Document:

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                       FIRST AMENDMENT TO CREDIT AGREEMENT

                THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is
made as of the 5th day of October, 2001, by and among BASSETT FURNITURE
INDUSTRIES, INCORPORATED, a Virginia corporation (the "Borrower"), BRANCH
BANKING AND TRUST COMPANY, as Agent, Issuing Bank and a Bank, COMPASS BANK,
FIFTH THIRD BANK and FIRST TENNESSEE BANK NATIONAL ASSOCIATION (collectively
referred to herein as the "Banks") and BASSETT FURNITURE INDUSTRIES OF NORTH
CAROLINA, INC., THE E.B. MALONE CORPORATION, BASSETT DIRECT STORES, INC.,
BASSETT DIRECT NC, LLC and BASSETT DIRECT SC, LLC (collectively referred to
herein as the "Guarantors").

                                R E C I T A L S:

                The Borrower, the Agent, the Guarantors and the Banks have
entered into a certain Credit Agreement dated October 25, 2000 (the "Credit
Agreement"). Capitalized terms used in this Amendment which are not otherwise
defined in this Amendment shall have the respective meanings assigned to them in
the Credit Agreement.

                The Borrower and Guarantors have requested the Agent and the
Banks to amend the Credit Agreement to modify certain provisions of the Credit
Agreement as more fully set forth herein. The Banks, the Agent, the Guarantors
and the Borrower desire to amend the Credit Agreement upon the terms and
conditions hereinafter set forth.

                NOW, THEREFORE, in consideration of the Recitals and the mutual
promises contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Borrower, the
Guarantors, the Agent and the Banks, intending to be legally bound hereby, agree
as follows:

                SECTION 1. Recitals. The Recitals are incorporated herein by
reference and shall be deemed to be a part of this Amendment.

                SECTION 2. Amendments. The Credit Agreement is hereby amended as
set forth in this Section 2.

                        SECTION 2.01. Amendment to Section 1.01. (a) Section
1.01 of the Credit Agreement is hereby amended to include the following new
definitions:

                        "Availability Threshold" shall mean: (i) at all times
                prior to the first day of Fiscal Year 2003, an amount equal to
                $20,000,000; and (ii) commencing on the first day of Fiscal Year
                2003 and continuing thereafter, an amount equal to zero.

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                        "Licensee Loan" shall mean a loan made by the Licensee
                Lender pursuant to Section 2.16 hereof.

                        "Licensee Lender" means BB&T.

                        "Licensee Loan Guaranty" means the Guaranty Agreement
                executed by the Borrower substantially in the form of Exhibit O
                hereto, evidencing the obligation of the Borrower to guarantee
                the Licensee Loan referenced therein, together with all
                amendments, consolidations, modifications, renewals and
                supplements thereto. "Licensee Loan Guarantees" means
                collectively each Licensee Loan Guaranty executed by the
                Borrower and delivered to the Licensee Lender.

                        "Licensee Loan Documents" shall mean a loan agreement,
                if any, pursuant to which a Licensee Loan is made by the
                Licensee Lender, a promissory note and any and all other
                documents evidencing, relating to or securing a Licensee Loan
                and any other document or instrument delivered from time to time
                in connection with the Licensee Loan, as such documents and
                instruments may be amended or supplemented from time to time.

                        "Licensee Borrower" means a person that operates an
                existing or future retail furniture store under the "Bassett
                Furniture Direct" program of the Borrower or the "@ Home with
                Bassett" program of the Borrower, as such programs are in effect
                on the Closing Date.

                        "Liquidity Borrowing Base Certification Report" shall
                mean a report in the form attached hereto as Exhibit P, and
                otherwise satisfactory to the Agent, certified by the chief
                financial officer or other authorized officer of the Borrower
                and the Guarantors.

                        "Test Debt" shall mean the sum of: (1) the aggregate
                outstanding principal amount of all Advances, Letter of Credit
                Advances, Licensee Loans, Swing Line Advances and Undrawn
                Amounts; plus (2) all Contingent BFD Liabilities; provided,
                however, for the purposes of Section 5.35 Contingent BFD
                Liabilities shall utilize an Applicable Percentage equal to (1)
                37.5% if the Person whose obligations under the Guaranteed BFD
                Lease are guaranteed is an Affiliate of the Borrower or any
                Consolidated Subsidiary; and (2) 25% if the Person whose
                obligations under the Guaranteed BFD Lease are guaranteed is not
                an affiliate of the Borrower or any Consolidated Subsidiary.

                        "Test Assets" means as of any date, the sum of: (1) cash
                and cash equivalents of the Borrower and Consolidated
                Subsidiaries on such date, plus (2) the Contingent BFD Borrowing
                Base.

                        (b)     Section 1.01 of the Credit Agreement is hereby
        amended to amend the following definitions:

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                        "Annual Maintenance Capital Expenditures" shall mean,
                with respect to any period of four fiscal quarters the greater
                of: (1) the actual Capital Expenditures of the Borrower and its
                Consolidated Subsidiaries during such period for maintenance
                purposes of existing assets; or (2) fifty percent (50%) of
                Depreciation and Amortization for such period.

                        "Borrowing Base" shall mean, based on the most recent
                Borrowing Base Certification Report which as of the date of a
                determination of the Borrowing Base has been received by the
                Agent, an amount determined by deducting the Availability
                Threshold applicable on the date of determination from the sum
                of (i) an amount equal to 75% (or such lesser percentage as
                shall be mutually agreed upon by the Agent and Borrower from
                time to time) of the face dollar amount of Eligible Accounts as
                at the date of determination; and (ii) an amount equal to: (A)
                5% of the LIFO Reserve, as of the date of the determination of
                the Borrowing Base, subtracted from (B) 40% (or such lesser
                percentage as shall be mutually agreed upon by the Agent and
                Borrower from time to time) of the dollar amount of the Eligible
                Inventory, valued at the lower of its cost or market value (as
                determined by the Agent in its sole discretion), as at the date
                of determination. The Agent shall also be entitled to hold and
                subtract any reserve against the Borrowing Base it deems
                necessary as security for payment of the Notes, the obligations
                of the Guarantors under Article X of this Agreement, and the
                obligations of the Borrower under the Letter of Credit
                Agreements and the Licensee Loan Guarantees.

                        "Comprehensive Fixed Charge Coverage Ratio" shall be
                determined as of the end of each Fiscal Quarter and: (1) for
                each Fiscal Quarter ending in Fiscal Year 2002, shall mean the
                ratio of: (A)(i) Consolidated Comprehensive EBITDA for the
                Fiscal Quarter then ending and the preceding Fiscal Quarters, if
                any during Fiscal Year 2002, plus all obligations of the
                Borrower or any of its Consolidated Subsidiaries as lessee under
                operating leases, for the Fiscal Quarter then ending and the
                preceding Fiscal Quarters, if any during Fiscal Year 2002, less
                (ii) the sum of the aggregate taxes on income paid by the
                Borrower and its Consolidated Subsidiaries during the Fiscal
                Quarter then ending and the preceding Fiscal Quarters, if any
                during Fiscal Year 2002, all Dividends paid or declared by the
                Borrower and its Consolidated Subsidiaries during such period,
                plus Annual Maintenance Capital Expenditures during such period,
                to (B) the sum of: (i) Consolidated Fixed Charges for the Fiscal
                Quarter then ending and the preceding Fiscal Quarters, if any
                during Fiscal Year 2002, plus (ii) all payments during such
                period by the Borrower or any of its Consolidated Subsidiaries
                under Guaranteed BFD Leases; and (2) for each Fiscal Quarter
                ending in Fiscal Year 2003 and thereafter, shall mean the ratio
                of: (A)(i) Consolidated Comprehensive EBITDA for the period of
                four consecutive Fiscal Quarters most recently ended on or prior
                to such date, plus all obligations of the Borrower or any of its
                Consolidated Subsidiaries as lessee under operating leases, for
                the period of four consecutive Fiscal Quarters most recently
                ended on or prior to such date, less (ii) the sum of the
                aggregate taxes on income paid by the Borrower and its
                Consolidated Subsidiaries during such period of four consecutive
                Fiscal Quarters most recently

<PAGE>

                ended on or prior to such date, all Dividends paid or declared
                by the Borrower and its Consolidated Subsidiaries during such
                period, plus Annual Maintenance Capital Expenditures during such
                period, to (B) the sum of: (i) Consolidated Fixed Charges for
                the period of four consecutive fiscal quarters most recently
                ended on or prior to such date, plus (ii) all payments during
                such period by the Borrower or any of its Consolidated
                Subsidiaries under Guaranteed BFD Leases.

