended, and, if so provided pursuant to Section 2.01 with
respect to the Securities of any series, any successor to such Person. If at any
time there is more than one such Person, "U.S. Depository" shall mean, with
respect to any series of Securities, the qualifying entity which has been
appointed with respect to the Securities of that series.

         "Voting Stock" means stock of a Corporation of the class or classes
having general voting power under ordinary circumstances in the election of
directors, managers or trustees of such 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 on a series of
Securities at the most recent redetermination of interest on such series, and
calculated in accordance with accepted financial practice.

         Section 1.02. INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.

         Whenever this Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

         "Commission" means the SEC.

         "Indenture Securities" means the Securities.

         "Indenture Security Holder" means a Securityholder.

         "Indenture to be Qualified" means this Indenture.

         "Indenture Trustee" or "institutional trustee" means the Trustee.

                                       6
<PAGE>

         "Obligor" on the indenture securities means the Company or any other
obligor on the Securities.

         All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule have the
meanings thereby assigned to them.

         Section 1.03.  RULES OF CONSTRUCTION.

         Unless the context otherwise requires:

                  (1) a term has the meaning assigned to it;

                  (2) "or" is not exclusive;

                  (3) words in the singular include the plural, and in the
plural include the singular;

                  (4) an accounting term not otherwise defined has the meaning
assigned to it in accordance with United States generally accepted accounting
principles; and

                  (5) the Article and Section headings herein and in the Table
of Contents are for convenience only and do not constitute a part of this
Indenture and shall not affect the meaning, construction or effect of this
Indenture.

                                   ARTICLE TWO
                                 THE SECURITIES

         Section 2.01. TERMS AND FORM.

         The aggregate principal amount of Securities that may be authenticated
and delivered under this Indenture is unlimited. The Securities may be issued in
one or more series of Securities and shall bear the title, interest, if any, at
the rates and from the dates, shall mature at the times, may be redeemable at
the prices and upon the terms, shall be denominated and payable at the place or
places and in the currency or currencies (which may be other than United States
dollars), including composite currencies, and shall contain or be subject to
such other terms as shall be approved by or pursuant to a Board Resolution of
the Company, Officers' Certificate, or in one or more supplements to this
Indenture.

         The Securities of each series hereunder shall be in one or more forms
approved from time to time by or pursuant to a Board Resolution of the Company,
Officers' Certificate, or in one or more supplements to this Indenture
establishing the following:

                                       7
<PAGE>

                  (1) the title or designation of the Securities and the series
in which such Securities shall be included (which, unless such Securities
constitute part of a series of Securities previously issued, shall distinguish
the Securities of the series from all other Securities);

                  (2) any limit upon the aggregate principal amount of the
Securities of such title or the Securities of such series which may be
authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration or transfer of, or in exchange
for, or in lieu of, other Securities of the series pursuant to Sections 2.06,
2.07, 2.09 or 3.07);

                  (3) 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 and
the terms upon which Bearer Securities of the series may be exchanged for
Registered Securities of the series; and whether any Securities of the series
are to be issuable initially in global form and, if so, (i) whether beneficial
owners of interests in any such global Security may exchange such interest 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 specified in Section 2.09 and (ii) the name of the
Depository or the U.S. Depository, as the case may be, with respect to any
global Security;

                  (4) 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;

                  (5) if Securities of the series are to be issuable as Bearer
Securities, whether interest in respect of any portion of a temporary Bearer
Security in global form (representing all of the Outstanding Bearer Securities
of the series) payable in respect of any date or dates prior to the exchange of
such temporary Bearer Security for definitive Securities of the series shall be
paid to any clearing organization with respect to the portion of such temporary
Bearer Security held for its account and, in such event, the terms and
conditions (including any certification requirements) upon which any such
interest payment received by a clearing organization will be credited to the
Persons entitled to interest payable on such date or dates;

                  (6) the date or dates on which the principal, and premium, if
applicable, of such Securities is payable;

                  (7) the rate or rates (including the rate or rates at which
overdue principal shall bear interest, if different from the rate or rates at
which such Securities shall bear interest prior to maturity and, if applicable,
the rate or rates at which overdue premium or interest shall bear interest, if
any) at which such Securities shall bear interest, if any, or the method in
which such rate or rates are determined, the date or dates from which such
interest shall accrue, the dates on which such interest shall be payable and the
record date for Holders entitled to the interest payable on Registered
Securities on any such date, whether and under what

                                       8
<PAGE>

circumstances Additional Amounts on such Securities shall be payable and, if so,
whether the Company has the option to redeem the affected Securities rather than
pay such Additional Amounts, and the basis upon which interest shall be
calculated if other than as otherwise provided in this Indenture;

                  (8) the place or places, if any, in addition to or other than
__________ _________________, _________ where the principal of and interest on
or Additional Amounts, if any, payable in respect of such Securities shall be
payable;

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

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

                  (11) the denominations in which Registered Securities of the
series, if any, shall be issuable, and the denominations in which Bearer
Securities of the series, if any, shall be issuable, in either case if other
than as otherwise provided in this Indenture;

                  (12) if other than the principal amount thereof, the portion
of the principal amount of such Securities which shall be payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.01;

                  (13) if other than such coin or currency of the United States
of America as at the time of payment is legal tender for payment of public or
private debts, the coin or currency, including composite currencies, in which
payment of the principal of or interest, if any, and any Additional Amounts in
respect of such Securities shall be payable and whether the Securities of the
series may be discharged other than as provided in Article 8;

                  (14) if the principal of or interest, if any, and any
Additional Amounts in respect of such Securities are to be payable, at the
election of the Company or a Holder thereof, in a coin or currency, including
composite currencies, other than that in which the Securities are stated to be
payable, the period or periods within which, and the terms and conditions upon
which, such election may be made;

                  (15) if the amount of payments of principal of or interest, if
any, or any Additional Amounts in respect of such Securities may be determined
with reference to an index, formula or other method based on a coin or currency
other than that in which the Securities are stated to be payable, the manner in
which such amounts shall be determined including the

                                       9
<PAGE>

purpose of determining the principal amount of such Securities deemed to be
outstanding at any time;

                  (16) if the Securities of such 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, then the form and terms of such
certificates, documents or conditions;

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

                  (18) any events of default, other than those set forth in
Section 6.01, or covenants, other than those set forth in Article 4, with
respect to Securities of such series;

                  (19) the terms and conditions, if any, upon which the
Securities shall be subordinated in right of payment to other indebtedness of
Natural MicroSystems;

                  (21) the terms applicable to any Securities issued at a
discount from their stated principal amount;

                  (22) the trustees, depositaries, authenticating or paying
agents, transfer agents or registrars of the Securities; and

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

         If the form of the Security of any series is approved by or pursuant to
a Board Resolution of the Company, an Officers' Certificate or in one or more
supplements to this Indenture, an Officers' Certificate of the Company delivered
to the Trustee shall state that all conditions precedent relating to the
authentication and delivery of such Security have been complied with and shall
be accompanied by a copy of the Board Resolution of the Company by or pursuant
to which the form of such Security has been approved. The Securities may have
notations, legends or endorsements required by law, stock exchange rule or
usage. Each Security shall be dated the date of its authentication. Each
Security may contain any other terms as are not inconsistent with the provisions
of this Indenture.

         All Securities of any one series and coupons appertaining to Bearer
Securities of such series, if any, shall be substantially identical except as to
denomination and the rate or rates of interest, if any, the time or times at
which the principal thereof may be payable, the date from which interest, if
any, shall accrue and except as may otherwise be provided in or pursuant to such
Board Resolution, Officers' Certificate or in one or more supplements to this
Indenture, and

                                       10
<PAGE>

set forth in the Officers' Certificate hereinabove described or in any such
indenture supplemental hereto. All Securities of any one series need not be
issued at the same time and, unless otherwise provided, a series may be reopened
for issuances of additional Securities of such series or to establish additional
terms of such series of Securities.

         The Securities of each series may be issued as Registered Securities
without coupons or, if provided by the terms of the instrument establishing such
series of Securities, as Bearer Securities, with or without coupons and, in
either case, may be issued initially, temporarily or permanently in global form
(as provided in Section 2.10). Unless the form of a Security for a series
provides otherwise, the Registered Securities shall be issued in denominations
of $1,000 or integral multiples thereof and Bearer Securities shall be issuable
in the denomination of $5,000.

         Except as otherwise specified as contemplated by this Section 2.01 for
Securities of any series, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.

         Section 2.02.  EXECUTION AND AUTHENTICATION.

         An Officer of the Company shall sign the Securities and the coupons for
the Company by manual or facsimile signature. The Company's seal, if any, may be
reproduced on the Securities, but the Company's seal shall not be required to be
included on the Securities.

         If an Officer whose signature is on a Security or coupon no longer
holds that office at the time the Trustee authenticates the Security, the
Security and coupon shall be valid and binding on the Company nevertheless.

         The aggregate principal amount of Securities Outstanding hereunder at
any time shall be unlimited except that such Outstanding amount (exclusive of
any premium) may not exceed the amount authorized from time to time by the Board
of Directors of the Company and except as provided in Section 2.07. Upon receipt
of a Company Order for the authentication and delivery of Securities of a
series, the Trustee shall authenticate and deliver for original issue Securities
of a series as to which an Officers' Certificate of the Company or a
supplemental indenture has been delivered to the Trustee pursuant to Section
2.01.

         No Security or any coupon appertaining thereto shall be valid until the
Trustee or the authenticating agent referred to below manually signs the
certificate of authentication on the Security. Each Registered Security shall be
dated the date of its authentication. Bearer Securities and any temporary Bearer
Security in global form shall be dated as specified in the Officers' Certificate
of the Company or in the supplements to this Indenture contemplated by Section
2.01. The signature of the Trustee or the authenticating agent referred to below
shall be conclusive evidence that the Security has been authenticated under this
Indenture.

                                       11
<PAGE>

         The Trustee may appoint an authenticating agent to authenticate
Securities. An authenticating agent may authenticate Securities whenever the
Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. An authenticating agent has the
same rights as an Agent to deal with the Company or an Affiliate thereof.

         Except as permitted by Section 2.07, the Trustee shall not authenticate
and deliver any Bearer Security unless all appurtenant coupons for interest then
matured have been detached and canceled.

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

         Dated:

                     Trustee's Certificate of Authentication

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

                                          [________________________],
                                          as Trustee

                                          By   ________________________
                                               Authorized Signatory

         If the forms and terms of the Securities of the series and any related
coupons have been established in or pursuant to one or more Officers'
Certificates as permitted by Section 2.01 and 2.02, in authenticating such
Securities and accepting the additional responsibilities under this Indenture in
relating to such Securities the Trustee shall be entitled to receive, and
(subject to Section 7.01) shall be fully protected in relying upon an Opinion of
Counsel to the effect that:

         (a) the form and terms of such Securities and coupons, if any, have
been duly authorized and established pursuant to Sections 2.01 and 2.02 and
comply with this Indenture, and

         (b) such Securities, when authenticated and delivered by the Trustee
and issued by the Company, and such coupons, if any, when issued by the Company,
in the manner and subject to any conditions specified in such Opinion of
Counsel, will constitute valid and legally binding obligations of the Company,
enforceable in accordance with their terms, subject to customary exceptions,
provided, however, that, with respect to Securities of a series subject to a
Periodic Offering, the Trustee shall be entitled to receive such Opinion of
Counsel only once at or prior to

                                       12
<PAGE>

the time of the first authentication of Securities of such series and that the
Opinion of Counsel above may state:

                           (x) that the forms of such Securities have been, and
                  the terms of such Securities (when established in accordance
                  with such procedures as may be specified from time to time in
                  a Company Order, all as contemplated by and in accordance with
                  a Board Resolution or any Officers' Certificate pursuant to
                  Section 2.01, as the case may be) will have been, duly
                  authorized by the Company and established in conformity with
                  the provisions of this Indenture; and

                           (y) that such Securities, together with the coupons,
                  if any, appertaining thereto, when (1) executed by the
                  Company, (2) completed, authenticated and delivered by the
                  Trustee in accordance with this Indenture, and (3) issued by
                  the Company in the manner and subject to any conditions
                  specified in such Opinion of Counsel, will constitute valid
                  and legally binding obligations of the Company, enforceable in
                  accordance with their terms, subject to customary exceptions.

         (c) With respect to Securities of a series subject to a Periodic
Offering, the Trustee may conclusively rely, as to the authorization by the
Company of any of such Securities, the form and terms thereof and the legality,
validity, binding effect and enforceability thereof, upon the Opinion of Counsel
and other documents delivered pursuant to Section 2.01 and this Section, as
applicable, at or prior to the time of the first authentication of Securities of
such series unless and until it has received written notification that such
opinion or other documents have been superseded or revoked. In connection with
the authentication and delivery of Securities of a series subject to a Periodic
Offering, the Trustee shall be entitled to assume that the Company's
instructions to authenticate and deliver such Securities do not violate any
rules, regulations or orders of any governmental agency or commission having
jurisdiction over the Company.

                                       13
<PAGE>

         Section 2.03. REGISTRAR, PAYING AGENT AND CONVERSION AGENT.

         The Company shall designate (a) a Registrar who shall maintain an
office or agency where Securities may be presented for registration of transfer
and where each series of Registered Securities may be presented for exchange
("Registrar"), (b) a Paying Agent who shall maintain an office or agency where
Securities and coupons may be presented for payment ("Paying Agent") and an
office or agency where notices and demands to or upon the Company in respect of
the Securities and this Indenture may be served and, if applicable, (c) a
Conversion Agent who shall maintain an office or agency where Securities may be
presented for conversion ("Conversion Agent"). The Registrar shall keep a
register ("Security Register") of each series of Registered Securities and of
their transfer and exchange. The Company may have one or more co-Registrars and
one or more additional Paying Agents and shall maintain the Registrar or a
co-Registrar and a Paying Agent in each place required by Section 4.02. The term
"Paying Agent" includes any additional paying agent. In the event that the
Trustee shall not be the Registrar, it shall have the right to examine the
Security Register at all reasonable times.

         The Company shall enter into an appropriate agency agreement with any
Agent not a party to this Indenture. The agreement shall implement the
provisions of this Indenture that relate to such Agent. The Company shall notify
the Trustee of the name and address of any such Agent. If the Company fails to
maintain a Registrar Paying Agent or Conversion Agent, if applicable, or the
Company fails to maintain an agent for service of notices, process and demands,
or the Company fails to give the foregoing notice, the Trustee shall act as
such.

         The Company initially appoints the Trustee to be the Registrar, Paying
Agent and agent for services of notices and demands.