                        "Consolidated Comprehensive EBITDA" shall be determined
                as of the end of each Fiscal Quarter and (A) for each Fiscal
                Quarter ending in Fiscal Year 2002, shall mean: (1) EBITDA, of
                the Borrower and its Consolidated Subsidiaries, for the Fiscal
                Quarter then ending and the preceding Fiscal Quarters, if any,
                during Fiscal Year 2002, minus (2) non-cash income of the
                Borrower and its Consolidated Subsidiaries; all determined for
                the Fiscal Quarter then ending and the preceding Fiscal
                Quarters, if any, during Fiscal Year 2002, in accordance with
                GAAP. In the event earnings of any Person that is not a
                Consolidated Subsidiary of the Borrower are remitted to the
                Borrower or any Consolidated Subsidiary of the Borrower such
                earnings shall not be included in Consolidated Comprehensive
                EBITDA until actually paid to the Borrower or such Consolidated
                Subsidiary and upon such payment shall be allocated among the
                Fiscal Quarter then ended and the preceding Fiscal Quarters, if
                any, during Fiscal Year 2002, on the basis that such earnings
                were reported by the Borrower and its Consolidated Subsidiary;
                and (B) for each Fiscal Quarter ending in Fiscal Year 2003 and
                thereafter, shall mean: (1) EBITDA, of the Borrower and its
                Consolidated Subsidiaries, for the Fiscal Quarter then ending
                and the immediately preceding three Fiscal Quarters, minus (2)
                non-recurring or non-cash income of the Borrower and its
                Consolidated Subsidiaries for the Fiscal Quarter then ending and
                the immediately preceding three Fiscal Quarters, all as
                determined in accordance with GAAP. For purposes of
                clarification and not in limitation of the foregoing, subitem
                (B)(2) shall include (and thereby the following shall be
                subtracted from EBITDA) without limitation to the extent the
                following were included in computing Consolidated Net Income for
                such period: (i) non-recurring capital gains realized by the
                Borrower or any Subsidiary of the Borrower from Investments or
                the Bassett Asset Fund; and (ii) any other amounts realized by
                the Borrower or any Subsidiary that exceeds the actual,
                recurring earnings arising from any Investment including without
                limitation the Bassett Asset Fund or IHFC. In the event earnings
                of any Person that is not a Consolidated Subsidiary of the
                Borrower are remitted to the Borrower or any Consolidated
                Subsidiary of the Borrower such earnings shall not be included
                in Consolidated Comprehensive EBITDA until actually paid to the
                Borrower or such Consolidated Subsidiary and upon such payment
                shall be allocated among the Fiscal Quarter then ended and the
                immediately preceding three Fiscal Quarters on the basis that
                such earnings were reported by the Borrower and its Consolidated
                Subsidiary.

                        "Consolidated Net Income" means, for any period, the Net
                Income of the Borrower and its Consolidated Subsidiaries
                determined on a consolidated basis, but excluding (i)
                extraordinary gains; (ii) extraordinary non-cash losses and
                (iii) any

<PAGE>

                equity interests of the Borrower or any Subsidiary of the
                Borrower in the unremitted earnings of any Person that is not a
                Subsidiary of the Borrower.

                        "Guaranteed Obligations" means any and all liabilities,
                indebtedness and obligations of any and every kind and nature,
                heretofore, now or hereafter owing, arising, due or payable from
                the Borrower to the Banks (including, without limitation, the
                Swing Line Lender and the Licensee Lender), the Issuing Bank,
                the Agent or any of them, arising under or evidenced by this
                Agreement, the Notes, the Letter of Credit Agreements, the
                Licensee Loan Guaranties, the Collateral Documents or any other
                Loan Document.

                        "Loan Documents" means this Agreement, the Notes, the
                Licensee Loan Documents, the Licensee Loan Guaranty, the
                Collateral Documents, the Letter of Credit Agreements, the
                Letters of Credit, any other document evidencing, relating to or
                securing the Loan, the Swing Line Advances or the Letters of
                Credit, and any other document or instrument delivered from time
                to time in connection with this Agreement, the Notes, the Letter
                of Credit Agreements, the Swing Line Advances, the Licensee Loan
                Documents, the Licensee Loan Guaranty, the Letters of Credit,
                the Collateral Documents or the Loan, as such documents and
                instruments may be amended or supplemented from to time;
                provided, however, in connection with Articles IV and V of this
                Agreement, the term "Loan Documents" shall not include the
                Licensee Loan Documents executed by the Licensee Borrower or any
                Person other than the Borrower or any Guarantor.

                        "Obligations" means the collective reference to all
                indebtedness, obligations and liabilities to the Agent, the
                Issuing Bank, the Licensee Lender, the Swing Line Lender and the
                Banks, existing on the date of this Agreement or arising
                thereafter, direct or indirect, joint or several, absolute or
                contingent, matured or unmatured, liquidated or unliquidated,
                secured or unsecured, arising by contract, operation of law or
                otherwise, of the Loan Parties under this Agreement, the Letter
                of Credit Agreement, the Licensee Loan Guarantees or any other
                Loan Document.

                        "Required Banks" means at any time Banks having at least
                66 2/3% of the aggregate amount of the Commitments or, if the
                Commitments are no longer in effect, Banks holding at least 66
                2/3% of the aggregate outstanding principal amount of the Notes,
                Letter of Credit Advances, Licensee Loans and Undrawn Amounts.

                        "Total Unused Commitments" means at any date, an amount
                equal to: (A) the aggregate amount of the Commitments of all of
                the Banks at such time, less (B) the sum of: (i) the aggregate
                outstanding principal amount of the Advances of all of the Banks
                at such time; (ii) the aggregate outstanding principal amount of
                all Letter of Credit Advances; (iii) the aggregate outstanding
                principal amount of all Swing Line Advances; (iv) the aggregate
                outstanding principal amount of all Licensee Loans; and (v) the
                aggregate Undrawn Amounts.

<PAGE>

                        "Unused Commitment" means at any date, with respect to
                any Bank, an amount equal to its Commitment less the sum of: (i)
                the aggregate outstanding principal amount of its Advances; (ii)
                such Bank's Pro Rata Share of the aggregate outstanding
                principal amount of all Letter of Credit Advances; (iii) such
                Bank's Pro Rata Share of the aggregate outstanding principal
                amount of all Swing Line Advances; (iv) such Bank's Pro Rata
                Share of the Licensee Loans; and (v) such Bank's Pro Rata Share
                of the Undrawn Amounts.

                        SECTION 2.02. Amendment to Section 2.01. Section 2.01 of
the Credit Agreement is hereby amended and restated to read in its entirety as
follows:

                SECTION 2.01. Commitments to Make Advances. Each Bank severally
        agrees, on the terms and conditions set forth herein, to make Advances
        to the Borrower from time to time before the Termination Date; provided
        that, immediately after each such Advance is made, the aggregate
        outstanding principal amount of Advances by such Bank together with such
        Bank's Pro Rata Share of the aggregate outstanding principal amount of
        all Letter of Credit Advances, Licensee Loans, Swing Line Advances and
        Undrawn Amounts shall not exceed the amount of its Commitment, provided
        further that the aggregate principal amount of all Advances, together
        with the aggregate principal amount of all Letter of Credit Advances,
        Swing Line Advances, Licensee Loans and Undrawn Amounts, shall not
        exceed the lesser of: (a) the aggregate amount of the Commitments of all
        of the Banks at such time, and (b) the Borrowing Base. Except as
        otherwise provided in an ACL Agreement, each Borrowing under this
        Section shall be in an aggregate principal amount of $1,000,000 or any
        larger multiple of $500,000 (except that any such Borrowing may be in
        the aggregate amount of the Unused Commitments less the amount of any
        outstanding Swing Line Advances) and shall be made from the several
        Banks ratably in proportion to their respective Commitments. Within the
        foregoing limits, the Borrower may borrow under this Section, repay or,
        to the extent permitted by Section 2.10, prepay Advances and reborrow
        under this Section at any time before the Termination Date.

                        SECTION 2.03. Amendment to Section 2.03(e). Section
2.03(e) of the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

                        (e)     The Issuing Bank shall furnish: (A) to the Agent
                and each Bank on the tenth Domestic Business Day of each April,
                July, October and January, a written report summarizing the
                issuance and expiration dates of Letters of Credit issued during
                the preceding calendar quarter; and (B) to the Agent and each
                Bank upon request a written report setting forth the aggregate
                Undrawn Amounts.

                        SECTION 2.04. Amendment to Section 2.06(a). Section
2.06(a) of the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

                SECTION 2.06. Interest Rates. (a) "Applicable Margin" shall
        mean: (1) prior to the first Rate Determination Date occurring in Fiscal
        Year 2003, 1.625%; and (2) commencing on the first Rate Determination
        Date occurring in Fiscal Year 2003 and continuing thereafter a
        percentage determined quarterly based upon the ratio of Consolidated
        Total Debt (calculated as of the last day of each Fiscal Quarter) to

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        Consolidated Comprehensive EBITDA (calculated as of the last day of each
        Fiscal Quarter for the Fiscal Quarter then ended and the immediately
        preceding three Fiscal Quarters), as follows::

                <TABLE>
                <CAPTION>
                Ratio of Consolidated Total
                Debt to Consolidated                       Euro-Dollar Loans and
                Comprehensive EBITDA                         Letters of Credit
                --------------------                         -----------------
                <S>                                         <C>

                Greater than 2.5 but equal
                To or less than 3.00                              1.375%

                Greater than 2.0 but
                Equal to or less than 2.5                         1.125%

                Greater than 1.5 but
                Equal to or less than 2.0                         .875%

                Less than or equal to 1.5                         .625%
                </TABLE>

        The Applicable Margin shall be effective as of the date (herein, the
        "Rate Determination Date") which is the first day of the first calendar
        month after the day the Agent receives the quarterly financial
        statements for the Fiscal Quarter which the foregoing ratio is being
        determined shall remain effective from such Rate Determination Date
        until the date which is the first day of the first calendar month after
        the day the Agent receives the quarterly financial statements for the
        Fiscal Quarter in which such Rate Determination Date falls (which latter
        date shall be a new Rate Determination Date); provided that (i) for the
        period from and including the Closing Date to but excluding the Rate
        Determination Date next following the Closing Date, the Applicable
        Margin shall be 1.375% for a Euro-Dollar Loan and Letters of Credit,
        (ii) in the case of any Applicable Margin determined for the fourth and
        final Fiscal Quarter of a Fiscal Year, such Applicable Margin shall be
        redetermined based upon the annual audited financial statements for the
        Fiscal Year ending on the last day of such final Fiscal Quarter, and if
        such Applicable Margin as so redetermined shall be different from the
        Applicable Margin for such date determined on the Rate Determination
        Date for such fourth Fiscal Quarter, such redetermined Applicable Martin
        shall be effective retroactive to the Rate Determination Date, and the
        Borrower, the Agent and the Banks, as applicable, shall within 10 days
        of such redetermination, make a payment (in the case of amounts owing by
        the Borrower to the Banks) or provide a credit applicable to future
        amounts payable by the Borrower hereunder (in the case of amounts owing
        by the Banks to the Borrower) equal to the difference between the
        interest and letter of credit fees actually paid under this Agreement
        and the interest and fees that would have been paid under this Agreement
        had the Applicable Margin as originally determined been equal to the
        Applicable Margin as redetermined, and (iii) if on any Rate
        Determination Date the Borrower shall have failed to deliver to the Bank
        the financial statements required to be delivered pursuant to Section
        5.01(a) or Section 5.01(b) with respect to the Fiscal Year or Fiscal
        Quarter, as the case may be, most recently ended prior to such Rate
        Determination Date, then for the period beginning on such Rate
        Determination Date and ending on the earlier of (A) the date on which
        the Borrower shall deliver to the Bank the

<PAGE>

        financial statements to be delivered pursuant to Section 5.01(b) with
        respect to such Fiscal Quarter or any subsequent Fiscal Quarter, or (B)
        the date on which the Borrower shall deliver to the Bank annual
        financial statements required to be delivered pursuant to Section
        5.01(a) with respect to the Fiscal Year which includes such Fiscal
        Quarter or any subsequent Fiscal Year, the Loan shall bear interest at a
        rate per annum equal to the Default Rate at all times during such
        period. Any change in the Applicable Margin on any Rate Determination
        Date shall result in a corresponding change, effective on and as of such
        Rate Determination Date, in the interest rate applicable to the Loan and
        in the fees applicable to each Letter of Credit outstanding on such Rate
        Determination Date; provided; that no Applicable Margin shall be
        decreased pursuant to this Section 2.06 if a Default is in existence on
        the Rate Determination Date.

                        SECTION 2.05. Amendment to Section 2.11. Section 2.11 of
the Credit Agreement is hereby amended and restated to read in its entirety as
follows:

                        SECTION 2.11. Mandatory Prepayments. (a) On each date on
                which the Commitments are reduced or terminated pursuant to
                Section 2.08 or Section 2.09, the Borrower shall repay or prepay
                such principal amount of the outstanding Advances and Swing Line
                Advances, if any (together with interest accrued thereon and any
                amounts due under Section 8.05(a)), as may be necessary so that
                after such payment the aggregate unpaid principal amount of the
                Advances, together with the aggregate principal amount of all
                Swing Line Advances, Letter of Credit Advances, Licensee Loans
                and Undrawn Amounts does not exceed the aggregate amount of the
                Commitments as then reduced. Each such payment or prepayment
                shall be applied to repay or prepay first to Swing Line Advances
                outstanding on the date of such prepayment and then, ratably to
                the Advances of the several Banks.

                        (b)     In the event that: (1) the aggregate principal
                amount of all Advances, together with the aggregate principal
                amount of the Swing Line Advances, Licensee Loans, Letter of
                Credit Advances and Undrawn Amounts at any one time outstanding
                shall at any time exceed the Borrowing Base; or (2) the
                aggregate principal amount of all Advances, together with the
                aggregate principal amount of the Swing Line Advances, Licensee
                Loans, Letter of Credit Advances and Undrawn Amounts at any one
                time outstanding shall at any time exceed the aggregate amount
                of the Commitments of all of the Banks at such time, the
                Borrowers shall immediately repay so much of the Advances and
                Swing Line Advances as is necessary in order that: (1) the
                aggregate principal amount of the Advances thereafter
                outstanding, together with the aggregate principal amount of the
                Swing Line Advances, Licensee Loans, Letter of Credit Advances
                and Undrawn Amounts shall not exceed the Borrowing Base; and (2)
                the aggregate principal amount of the Advances thereafter
                outstanding, together with the aggregate principal amount of the
                Swing Line Advances, Licensee Loans, Letter of Credit Advances
                and Undrawn Amounts shall not exceed the aggregate amount of the
                Commitments of all of the Banks at such time.

<PAGE>

                        SECTION 2.06. Amendment to Section 2.15. Section 2.15(a)
of the Credit Agreement is hereby amended and restated to read in its entirety
as follows:

                SECTION 2.15. Swing Line Advances. (a) The Borrower may prior to
        the Termination Date, as set forth in this Section, request the Swing
        Line Lender to make, and the Swing Line Lender may in its sole and
        absolute discretion prior to the Termination Date make, Swing Line
        Advances to the Borrower, in an aggregate principal amount at any one
        time outstanding, not exceeding $5,000,000 (the "Swing Line Cap"),
        provided that the aggregate principal amount of all Swing Line Advances,
        together with the aggregate principal amount of all outstanding
        Advances, Undrawn Amounts, Licensee Loans and Letter of Credit Advances,
        at any one time outstanding shall not exceed the aggregate amount of the
        Commitments of all of the Banks at such time.

                        SECTION 2.07. Addition of Section 2.16. The Credit
Agreement is hereby amended to include a new Section 2.16 to read as follows:

                SECTION 2.16 Licensee Loans.

                        (a)     Each Licensee Loan shall be subject to the
        provisions of this Agreement and to the provisions set forth in the
        Licensee Loan Documents and the Licensee Loan Guaranty executed in
        connection with such Licensee Loan. The Borrower and Guarantors agree to
        promptly perform and comply with the terms and conditions of each
        Licensee Loan Guaranty Agreement, this Agreement and the other Loan
        Documents.

                        (b)     The Licensee Lender may, from time to time upon
        request of the Borrower, in its sole discretion disburse a Licensee
        Loan, subject to satisfaction of the following conditions:

                                (i)     the fact that, immediately before and
                after the disbursement of such Licensee Loan, no Default shall
                have occurred and be continuing hereunder;

                                (ii)    the fact that the representations and
                warranties of the Loan Parties contained in Article IV of this
                Agreement shall be true, in all material respects, on and as of
                the date following disbursement of such Licensee Loan, except to
                the extent explicitly relating to a specified date;

                                (iii)   the fact that, immediately after the
                disbursement of such Licensee Loan: (i) the sum of (A) the
                entire outstanding principal amount of the Advances, (B) the
                aggregate outstanding principal amount of the Letter of Credit
                Advances, (C) the aggregate outstanding principal amount of
                Swing Line Advances, (D) the aggregate Undrawn Amounts, and (E)
                the aggregate outstanding principal amount of the Licensee
                Loans, will not exceed the lesser of: (1) the aggregate amount
                of the Commitments of all of the Banks at such time; and (2) the
                Borrowing Base;

<PAGE>

                                (iv)    the fact that immediately after the
                disbursement of such Licensee Loan the aggregate outstanding
                principal amount of the Licensee Loans will not exceed
                $10,000,000; and

                                (v)     each Licensee Loan shall be on the
                following terms and conditions: (1) the maturity date of the
                Licensee Loan shall be on or before the date thirty six months
                after the date of disbursement of such Licensee Loan; (2) the
                Licensee Loan shall bear interest at an annual rate equal to the
                Prime Rate; (3) except as may otherwise be agreed upon by
                Borrower and Agent, the principal amount of the Licensee Loan
                shall not exceed: (i) $400,000 in the case of a Licensee Loan
                for a BFD Store; or (ii) $150,000 in the case of a Licensee Loan
                for an "@ Home Store"; (4) except as may otherwise be agreed
                upon by Borrower and Agent, the Licensee Loan shall amortize as
                follows: (i) in the case of a Licensee Loan for a BFD Store, the
                Licensee Loan shall provide for six months interest only
                followed by a thirty month amortization of principal and
                interest subject to the limitations set forth in (1) above; and
                (ii) in the case of a Licensee Loan for an "@ Home Store", the
                Licensee Loan shall provide for a twenty four month amortization
                of principal and interest subject to the limitations set forth
                in (1) above.