         Section 2.04. PAYING AGENT TO HOLD MONEY IN TRUST.

         Each Paying Agent shall hold in trust for the benefit of
Securityholders or the Trustee all money held by the Paying Agent for the
payment of principal of or any interest or Additional Amounts on the Securities,
and shall notify the Trustee of any default by the Company (or any other obligor
on the Securities) in making any such payment. If the Company or a Subsidiary
acts as Paying Agent, it shall on or before each due date of the principal of or
any interest or Additional Amounts on any Securities segregate the money and
hold it as a separate trust fund. The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee and the Trustee may at any time
during the continuance of any payment default, upon written request to a Paying
Agent, require such Paying Agent to pay to the Trustee all sums so held in trust
by such Paying Agent. Upon doing so the Paying Agent shall have no further
liability for the money.

         Section 2.05. SECURITYHOLDER LISTS.

                                       14
<PAGE>

         The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Holders of Registered Securities. If the Trustee is not the Registrar, the
Company shall furnish to the Trustee from information in the possession or
control of the Company (a) at least 5 days before each interest payment date, as
of the relevant record date, for any series of Securities, (b) pursuant to the
form of Security for each series of non-interest bearing Securities and (c) at
such other times as the Trustee may request in writing a list in such form and
as of such date as the Trustee may reasonably require of the names and addresses
of Securityholders, provided that if the provisions of (a) or (b) do not provide
for the furnishing of such information at stated intervals of not more than six
months, at least as frequently as semiannually, not later than May 15 and
November 15 of each year.

         Section 2.06. TRANSFER, REGISTRATION AND EXCHANGE.

         When a Registered Security is presented at an office or agency
maintained for that series pursuant to Section 4.02 in proper form for
registration of transfer with a request to register a transfer, the Registrar or
co-Registrar at that office shall register the transfer as requested.

         At the option of the Securityholder, Registered Securities of any
series may be exchanged upon surrender to the Registrar or a co-Registrar for
Registered Securities of the same series of like aggregate principal amount,
stated maturity and tenor and of other authorized denominations upon surrender
at any office or agency maintained for that series pursuant to Section 4.02.

         If so provided with respect to Securities of a series, at the option of
the Holder, Bearer Securities of any such series may be exchanged for Registered
Securities of the same series containing identical terms and provisions, of any
authorized denominations and aggregate principal amount, upon surrender of the
Bearer Securities to be exchanged at any office or agency maintained for that
series pursuant to Section 4.02, with all unmatured coupons and all matured
coupons appertaining thereto in default. If the Holder of a Bearer Security is
unable to produce any such unmatured coupon or coupons or matured coupon or
coupons in default, such exchange may be effected if the Bearer Securities are
accompanied by payment in funds acceptable to the Company and the Trustee in an
amount equal to 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 for that series harmless. If
thereafter the Holder of such Security shall surrender to any Paying Agent for
that series 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 4.02,
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 maintained for that series pursuant
to Section 4.02 in exchange for a Registered Security of the same series and
like tenor after the close of business at such office or agency on any record
date for the payment of interest and any Additional Amounts thereon and before
the

                                       15
<PAGE>

opening of business at such office or agency on the relevant payment date
therefor, such Bearer Security shall be surrendered without the coupon relating
to such payment date or proposed date of payment, as the case may be (or if such
coupon is so surrendered with such Bearer Security, such coupon shall be
returned to the person so surrendering the Bearer Security), and interest will
not be payable on such 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.

         Every Security presented or surrendered for registration of transfer or
exchange shall (if so required by the Company or the Registrar or co-Registrar)
be duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Registrar duly executed by the Holder
thereof or his attorney duly authorized in writing. To permit transfers and
exchanges, the Company shall execute and the Trustee shall authenticate
Securities at the Registrar's or co-Registrar's request.

         Notwithstanding the foregoing, except as otherwise specified as
contemplated by Section 2.01, any global Security shall be exchangeable only if
(i) the Securities Depository is at any time unwilling, unable or ineligible to
continue as Securities Depository and a successor Depository is not appointed by
the Company within 90 days of the date the Company and the Trustee is so
informed in writing, (ii) the Company executes and delivers to the Trustee a
Company Order to the effect that such global Security shall be so exchangeable,
or (iii) an Event of Default has occurred and is continuing with respect to the
Securities. If the beneficial owners of interests in a global Security are
entitled to exchange such interests for Securities of such series and of like
tenor and principal amount of any authorized form and denomination, as specified
as contemplated by Section 2.01, then without unnecessary delay but in any event
not later than the earliest date on which such interests may be so exchanged,
Company shall deliver to the Trustee definitive Securities of that series in
aggregate principal amount equal to the principal amount of such global
Security, executed by the Company. On or after the earliest date on which such
interests may be so exchanged, such global Securities shall be surrendered from
time to time by the U.S. Depository or such other Depository as shall be
specified in the Company Order with respect thereto, and in accordance with
instructions given to the Trustee and the U.S. Depository or such Depository, as
the case may be, which instructions shall be in writing but need not be
accompanied by an Officers' Certificate of the Company or an Opinion of Counsel,
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 in part,
for definitive Securities of the same series without charge. The Trustee shall
authenticate and make available for delivery, in exchange for each portion of
such surrendered global Security, a like aggregate principal amount of
definitive Securities of the same series of authorized denominations and of like
tenor as the portion of such global Security to be exchanged which shall be in
the form of Bearer Securities or Registered Securities, or any combination
thereof, as shall be specified by the beneficial owner thereof (unless the
Securities of the series are not issuable both as Bearer Securities and as
Registered Securities, in which case the definitive Securities exchanged for the

                                       16
<PAGE>

global Security shall be issuable only in the form in which the Securities are
issuable, as specified as contemplated by Section 2.01); provided, however, that
no such exchanges may occur during a period beginning at the opening of business
15 days before any selection of Securities of that series to be redeemed and
ending on the relevant Redemption Date; and provided, further, that (unless
otherwise specified as contemplated by Section 2.01) no Bearer Security
delivered in exchange for a portion of a global Security shall be mailed or
otherwise delivered to any location in the United States. Promptly following any
such exchange in part, such global Security shall be returned by the Trustee to
such depository or the U.S. Depository referred to above in accordance with the
instructions of the Company referred to above. If a Registered Security is
issued in exchange for any portion of a global Security after the close of
business at the office or agency where such exchange occurs on any record date
for the payment of interest or any Additional Amounts thereon, and before the
opening of business at such office or agency on the relevant payment date
therefor, interest and any Additional Amounts in respect of such Registered
Security will not be payable on such payment date, but will be payable on such
payment date only to the Person to whom interest or any Additional Amounts in
respect of such portion of such global Security is payable in accordance with
the provisions of this Indenture.

         No service charge shall be made for any registration of transfer or
exchange, or redemption 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 2.09, 3.07 or 9.05 not involving any
transfer.

         The Company and the Trustee shall not be required (a) to issue,
register the transfer of, or exchange any Securities of any series for a period
of 15 days next preceding the day of any selection of Securities of such series
to be redeemed pursuant to Section 3.03, or (b) to register the transfer of or
exchange any Securities of any series selected, called or being called for
redemption in whole or in part except, in the case of any Registered Security to
be redeemed in part, the portion thereof not so to be redeemed or (c) to
exchange any Bearer Security so selected for redemption except, to the extent
provided with respect to Securities of a series, that such a Bearer Security may
be exchanged for a Registered Security of that series, provided that such
Registered Security shall be immediately surrendered for redemption with written
instruction for payment consistent 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
endorsed thereon surrendered upon such registration of transfer or exchange.

         Section 2.07. REPLACEMENT SECURITIES.

                                       17
<PAGE>

         If the Holder of a mutilated or defaced Security or a Security with a
mutilated or defaced coupon appertaining to it surrenders such Security to the
Trustee or if the Holder of a Security presents evidence to the satisfaction of
the Company and the Trustee that the Security has been lost, destroyed or
wrongfully taken or that a coupon has been lost, stolen or wrongfully taken and
surrenders the Security to which such coupon appertains with all appurtenant
coupons not so lost, stolen or wrongfully taken, the Company shall issue and the
Trustee shall authenticate a replacement Security of the same series and of like
tenor, with coupons corresponding to the coupons, if any, appertaining to the
surrendered Security. In case any such mutilated, defaced, lost, destroyed or
wrongfully taken Security or coupon has or is about to become due and payable,
the Company may pay the Security or coupon instead of issuing a new Security or
coupon; provided, however, that payment of principal of and any interest on and
Additional Amounts with respect to Bearer Securities shall, except as otherwise
provided in Section 4.02, be payable only at an office or agency located outside
the United States and, unless otherwise specified as contemplated by Section
2.01, any interest on Bearer Securities shall be payable only upon presentation
and surrender of the coupons appertaining thereto. If required by the Trustee or
the Company, an indemnity bond must be provided which is sufficient in the
judgment of the Company and the Trustee to protect the Company and the Trustee
or any Agent from any loss which any of them may suffer if a Security is
replaced. The Company and the Trustee may charge the Holder for their fees and
expenses in replacing a Security and for payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation thereto.

         Every replacement Security of any series, with its coupons, if any, is
an additional obligation of the Company and shall be entitled to all of the
benefits of this Indenture equally and proportionately with any and all other
Securities of that series and their coupons, if any, duly issued under this
Indenture.

         Section 2.08. OUTSTANDING SECURITIES.

         Securities Outstanding at any time are all Securities authenticated by
the Trustee except for those canceled by it and those described in this Section.
A Security does not cease to be Outstanding because the Company or one of its
Affiliates holds the Security except as provided in Section 13.06.

         If a Security is replaced pursuant to Section 2.07, it ceases to be
Outstanding unless the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.

         If the Paying Agent holds on a Redemption Date or maturity date money
sufficient to pay Securities payable on that date, then on and after that date
such Securities cease to be Outstanding and interest on them ceases to accrue,
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.

                                       18
<PAGE>

         If the Company is deemed to be discharged from its obligations with
respect to the Securities of any series pursuant to Section 8.01 or 8.02, the
Securities of such series shall cease to be Outstanding.

         In determining whether the Holders of the requisite principal amount of
Outstanding Securities of any or all series have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, the principal
amount of an Original Issue Discount Security that shall be deemed to be
Outstanding for such purposes shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon a declaration
of acceleration of the maturity thereof pursuant to Section 6.01, as adjusted
pursuant to Section 13.12 if applicable.

         Section 2.09. TEMPORARY SECURITIES.

         Until definitive Securities are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Securities. Temporary
Securities and, if Bearer Securities, temporary coupons shall be substantially
in the form of definitive Securities and, if Bearer Securities, definitive
coupons but may have variations in form that the Company considers appropriate
for temporary Securities. In the case of Bearer Securities of any series, such
temporary Securities may be in global form representing all of the Outstanding
Bearer Securities of such series. Except in the case of temporary Securities in
global form (which shall be exchanged in accordance with the provisions
thereof), without unreasonable delay, the Company shall prepare definitive
Securities (accompanied by any unmatured coupons pertaining thereto) of like
tenor as the temporary Securities.

         After the preparation of definitive Securities of a series, the
temporary Securities of such series shall be exchangeable upon request for
definitive Securities of such series containing identical terms and provisions
upon surrender of the temporary Securities of such series at an office or agency
of the Company maintained for such purpose pursuant to Section 4.02, 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 authorized denominations of the same series containing
identical terms and provisions; provided, however, that no definitive Bearer
Security, except as provided pursuant to Section 2.01, 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 therein. Unless
otherwise specified as contemplated by Section 2.01 with respect to a temporary
global Security, until so exchanged the temporary Securities of any series shall
in all respects be entitled to the same benefits under this Indenture as
definitive Securities of such series.

         Section 2.10.  SECURITIES IN GLOBAL FORM.

                                       19

<PAGE>

         If Securities of a series are issuable in global form, any such
Security may provide that it shall represent the aggregate amount of Outstanding
Securities from time to time endorsed thereon and may also provide that the
aggregate amount of Outstanding Securities represented thereby may from time to
time be reduced to reflect exchanges. Any endorsement of a Security in global
form to reflect the amount, or any increase or decrease in the amount, or
changes in the rights of Holders, of Outstanding Securities represented thereby
shall be made in such manner and by such Person or Persons as shall be specified
therein.

         Section 2.11.  CANCELLATION.

         The Company at any time may deliver Securities or coupons to the
Trustee for cancellation. The Registrar and Paying Agent shall forward to the
Trustee any Securities surrendered to them for transfer, exchange or payment and
all coupons surrendered for payment. The Trustee shall cancel all Securities
surrendered for transfer, exchange, payment or cancellation and all coupons
surrendered for payment and return such canceled Securities to the Company upon
Company Order, provided, however, that the Trustee shall dispose of canceled
Securities in accordance with its procedures for the disposition of canceled
securities in effect as of the date of such disposition unless the Company
directs their return to the Company. The Company may not issue new Securities to
replace Securities that it has paid or delivered to the Trustee for
cancellation.

         Section 2.12.  DEFAULTED INTEREST.

         If the Company defaults in a payment of interest or any Additional
Amounts on any series of Registered Securities, the Company shall pay the
defaulted interest and any Additional Amounts to Persons who are Holders of
Registered Securities of such series in any lawful manner. The Company may also
pay the defaulted interest to the persons who are Security holders on a
subsequent special record date in the following manner. The Company shall fix
the special record date (which shall be between 10 and 30 days before the
payment date) for the payment of such defaulted interest and any Additional
Amounts on such Securities and the payment date for such defaulted interest. At
least 15 days before the special record date, the Company shall mail each Holder
of Registered Securities, with a copy to the Trustee, a notice that states the
special record date, the payment date and the amount of defaulted interest and
any Additional Amounts to be paid, provided the Company has made arrangements
satisfactory to the Trustee for payment of the aggregate amount to be paid on
such payment date. On such payment date the Trustee shall pay out of funds
provided by the Company such defaulted interest and any Additional Amounts. In
case a Bearer Security of any series is surrendered at the office or agency of
the Company maintained pursuant to Section 4.02 in a Place of Payment for such
series in exchange for a Registered Security of such series after the close of
business at such office or agency on 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 and any Additional Amounts, such Bearer Security
shall be surrendered without the coupon relating to such proposed date of
payment and defaulted interest and any Additional Amounts will not be payable

                                       20
<PAGE>

on such proposed date of payment in respect of the Registered Security issued in
exchange for such Bearer Security, but will be payable only to the Holder of
such coupon on or after such payment date in accordance with the provisions of
this Indenture. The Company may pay defaulted interest and any Additional
Amounts in any other lawful manner.

         Section 2.13.  PERSONS DEEMED OWNERS.