                                Each request by the Borrower to disburse a
                Licensee Loan hereunder shall be deemed to be a representation
                and warranty by the Borrower on the date of such Licensee Loan
                as to the truth and accuracy of the facts specified in the
                clauses (b)(i), (b)(ii) and (b)(iii) of this Section.

                        (c)     Upon written demand by the Licensee Lender, with
        a copy to the Agent, each Bank shall purchase from the Licensee Lender,
        and the Licensee Lender shall sell to each Bank, a participation
        interest in the Licensee Loan specified in such demand equal to such
        Bank's Pro Rata Share of such Licensee Loan as of the date of such
        purchase, by making available to the Agent for the account of the
        Licensee Lender, in Federal or other funds immediately available an
        amount equal to such Bank's Pro Rata Share of the outstanding principal
        amount of such Licensee Loan. Promptly after receipt thereof, the Agent
        shall transfer such funds to the Licensee Lender. The Borrower and
        Guarantors hereby agree to each such sale and purchase of participation
        interests in the Licensee Loans outstanding from time to time. Each Bank
        agrees to purchase its participation interest in an outstanding Licensee
        Loan on (i) the Domestic Business Day on which demand therefor is made
        by the Licensee Lender, provided notice of such demand is given not
        later than 1:00 P.M. (Winston-Salem, North Carolina time) on such
        Domestic Business Day or (ii) the first Domestic Business Day next
        succeeding the date of such demand if notice of such demand is given
        after 1:00 P.M. (Winston-Salem, North Carolina time) on any Domestic
        Business Day. The Licensee Lender makes no representation or warranty
        and assumes no responsibility with respect to any sale and purchase of a
        participation interest in any Licensee Loan. If and to the extent that
        any Bank shall not have so made the amount available to the Agent in
        connection with its purchase of a participation interest in any Licensee
        Loan, such Bank agrees to pay to the Agent forthwith on demand such
        amount together with interest thereon, for each day from the date of

<PAGE>

        demand by the Licensee Lender, until the date such amount is paid to the
        Agent, at the Federal Funds Rate for the account of the Licensee Lender.

                        (d)     The obligation of each Bank to purchase a
        participation interest in any Licensee Loan pursuant to Section 2.16(c)
        shall be unconditional and shall not be affected by the existence of any
        Default or Event of Default, the failure to satisfy any condition set
        forth in Section 2.16(b), Section 3.1, 3.2 or 3.3 or the termination of
        the Commitments (whether by the Borrower pursuant to Section 2.8 or by
        the Agent pursuant to Section 6.1 or otherwise).

                        (e)     The Licensee Lender shall furnish (A) to the
        Agent and each Bank, on the tenth Domestic Business Day of each April,
        July, October and January, a written report setting forth the principal
        amounts and maturity dates of the Licensee Loans made during the
        preceding calendar quarter and (B) to the Agent and each Bank upon
        request a written report setting forth the aggregate outstanding
        principal amount of the Licensee Loans. As of October 5, 2001, the
        existing Licensee Loans are set forth on Schedule 2.16 attached hereto.

                        (f)     The failure of any Bank to purchase a
        participation interest in any Licensee Loan shall not relieve any other
        Bank of its obligation hereunder to purchase its participation interest
        in any Licensee Loan on such date, but no Bank shall be responsible for
        the failure of any other Bank to so purchase a participation interest on
        such date.

                        (g)     The Borrower shall pay to the Agent for the
        account of each Bank that has purchased a participation interest in a
        Licensee Loan the outstanding principal and accrued unpaid interest of
        such Licensee Loan in accordance with the terms of the applicable
        Licensee Loan Guaranty. The Agent will distribute to each Bank its
        ratable share of any payment of principal of or interest on any Licensee
        Loan received by the Agent; provided, however, that: (1) the Agent shall
        make such distribution to the Banks once each calendar quarter; and (2)
        in the event that such payment received by the Agent is required to be
        returned, such Bank will return to the Agent any portion thereof
        previously distributed by the Agent to it.

                        (h)     The Licensee Lender will notify the Agent
        promptly of the occurrence of an event of default under the Licensee
        Loan Guaranty which is not cured within 5 days of the occurrence
        thereof, and the Agent promptly will notify the Banks of such matters.
        The Licensee Lender shall have no obligation to notify the Agent or any
        Bank of the occurrence of an event of default under a Licensee Loan
        unless such event of default is deemed to be a Guaranty Trigger Event
        under the Licensee Loan Guaranty which is not cured within five (5) days
        of the occurrence thereof.

                        (i)     In the event the Licensee Lender receives
        payment in full of the accrued unpaid interest with respect to a
        Licensee Loan, Licensee Lender shall pay to the Agent for the ratable
        account of each Bank, with respect to such Licensee Loan, a per annum
        fee (the "Licensee Loan Fee") equal to the product of: (i) the aggregate
        of the daily average amounts of the outstanding principal amount of the
        Licensee Loan, times (ii) a per annum percentage equal to: (A) for the
        period between October 5, 2001 and the first

<PAGE>

        Rate Determination Date occurring in Fiscal Year 2003, 1.625%; and (B)
        for the period between the first Rate Determination Date occurring in
        Fiscal Year 2003 through the Termination Date, 1.375%. Such Licensee
        Loan Fee shall be payable in arrears for each Licensee Loan during the
        term of each respective Licensee Loan once each calendar quarter after
        Licensee Lender receives payment in full of the accrued unpaid interest
        with respect to the date of such payment.

                        (j)     The Licensee Lender may receive from the
        Licensee Borrower, for its own account, commitment fees, facility fees
        and such other fees and charges as may be provided for in any Licensee
        Loan Document or otherwise charged by the Licensee Lender. No Bank shall
        be entitled to any portion of the fees payable by the Licensee Borrower
        to the Licensee Lender pursuant to this Section 2.16(j).

                        (k)     (1) Licensee Lender's Liability. Licensee Lender
        shall not be liable for any error of judgment or for any action taken or
        omitted to be taken by Licensee Lender in connection with any Licensee
        Loan except for gross negligence or willful misconduct. Licensee Lender
        may consult with legal counsel (including its own counsel and counsel
        for the Borrower), independent public accountants and other experts
        selected by Licensee Lender and shall not be liable for any action taken
        or omitted to be taken in good faith in accordance with the advice of
        such counsel, accountants or experts. Licensee Lender makes no warranty
        or representation and shall not be responsible for any statement,
        warranty or representation made in connection with any Licensee Loan or
        any document relative thereto, or for the financial condition or legal
        status of any Licensee Borrower or any other obligor on any Licensee
        Loan, or for any credit or other information furnished by it to any
        Bank, or for the value or condition of any assets of the Licensee
        Borrower; shall not be responsible for the performance or observance of
        any of the terms, covenants or conditions of any Licensee Loan or any
        documents relative thereto; shall not have any duty to inspect the
        property (including the books and records) of any Licensee Borrower; and
        makes no representation concerning and shall not be responsible for the
        due execution, legality, validity, enforceability, genuineness,
        sufficiency or collectability of any Licensee Loan or any document
        relative thereto or the effectiveness, perfection or priority of any
        lien or security interest securing any Licensee Loan. Licensee Lender
        shall incur no liability under or in respect of any Licensee Loan or any
        documents relative thereto by acting upon any notice, consent,
        certificate or other instrument or writing believed by it to be genuine
        and signed by or sent by the proper party.

                (2)     Bank's Independent Decision. Each Bank acknowledges
        that: (1) it has, independently and without reliance upon Licensee
        Lender, the Agent or any other Bank and based upon such documents and
        information as such Bank has deemed appropriate, made its own credit
        analysis and decision to purchase each participation under this Section
        2.16; and (2) its decision to purchase a participation under this
        Section 2.16 has been made exclusively on the basis of such Bank's
        credit analysis of the Licensee Loan Guaranty and the Borrower.

                (3)     Duties of Licensee Lender. Licensee Lender shall: (i)
        use its best efforts to enforce the terms and provisions of each
        Licensee Loan Guaranty and documents relative thereto, subject to the
        provisions of subsection (4) hereof but shall have no obligation to

<PAGE>

        enforce any other Licensee Loan Document; (ii) keep full and complete
        records and accounts of each Licensee Loan and of all payments on such
        Licensee Loan and upon the written request of a Bank furnish such Bank
        with copies thereof at no charge; (iii) promptly furnish each Bank
        without charge with copies of credit information furnished by Licensee
        Borrower including financial statements and collateral information, if
        any, (but Licensee Lender assumes no responsibility with respect to the
        authenticity, validity, accuracy or completeness thereof); and (v) make
        suitable entries in Licensee Lender's books and records to evidence the
        participation under this Section 2.16.