         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 payments of
principal of and (subject to Sections 2.06 and 4.01) interest on and Additional
Amounts with respect to such Registered Security and for all other purposes
whatsoever, whether or not such Registered Security shall be overdue, and
neither the Company, the Trustee nor any agent of the Company or the Trustee
shall be affected by notice to the contrary.

         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 coupon shall be overdue, and neither the Company, the
Trustee nor any agent of the Company or the Trustee shall be affected by notice
to the contrary.

         Section 2.14.  CUSIP NUMBERS.

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

                                       21
<PAGE>

                                  ARTICLE THREE
                                   REDEMPTION

         Section 3.01.  APPLICABILITY OF ARTICLE.

         Unless otherwise provided in a Board Resolution of the Company, an
indenture supplemental hereto or an Officers' Certificate establishing the terms
of a series of Securities, this Article shall apply to the Securities of each
series, if any, that by their terms are subject to redemption at the option of
the Company or pursuant to the operation of a sinking fund or otherwise are
required to be redeemed pursuant to the terms of the Securities. If the terms of
any Security shall conflict with any provision of this Article, the terms of
such Security shall govern.

         Section 3.02.  NOTICE TO TRUSTEE.

         The election of the Company to redeem any Securities shall be evidenced
by a Board Resolution. If the Company wants to redeem Securities of any series
in whole or in part pursuant to the terms of the Securities of that series, the
Company shall notify the Trustee of the Redemption Date therefor and the
principal amount and other terms and provisions of the Securities to be
redeemed. Each such notice shall be accompanied by an Officers' Certificate of
the Company stating that any conditions to such redemption as provided in such
Security and in this Article have been complied with. If the Company elects to
redeem less than all of the Securities of a series with the same terms and
provisions, the Company shall notify the Trustee of such Redemption Date and of
the principal amount of such Securities 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 3.03.

         If Securities of any series by their terms are redeemable pursuant to
the operation of a sinking fund or pursuant to another mandatory redemption
provision of the Securities, the Company shall notify the Trustee by an
Officers' Certificate of the amount of the next sinking fund payment or amount
required to satisfy such mandatory redemption payment and the portion of such
payment which is to be satisfied by delivering and crediting Securities of the
same series pursuant to Section 3.06.

         If the Company wants to reduce, pursuant to the terms of such
Securities, the principal amount of Securities to be redeemed, it shall notify
the Trustee by Officers' Certificate of the amount of the reduction and the
basis for it. If the Company wants to credit against any such redemption
Securities of the same series it has not previously delivered to the Trustee for
cancellation, it shall deliver the Securities with such Officers' Certificate.

         The Company shall give each notice and an Officers' Certificate
provided for in this Section at least 60 days before the applicable Redemption
Date (unless shorter notice is satisfactory to the Trustee or a shorter or
longer notice is required by the applicable Security).

                                       22
<PAGE>

         Section 3.03.  SELECTION OF SECURITIES TO BE REDEEMED.

         If less than all the Securities of a series with the same terms and
provisions are to be redeemed, the Trustee shall select the Securities to be
redeemed by a method the Trustee considers fair and appropriate. The Trustee
shall make the selection from such Securities Outstanding not previously called
for redemption. The Trustee may select for redemption portions of the principal
of Registered Securities of such series that have denominations larger than the
minimum authorized denominations for Registered Securities of that series.
Securities and portions thereof the Trustee selects shall be in amounts equal to
the smallest authorized denominations or an integral multiple thereof.
Provisions of this Indenture that apply to Securities called for redemption also
apply to portions of Registered Securities called for redemption.

         The Trustee shall promptly notify the Company and the Registrar (if
other than itself) in writing of the Securities selected for redemption and, in
the case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed.

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

         Section 3.04.  NOTICE OF REDEMPTION.

         At least 30 days but not more than 60 days before a Redemption Date
(unless a shorter or longer period is specified in the Securities to be
redeemed), the Company shall give notice of such redemption to the Holders of
the Securities to be redeemed as a whole or in part, with a copy to the Trustee,
with respect to Registered Securities, by mailing a notice of such redemption by
first-class mail to each Holder of Registered Securities to be redeemed and,
with respect to Bearer Securities, by publishing in an Authorized Newspaper
notice of such redemption on two separate days.

         The notice shall identify the Securities to be redeemed and shall
state:

                  (1) the Redemption Date;

                  (2) the Redemption Price, including premium, if any, accrued
interest and Additional Amounts, if any;

                  (3) if less than all Securities of a series Outstanding are to
be redeemed, the identification (and, if any Security is to be redeemed in part,
the principal amount) of the particular Securities to be redeemed;

                                       23
<PAGE>

                   (4) the then current conversion price, the name or names and
address or addresses of the Paying Agent and the Conversion Agent, if any;

                   (5) that Securities called for redemption must be surrendered
to the Paying Agent to collect the Redemption Price, including premium, if any,
accrued interest and Additional Amounts, if any;

                   (6) that interest on Securities called for redemption ceases
to accrue on and after the Redemption Date;

                   (7) that the redemption is pursuant to a sinking fund, if
such is the case;

                   (8) the Place or Places of Payment where such Securities are
to be surrendered for payment for the Redemption Price;

                   (9) the CUSIP number, if any, of the Securities; and

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

         At the Company's request delivered to the Trustee at least 10 days
prior to the date proposed for the giving of such notice, the Trustee shall give
the notice of redemption in the Company's name and at the Company's expense.

         Section 3.05.  EFFECT OF NOTICE OF REDEMPTION.

         Once notice of redemption is given pursuant to Section 3.04, Securities
called for redemption shall become due and payable on the Redemption Date
therefor and at the applicable Redemption Price. Any failure to mail notice of
redemption or any defect therein shall not affect the redemption of any other
Securities called for redemption. Upon surrender to the Paying Agent for such
Securities of such Securities together with all unmatured coupons, if any,
appertaining thereto, such Securities shall be paid at the applicable Redemption
Price, plus accrued interest to the Redemption Date and any Additional Amounts
payable with respect thereto; provided, however, that any regular payment of
interest and any Additional Amounts payable with respect thereto becoming due on
the Redemption Date shall be payable, in the case of Bearer Securities, to
bearers of the coupons for such interest and Additional Amounts upon surrender
thereof and in the case of Registered Securities to the Holders of such
Securities in accordance with their terms.

         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 each missing
coupon or coupons may be waived by the Company and the Trustee if there shall be
furnished to them such security or indemnity as they may require

                                       24
<PAGE>

to save each of them and any Paying Agent for such Security harmless. If
thereafter the Holder of such Security shall surrender to the Trustee or any
Paying Agent for such Security 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
(and any Additional Amounts) represented by coupons shall be payable only upon
presentation and surrender of these coupons at an office or agency located
outside of the United States except as otherwise provided in Section 4.02.

         Section 3.06.  DEPOSIT OF REDEMPTION PRICE OR SECURITIES.

         By 10:00 a.m. eastern standard time, on or before the Redemption Date,
the Company shall deposit with the applicable Paying Agent (or if the Company is
its own Paying Agent, shall segregate and hold in trust) money sufficient to pay
the Redemption Price of and accrued interest and Additional Amounts, if any, on
all Securities to be redeemed on that date.

         If any Security by its terms permits any sinking fund payment
obligation to be satisfied by delivering and crediting Securities, the Company
shall deliver such Securities to the Trustee for crediting against such payment
obligation in accordance with the terms of such Securities and this Indenture.

         Section 3.07.  SECURITIES REDEEMED IN PART.

         Upon surrender of a Security that is redeemed in part at any office or
agency maintained by the Company pursuant to Section 4.02, the Company shall
execute and Trustee shall authenticate for the Holder a new Security of the same
series equal in principal amount to the unredeemed portion of the Security
surrendered.

         If a Security in global form is surrendered upon redemption in part,
the Company shall execute, and the Trustee shall authenticate and deliver to the
U.S. Depository or other Depository for such Security in global form as shall be
specified in the Company Order to the Trustee with respect thereto, without
service charge, a new Security in global form in a denomination equal to and in
exchange for the unredeemed portion of the principal of the Security in global
form so surrendered.

                                       25
<PAGE>

                                  ARTICLE FOUR
                                    COVENANTS

         Section 4.01.  PAYMENT OF SECURITIES.

         The Company shall pay the principal of and any interest or Additional
Amounts, if any, and premium, if any, on the Securities of each series on the
dates and in the manner provided in the Securities, any coupons appertaining
thereto and this Indenture. At the Company's option, it can pay any interest or
Additional Amounts, if any, or premium, if any, on Registered Securities of any
series by mailing checks or drafts to the Holders of such Securities at their
addresses as shown in the Security Register or by any such other payment method
permitted by a supplemental indenture or by an Officers' Certificate
establishing the terms of a series of Securities. Any interest due on and any
Additional Amounts payable in respect of Bearer Securities on or before their
maturity, in respect of the principal of such a Security shall be payable only
upon presentation and surrender of the several coupons for such interest
installments as are evidenced thereby as they severally mature.

         The Company shall pay interest on overdue principal of any Security at
the rate borne by such Security; it shall pay interest on overdue installments
of interest or Additional Amounts, if any, or premium, if any, at the same rate
to the extent lawful.

         In case a Bearer Security of any series is surrendered in exchange for
a Registered Security of such series after the close of business (at an office
or agency in a Place of Payment for such series) on any record date established
to determine the Person to whom interest or Additional Amounts are payable on
the next following interest payment date therefor and before the opening of
business (at such office or agency) on such interest payment date, such Bearer
Security shall be surrendered without the coupon relating to such interest
payment date and interest will not be payable on such interest payment date in
respect of the Registered Security issued in exchange of such Bearer Security,
but will be payable only to the Holder of such coupon when due in accordance
with the provisions of this Indenture.

         Section 4.02.  MAINTENANCE OF OFFICE OR AGENCY.

         The Company shall maintain in each Place of Payment for any series of
Securities an office or agency where Securities of that series (but not Bearer
Securities, except as otherwise provided below, unless such Place of Payment is
located outside the United States) may be presented or surrendered for payment,
where Securities of that series may be surrendered for registration of transfer
or exchange and where notices and demands to or upon the Company in respect of
the Securities of that series and this Indenture may be served.

         If Securities of a series are issuable as Bearer Securities, the
Company shall maintain, subject to any laws or regulations applicable thereto,
an office or agency in a Place of Payment for such series which is located
outside the United States where Securities of such series and the

                                       26
<PAGE>

related coupons may be presented and surrendered for payment (including payment
of any Additional Amounts payable on Securities of such series); provided,
however, that if the Securities of such series are listed on The International
Stock Exchange of the United Kingdom and the Republic of Ireland Limited or the
Luxembourg Stock Exchange or any other stock exchange located outside the United
States and such stock exchange shall so require, the Company will maintain a
Paying Agent in London, Luxembourg or any other city so required located outside
the United States, as the case may be, so long as the Securities of such series
are listed on such exchange. 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 that
series and the related coupons may be presented and surrendered for payment
(including payment of any Additional Amounts payable on Bearer Securities of
that series) at the place specified for that purpose pursuant to Section 2.01.

         Except as otherwise provided in the form of Bearer Security of any
particular series pursuant to the provisions of this Indenture, no payment of
principal or interest or Additional Amounts 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, payment of principal of
and interest in U.S. dollars (including Additional Amounts payable in respect
thereof) on any Bearer Security may be made at the office of the Paying Agent in
the ________________, ______________, if (but only if) payment of the full
amount of such principal, interest or Additional Amounts at all offices outside
the United States maintained for that purpose by the Company in accordance with
this Indenture is illegal or effectively precluded by exchange controls or other
similar restrictions.

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

         Section 4.03.  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, it shall, on or before each due date of the
principal of, or interest or Additional Amounts on, any of the Securities of
that series, segregate and hold in trust for the benefit of the Person entitled
thereto a sum sufficient to pay the principal or interest or Additional Amounts
so

                                       27
<PAGE>

becoming due until such sums shall be paid to such Persons or otherwise disposed
of as herein provided, and shall 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, it will, by 10:00 a.m. New York City time, on or prior to
each due date of the principal of, or interest or Additional Amounts on, any
Securities of that series, deposit with any Paying Agent a sum sufficient to pay
the principal or interest and Additional Amounts so becoming due, such sum to be
held in trust for the benefit of the Persons entitled to such principal,
interest or Additional Amounts, and (unless such Paying Agent is the Trustee)
the Company shall promptly notify the Trustee of its action or failure so to
act.

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

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

                   (2) give the Trustee notice of any Default by the Company in
the making of any payment of principal or interest or any Additional Amounts on
the Securities of that series; and

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

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

         Except as otherwise provided in the form of Securities of any
particular series pursuant to the provisions of this Indenture, 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 or interest or any Additional Amounts
on any Security of any series and remaining unclaimed for two years after such
principal or interest has or Additional Amounts have become due and payable
shall be paid to the Company upon receipt of a Company Order to that effect, or
(if then held by the Company) shall be discharged from such trust; and the
Holder of such Security or any coupon appertaining thereto 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

                                       28
<PAGE>

trust money, and all liability of the Company as trustee thereof, shall
thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the
Company cause to be published once, in an Authorized Newspaper in each Place of
Payment or to be mailed to Holders of Registered Securities, or both, 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 or
mailing nor shall it be later than two years after such principal or interest or
Additional Amount has become due and payable, any unclaimed balance of such
money then remaining shall be repaid to the Company.

         Section 4.04.  SEC REPORTS.

         The Company shall file with the Trustee within 15 days after it files
them with the SEC 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 SEC
may by rules and regulations prescribe) which the Company is required to file
with the SEC pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934, as amended. The Company also shall comply with the other provisions of TIA
Section 314(a).

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

         Section 4.05.  STATEMENT AS TO COMPLIANCE.

         (a) The Company shall deliver to the Trustee, within 120 days after the
end of each fiscal year, commencing ______________ (no more than one year after
closing), a written statement, which need not comply with Section 13.05 hereof,
signed by a principal executive officer, principal financial officer or
principal accounting officer, stating, as to the signer thereof, that

                   (1) a review of the activities of the Company during such
year and of performance under this Indenture has been made under his
supervision, and

                   (2) to the best of his knowledge, based on such review, (a)
the Company has fulfilled its obligations under this Indenture throughout such
year, or, if there has been a default in the fulfillment of any such obligation,
specifying each such default known to him and the nature and status thereof, and
(b) no event has occurred and is continuing which is, or after notice or lapse
of time or both would become, an Event of Default, or, if such an event has
occurred and is continuing, specifying each such event known to him and the
nature and status thereof.

                                       29
<PAGE>

                   (b) The Company shall deliver to the Trustee within ten days
after the Company obtains knowledge of the occurrence thereof, written notice of
any Default.

         Section 4.06.  ADDITIONAL AMOUNTS.

         If any Securities of a series provide for the payment of Additional
Amounts, the Company agrees to pay to the Holder of any such Security or any
Coupon appertaining thereto Additional Amounts as provided in or pursuant to
this Indenture or such Securities. Whenever in this Indenture there is
mentioned, in any context, the payment of the principal of or any premium or
interest on, or in respect of, any Security of any series or any Coupon or the
net proceeds received on the sale or exchange of any Security of any series,
such mention shall be deemed to include mention of the payment of Additional
Amounts provided by the terms of such series established hereby or pursuant
hereto 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 provision hereof
shall not be construed as excluding the payment of Additional Amounts in those
provisions hereof where such express mention is not made.

         Except as otherwise provided in or pursuant to this Indenture or the
Securities of the applicable series, 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 such series of Securities (or if the Securities of
such series shall not bear interest prior to maturity, the first day on which a
payment of principal is made), and at least 10 days prior to each date of
payment of principal or interest if there has been any change with respect to
the matters set forth in the below-mentioned Officers' Certificate, the Company
shall furnish to the Trustee and the principal Paying Agent or Paying Agents, if
other than the Trustee, an Officers' Certificate instructing the Trustee and
such Paying Agent or Paying Agents whether such payment of principal of and
premium, if any, or interest on the Securities of such series shall be made to
Holders of Securities of such series or the Coupons appertaining thereto who are
United States Aliens without withholding for or on account of any tax,
assessment or other governmental charge described in the Securities of such
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 or Coupons, and the Company
agrees to pay to the Trustee or such Paying Agent the Additional Amounts
required by the terms of such Securities. 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 4.07.  INFORMATION REGARDING ORIGINAL ISSUE DISCOUNT.

         The Company shall provide to the Trustee on a timely basis such
information as the Trustee requires to enable the Trustee to prepare and file
any form required to be submitted by

                                       30
<PAGE>

the Company with the Internal Revenue Service and the Holders of Discount
Securities relating to original issue discount, including, without limitation,
Form 1099-OID or any successor form.

                                  ARTICLE FIVE
                      SUCCESSOR CORPORATION AND ASSUMPTION

         Section 5.01.  WHEN COMPANY MAY MERGE, ETC.

         The Company shall not consolidate with or merge into, or sell, lease
(for a term extending beyond the last stated maturity of the Securities then
Outstanding) or convey all or substantially all of its assets to, another Person
unless the successor or transferee Person expressly assumes by supplemental
indenture, in form satisfactory to the Trustee, all the obligations of the
Company with respect to the Securities and this Indenture, and the Company or
successor Corporation, as the case may be, (i) shall be a Corporation organized
under the laws of one of the states in the United States and (ii) shall not,
immediately after such consolidation or merger or sale, lease or conveyance, be
in default in the performance of any covenant or condition with respect to the
Securities or the Indenture. The Company shall deliver to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such supplemental indenture comply with
this Indenture. Thereafter all such obligations of the predecessor corporation
shall terminate.

         Section 5.02.  SUCCESSOR CORPORATION SUBSTITUTED.

         Upon any consolidation or merger, or any sale, lease or conveyance of
all or substantially all of the assets of the Company in accordance with Section
5.01, the successor Corporation formed by such consolidation or into which the
Company is merged or to which such transfer 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 Corporation had been
named as the Company herein.

         Section 5.03.  LIMITATION.

         Nothing in this Indenture shall be deemed to prevent or restrict: (a)
any consolidation or merger after the consummation of which the Company would be
the surviving or resulting entity or any conveyance or other transfer or lease
of any part of the properties of the Company which does not constitute the
entirety, or substantially the entirety, thereof; or (b) the approval by the
Company of, or the consent by the Company to, any consolidation or merger to
which any Subsidiary (or any such other subsidiary or affiliate of the Company)
may be a party or any conveyance, transfer or lease by any Subsidiary (or any
such other subsidiary or affiliate) of any of its assets.

                                       31
<PAGE>

                                   ARTICLE SIX
                              DEFAULTS AND REMEDIES

         Section 6.01.  EVENTS OF DEFAULT.

         Unless otherwise provided in a Board Resolution of the Company, an
indenture supplemental hereto or an Officers' Certificate establishing the
terms of a series of Securities, an "Event of Default" with respect to the
Securities of any series means any one of the following events, unless such
event is either inapplicable to a particular series of Securities or it is
specifically deleted or modified in or pursuant to the supplemental
indenture, Board Resolution or Officers' Certificate creating such series of
Securities or in the form of Security for such series:

         (a) default in the payment of any installment of interest upon or any
Additional Amounts payable in respect of any of the Securities of such series as
and when the same shall become due and payable, and continuance of such default
for a period of 30 days; or

         (b) default in the payment of all or any part of the principal on any
of the Securities of such series as and when the same shall become due and
payable either at maturity, upon redemption, by declaration or otherwise

         (c) default in the payment of any sinking fund installment as and when
the same shall become due and payable by the terms of the Securities of such
series; or

         (d) default in the performance, or breach, of any covenant or warranty
of the Company in respect of the Securities of such series (other than a
covenant or warranty in respect of the Securities of such series a default in
whose performance or whose breach is elsewhere in this Section specifically
dealt with), and continuance of such default or breach for a period of 60 days
after there has been given, by registered or certified mail, to the Company by
the Trustee or to the Company and Trustee by the Holders of at least 25% in
principal amount of the Outstanding Securities (determined pursuant to Section
2.08) of all series affected thereby, 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

         (e) a court having jurisdiction in the premises entering a decree or
order for relief in respect of the Company in an involuntary case under the
Bankruptcy Law now or hereafter in effect, or appointing a receiver, liquidator,
assignee, custodian, trustee or sequestrator (or similar official) of the
Company or for any substantial part of its property or ordering the winding up
or liquidation of its affairs, and such decree or order shall remain unstayed
and in effect for a period of 60 consecutive days; or

         (f) the Company commencing a voluntary case under any applicable
Bankruptcy Law now or hereafter in effect, or consent to the entry of an order
for relief in an involuntary case

                                       32
<PAGE>

under any such law, or consent to the appointment of or taking possession by a
receiver, liquidator, assignee, custodian, trustee or sequestrator (or similar
official) of the Company or for any substantial part of its property, or making
any general assignment for the benefit of creditors; or

         (g) any other Event of Default provided in the supplemental indenture,
Board Resolutions or Officers' Certificate under which such series of Securities
is issued or in the form of Security for such series.

         If an Event of Default described in clause (a), (b), (c), (d) (if
the Event of Default under clause (d) is with respect to less than all series
of Securities then Outstanding) or (g) (if the supplemental indenture, Board
Resolution or Officers' Certificate does not provide otherwise) occurs and is
continuing, then, and in each and every such case, unless the principal of
all of the Securities of such series shall have already become due and
payable, either the Trustee or the Holders of not less than 25% in aggregate
principal amount of the Securities of such series then Outstanding hereunder
(each such series voting as a separate class) by notice in writing to the
Company (and to the Trustee if given by Securityholders), may declare the
entire principal (or, if the Securities of such series are Discount
Securities, such portion of the principal amount as may be specified in the
terms of such series) of all Securities of such series and the interest
accrued thereon and Additional Amounts payable in respect thereof, if any, to
be due and payable immediately, and upon any such declaration the same shall
become immediately due and payable provided, however, that a supplemental
indenture, Board Resolution or Officers' Certificate may provide otherwise
with respect to a particular series. If an Event of Default described in
Clause (d) (if the Event of Default under clause (d) is with respect to all
series of Securities then Outstanding), occurs and is continuing, then and in
each and every such case, unless the principal of all the Securities shall
have already become due and payable, either the Trustee or the Holders of not
less than 25% in aggregate principal amount of all the Securities then
Outstanding hereunder (treated as one class), by notice in writing to the
Company (and to the Trustee if given by Securityholders), may declare the
entire principal (or, if any Securities are Discount Securities, such portion
of the principal as may be specified in the terms thereof) of all the
Securities then Outstanding and interest accrued thereon and Additional
Amounts payable in respect thereof, if any, to be due and payable
immediately, and upon any such declaration the same shall become immediately
due and payable, provided, however, that a supplemental indenture, Board
Resolution or Officers' Certificate may provide otherwise with respect to a
particular series. If an Event of Default described in clause (e) or (f)
occurs and is continuing, all unpaid principal and interest accrued thereon
and Additional Amounts, if any, payable in respect thereof shall IPSO FACTO
become immediately due and payable without any declaration or other act on
the part of the Trustee or any Securityholder. A supplmental indenture, Board
Resolution or Officers Certificate providing for an event of default under
clause (g) above may specify the consequences of such Event of Default.

         The foregoing provisions, however are subject to the condition that if,
at any time after the principal (or, if the Securities are Discount Securities,
such portion of the principal as may be specified in the terms thereof) of the
Securities of any series (or of all the Securities, as the case may be) shall
have been so declared due and payable, and before any judgment or decree for the
payment of the moneys due shall have been obtained or entered as hereinafter
provided, the Company shall pay or shall deposit with the Trustee a sum
sufficient to pay all matured installments of interest upon and any Additional
Amounts payable in respect of all the Securities of such series (or of all the
Securities, as the case may be) and the principal of any and all

                                       33
<PAGE>

Securities of such series (or of all the Securities, as the case may be) which
shall have become due otherwise than by acceleration (with interest upon such
principal and, to the extent that payment of such interest is enforceable under
applicable law, on overdue installments of interest or any Additional Amounts,
at the same rate as the rate of interest or Yield to Maturity (in the case of
Discount Securities) specified in the Securities of such series (or at the
respective rates of interest or Yields to Maturity of all the securities, as the
case may be, to the date of such payment or deposit) and such amount as shall be
sufficient to cover reasonable compensation to the Trustee, its agents,
attorneys and counsel, and all other expenses and liabilities incurred, and all
advances made, by the Trustee except as a result of negligence or bad faith, and
if any and all Events of Default under the Indenture, other than the non-payment
of the principal of Securities which shall have become due by acceleration,
shall have been cured, waived or otherwise remedied as provided herein -- then
the Holders of a majority in aggregate principal amount of all the Securities of
such series, each series voting as a separate class (or of all the Securities,
as the case may be, voting as a single class) then Outstanding, by written
notice to the Company and to the Trustee, may waive all defaults with respect to
such series (or with respect to all the Securities, as the case may be) and
rescind and annul such declaration and its consequences, but no such waiver or
rescission and annulment shall extend to or shall affect any subsequent default
or shall impair any right consequent thereon.

         For all purposes under this Indenture, if a portion of the principal of
any Discount Securities shall have been accelerated and declared due and payable
pursuant to the provisions hereof, then, from and after such declaration, unless
such declaration has been rescinded and annulled, the principal amount of such
Discount Securities shall be deemed, for all purposes hereunder, to be such
portion of the principal thereof as shall be due and payable as a result of such
acceleration, and payment of such portion of the principal thereof as shall be
due and payable as a result of such acceleration, together with interest, if
any, thereon and all other amounts owing thereunder, shall constitute payment in
full of such Discount Securities.

         Section 6.02. COLLECTION OF INDEBTEDNESS BY TRUSTEE; TRUSTEE MAY PROVE
                       DEBT.

         The Company covenants that (a) in the case default shall be made in the
payment of any installment of interest on or any Additional Amounts payable in
respect of any of the Securities of any series or (b) in case principal shall
have become due and payable, and such default shall be made in the payment of
all or any part of the principal of any of the Securities of any series when the
same shall have become due and payable, whether upon maturity of the Securities
of such series, or upon any redemption or by declaration or otherwise -- then,
upon demand of the Trustee, the Company will pay to the Trustee for the benefit
of the Holders of the Securities of such series the whole amount that then shall
have become due and payable on all Securities of such series, and such coupons,
for principal, interest or Additional Amounts, if any, as the case may be (with
interest to the date of such payment upon the overdue installments of interest
or any Additional Amounts at the same rate as the rate of interest or Yield to
Maturity (in the case of Discount Securities) specified in the Securities of
such series); and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection including

                                       34
<PAGE>

reasonable compensation to the Trustee and each predecessor Trustee, their
respective agents, attorneys and counsel, and any expenses and liabilities
incurred, and all advances made, by the Trustee and predecessor Trustee except
as a result of its negligence or bad faith.

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

         In case there shall be pending proceedings relative to the Company or
any other obligor upon the Securities under Bankruptcy Law, or in case a
receiver, assignee or trustee in bankruptcy or reorganization, liquidator,
sequestrator or similar official shall have been appointed for or taken
possession of the Company or its property or such other obligor, or in case of
any other comparable judicial proceedings relative to the Company or other
obligor upon the Securities or any series, or to the creditors or property of
the Company or such other obligor, the Trustee, irrespective of whether the
principal of any Securities shall then be due and payable as therein expressed
or by declaration or otherwise and irrespective of whether the Trustee shall
have made any demand pursuant to the provisions of this Section, shall be
entitled and empowered, by intervention in such proceedings or otherwise:

         (a) to file and prove a claim or claims for the whole amount of
principal, interest (or, if the Securities of any series are Discount
Securities, such portion of the principal amount as may be specified in the
terms of such series) and any Additional Amounts owing and unpaid in respect of
the Securities of any series, 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 reasonable compensation to the Trustee and each predecessor
Trustee, and their respective agents, attorneys and counsel, and for
reimbursement of all expenses and liabilities incurred, and all advances made,
by the Trustee and each predecessor Trustee, except as a result of negligence or
bad faith) and of the Securityholders allowed in any judicial proceedings
relative to the Company or other obligor upon the Securities of any series, or
to the creditors or property of the Company or such other obligor,

         (b) unless prohibited by applicable law and regulations, to vote on
behalf of the Holders of the Securities of any series in any election of a
trustee or a standby trustee in arrangement, reorganization, liquidation or
other bankruptcy or insolvency proceedings or person performing similar
functions in comparable proceedings, and

         (c) to collect and receive any moneys or other property payable or
deliverable on any such claims, and to distribute all amounts received with
respect to the claims of the Securityholders and of the Trustee on their behalf;
and any trustee, receiver, or liquidator,

                                       35
<PAGE>

custodian or other similar official is hereby authorized by each of the
Securityholders to make payments to the Trustee, and in the event that the
Trustee shall consent to the making of payments directly to the Securityholders,
to pay to the Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Trustee, each predecessor trustee and their respective
agents, attorneys and counsel, and all other expenses and liabilities incurred,
and all advances made, by the trustee and each predecessor Trustee except as a
result of negligence or bad faith and all other amounts due to the Trustee or
any predecessor Trustee under this Indenture.

         Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or vote for or accept or adopt on behalf of any
Securityholder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities of any series or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Securityholder in any such proceeding except, as aforesaid, to vote for the
election of a trustee in bankruptcy or similar person.

         All rights of action and of asserting claims under this Indenture, or
under any of the Securities of any series or coupons appertaining to such
Securities, may be enforced by the Trustee without the possession of any of the
Securities of such series or coupons appertaining to such Securities or the
production thereof at any trial or other proceedings relative thereto, and any
such action or proceedings instituted by the Trustee shall be brought in its own
name as trustee of an express trust, and any recovery or judgment, subject to
the payment of the expenses, disbursements and compensation of the Trustee, each
predecessor Trustee and their respective agents and attorneys, shall be for the
ratable benefit of the Holders of the Securities or of coupons appertaining to
such Securities in respect of which action was taken.

         In any proceedings brought by the Trustee (and also any proceedings
involving the interpretation of any provision of this Indenture to which the
Trustee shall be a party) the Trustee shall be held to represent all the Holders
of the Securities or coupons appertaining to such Securities in respect to which
such action was taken, and it shall not be necessary to make any Holders of such
Securities or coupons appertaining to such Securities parties to any such
proceedings.

         Section 6.03.  APPLICATION OF PROCEEDS.

         Unless otherwise provided in a Board Resolution of the Company, an
indenture supplemental hereto or an Officers' Certificate establishing the
terms of a series of Securities, any moneys collected by the Trustee pursuant
to this Article with respect to the Securities of any series shall be applied
in the following order at the date or dates fixed by the Trustee and, in case
of the distribution of such moneys on account of principal, interest or any
Additional Amounts, upon presentation of the several Securities and coupons
appertaining to such Securities in respect of which monies have been
collected and stamping (or otherwise noting) thereof the payment, or issuing
Securities of such series in reduced principal amounts in exchange for the
presented Securities of like series if only partially paid, or upon surrender
thereof if fully paid.

                                       36
<PAGE>

         FIRST: to the Trustee and any predecessor Trustee for amounts due under
Section 7.07.

         SECOND: to the Holders of Securities of such series or coupons
appertaining thereto for amounts due and unpaid on the Securities and coupons
for principal, interest and Additional Amounts, ratably, without preference or
priority of any kind, according to the amounts due and payable on the Securities
and coupons for principal, interest and Additional Amounts, respectively; and

         THIRD: to the Person or Persons lawfully entitled thereto.

         Section 6.04.  SUITS FOR ENFORCEMENT.

         In case an Event of Default has occurred, has not been waived and is
continuing, the Trustee may in its discretion proceed to protect and enforce the
rights vested in it by this Indenture by such appropriate judicial proceedings
as the Trustee shall deem most effectual to protect and enforce any of such
rights, either at law or in equity or in bankruptcy or otherwise, whether for
the specific enforcement of any covenant or agreement contained in this
Indenture or in aid of the exercise of any power granted in this Indenture or to
enforce any other legal or equitable right vested in the Trustee by this
Indenture or by law.

         Section 6.05.  RESTORATION OF RIGHTS ON ABANDONMENTS OF PROCEEDINGS.

         In case the Trustee shall have proceeded to enforce any right under
this Indenture and such proceedings shall have been discounted or abandoned for
any reason, or shall have been determined adversely to the Trustee, then and in
every such case the Company and the Trustee shall be restored respectively to
their former positions and rights hereunder, and all rights, remedies and powers
of the Company, the Trustee and the Securityholders shall continue as though no
such proceedings had been taken.

         Section 6.06.  LIMITATIONS ON SUITS BY SECURITYHOLDERS.

         No Holder of any Security of any series or of any coupon appertaining
thereto shall have any right by virtue or by availing of any provision of this
Indenture to institute any action or proceeding at law or in equity or in
bankruptcy or otherwise upon or under or with respect to this Indenture, or for
the appointment of a trustee, receiver, liquidator, custodian or other similar
official or for any other remedy hereunder, unless such Holder previously shall
have given to the Trustee written notice of a continuing Event of Default, and
unless also the Holders of not less than 25% in aggregate principal amount of
the Securities of such series then Outstanding shall have made written request
upon the Trustee to institute such action or proceedings in its own name as
Trustee hereunder and shall have offered to the Trustee such reasonable
indemnity as it may require against the costs, expenses and liabilities to be
incurred therein or thereby and the Trustee for 60 days after its receipt of
such notice, request and offer of indemnity shall have

                                       37
<PAGE>

failed to institute any such action or proceeding and the Holders of a majority
in principal amount of the outstanding Securities of such series shall have not
given the Trustee a direction inconsistent with such request, it being
understood and intended, and being expressly covenanted by the taker and Holder
of every Security or coupon with every other taker and Holder and the Trustee,
that no one or more Holders of Securities of any series or coupons appertaining
to such Securities shall have any right in any manner whatever by virtue or by
availing of any provision of this Indenture to affect, disturb or prejudice the
rights of any other such Holder of Securities or coupons appertaining to such
Securities, or to obtain or seek to obtain priority over or preference to any
other such Holder or to enforce any right under this Indenture, except in the
manner herein provided and for the equal, ratable and common benefit of all
Holders of Securities of the applicable series and coupons appertaining to such
Securities. For the protection and enforcement of the provisions of this
Section, each and every Securityholder and the Trustee shall be entitled to such
relief as can be given either at law or in equity.

         Section 6.07. UNCONDITIONAL RIGHT OF SECURITYHOLDER TO INSTITUTE
                       CERTAIN SUITS.

         Notwithstanding any other provision in this Indenture and any provision
of any Security, the right of any Holder of any Security or coupon to receive
payment of the principal of, interest on and any Additional Amounts in respect
of such Security or coupon on or after the respective due dates expressed in
such Security or coupon, or to institute suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected
without the consent of such Holder.

         Section 6.08. POWERS AND REMEDIES CUMULATIVE; DELAY OR OMISSION NOT
                       WAIVER OF DEFAULT.

         Except as provided in Section 6.06, 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.

         No delay or omission of the Trustee or of any Holder of Securities or
coupons to exercise any right or power accruing upon any Event of Default
occurring and continuing as aforesaid shall impair any such right or power or
shall be construed to be a waiver of any such Event of Default or an
acquiescence therein; and, subject to Section 6.06, every power and remedy given
by this Indenture or by law to the Trustee or to the Holders of Securities or
coupons may be exercised from time to time, and as often as shall be deemed
expedient, by the Trustee or by the Holders of Securities or coupons.

         Section 6.09.  CONTROL BY HOLDERS OF SECURITIES.

                                       38
<PAGE>

         The Holders of a majority in aggregate principal amount of the
Securities of each series affected (with each series voting as a separate class)
at the time Outstanding shall have the right to direct the time, method, and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee with respect to the
Securities of such series by this Indenture; provided that such direction shall
not be otherwise than in accordance with law and the provisions of this
Indenture and provided further that (subject to the provisions of Section 6.01)
the Trustee shall have the right to decline to follow any such direction if the
Trustee, being advised by counsel, shall determine that the action or proceeding
so directed may not lawfully be taken or if the Trustee in good faith by its
board of directors, the executive committee, or a trust committee of two or more
directors or responsible officers of the Trustee, which may include Trust
Officers, shall determine that the action or proceedings so directed would
involve the Trustee in personal liability or if the Trustee in good faith shall
so determine that the actions or forbearances specified in or pursuant to such
direction would be unduly prejudicial to the interests of Holders of the
Securities of all series so affected not joining in the giving of said
direction, it being understood that the Trustee shall have no duty to ascertain
whether or not such actions or forbearances are unduly prejudicial to such
Holders.

         Nothing in this Indenture shall impair the right of the Trustee in its
discretion to take any action deemed proper by the Trustee and which is not
inconsistent with such direction or directions by Securityholders.

         Section 6.10.  WAIVER OF PAST DEFAULTS.

         Unless otherwise provided in a Board Resolution of the Company, an
indenture supplemental hereto or an Officers' Certificate establishing the
terms of a series of Securities, prior to the declaration of the acceleration
of the maturity of the Securities of any series as provided in Section 6.01,
the Holders of a majority in aggregate principal amount of the Securities of
such series at the time Outstanding may on behalf of the Holders of all the
securities of such series waive any past default or Event of Default
described in clause (c) of Section 6.01 (or, in the case of an event
specified in clause (d) of Section 6.01 which relates to less than all series
of Securities then Outstanding, the Holders of a majority in aggregate
principal amount of the Securities then Outstanding affected thereby (each
series voting as a separate class) may waive any such default or Event of
Default) or, in the case of an event specified in clause (d) (if the Event of
Default under clause (d) relates to all series of Securities then
Outstanding), (e) or (f) of Section 6.01 the Holders of Securities of a
majority in principal amount of all the Securities then Outstanding (voting
as one class) may waive any such default or Event of Default), and its
consequences except a default in respect of a covenant or provision hereof
which cannot be modified or amended without the consent of the Holder of each
Security affected. In the case of any such waiver, the Company, the Trustee
and the Holders of the Securities of such series shall be restored to their
former positions and rights hereunder, respectively; but no such waiver shall
extend to any subsequent or other default or impair any right consequent
thereon.

         Upon any such waiver, such default shall cease to exist and be deemed
to have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to have

                                       39
<PAGE>

been cured, and not to have occurred 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.

         Section 6.11. TRUSTEE TO GIVE NOTICE OF DEFAULT, BUT MAY WITHHOLD IN
                       CERTAIN CIRCUMSTANCES.

         The Trustee shall, within ninety days after the occurrence of a default
with respect to the Securities of any series, give notice of all defaults with
respect to that series known to the Trustee (i) if any Bearer Securities of that
series are then Outstanding, to the Holders thereof, by publication at least
once in an Authorized Newspaper in the Place of Payment, (ii) if any Bearer
Securities of that series are then Outstanding, to all Holders thereof who have
filed their names and addresses with the Trustee, by mailing such notice to such
Holders at such addresses and (iii) to all Holders of then Outstanding
Registered Securities of that series, by mailing such notice to such Holders at
their addresses as they shall appear in the registry books, unless in each case
such defaults shall have been cured before the mailing or publication of such
notice (the term "defaults" for the purpose of this Section being hereby defined
to mean any event or condition which is, or with notice or lapse of time or both
would become, an Event of Default); provided that, except in the case of default
in the payment of the principal of or interest or Additional Amounts, if any, on
any of the Securities of such series or in the payment of any sinking or
purchase fund installment, 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 comprised of two or more directors or trustees and/or
responsible officers of the Trustee, which may include Trust Officers, in good
faith determines that the withholding of such notice is in the interests of the
Securityholders of such series.

         Section 6.12. RIGHT OF COURT TO REQUIRE FILING OF UNDERTAKING TO PAY
                       COSTS.

         All parties to this Indenture agree, and each Holder of any Security or
coupon by his acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for any action
taken, suffered or omitted by it as Trustee, the filing by any party litigant in
such suit (other than the Trustee) of an undertaking to pay the costs of such
suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by
such party litigant; but the provisions of this Section shall not apply to any
suit instituted by the Trustee, to any suit instituted by any Securityholder or
group of Securityholders of any series holding in the aggregate more than 10% in
aggregate principal amount of the Outstanding Securities of such series, or, in
the case of any suit relating to or arising under clause (d) of Section 6.01 (if
the suit relates to Securities of more than one but less than all series), 10%
in aggregate principal amount of Securities Outstanding affected thereby, or in
the case of any suit relating to or arising under clause (d) (if the suit under
clause (d) relates to all the Securities then Outstanding), (e) or (f) of
Section 6.01, 10% in aggregate principal amount of all Securities

                                       40
<PAGE>

Outstanding, or to any suit instituted by any Securityholder for the enforcement
of the payment of the principal of or interest on any Security on or after the
due date expressed in such Security or any date fixed for redemption.

         The Holders of a majority in principal amount of the Outstanding
Securities of such series by notice to the Company and the Trustee may rescind
an acceleration and its consequences if (i) all existing Events of Default with
respect to the Securities of such series, other than the non-payment of the
principal of the Securities which have become due solely by such declaration of
acceleration, have been cured or waived, (ii) the Company has paid or deposited
with the Trustee a sum sufficient to pay the whole amount then due and payable
on such Securities and any coupons appertaining thereto for principal and
interest and Additional Amounts, if any, with interest upon the overdue
principal and, to the extent that payment of such interest shall be legally
enforceable, upon overdue installments of interest or any Additional Amounts, at
the rate or rates borne by or provided for 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, and (iii) the
rescission would not conflict with any judgment or decree. No such rescission
shall have any effect on any subsequent default or impair any right consequent
thereon.

                                 ARTICLE SEVEN
                                    TRUSTEE

         Section 7.01.  DUTIES OF TRUSTEE.

         (a) If an Event of Default has occurred and is continuing, the Trustee
shall exercise its rights and powers hereunder and use the same degree of care
and skill in its exercise as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs.

         (b) Except during the continuance of an Event of Default:

                   (1) The Trustee need perform only those duties that are
specifically set forth in this Indenture and no others.

                   (2) In the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture. The Trustee,
however, shall examine the certificates and opinions to determine whether or not
they conform to the requirements of this Indenture (but need not confirm or
investigate the accuracy of mathematical calculations or other facts stated
therein).

         (c) The Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act or its own willful
misconduct, except that:

                                       41
<PAGE>

                   (1) This paragraph does not limit the effect of paragraph (b)
of this Section.

                   (2) The Trustee shall not be liable for any error of judgment
made in good faith by a responsible officer or officers of the Trustee, which
may include Trust Officers, unless it is proved that the Trustee was negligent
in ascertaining the pertinent facts.

                   (3) The Trustee shall not be liable with respect to any
action it takes or omits to take in good faith in accordance with a direction
received by it pursuant to Section 6.09.

         (d) Every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b) and (c) of this Section.

         (e) The Trustee may refuse to perform any duty or exercise any right or
power unless it receives indemnity satisfactory to it against any loss,
liability or expense.

         (f) Money held by the Trustee in trust hereunder need not be segregated
except to the extent required by law. The Trustee shall not be liable for
interest on any money received by it except as the Trustee may agree with the
Company.

         (g) The Trustee shall not be liable with respect to any action taken or
omitted to be taken or with respect to exercising any trust or power conferred
upon the Trustee, under this Indenture, by it in good faith in accordance with
the direction of the Holders of a majority in principal amount of the
Outstanding Securities of any series given pursuant to Section 6.09 of this
Indenture, relating to the time, method and place of conducting any proceeding
for any remedy available to the Trustee.