                (4)     Management by Licensee Lender. Licensee Lender shall
        have the exclusive right in its name alone to enforce all rights,
        privileges and powers accruing to Licensee Lender by reason of any
        Licensee Loan or any documents relative thereto and all other claims
        given to Licensee Lender in connection with any Licensee Loan, all in
        Licensee Lender's sole discretion and in the exercise of Licensee
        Lender's business judgment. Each Bank acknowledges that Licensee Lender
        shall not handle the transactions relating to the Licensee Loans in
        accordance with its usual practices and Licensee Lender shall not adhere
        to the same standards of conduct as would be the case if each Licensee
        Loan had been made exclusively by it. Licensee Lender may, in its sole
        discretion and in the exercise of its business judgment, both before and
        after any Guaranty Trigger Event (as defined in the Licensee Loan
        Guaranty), consent to any action or failure to act by the Licensee
        Borrower or any other obligor on any Licensee Loan, amend or modify the
        Licensee Loan Documents, release or substitute the collateral, if any,
        for any Licensee Loan; provided that Agent shall comply with the terms
        of Section 9.05(a)(vii) in the event such collateral, if any, secures
        the Obligations, and exercise or refrain from exercising any rights,
        privileges or powers Licensee Lender may have under any Licensee Loan or
        any documents relative thereto and vote the full amount of any Licensee
        Loan (including the participation) in any bankruptcy case or insolvency
        proceeding or with respect to any waiver, modification, amendment or
        alteration of such Licensee Loan or any documents relative thereto.
        However, Licensee Lender will not, without each Bank's prior written
        consent, exercise any right or take any action relative to any Licensee
        Loan which would reduce principal, interest or premium, if any, or
        postpone any date fixed for any payment of principal, interest or
        premiums, if any, or release any guaranty or collateral, if any, except
        as shall be otherwise provided in any document relative thereto. The
        Borrower and Guarantors acknowledge and agree that the decision of the
        Licensee Lender to make the Licensee Loan and the decision of the Banks
        to purchase a participation in each Licensee Loan under this Section
        2.16 has been made exclusively on the basis of the credit analysis by
        the Licensee Lender and the credit analysis by the Banks of the Licensee
        Loan Guaranty and the Borrower.

                (5)     Expenses. Each Bank will promptly reimburse Licensee
        Lender to the extent of its ratable share for any and all costs,
        expenses and disbursements which may be incurred or made by Licensee
        Lender in connection with any Licensee Loan and any action which may be
        taken by Licensee Lender to collect such Licensee Loan and enforce the
        documents relative to such Licensee Loan for which Licensee Lender is
        not promptly reimbursed by Borrower, including any costs, expenses, fees
        or disbursements incurred by outside agencies and attorneys retained by
        Licensee Lender.

<PAGE>

                If Licensee Lender shall be sued or threatened with suit by any
        Licensee Borrower as debtor in possession or any receiver, trustee in
        bankruptcy, creditors' committee or other person on account of any
        alleged performance or fraudulent transfer alleged to have been received
        as the result of any transaction hereunder or under any Licensee Loan,
        or if any action, claim or demand of any kind shall be asserted by any
        person against Licensee Lender directly or indirectly relating to such
        transactions or the enforcement of any Licensee Loan or the collection
        of Licensee Borrower's indebtedness under any Licensee Loan, then
        Licensee Lender shall be entitled to compromise and settle any such
        claim or demand in its sole discretion in the exercise of its business
        judgment and any monies paid in satisfaction or compromise of such suit,
        claim, action or demand and any expenses, costs and attorney's fees paid
        or incurred in connection therewith, as well as any costs, expenses,
        fees or disbursements incurred by outside agencies and attorneys
        retained by Licensee Lender, shall be borne and shared by Licensee
        Lender and Bank pro rata (based upon the aggregate of the Licensee
        Lender's share of such Licensee Loan and the Bank's ratable share).

                (6)     No Third Party Beneficiary. None of the provisions of
        this Section 2.16 shall inure to the benefit of the Borrower, any
        Guarantor, any Licensee Borrower or any person other than Licensee
        Lender, the Agent and the Banks. Consequently, no Borrower, Guarantor or
        Licensee Borrower and no person other than Licensee Lender, the Agent
        and Bank shall be entitled to rely upon or raise as a defense, in any
        manner whatsoever, the failure of Licensee Lender, the Agent or Bank to
        comply with the provisions of this Section 2.16.

                        SECTION 2.08. Amendment to Section 3.02(d). Section
3.02(d) of the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

                (d)     the fact that, immediately after such Borrowing (i) the
        aggregate outstanding principal amount of the Advances of each Bank
        together with such Bank's Pro Rata Share of the aggregate outstanding
        principal amount of all Swing Line Advances, Licensee Loans, Letter of
        Credit Advances and Undrawn Amounts, will not exceed the amount of its
        Commitment and (ii) the aggregate outstanding principal amount of the
        Advances together with the aggregate outstanding principal amount of all
        Swing Line Advances, Licensee Loans, Letter of Credit Advances and
        Undrawn Amounts, will not exceed the lesser of: (A) the aggregate amount
        of the Commitments of all of the Banks as of such date; and (B) the
        Borrowing Base.

                        SECTION 2.09. Amendment to Section 3.03(c). Section
3.03(c) of the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

                (c)     the fact that, immediately after the issuance of such
        Letter of Credit: (i) the sum of (A) the entire outstanding principal
        amount of the Advances, (B) the aggregate outstanding principal amount
        of the Letter of Credit Advances, (C) the aggregate outstanding
        principal amount of Swing Line Advances, (D) the aggregate outstanding
        principal amount of the Licensee Loans, and (E) the aggregate Undrawn
        Amounts, will not exceed the lesser of: (1) the aggregate amount of the
        Commitments of all of the Banks at such time; and (2) the Borrowing
        Base;

<PAGE>

                        SECTION 2.10. Amendment to Section 5.01(d). Section
5.01(d) of the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

                (d)     simultaneously with the delivery of each set of
        financial statements referred to in clauses (a) and (b) above, a
        certificate, substantially in the form of Exhibit I (a "Compliance
        Certificate"), of the Vice President - Chief Accounting Officer or the
        Vice President - Finance of the Borrower (i) setting forth in reasonable
        detail the calculations required to establish whether the Borrower was
        in compliance with the requirements of Sections 5.03 through 5.14,
        inclusive, 5.17, 5.32 and 5.34 on the date of such financial statements,
        (ii) setting forth in reasonable detail the calculations establishing
        the identities of the Material Subsidiaries on the date of such
        certificate and, (iii) stating whether any Default exists on the date of
        such certificate and, if any Default then exists, setting forth the
        details thereof and the action which the Loan Parties are taking or
        propose to take with respect thereto;

                        SECTION 2.11. Amendment to Section 5.01(m). Section
5.01(m) of the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

                (m)     as soon as available and in any event by the 15th
        Domestic Business Day of each succeeding month, a Borrowing Base
        Certification Report, a Liquidity Borrowing Base Certification Report
        (during the period Section 5.35 is applicable) and a Contingent BFD
        Liabilities Borrowing Base Certification Report, in form and content
        reasonably satisfactory to the Agent, dated as of the last day the
        immediately preceding month, the statements which, in each instance,
        shall be certified as to truth and accuracy by the Vice President -
        Chief Accounting Officer, Vice President - Finance or other authorized
        officer of the Borrower and each Guarantor;

                        SECTION 2.12. Amendment to Sections 5.03 and 5.04.
Sections 5.03 and 5.04 of the Credit Agreement are hereby amended and restated
to read in their entirety as follows:

                SECTION 5.03. Ratio of Consolidated Total Debt to Consolidated
        Comprehensive EBITDA. At the end of each Fiscal Quarter during the
        periods commencing with the Fiscal Quarter ending November 25, 2000 and
        ending on the last day of the Second Fiscal Quarter of Fiscal Year 2001
        and commencing with the first day of the First Fiscal Quarter of Fiscal
        Year 2003 and continuing through the Termination Date, the ratio of
        Consolidated Total Debt to Consolidated Comprehensive EBITDA for the
        Fiscal Quarter then ending and the immediately preceding three Fiscal
        Quarters will not at any time exceed 3.00 to 1.00.