         (h) Every provision in this Indenture relating to the conduct of or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section and to the provisions of the Trust
Indenture Act.

         Section 7.02.  RIGHTS OF TRUSTEE.

         Except as provided in Section 7.01:

         (a) The Trustee may rely on any document believed by it to be genuine
and to have been signed or presented by the proper Person or Persons. The
Trustee need not investigate any fact or matter stated in the document.

         (b) Before the Trustee acts or refrains from acting, it may require an
Officers' Certificate of the Company or an Opinion of Counsel. The Trustee shall
not be liable for any action it takes or omits to take in good faith and in
reliance on such Officers' Certificate or Certificates or Opinion of Counsel.

                                       42
<PAGE>

         (c) The Trustee may act through agents and shall not be responsible for
the misconduct or negligence of any agent appointed with due care.

         (d) The Trustee shall not be liable for any action it takes or omits to
take in good faith which it believes to be authorized or within its rights or
powers.

         (e) Any demand, request, direction or notice from the Company mentioned
herein shall, unless otherwise specifically provided, 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.

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

         (g) 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, to
the extent necessary and consistent with each inquiry or investigation, the
books, records and premises of the Company, personally or by agent or attorney.

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

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

         Section 7.03.  INDIVIDUAL RIGHTS OF TRUSTEE.

         The Trustee in its individual or any other capacity may become the
owner or pledgee of Securities or coupons and may otherwise deal with the
Company or its Affiliates with the same rights it would have if it were not
Trustee. Any Agent may do the same with like rights. The Trustee, however, must
comply with Sections 7.10 and 7.11.

                                       43
<PAGE>

         Section 7.04.  TRUSTEE'S DISCLAIMER.

         The Trustee makes no representation as to the validity or adequacy of
this Indenture or the Securities; it shall not be accountable for the Company's
use of the Securities or the proceeds from the Securities; and it shall not be
responsible for any statement in the Securities other than its certificate of
authentication.

         Section 7.05.  NOTICE OF DEFAULTS.

         If a Default occurs and is continuing with respect to Securities and if
it is actually known to the Trustee, the Trustee shall give to each Holder of
Securities of any series to which such Default relates, in the manner and to the
extent provided in TIA Section 313(c), and otherwise as provided in Section
13.02 of this Indenture, notice of the Default within 90 days after it occurs.
Except in the case of a Default in payment of principal of or interest or
Additional Amounts, if any, on a Security of any series, or in the payment of
any sinking or purchase fund installment, the Trustee may withhold the notice if
and so long as the board of directors of the Trustee, the executive committee or
a trust committee of directors and/or of responsible officers, which may include
Trust Officers, of the Trustee in good faith determines that withholding the
notice is in the interests of Holders of Securities of such series or the coupon
appertaining thereto.

         Section 7.06.  REPORTS BY TRUSTEE TO HOLDERS.

         Within 60 days after each May 15 beginning with the May 15 following
the date of this Indenture, the Trustee shall mail to each Securityholder a
brief report dated as of such May 15 that complies with TIA Section 313(a). The
Trustee also shall comply with TIA Section 313(b)(2). Reports to Holders
pursuant to this Section 7.06 shall be transmitted in the manner and to the
extent provided in TIA Section 313(c).

         A copy of each report at the time of its mailing to Securityholders
shall be filed with the SEC and each stock exchange on which any Securities are
listed.

         The Company agrees to notify the Trustee whenever the Securities of any
series become listed on any stock exchange or any delisting thereof.

         Section 7.07.  COMPENSATION AND INDEMNITY.

         The Company shall pay to the Trustee from time to time such
compensation as the Company and the Trustee shall from time to time agree in
writing for all services rendered by it hereunder (which compensation shall not
be limited by any provision of law in regard to the compensation of a Trustee of
an express trust). The Company shall reimburse the Trustee and any predecessor
Trustee upon request for all reasonable out-of-pocket expenses and advances
incurred or made by it. Such expenses shall include the reasonable compensation
and expenses of

                                       44
<PAGE>

the Trustee's agents and counsel. The Company shall indemnify each of the
Trustee and any predecessor Trustee and their agents against any loss damage
claim, expense or liability (including legal fees and expenses) incurred by it
in connection with the acceptance and administration of the trust and the
performance of its duties hereunder, including the costs and expenses and
disbursements of defending itself against any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder. The
Trustee shall notify the Company promptly of any claim asserted against it for
which it may seek indemnity; provided, however, that the failure to give the
Company any notice of any claim shall not in any way affect the rights of the
Trustee hereunder to indemnification for such claim. The Company need not
reimburse any expense or indemnify against any loss or liability incurred by the
Trustee or any predecessor Trustee to the extent due to its own negligence,
willful misconduct or bad faith.

         To secure the Company's payment obligations in this Section, the
Trustee shall have a lien prior to the Securities on all money or property held
or collected by the Trustee, except that held in trust to pay principal of or
interest or Additional Amounts, if any, on the Securities.

         When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.01 (e) and (f) occurs, the expenses and the
compensation for services are intended to constitute expenses of administration
under any Bankruptcy Law. The term "Bankruptcy Law" means Title 11, U.S. Code.

         The provisions of this Section 7.07 shall survive termination of this
Indenture or the resignation and removal of the Trustee.

         For purposes of this Section, the term "Trustee" shall include any
predecessor Trustee, provided that any Trustee hereunder shall not be liable for
the willful misconduct, negligence or bad faith of any other Trustee hereunder.

         Section 7.08.  REPLACEMENT OF TRUSTEE.

         The Trustee may resign by so notifying the Company; provided, however,
no such resignation shall be effective until a successor Trustee has accepted
its appointment pursuant to this Section 7.08. The Holders of a majority in
principal amount of the Outstanding Securities may remove the Trustee by so
notifying the Trustee and may appoint a successor Trustee with respect to the
Securities. The Company may by or pursuant to a Board Resolution remove the
Trustee with respect to all Securities if:

               (1)  the Trustee fails to comply with Section 7.10;

               (2)  the Trustee is adjudged bankrupt or insolvent;

               (3)  a receiver or other public officer takes charge of the
                    Trustee or its property; or

                                       45
<PAGE>

               (4)  the Trustee becomes incapable of acting.

         If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, the Company shall promptly appoint a successor
Trustee.

         A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. As soon as possible
after that, the retiring Trustee shall, upon payment of its charges, transfer
all property held by it as Trustee to the successor Trustee, the resignation or
removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. A successor Trustee shall give notice of its succession to each
Holder of Securities.

         If a successor Trustee does not take office within 45 days after the
retiring Trustee resigns or is removed, the retiring Trustee, at the Company's
expense, the Company or the Holders of 10% in principal amount of the
Outstanding Securities may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

         If the Trustee fails to comply with Section 7.10, any Securityholder
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

         Section 7.09.  SUCCESSOR TRUSTEE BY MERGER, ETC.

         If the Trustee consolidates with, merges or converts into, or transfers
all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act shall be the
successor Trustee, provided such corporation shall be otherwise qualified and
eligible under this article.

         Section 7.10.  ELIGIBILITY; DISQUALIFICATION.

         The Trustee shall at all times satisfy the requirements of TIA Section
310(a)(1). The Trustee shall have a combined capital and surplus of at least
$50,000,000 as set forth in its most recent published annual report of
condition. If any series of Securities is admitted to trading on the New York
Stock Exchange, Inc., or any successor thereto, the Trustee shall maintain an
office or agency in The Borough of Manhattan, The City of New York, New York as
long as such series of Securities shall be so admitted. The Trustee shall comply
with TIA Section 310(b).

         Section 7.11.  PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

         The Trustee shall comply with TIA Section 311(a), excluding any
creditor relationship listed in TIA Section 311(b). A Trustee who has resigned
or been removed shall be subject to TIA Section 311(a) to the extent indicated.
For the purposes of Section 311(b) of the Trust

                                       46
<PAGE>

Indenture Act: (a) the term "cash transaction" shall have the meaning provided
in Rule 11(b)-4 under the Trust Indenture Act, and (b) the term
"self-liquidating paper" shall have the meaning provided in Rule 11(b)-6 under
the Trust Indenture Act.

                                  ARTICLE EIGHT
                             DISCHARGE OF INDENTURE

         Section 8.01.  DISCHARGE.

         Unless otherwise provided in a Board Resolution of the Company
delivered to the Trustee pursuant to Section 2.01, an indenture supplemental
hereto or an Officers' Certificate establishing the terms of a series of
Securities, the Company may terminate all of its obligations under the
Securities of any series and this Indenture with respect to such series (a) if
all Securities of such series previously authenticated and delivered (other than
destroyed, lost or stolen Securities of such series which have been replaced or
paid) and all coupons 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 2.06, (ii) Securities and coupons which have been
destroyed, lost or stolen and which have been replaced or paid as provided in
Section 2.07, and (iii) Securities and coupons for whose payment money has
theretofore been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust, as
provided in Section 4.03 or 8.04) have been delivered to the Trustee for
cancellation or (b) if:

               (1)  the Securities of such series mature within one year or all
of them are to be called for redemption within one year under arrangements
satisfactory to the Trustee for giving the notice of redemption;

               (2)  the Company irrevocably deposits in trust with the Trustee
money or Government Obligations sufficient to pay principal (including any
mandatory sinking fund payments) of and any interest and Additional Amounts on
the Securities of such series to maturity or redemption, as the case may be
(other than moneys paid to the Company or discharged from trust in accordance
with Section 4.03 or 8.04); and

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

         The Company's obligations in Sections 2.03, 2.04, 2.05, 2.06, 2.07,
7.07, 7.08, and 8.03 with respect to the Securities of such series, however,
shall survive so long as any principal of, interest, if any, or any Additional
Amounts on the Securities of such series, and coupons appertaining thereto,
remains unpaid. Thereafter the Company's obligations in Section 7.07 shall
survive.

                                       47
<PAGE>

         After a deposit of such moneys, and delivery of the Officers'
Certificate and Opinion of Counsel required by clause (3) above, the Trustee
upon request shall acknowledge in writing the discharge of the Company's
obligations under the Securities of such series and this Indenture with respect
to the Securities of such series except for those surviving obligations
specified above.

         Section 8.02.  DEFEASANCE AND COVENANT DEFEASANCE

         Unless otherwise provided in a Board Resolution of the Company
delivered to the Trustee pursuant to Section 2.01, an indenture supplemental
hereto or an Officers' Certificate establishing the terms of a series of
Securities with respect to the Securities of any series, the Company, at its
option, either (a) shall be deemed to have obtained Defeasance (as defined
below) and been discharged from its obligations with respect to the Securities
of any series, and coupons appertaining thereto, on the ninety-first day after
the applicable conditions set forth below have been satisfied, or (b) shall
cease to be under any obligation to comply with any term, provision or condition
set forth in Sections 4.04, 4.05, 4.06 and 4.07 and Sections 6.01 and 6.02 as
they relate to Section 6.01(d), with respect to the Securities of any series and
any coupons appertaining thereto and any other covenants provided in the Board
Resolution of the Company (except Section 7.07) delivered to the Trustee
pursuant to Section 2.01, an indenture supplemental hereto or an Officers'
Certificate establishing the terms of a series of Securities with respect to the
Securities of such series and any coupons appertaining thereto at any time after
the applicable conditions set forth below have been satisfied ("Covenant
Defeasance"):

               (1)  the Company shall have deposited or caused to be deposited
irrevocably with the Trustee as trust funds in trust, specifically pledged as
security for, and dedicated solely to, the benefit of the Holders of the
Securities of such series and any coupons appertaining thereto (A) money in an
amount, or (B) Government Obligations which through the payment of interest and
principal in respect thereof in accordance with their terms will provide, not
later than one day (or, if such day is a Legal Holiday, the first day preceding
such day which is not a Legal Holiday) before the due date of any payment, money
in an amount, or (C) a combination of (A) and (B), sufficient, in the opinion of
a recognized firm of Independent Public Accountants selected by the Company
expressed in a written certification thereof delivered to the Trustee, to pay
and discharge each installment of principal (including mandatory sinking fund
payments) of, and interest, if any, and Additional Amounts, if any, on the
Outstanding Securities of such series on the dates such installments of
principal, interest, if any, and Additional Amounts, if any, are due (taking
into account any redemption pursuant to optional sinking fund payments notice of
which redemption is provided to the Trustee at the time of the deposit referred
to in this paragraph (1));

               (2)  if the Securities of such series are then listed on the New
York Stock Exchange, the Company shall have delivered to the Trustee an Opinion
of Counsel to the effect

                                       48
<PAGE>

that the Company's exercise of its option under this paragraph would not cause
such Securities to be delisted;

               (3)  no Event of Default, or event which with the giving of
notice or lapse of time, or both, would become an Event of Default, with respect
to the Securities of such series shall have occurred and be continuing on the
date of such deposit and the Company shall have furnished to the Trustee an
Officers' Certificate to such effect; and

               (4)  the Company shall have delivered to the Trustee an Opinion
of Counsel to the effect that Holders of the Securities of such series will not
recognize income, gain or loss for United States Federal income tax purposes as
a result of the exercise of the option under this Section 8.02 and will be
subject to United States Federal income tax on the same amount and in the same
manner and at the same times as would have been the case if such option had not
been exercised, and, in the case of Defeasance, such opinion shall be
accompanied by a private letter ruling to that effect received from the United
States Internal Revenue Service or a revenue ruling pertaining to a comparable
form of transaction to that effect published by the United States Internal
Revenue Service or there has been a change in applicable United States federal
income tax law to that effect.

         "Defeasance" means, for purposes of this Section 8.02, that the Company
shall be deemed to have paid and discharged the entire indebtedness represented
by, and obligations under, the Securities of any series and to have satisfied
all the obligations under this Indenture relating to the Securities of such
series (and the Trustee, at the expense of the Company, shall execute such
instruments as may be requested by the Company acknowledging the same), except
(A) the rights of Holders of Securities of such series or the coupons, if any,
appertaining thereto, as the case may be, to receive, solely from the trust fund
described above, payment of the principal of and interest, if any, and
Additional Amounts, if any, on such Securities when such payments are due; (B)
the Company's obligations with respect to such Securities under Sections 2.03,
2.04, 2.05, 2.06, 2.07, 7.07, 7.08 and 8.03; and (C) the rights, powers, duties
and immunities of the Trustee hereunder. Notwithstanding the satisfaction and
discharge of this Indenture with respect to any series of Securities, the
obligations of the Company to the Trustee and any predecessor Trustee under
Section 7.07 shall survive.

         Section 8.03.  APPLICATION OF TRUST MONEY.

         All moneys and Government Obligations deposited with the Trustee
pursuant to Sections 8.01 and 8.02 and, with respect to Government Obligations,
the principal and interest in respect thereof, with respect to Securities of any
series shall be held irrevocably in trust and applied by it to the payment in
accordance with the provisions of the Securities of such series and this
Indenture, either directly or through any Paying Agent for the Securities of
that series (including the Company if acting as its own Paying Agent), to the
Holders of the Securities of such series or the coupons, if any, appertaining
thereto, as the case may be, for the payment or redemption of which such money
has been deposited with the Trustee, of all sums due and to become due

                                       49
<PAGE>

thereon for principal, interest, if any, and Additional Amounts, if any, but
such money need not be segregated from other funds except to the extent required
by law.

         Section 8.04.  REPAYMENT TO COMPANY.

         The Trustee and the Paying Agent shall promptly pay to the Company upon
delivery of a Company Order any excess money or securities held by them at any
time under this Article Eight. Any money deposited with the Trustee or any
Paying Agent, or then held by the Company, under this Article Eight in trust for
the payment of the principal of, interest or Additional Amounts, if any, on any
Security and remaining unclaimed for two years after such principal, interest or
Additional Amounts have become due and payable shall be paid to the Company on
request, or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Security shall thereafter, as an unsecured general
creditor, look only to the Company for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability
of the Company as trustee thereof, shall thereupon cease.

         Section 8.05  REINSTATEMENT.

         If the Trustee or Paying Agent is unable to apply any money or
Government Obligations in accordance with Sections 8.01 or 8.02 by reason of any
legal proceeding or 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 the Securities shall be revived
and reinstated as though no deposit had occurred pursuant to this Article 8,
until such time as the Trustee or Paying Agent is permitted to apply all such
money or Government Obligations in accordance with Sections 8.01 or 8.02;
provided, however, that if the Company makes any payment of principal of or
premium or interest on any security following the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Securities to receive such payment from the money or Government Obligations
held by the Trustee or Paying Agent after payment in full to the Holders.

         Section 8.06.  INDEMNITY FOR GOVERNMENT OBLIGATIONS.

         The Company shall pay and shall indemnify the Trustee against any tax,
fee or other charge imposed on or assessed against deposited Government
Obligations or the principal and interest received on such Government
Obligations.

                                  ARTICLE NINE
                       AMENDMENTS, SUPPLEMENTS AND WAIVERS

         Section 9.01.  WITHOUT CONSENT OF HOLDERS.

         The Company, when authorized by a Board Resolution, and the Trustee may
amend or supplement this Indenture or the Securities without notice to or
consent of any Securityholder:

                                       50
<PAGE>

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

         (b)      to evidence the succession of another corporation to the
Company, or successive successions, and the assumption by the successor
corporation of the covenants, agreements and obligations of the Company pursuant
to Article Five;

         (c)      to add to the covenants of the Company such further covenants,
restrictions, conditions or provisions as its Board of Directors and the Trustee
shall consider to be for the protection of the Holders of Securities or coupons
appertaining thereto, and to make the occurrence, or the occurrence and
continuance, of a default in any such additional covenants, restrictions,
conditions or provisions an Event of Default permitting the enforcement of all
or any of the several remedies provided in this Indenture as herein set forth;
provided, that in respect of any such additional covenant, restriction,
condition or provision such supplemental indenture may provide for a particular
period of grace after default (which period may be shorter or longer than that
allowed in the case of other defaults) or may provide for immediate enforcement
upon such an Event of Default or may limit the remedies available to the Trustee
upon such an Event of Default or may limit the right of the Holders of a
majority in aggregate principal amount of the Securities of such series to waive
such an Event of Default.

         (d)      to cure any ambiguity or to correct or supplement any
provision contained herein or in any supplemental indenture which may be
defective or inconsistent with any other provision contained herein or in any
supplemental indenture, or to make any other provisions as the Board of
Directors may deem necessary or desirable, provided that no such action shall
adversely affect the interests of the Holders of the Securities or coupons
appertaining thereto;

         (e)      to make provisions with respect to conversion rights of the
Holders of the Securities, if any;

         (f)      to establish the form or terms of Securities of any series or
of the coupons appertaining to such Securities as permitted by Section 2.01;

         (g)      to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee with respect to the Securities of one or more
series;

         (h)      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 (including restrictions relating to payment in the
United States) on the payment of principal of 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 the issuance of
Securities in uncertificated form,

                                       51
<PAGE>

provided that any such actions shall not adversely affect the interest of the
Holders of the Securities of any series or any related coupons in any material
respect; or

         (i)      to add to, change or eliminate any of the provisions of this
Indenture (which addition, change or elimination may apply to one or more series
of Securities), provided that any such addition, change or elimination shall
neither (A) apply to any Security or any series created prior to the execution
of such supplemental indenture and entitled to the benefit of such provision nor
(B) modify the rights of the Holder of any such Security with respect to such
provision.

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

         Any supplemental indenture authorized by the provisions of this Section
may be executed without the consent of the Holders of any of the Securities at
the time Outstanding, notwithstanding any of the provisions of Section 9.02.

         Section 9.02.  WITH CONSENT OF HOLDERS.

         With the consent of the Holders of not less than a majority of the
principal amount of the Securities at the time Outstanding in each series
affected by such supplemental indenture (voting as one class), the Company,
when authorized by a resolution of its Board of Directors, and the Trustee
may, from time to time and at any time, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Indenture or any
supplemental indenture or of modifying in any manner the rights of the
Holders of the Securities of each such series or of the coupons appertaining
to such Securities; provided, however, that a Board Resolution of the
Company, an indenture supplemental hereto or an Officers' Certificate may
provide for additional consent requirements of a particular series of
Securities in addition to the ones provided in this section; and provided
further, that no such supplemental indenture shall, without the consent of
each Securityholder affected:

               (1)  reduce the amount of Securities whose Holders must
consent to an amendment, supplement or waiver, reduce the requirements of
Section 11.09 as to establishing a quorum or voting, or amend this Section
9.02;

               (2)  reduce the rate or rates of or extend the time for payment
of interest or Additional Amounts, if any, on any Security;

               (3)  reduce the principal of or extend the fixed maturity of any
Security;

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<PAGE>

               (4)  make any change that adversely affects the rights of
Holders with respect to subordination;

               (5)  make any change that adversely affects the right to
convert any Security, if any;

               (6)  reduce any amount payable on redemption;

               (7)  waive a default in the payment of the principal of or
interest or Additional Amounts, if any, on any Security;

               (8)  impair the right to institute suit for the enforcement of
any payment on or with respect to any series of Securities;

               (9)  change a Place of Payment; or

               (10) make any Security payable in currency other than that stated
in the Security.

         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 Holders of Securities of such series, or of coupons appertaining
to such Securities, with respect to such covenant or provision, shall be deemed
not to affect the rights under this Indenture of the Holders of Securities of
any other series or of the coupons appertaining to Securities of such other
series.

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

         Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Trustee
shall give a notice thereof (i) to the Holders of then Outstanding Registered
Securities of each series affected thereby, by mailing a notice thereof by
first-class mail to such Holders at their addresses as they shall appear on the
Security Register, (ii) if any Bearer Securities of a series affected thereby
are then Outstanding, to the Holders thereof who have filed their names and
addresses with the Trustee, by mailing a notice thereof by first-class mail to
such Holders at such addresses as were so furnished to the Trustee and (iii) if
any Bearer Securities of a series affected thereby are then Outstanding, to all
Holders thereof, by publication of a notice thereof at least once in an
Authorized Newspaper in the Place of Payment, and in each case such notice shall
set forth in general terms the substance of such supplemental indenture. Any
failure the Trustee to give such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture.

                                       53
<PAGE>

         Section 9.03.  COMPLIANCE WITH TRUST INDENTURE ACT.

         Every amendment to or supplement of this Indenture or the Securities
shall comply with the TIA as then in effect.

         Section 9.04.  REVOCATION AND EFFECT OF CONSENTS.

         A consent to an amendment, supplement or waiver to any other action
hereunder by a Holder of a Security of any series shall bind the Holder and
every subsequent Holder of a Security or portion of a Security of that series
that evidences the same debt as the consenting Holder's Security, even if
notation of the consent is not made on any Security. Any such Holder or
subsequent Holder, however, may revoke the consent as to his Security or portion
of a Security. Such revocation shall be effective only if the Trustee receives
the notice of revocation before the date the amendment, supplement or waiver or
other action becomes effective.

         After an amendment, supplement or waiver with respect to a series of
Securities becomes effective, it shall bind every Holder of Securities of that
series.

          The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Securityholders entitled to take any action under
this Indenture by vote or consent. If such record date is fixed, the Company
shall notify the Trustee of such date.

         Section 9.05.  NOTATION ON OR EXCHANGE OF SECURITIES.

         If an amendment, supplement or waiver changes the terms of a Security,
the Trustee may request the Holder of the Security to deliver it to the Trustee.
The Trustee may then place an appropriate notation on the Security about the
changed terms and return it to the Holder. Alternatively, if the Company so
determines, the Company in exchange for the Security shall issue and the Trustee
shall authenticate a new Security that reflects the changed terms. Failure to
make the appropriate notation or to issue a new Security shall not affect the
validity of such amendment.

         Section 9.06.  TRUSTEE TO SIGN AMENDMENTS, ETC.

         The Trustee shall sign any amendment or supplement authorized pursuant
to this Article if the amendment or supplement does not adversely affect the
rights, duties, liabilities (present or potential), or immunities of the
Trustee. If it does, the Trustee may but need not sign it. In signing such
amendment or supplement, the Trustee shall be entitled to receive and (subject
to Sections 7.01 and 7.02) shall be fully protected in relying upon an Opinion
of Counsel stating that such amendment or supplement is authorized or permitted
by this Indenture.

                                       54
<PAGE>

                                   ARTICLE TEN
                       REPAYMENT AT THE OPTION OF HOLDERS

         Section 10.01.  APPLICABILITY OF ARTICLE.

         Securities of any series which are repayable at the option of the
Holders thereof before their maturity shall be repaid in accordance with the
terms of the Securities of such series. The repayment of any principal amount of
Securities pursuant to such option of the Holder to require repayment of
Securities before their maturity shall not operate as a payment, redemption or
satisfaction of the indebtedness represented by such Securities unless and until
the Company, at its option, shall deliver or surrender the same to the Trustee
with a directive that such Securities be canceled. Notwithstanding anything to
the contrary contained in this Article Ten, in connection with any repayment of
Securities, the Company may arrange for the purchase of any Securities by an
agreement with one or more investment bankers or other purchasers to purchase
such Securities by paying to the Holders of such Securities on or before the
close of business on the repayment date an amount not less than the repayment
price payable by the Company on repayment of such Securities, and the obligation
of the Company to pay the repayment price of such Securities shall be satisfied
and discharged to the extent such payment is so paid by such purchasers.

                                 ARTICLE ELEVEN
                         CONCERNING THE SECURITYHOLDERS

         Section 11.01.  EVIDENCE OF ACTION TAKEN BY SECURITYHOLDERS.

         Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by a specified
percentage in principal amount of the Securityholders of any or all series may
be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such specified percentage of Securityholders in person or by
agent 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 Sections 11.06 through 11.11, or a combination of such instruments
such record. Except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments or record or both are
delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments and any such record (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
"Act" of the Holders signing such instrument or instruments and so voting at any
such meeting. Proof of execution of any such instrument or of a writing
appointing any such agent, or of the holding by any Person of a Security, be
sufficient for any purpose of this Indenture and (subject to Section 7.02)
conclusive

                                       55
<PAGE>

in favor of the Trustee and the Company, if made in the manner provided in
Section 11.02. The record of any meeting of Holders of Securities shall be
proved in the manner provided in Section 11.11.

         Section 11.02.  PROOF OF EXECUTION OF INSTRUMENTS AND OF HOLDING OF
SECURITIES.

         The execution of any instrument by a Securityholder or his agent or
proxy may be proved in the following manner:

         (a)      The fact and date of the execution by any Holder of any
instrument may be proved by the certificate of any notary public or other
officer of any jurisdiction authorized to take acknowledgments of deeds or
administer oaths that the person executing such instruments acknowledged to him
the execution thereof, or by an affidavit of a witness to such execution sworn
to before any such notary or other such officer. Where such execution is by or
on behalf of any legal entity other than an individual, such certificate or
affidavit shall also constitute sufficient proof of the authority of the person
executing the same. The fact of the holding by any Holder of a Bearer Security
of any series, and the identifying number of such Security and the date of his
holding the same, may be proved by the production of such Security or by a
certificate executed by any trust company, bank, banker or recognized securities
dealer wherever situated satisfactory to the Trustee, if such certificate shall
be deemed by the Trustee to be satisfactory. Each such certificate shall be
dated and shall state that on the date thereof a Security of such series bearing
a specified identifying number was deposited with or exhibited to such trust
company, bank, banker or recognized securities dealer by the person named in
such certificate. Any such certificate may be issued in respect of one or more
Bearer Securities of one or more series specified therein. The holding by the
person named in any such certificate of any Bearer Security or Securities of any
series specified therein shall be presumed to continue for a period of one year
from the date of such certificate unless at the time of any determination of
such holding (1) another certificate bearing a later date issued in respect of
the same Security or Securities shall be produced, or (2) the Security or
Securities of such series specified in such certificate shall be produced by
some other person, or (3) the Security or Securities of such series specified in
such certificate shall have ceased to be Outstanding. Subject to Section 7.02,
the fact and date of the execution of any such instrument and the amount and
numbers of Securities of any series held by the person so executing such
instrument and the amount and numbers of any Security or Securities for such
series may also be proven in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee for such series or in any other
manner which the Trustee for such series may deem sufficient.

         (b)      In the case of Registered Securities, the ownership of such
Securities shall be proved by the Security Register or by a certificate of the
Security Registrar.

         (c)      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

                                       56
<PAGE>

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.

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

         Section 11.03.  HOLDERS TO BE TREATED AS OWNERS.