                SECTION 5.04. Ratio of Consolidated Total Debt to Consolidated
        Operating EBITDA. At the end of each Fiscal Quarter during the period
        set forth below, commencing with the Fiscal Quarter ending November 25,
        2000, the ratio of Consolidated Total Debt to Consolidated Operating
        EBITDA for the Fiscal Quarter then ending and the immediately preceding
        three Fiscal Quarters shall at no time be more than the ratio
        corresponding to such Fiscal Quarter in the following table:

<PAGE>

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------
Consolidated Total Debt to
  Consolidated Operating
          EBITDA                                       Period
---------------------------------------------------------------------------------
<S>                                     <C>
          <=4.25                        Closing Date through the last day of
                                        Fiscal Year 2000
---------------------------------------------------------------------------------

          <=4.0                         The first day of the First
                                        Fiscal Quarter of Fiscal Year
                                        2001 through the last day of the
                                        Second Fiscal Quarter of Fiscal
                                        Year 2001

---------------------------------------------------------------------------------
          <=3.0                         The first day of the First Fiscal
                                        Quarter of Fiscal Year 2003 through the
                                        Termination Date
---------------------------------------------------------------------------------
</TABLE>

                        SECTION 2.13. Amendment to Section 5.10. Section 5.10 of
the Credit Agreement is hereby amended and restated to read in its entirety as
follows:

                        SECTION 5.10. Fixed Charge Coverage. At the end of each
        Fiscal Quarter set forth below, the Comprehensive Fixed Charge Coverage
        Ratio shall not be less than the ratio corresponding to such Fiscal
        Quarter in the following table:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------
 Comprehensive Fixed
Charge Coverage Ratio                                  Period
-----------------------------------------------------------------------------
<S>                                     <C>
          >=1.0                         The first day of the first
                                        Fiscal Quarter of Fiscal Year
                                        2002 through the last day of the
                                        first Fiscal Quarter of Fiscal
                                        Year 2002
-----------------------------------------------------------------------------
          >=1.15                        The first day of the second
                                        Fiscal Quarter of Fiscal Year
                                        2002 through the last day of the
                                        second Fiscal Quarter of Fiscal
                                        Year 2002
-----------------------------------------------------------------------------
          >=1.30                        The first day of the third
                                        Fiscal Quarter of Fiscal Year
                                        2002 through the last day of the
                                        third Fiscal Quarter of Fiscal
                                        Year 2002
-----------------------------------------------------------------------------
          >=1.50                        The first day of the fourth
                                        Fiscal Quarter of Fiscal Year
                                        2002 through the last day of the
                                        fourth Fiscal Quarter of Fiscal
                                        Year 2002
-----------------------------------------------------------------------------
          >=3.00                        The first day of the first
                                        Fiscal Quarter of Fiscal Year
                                        2003 through the termination
                                        Date
-----------------------------------------------------------------------------
</TABLE>

                        SECTION 2.14. Addition of Section 5.35. The Credit
Agreement is hereby amended to include a new Section 5.35 to read as follows:

<PAGE>

                        SECTION 5.35 Liquidity Borrowing Base. At the end of
        each fiscal month commencing with the fiscal month beginning on
        September 30, 2001 and continuing through the last day of Fiscal Year
        2002, the ratio of Test Debt to Test Assets shall not be greater than
        1.0.

                        SECTION 2.15. Amendment to Section 6.01(n). Section
6.01(n) of the Credit Agreement is hereby amended and restated to read in its
entirety as follows:

                (n)     a default or event of default shall occur and be
        continuing under any of the Collateral Documents, Licensee Loan
        Guarantees or Letter of Credit Agreements or any Borrower, Pledgor
        Subsidiary or Guarantor shall fail to observe or perform any obligation
        to be observed or performed by it under any Collateral Document,
        Licensee Loan Guaranty or Letter of Credit Agreements, and such default,
        event of default or failure to perform or observe any obligation
        continues beyond any applicable cure or grace period provided in such
        Collateral Document, Licensee Loan Guaranty or Letter of Credit
        Agreement; or

                        SECTION 2.16. Amendment to Sections 6.05(c) through (h)
and addition of Section 6.05(i). Sections 6.05 (c) through (h) of the Credit
Agreement are hereby amended and restated to read in their entirety, together
with a new Section 6.05(i) as follows:

                        (c)     payments of interest on Advances, Swing Line
                Advances, Licensee Loans and Letter of Credit Advances, to be
                applied for the ratable benefit of the Banks (with amounts
                payable in respect of Swing Line Advances and Licensee Loans
                being included in such calculation and paid to the Swing Line
                Lender or Licensee Lender, as the case may be);

                        (d)     payments of principal of Advances, Swing Line
                Advances, Licensee Loans and Letter of Credit Advances, to be
                applied for the ratable benefit of the Banks (with amounts
                payable in respect of Swing Line Advances and Licensee Loans
                being included in such calculation and paid to the Swing Line
                Lender or Licensee Lender, as the case may be);

                        (e)     payments of cash amounts to the Agent in respect
                of outstanding Letters of Credit pursuant to Section 6.03;

                        (f)     payments of cash amounts to the Licensee Lender
                in respect of Licensee Loans, pursuant to Section 2 of the
                Licensee Loan Guaranty;

                        (g)     amounts due to the Issuing Bank, the Agent and
                the Banks pursuant to Sections 7.05 and 9.03(b) and (c);

                        (h)     payments of all other amounts due under any of
                the Loan Documents, if any, to be applied for the ratable
                benefit of the Secured Parties;

                        (i)     any surplus remaining after application as
                provided for herein, to the Borrower or otherwise as may be
                required by applicable law.

<PAGE>

                SECTION 2.17. Addition of Exhibit P. The Credit Agreement is
hereby amended to include a new Exhibit P to read as set forth on Exhibit P
attached hereto.

                SECTION 3. Amendment to Security Agreement. The second paragraph
in the section "Recitals" of the Security Agreement is amended and restated to
read in its entirety as follows: Each of the Guarantors has agreed to guarantee,
among other things, all the obligations of the Borrower under the Credit
Agreement, the Letter of Credit Agreement, the Licensee Loan Guarantees and the
other Loan Documents. The obligations of the Banks to extend credit and of the
Issuing Bank to issue the Letters of Credit under the Credit Agreement and the
other Loan Documents are conditioned upon, among other things, the execution and
delivery by the Grantors of a security agreement in the form hereof to secure
(a) the due and punctual payment by the Borrower of (i) the principal of and
interest on the Notes, when and as due, whether at maturity, by acceleration,
upon one or more dates set for prepayment or otherwise, and any renewals,
modifications or extensions hereof, in whole or in part; (ii) each payment
required to be made by the Borrower under the Letter of Credit Agreements in
respect of any of the Letters of Credit, when and as due, including payments in
respect of reimbursement of disbursements, interest thereon and obligations, if
any, to provide cash collateral and any renewals, modification or extensions
thereof, in whole or in part; (iii) each payment required to be made by the
Borrower under the Licensee Loan Guaranties, when and as due, including, without
limitation, payments in respect of repayment of Licensee Loans, interest thereon
and obligations, if any, to provide cash collateral, purchase any Licensee Loan,
and any renewals, modifications or extensions thereof in whole or in part; and
(iv) all other monetary obligations of the Borrower to the Secured Parties under
the Credit Agreement and the other Loan Documents to which the Borrower is or is
to be a party, and any renewals, modifications or extensions thereof, in whole
or in part; (b) the due and punctual performance of all other obligations of the
Borrower under the Credit Agreement and the other Loan Documents to which the
Borrower is or is to be a party, and any renewals, modifications or extensions
thereof, in whole or in part; and (c) the due and punctual payment and
performance of all obligations of each of the Guarantors under the Credit
Agreement and the other Loan Documents to which it is or is to be a party and
any renewals, modifications or extensions thereof, in whole or in part (all the
foregoing indebtedness, liabilities and obligations being collectively called
the "Obligations").

                SECTION 4. Conditions to Effectiveness. The effectiveness of
this Amendment and the obligations of the Banks hereunder are subject to the
following conditions, unless the Banks waive such conditions:

                (a)     receipt by the Agent from each of the parties hereto of
a duly executed counterpart of this Amendment signed by such party; and

                (b)     the fact that the representations and warranties of the
Borrower and Guarantors contained in Section 6 of this Amendment shall be true
on and as of the date hereof.

                SECTION 5. No Other Amendment. Except for the amendments set
forth above, the text of the Credit Agreement shall remain unchanged and in full
force and effect. This Amendment is not intended to effect, nor shall it be
construed as, a novation. The Credit Agreement and this Amendment shall be
construed together as a single agreement. Nothing herein

<PAGE>

contained shall waive, annul, vary or affect any provision, condition, covenant
or agreement contained in the Credit Agreement, except as herein amended, nor
affect nor impair any rights, powers or remedies under the Credit Agreement as
hereby amended. The Banks and the Agent do hereby reserve all of their rights
and remedies against all parties who may be or may hereafter become secondarily
liable for the repayment of the Notes. The Borrower and Guarantors promise and
agree to perform all of the requirements, conditions, agreements and obligations
under the terms of the Credit Agreement, as heretofore and hereby amended and
the other Loan Documents, the Credit Agreement, as amended, and the other Loan
Documents being hereby ratified and affirmed. The Borrower and the Guarantors
hereby expressly agree that the Credit Agreement, as amended, and the other Loan
Documents are in full force and effect.

                SECTION 6. Representations and Warranties. The Borrower and
Guarantors hereby represent and warrant to each of the Banks as follows:

                (a)     No Default or Event of Default, nor any act, event,
condition or circumstance which with the passage of time or the giving of
notice, or both, would constitute an Event of Default, under the Credit
Agreement or any other Loan Document has occurred and is continuing unwaived
hereby or otherwise by the Banks on the date hereof.

                (b)     The Borrower and Guarantors have the power and authority
to enter into this Amendment and to do all acts and things as are required or
contemplated hereunder, or thereunder, to be done, observed and performed by
them.

                (c)     This Amendment has been duly authorized, validly
executed and delivered by one or more authorized officers of the Borrower and
Guarantors and constitutes legal, valid and binding obligations of the Borrower
and Guarantors enforceable against them in accordance with its terms, provided
that such enforceability is subject to general principles of equity.