         The Company, the Trustee and any agent of the Company or the Trustee
may deem and treat the person in whose name any Security shall be registered
upon the Security Register for such series as the absolute owner of such
Security (whether or not such Security shall be overdue and notwithstanding any
notation of ownership or other writing thereon) for the purpose of receiving
payment of or on account of the principal of and, subject to the provisions of
this Indenture, interest on and any Additional Amounts payable in respect of
such Security and for all other purposes; and neither the Company nor the
Trustee nor any agent of the Company or the Trustee shall be affected by any
notice to the contrary. The Company, the Trustee and any agent of the Company or
the Trustee may treat the Holder of any Bearer Security and the Holder of any
coupon as the absolute owner of such Bearer Security or coupon (whether or not
such Bearer Security or coupon shall be overdue) for the purpose of receiving
payment thereof or on account thereof and for all other purposes and neither the
Company, the Trustee, nor any agent of the Company or the Trustee shall be
affected by any notice to the contrary. All such payments so made to any such
person, or upon his order, shall be valid, and, to the extent of the sum or sums
so paid, effectual to satisfy and discharge the liability for moneys payable
upon any such Security or coupon.

         None of the Company, the Trustee or 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.

         Section 11.04.  SECURITIES OWNED BY COMPANY DEEMED NOT OUTSTANDING.

                                       57
<PAGE>

         In determining whether the Holders of the requisite aggregate principal
amount of Outstanding Securities of any or all series have concurred in any
direction, consent or waiver under this Indenture, Securities which are owned by
the Company or any other obligor on the Securities with respect to which such
determination is being made or by any Affiliate of the Company or any such
obligor shall be disregarded and deemed not to be Outstanding for the purpose of
any such determination, except that for the purpose of determining whether the
Trustee shall be protected in relying on any such direction, consent or waiver
only Securities which the Trustee actually knows are so owned shall be so
disregarded. Securities so owned which have been pledged in good faith may be
regarded as Outstanding 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 any other obligor on the Securities. In case of a
dispute as to such right, the advice of counsel shall be full protection in
respect of any decision made by the Trustee in accordance with such advice. Upon
request of the Trustee, the Company shall furnish to the Trustee promptly an
Officers' Certificate listing and identifying all Securities, if any, known by
the Company to be owned or held by or for the account of any of the
above-described persons; and, subject to Section 7.02, the Trustee shall be
entitled to accept such Officers' Certificate as conclusive evidence of the
facts therein set forth and of the fact that all Securities not listed therein
are Outstanding for the purpose of such determination.

         Section 11.05.  RIGHT OF REVOCATION OF ACTION TAKEN.

         At any time prior to (but not after) the evidencing to the Trustee, as
provided in Section 11.01, of the taking of any action by the Holders of the
percentage in aggregate principal amount of the Securities of any or all series,
as the case may be, specified in this Indenture in connection with such action,
any Holder of a Security the serial number of which is shown by the evidence to
be included among the serial numbers of the Securities the Holders of which have
consented to such action may, by filing written notice at the Corporate Trust
Office and upon proof of holding as provided in this Article, revoke such action
so far as concerns such Security. Except as aforesaid any such action taken by
the Holder of any Security shall be conclusive and binding upon such Holder and
upon all future Holders and owners of such Security and of any Securities issued
in exchange or substitution therefor or on registration of transfer thereof,
irrespective of whether or not any notation in regard thereto is made upon any
such Security. Any action taken by the Holders of the percentage in aggregate
principal amount of the Securities of any or all series, as the case may be,
specified in this Indenture in connection with such action shall be conclusively
binding upon the Company, the Trustee and the Holders of all the Securities
affected by such action.

         Section 11.06.  MEETINGS OF HOLDERS.

         A meeting of Holders of Securities of any series may be called at any
time and from time to time pursuant to this Section 11.06 to make, give or take
any request, demand, authorization,

                                       58
<PAGE>

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 11.07.  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 11.06, to be held
at such time and at such place in _________________, or in [Boston,
Massachusetts] as the Trustee shall determine or, with the approval of the
Company, at any other place. 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 in Section 13.02 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 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 11.06, 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, 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 Boston,
Massachusetts, or in such other place as shall be determined and approved by the
Company, for such meeting and may call such meeting for such purposes by giving
notice thereof as provided in Subsection (a) of this Section.

         Section 11.08.  PERSONS ENTITLED TO VOTE AT MEETINGS.

         To be entitled to vote at any meeting of Holders 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 or any series shall be the Persons
entitled to vote at such meeting and their counsel, any representatives of the
Trustee and its counsel and any representatives of the Company and its counsel.

         Section 11.09.  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. 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 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,

                                       59
<PAGE>

such adjourned meeting may be further adjourned for a period 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 11.07(a), except that any such notice by publication 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 an 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.

         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 a majority in principal amount of the
Outstanding Securities of that series; provided, however, that 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 such
specified percentage in principal amount of the Outstanding Securities of that
series.

         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.

         Section 11.10.  DETERMINATION OF VOTING RIGHTS; CONDUCT AND ADJOURNMENT
                         OF MEETINGS.

         (a)      Notwithstanding any other provisions of this Indenture, the
Trustee may make such reasonable regulations as it may deem advisable for any
meeting of Holders of Securities 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 holdings of Securities shall be proved in the manner specified in Section
11.02 and the appointment of any proxy shall be provided in the manner specified
in Section 11.02 or by having the signature of the person executing the proxy
witnessed or guaranteed by any trust company, bank or banker authorized by
Section 11.02 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 11.02
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 11.07(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

                                       60
<PAGE>

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 the
Outstanding Securities of such series held or represented by him; provided,
however, that no vote shall be cast or counted at any meeting in respect to any
Security challenged as not Outstanding and ruled by the chairman of the meeting
to be not Outstanding. The chairman of the meeting shall have no right to vote,
except as a Holder of Securities of such series or proxy.

         (d)      Any meeting of Holders of Securities of any series duly called
pursuant to Section 11.07 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 11.11.  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 signatures of the Holders of Securities of such series or 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 11.07 and, if applicable, Section 11.09.
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.

                                       61
<PAGE>

                                 ARTICLE TWELVE
                                 SINKING FUNDS

         Section 12.01.  APPLICABILITY OF ARTICLE.

         Unless otherwise provided in a Board Resolution of the Company, an
indenture supplement or an Officers' Certificate establishing the terms of a
series of Securities, the provisions of this Article shall be applicable to any
sinking fund for the retirement of Securities of a series, except as otherwise
permitted or required by any form of Security of such series issued pursuant to
this Indenture.

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

         Section 12.02.  SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES.

         The Company may, in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of such series to be made pursuant to the
terms of such Securities as provided for by the terms of such series (1) deliver
Outstanding Securities of such series (other than any of such Securities
previously called for redemption or any of such Securities in respect of which
cash shall have been released to the Company), together in the case of any
Bearer Securities of such series with all unmatured coupons appertaining
thereto, and (2) apply as a credit Securities of such series which have been
redeemed either at the election of the Company pursuant to the terms of such
series of Securities or through the application of permitted optional sinking
fund payments pursuant to the terms of such Securities, provided that such
series of Securities have not been previously so credited. Such Securities shall
be received and credited for such purpose by the Trustee at the Redemption Price
specified in such Securities for redemption through operation of the sinking
fund and the amount of such sinking fund payment shall be reduced accordingly.
If as a result of the delivery or credit of Securities of any series in lieu of
cash payments pursuant to this Section 12.02, the principal amount of Securities
of such series to be redeemed in order to exhaust the aforesaid cash payment
shall be less than $100,000, the Trustee need not call Securities of such series
for redemption, except upon Company request, and such cash payment shall be held
by the Trustee or a Paying Agent for Securities of that series and applied to
the next succeeding sinking fund payment, provided, however, that the Trustee or
such Paying Agent shall at the request of the Company from time to time pay over
and deliver to the Company any cash payment so being held by the Trustee or such
Paying Agent upon delivery by

                                       62
<PAGE>

the Company to the Trustee of Securities purchased by the Company having an
unpaid principal amount equal to the cash payment requested to be released to
the Company.

         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 mandatory sinking fund
payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion
thereof, if any, which is to be satisfied by delivering and crediting of
Securities of that series pursuant to Section 12.02, and the optional amount, if
any, to be added in cash to the next ensuing mandatory sinking fund payment, and
will also deliver to the Trustee any Securities to be so credited and not
theretofore delivered. If such Officers' Certificate shall specify an optional
amount to be added in cash to the next ensuing mandatory sinking fund payment,
the Company shall thereupon be obligated to pay the amount therein specified.

         Not less than 30 days before each such sinking fund payment date the
Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 3.03 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 3.04. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 3.05 and 3.06.

                                ARTICLE THIRTEEN
                                  MISCELLANEOUS

         Section 13.01.  TRUST INDENTURE ACT CONTROLS.

         If any provision of this Indenture limits, qualifies, or conflicts with
the duties which are required to be included in this Indenture by the TIA
Section 310 to 317, inclusive, such duties set forth in the TIA shall control.

         Section 13.02.  NOTICES.

         Except as otherwise expressly provided herein or in the form of
Securities of any particular series pursuant to the provisions of this
Indenture, any notice or communication shall be sufficiently given if in writing
and delivered in Person, sent by facsimile (with original to follow by
first-class mail) or mailed by first-class mail, postage prepaid, addressed as
follows:

                                       63
<PAGE>

         if to the Company:

         Natural MicroSystems Corporation
         100 Crossing Boulevard
         Framingham, MA  01702
         Attention:  Chief Financial Officer

         with a copy to:

         Choate, Hall & Stewart
         Exchange Place
         53 State Street

         Boston, Massachusetts  02109-2891
         Attention:  Richard N. Hoehn, Esq.

         if to the Trustee:

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

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

         ----------------------
         Attention: Corporate Trust Trustee Administration
         Re:  Natural MicroSystems Corporation

         The Company or the Trustee by notice to the others may designate
additional or different addresses for subsequent notices or communications.

         Any notice or communication mailed to a Holder of a Registered Security
shall be mailed to him by first class mail at his address as it appears on the
Security Register and shall be sufficiently given to him if so mailed within the
time prescribed. Failure to mail a notice or communication to a Holder of any
Registered Security or any defect in it shall not affect its sufficiency with
respect to other Securityholders. If a notice or communication is mailed in the
manner provided above, it is duly given, whether or not the addressee receives
it.

         In case, by reason of the suspension of regular mail service or by
reason of any other cause, it shall be impossible to mail any notice as required
by this Indenture, then such method of notification as shall be made with the
approval of the Trustee shall constitute a sufficient mailing of such notice.

         Any notice required or permitted to be given to a Holder of Bearer
Securities of any series shall be deemed to be properly given if such notice is
published in an Authorized Newspaper on two separate days within the time
prescribed.

                                       64
<PAGE>

         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 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 any notice mailed to
Holders of Registered Securities as provided above.

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

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

         Section 13.03.  COMMUNICATION BY HOLDERS WITH OTHER HOLDERS.

         Securityholders may communicate pursuant to TIA Section 312(b) with
other Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar and anyone else shall have
the protection of TIA Section 312(c).

         Section 13.04.  CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.

         Upon any request or application by the Company to the Trustee to take
any action under this Indenture (except that, in the case of any request or
application as to which the furnishing of such documents is specifically
required by any provision of this Indenture relating to such particular request
or application, no additional certificate or opinion need be furnished), the
Company shall furnish to the Trustee:

               (1)  an Officers' Certificate stating that, in the opinion of the
signers, all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with; and

               (2)  an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent have been complied with.

         Section 13.05.  STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.

                                       65
<PAGE>

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

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

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

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

               (4)  a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been complied with.

         Section 13.06.  WHEN TREASURY SECURITIES DISREGARDED.

         In determining whether the Holders of the required principal amount of
Securities or a series thereof have concurred in any direction, waiver or
consent, Securities owned by the Company or any other obligor upon the
Securities or by any Affiliate of the Company or such obligor shall be
disregarded, except that for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only
Securities which the Trustee actually knows are so owned shall be so
disregarded. Securities so owned which have been pledged in good faith shall not
be disregarded if the pledgee establishes to the satisfaction of the Trustee the
pledgee's right so to act with respect to the Securities and that the pledgee is
not the Company or any other obligor upon the Securities or any Affiliate of the
Company or such obligor.

         Section 13.07.  LEGAL HOLIDAYS.

         A "Legal Holiday", except as otherwise provided in the form of Security
of any particular series pursuant to the provisions of this Indenture, with
respect to any Place of Payment means a Saturday, a Sunday or a day on which
banking institutions or trust companies in that Place of Payment are not
required to be open. Except as provided otherwise in the applicable Security, if
a payment date with respect to such payment is a Legal Holiday at any Place of
Payment, payment due on such Security with respect to such Security may be made
at such place on the next succeeding day that is not a Legal Holiday, and no
interest shall accrue with respect to such payment for the intervening period.

         Section 13.08.  GOVERNING LAW.

                                       66
<PAGE>

         The laws of the State of ___________ applicable to contracts made and
performed in said state shall govern this Indenture and the Securities and
coupons, without regard to choice of law principles. Unless the form of Security
provides otherwise, all money or dollar amounts expressed herein or in the
Securities refer to United States dollars.

         Section 13.09.  NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

         This Indenture may not be used to interpret another indenture, loan or
debt agreement of the Company or a Subsidiary. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.

         Section 13.10.  SUCCESSORS.

         All agreements of the Company in this Indenture and the Securities
shall bind its successor and assigns, whether so expressed or not. All
agreements of the Trustee in this Indenture shall bind its successor.

         Section 13.11.  NO RECOURSE AGAINST OTHERS.

         A director, officer, employee, incorporator or stockholder, as such, of
the Company shall not have any liability for any obligations of the Company
under the Securities or the Indenture or for any claim based on, in respect of
or by reason of such obligations or their creation.

         Section 13.12.  DUPLICATE ORIGINALS.

         The parties may sign any number of copies of this Indenture. Each
signed copy shall be an original, but all of them together represent the same
agreement.

         Section 13.13.  SEPARABILITY.

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

         Section 13.14.  SECURITIES IN FOREIGN CURRENCIES.

         Wherever this Indenture provides for any action by, or the
determination of any of the rights of, Holders of Securities of any series in
which not all of such Securities are denominated in the same currency, or any
distribution to Holders of Securities, in the absence of any provision to the
contrary in the form of Security of any particular series, any amount in respect
of any Security denominated in a currency other than United States dollars shall
be treated for any such action, determination or distribution as that amount of
United States dollars that could be obtained for such amount on such reasonable
basis of exchange and as of such date as the

                                       67
<PAGE>

Company may specify in a written notice to the Trustee, or in the absence of
such notice, as the Trustee may determine.

                                       68
<PAGE>

                                    * * * * *

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

                                       SIGNATURES

                                       NATURAL MICROSYSTEMS CORPORATION

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

Dated:  as of
              ------------------

                                                               , as Trustee
                                       -----------------------
                                       By:
                                           ----------------------------
                                       Name:
                                             --------------------------
                                       Title:
                                              -------------------------

Dated:  as of
              ------------------

                                       69

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