                (d)     The execution and delivery of this Amendment and the
performance hereunder by the Borrower and Guarantors do not and will not require
the consent or approval of any regulatory authority or governmental authority or
agency having jurisdiction over the Borrower or any Guarantor, nor be in
contravention of or in conflict with the articles of incorporation, bylaws or
other organizational documents of the Borrower or any Guarantor, or the
provision of any statute, or any judgment, order or indenture, instrument,
agreement or undertaking, to which the Borrower or any Guarantor is party or by
which the assets or properties of the Borrower or any Guarantor are or may
become bound.

                SECTION 7. Counterparts. This Amendment may be executed in
multiple counterparts, each of which shall be deemed to be an original and all
of which, taken together, shall constitute one and the same agreement.

                SECTION 8. Governing Law. This Amendment shall be construed in
accordance with and governed by the laws of the State of North Carolina.

                SECTION 9. Effective Date. Sections 2.12 and 2.13 of this
Amendment shall be effective as of May 27, 2001 (the "Effective Date").

<PAGE>

                SECTION 10. Licensee Loan Guaranty. The Borrower hereby
acknowledges and agrees that a termination of the Commitments under the Credit
Agreement (whether on the Termination Date or at any time prior to the
Termination Date for any reason) shall constitute termination of the Credit
Agreement for purposes of subsection (f) of the definition of "Guaranty Trigger
Event" set forth in the Licensee Loan Guarantees.

                SECTION 11. Reduction of Commitment. Effective October 9, 2001,
the Borrower hereby proportionately reduces the Commitments by an aggregate
amount of $10,000,000. After giving effect to such reduction, the respective
Commitments of the Banks are as follows: (1) Branch Banking and Trust Company:
$35,000,000.00; (2) Compass Bank: $13,000,000.00 (3) Fifth Third Bank:
$6,000,000.00; and (4) First Tennessee National Association: $6,000,000.00.

                SECTION 12. Fee. The Borrower hereby agrees to pay to each Bank
an amendment fee in an amount equal to such Bank's Commitment (after giving
effect to the reduction set forth in Section 11) multiplied by .050%.

             [The remainder of this page intentionally left blank.]

<PAGE>

                IN WITNESS WHEREOF, the parties hereto have executed and
delivered, or have caused their respective duly authorized officers or
representatives to execute and deliver, this Amendment as of the day and year
first above written.

                                BASSETT FURNITURE INDUSTRIES,
                                INCORPORATED

                                By:                                       (SEAL)
                                   ---------------------------------------
                                Title:
                                      ------------------------------------

                                BASSETT FURNITURE INDUSTRIES OF
                                NORTH CAROLINA, INC.

                                By:                                       (SEAL)
                                   ---------------------------------------
                                Title:
                                      ------------------------------------

                                THE E.B. MALONE CORPORATION

                                By:                                       (SEAL)
                                   ---------------------------------------
                                Title:
                                      ------------------------------------

                                BASSETT DIRECT STORES, INC.

                                By:                                       (SEAL)
                                   ---------------------------------------
                                Title:
                                      ------------------------------------

                                BASSETT DIRECT NC, LLC

                                By:                                       (SEAL)
                                   ---------------------------------------
                                Title:
                                      ------------------------------------

<PAGE>

                                BASSETT DIRECT SC, LLC

                                By:                                       (SEAL)
                                   ---------------------------------------
                                Title:
                                      ------------------------------------

                        BRANCH BANKING AND TRUST COMPANY, as
                        Agent, Issuing Bank and as a Bank

                        By:                                               (SEAL)
                           -----------------------------------------------
                        Title:
                              --------------------------------------------

                                COMPASS BANK

                                By:                                       (SEAL)
                                   ---------------------------------------
                                Title:
                                      ------------------------------------

                                FIFTH THIRD BANK

                                By:                                       (SEAL)
                                   ---------------------------------------
                                Title:
                                      ------------------------------------

                                FIRST TENNESSEE BANK NATIONAL
                                ASSOCIATION

                                By:                                       (SEAL)
                                   ---------------------------------------
                                Title:
                                      ------------------------------------<PAGE>
                                                                    EXHIBIT 4.10

                                    INDENTURE

                            DEVON ENERGY CORPORATION

                                       TO

                                     Trustee

                                    Indenture
                          (For Senior Debt Securities)

                        Dated as of _______________, 200_

<PAGE>

                                TABLE OF CONTENTS

<Table>
<S>                                                                                                            <C>
RECITAL OF THE COMPANY...........................................................................................1

ARTICLE I             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION....................................1

         SECTION 1.01               Definitions..................................................................1
         SECTION 1.02               Compliance Certificates and Opinions.........................................9
         SECTION 1.03               Form of Documents Delivered to Trustee......................................10
         SECTION 1.04               Acts of Holders.............................................................10
         SECTION 1.05               Notices, Etc. to Trustee and Company........................................12
         SECTION 1.06               Notice to Holders of Debt Securities; Waiver................................13
         SECTION 1.07               Conflict with Trust Indenture Act...........................................13
         SECTION 1.08               Effect of Headings and Table of Contents....................................13
         SECTION 1.09               Successors and Assigns......................................................13
         SECTION 1.10               Separability Clause.........................................................13
         SECTION 1.11               Benefits of Indenture.......................................................13
         SECTION 1.12               Governing Law...............................................................14
         SECTION 1.13               Legal Holidays..............................................................14

ARTICLE II            DEBT SECURITY FORMS.......................................................................14

         SECTION 2.01               Forms Generally.............................................................14
         SECTION 2.02               Form of Trustee's Certificate of Authentication.............................15
         SECTION 2.03               Debt Securities Issuable in the Form of a Global Security...................15

ARTICLE III           THE DEBT SECURITIES.......................................................................17

         SECTION 3.01               Amount Unlimited; Issuable in Series........................................17
         SECTION 3.02               Denominations...............................................................21
         SECTION 3.03               Execution, Authentication, Delivery and Dating..............................21
         SECTION 3.04               Temporary Debt Securities...................................................23
         SECTION 3.05               Registration, Registration of Transfer and Exchange.........................24
         SECTION 3.06               Mutilated, Destroyed, Lost and Stolen Debt Securities.......................25
         SECTION 3.07               Payment of Interest and Additional Interest; Interest Rights Preserved......26
         SECTION 3.08               Persons Deemed Owners.......................................................27
         SECTION 3.09               Cancellation by Debt Security Registrar.....................................27
         SECTION 3.10               Computation of Interest.....................................................28
         SECTION 3.11               Payment to be in Proper Currency............................................28

ARTICLE IV            REDEMPTION OF DEBT SECURITIES.............................................................28

         SECTION 4.01               Applicability of Article....................................................28
         SECTION 4.02               Election to Redeem; Notice to Trustee.......................................28
         SECTION 4.03               Selection of Debt Securities to be Redeemed.................................29
         SECTION 4.04               Notice of Redemption........................................................29
         SECTION 4.05               Debt Securities Payable on Redemption Date..................................31
         SECTION 4.06               Debt Securities Redeemed in Part............................................31

ARTICLE V             SINKING FUNDS.............................................................................31

         SECTION 5.01               Applicability of Article....................................................31
</Table>

                                        i
<PAGE>

<Table>
<S>                                                                                                            <C>
         SECTION 5.02               Satisfaction of Sinking Fund Payments with Debt Securities..................32
         SECTION 5.03               Redemption of Debt Securities for Sinking Fund..............................32

ARTICLE VI            COVENANTS.................................................................................33

         SECTION 6.01               Payment of Principal, Premium and Interest..................................33
         SECTION 6.02               Maintenance of Office or Agency.............................................33
         SECTION 6.03               Money for Debt Securities Payments to be Held in Trust......................34
         SECTION 6.04               Corporate Existence.........................................................35
         SECTION 6.05               Annual Officer's Certificate as to Compliance...............................35
         SECTION 6.06               Limitation on Liens.........................................................35
         SECTION 6.07               Waiver of Certain Covenants.................................................37

ARTICLE VII           SATISFACTION AND DISCHARGE................................................................38

         SECTION 7.01               Satisfaction and Discharge of Debt Securities...............................38
         SECTION 7.02               Satisfaction and Discharge of Indenture.....................................40
         SECTION 7.03               Application of Trust Money..................................................41

ARTICLE VIII          EVENTS OF DEFAULT; REMEDIES...............................................................41

         SECTION 8.01               Events of Default...........................................................41
         SECTION 8.02               Acceleration of Maturity; Rescission and Annulment..........................43
         SECTION 8.03               Collection of Indebtedness and Suits for Enforcement by Trustee.............44
         SECTION 8.04               Trustee May File Proofs of Claim............................................44
         SECTION 8.05               Trustee May Enforce Claims Without Possession of Debt Securities............45
         SECTION 8.06               Application of Money Collected..............................................45
         SECTION 8.07               Limitation on Suits.........................................................46
         SECTION 8.08               Unconditional Right of Holders to Receive Principal, Premium and
                                    Interest....................................................................46
         SECTION 8.09               Restoration of Rights and Remedies..........................................47
         SECTION 8.10               Rights and Remedies Cumulative..............................................47
         SECTION 8.11               Delay or Omission Not Waiver................................................47
         SECTION 8.12               Control by Holders of Debt Securities.......................................47
         SECTION 8.13               Waiver of Past Defaults.....................................................48
         SECTION 8.14               Undertaking for Costs.......................................................48
         SECTION 8.15               Waiver of Stay or Extension Laws............................................48

ARTICLE IX            THE TRUSTEE...............................................................................49

         SECTION 9.01               Certain Duties and Responsibilities.........................................49
         SECTION 9.02               Notice of Defaults..........................................................50
         SECTION 9.03               Certain Rights of Trustee...................................................50
         SECTION 9.04               Not Responsible for Recitals or Issuance of Debt Securities.................51
         SECTION 9.05               May Hold Debt Securities....................................................52
         SECTION 9.06               Money Held in Trust.........................................................52
         SECTION 9.07               Compensation and Reimbursement..............................................52
         SECTION 9.08               Disqualification; Conflicting Interests.....................................53
         SECTION 9.09               Corporate Trustee Required; Eligibility.....................................53
</Table>

                                       ii
<PAGE>

<Table>
<S>                                                                                                            <C>
         SECTION 9.10               Resignation and Removal; Appointment of Successor...........................54
         SECTION 9.11               Acceptance of Appointment by Successor......................................55
         SECTION 9.12               Merger, Conversion, Consolidation or Succession to Business.................56
         SECTION 9.13               Preferential Collection of Claims Against Company...........................57
         SECTION 9.14               Co-trustees and Separate Trustees...........................................57
         SECTION 9.15               Appointment of Authenticating Agent.........................................58

ARTICLE X             HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY.........................................60

         SECTION 10.01              Lists of Holders............................................................60
         SECTION 10.02              Reports by Trustee and Company..............................................60

ARTICLE XI            CONSOLIDATION, MERGER, CONVEYANCE OR OTHER TRANSFER.......................................61

         SECTION 11.01              Company May Consolidate, Etc., Only on Certain Terms........................61
         SECTION 11.02              Successor Corporation Substituted...........................................61

ARTICLE XII           SUPPLEMENTAL INDENTURES...................................................................62

         SECTION 12.01              Supplemental Indentures Without Consent of Holders..........................62
         SECTION 12.02              Supplemental Indentures With Consent of Holders.............................63
         SECTION 12.03              Execution of Supplemental Indentures........................................65
         SECTION 12.04              Effect of Supplemental Indentures...........................................65
         SECTION 12.05              Conformity With Trust Indenture Act.........................................65
         SECTION 12.06              Reference in Debt Securities to Supplemental Indentures.....................65
         SECTION 12.07              Modification Without Supplemental Indenture.................................66

ARTICLE XIII          MEETINGS OF HOLDERS; ACTION WITHOUT MEETING...............................................66

         SECTION 13.01              Purposes for Which Meetings May be Called...................................66
         SECTION 13.02              Call, Notice and Place of Meetings..........................................66
         SECTION 13.03              Persons Entitled to Vote at Meetings........................................67
         SECTION 13.04              Quorum; Action..............................................................67
         SECTION 13.05              Attendance at Meetings; Determination of Voting Rights; Conduct and
                                    Adjournment of Meetings.....................................................68
         SECTION 13.06              Counting Votes and Recording Action of Meetings.............................69
         SECTION 13.07              Action Without Meeting......................................................69

ARTICLE XIV           IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS...........................69

         SECTION 14.01              Liability Solely Corporate..................................................69
</Table>

                                       iii
<PAGE>

         INDENTURE, dated as of ______________, 200_, between DEVON ENERGY
CORPORATION, a corporation duly organized existing under the laws of the State
of Delaware (herein called the "Company"), having its principal office at 20
North Broadway, Suite 1500, Oklahoma City, Oklahoma 73102-8260, and
________________, a ___________________, having its principal corporate trust
office at _____________________________, as Trustee (herein called the
"Trustee").

                             RECITAL OF THE COMPANY

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

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

         NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

                                    ARTICLE I

                              DEFINITIONS AND OTHER
                        PROVISIONS OF GENERAL APPLICATION

SECTION 1.01 Definitions.

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

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

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

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

<PAGE>

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

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

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

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

         "Additional Interest" means the interest, if any, that shall accrue on
any interest on the Debt Securities of any series the payment of which has not
been made on the applicable Interest Payment Date and which shall accrue at the
rate per annum specified or determined as specified in such Debt Security.

         "Additional Amounts" means any additional amounts which are required
hereby or by any Security, under circumstances specified herein or therein, to
be paid by the Company in respect of certain taxes, assessments or other
governmental charges imposed on Holders specified therein and which are owing to
such Holders.

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

         "Authenticating Agent" means any Person (other than the Company or an
Affiliate of the Company) authorized by the Trustee pursuant to Section 9.15 to
act on behalf of the Trustee to authenticate one or more series of Debt
Securities or Tranche thereof.

         "Authorized Officer" means the Chairman of the Board, the President,
any Vice President, the Treasurer or any other duly authorized officer of the
Company.

         "Board of Directors" means either the board of directors of the Company
or any committee thereof duly authorized to act or any director or directors
and/or officer or officers of the Company to whom that board or committee shall
have duly delegated its authority in respect of matters relating to this
Indenture.

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

         "Business Day", when used with respect to a Place of Payment or any
other particular location specified in the Debt Securities or this Indenture,
means any day, other than a Saturday or Sunday, which is not a day on which
banking institutions or trust companies in such Place of

                                       2
<PAGE>

Payment or other location are generally authorized or required by law,
regulation or executive order to remain closed, except as may be otherwise
specified as contemplated by Section 3.01.

         "Capital Interests" means, with respect to any Person, any and all
shares, interests, participations, rights or other equivalents (however
designated) of such Person's equity, including, without limitation (i) with
respect to partnerships, partnership interests (whether general or limited),
(ii) with respect to limited liability companies, member interests, and (iii)
any other interest or participation that confers on a Person the right to
receive a share of the profits and losses of, or distributions of assets of,
such Person.

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

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

         "Company Request" or "Company Order" means a written request or order
signed in the name of the Company by an Authorized Officer and delivered to the
Trustee.

         "Consolidated Net Tangible Assets" means, calculated as of the date of
the financial statements for the most recently ended fiscal quarter or fiscal
year, as applicable, prior to the date of determination, the aggregate amount of
assets of the Company and its consolidated Subsidiaries, less applicable
reserves and other properly deductible items but including investments in
non-consolidated entities, after deducting therefrom:

                  (i) all current liabilities, excluding any portion thereof
         constituting Funded Debt by reason of being renewable or extendible at
         the option of the obligor beyond 12 months from the date of
         determination; and

                  (ii) all goodwill, trade names, trademarks, patents,
         unamortized debt discount and expenses and other like intangibles, all
         as set forth on a consolidated balance sheet of the Company and its
         consolidated Subsidiaries and computed in accordance with GAAP.

         "Corporate Trust Office" means the office of the Trustee at which at
any particular time its corporate trust business shall be principally
administered, which office at the date of execution and delivery of this
Indenture is located at ___________________________.

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

         "Debt" has the meaning specified in Section 6.06.

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

                                       3
<PAGE>

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

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

         "Depositary" shall mean, with respect to Debt Securities of any series,
for which the Company shall determine that such Debt Securities will be issued
as a Global Security, The Depository Trust Company, New York, New York, another
clearing agency, or any successor registered as a clearing agency under the
Exchange Act or other applicable statute or regulation, which, in each case,
shall be designated by the Company pursuant to Section 2.03(b).

         "Designated Trustee Office" means any office or offices of the Trustee
or any Affiliate, servicer or other agent of the Trustee from time to time
established by the Trustee in its discretion as the location at which particular
actions or functions (for example, registration of securities and paying agent
responsibilities) will occur. The Trustee shall, upon the written request of the
Company or any Holder, provide the Company or such Holder with a written list of
its Designated Trustee Offices hereunder.

         "Discount Debt Security" means any Debt 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 8.02.
"Interest" with respect to a Discount Debt Security means interest, if any,
borne by such Debt Security at a Stated Interest Rate.

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

         "Eligible Obligations" means:

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

         (b) with respect to Debt Securities denominated in a currency other
than Dollars or in a composite currency, such other obligations or instruments
as shall be specified with respect to such Debt Securities, as contemplated by
Section 3.01.

         "Event of Default" has the meaning specified in Section 8.01.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended.

         "Funded Debt" means all Debt of the Company or any of its Subsidiaries
for money borrowed which is not by its terms subordinated in right of payment to
the prior payment in full of the Debt Securities or to the Company's full and
unconditional guarantee in respect thereof, as applicable, having a maturity of
more than 12 months from the date as of which the amount thereof is to be
determined or having a maturity of fewer than 12 months but by its terms being
(1) renewable or extendible beyond 12 months from such date at the option of the
obligor; or (2) issued in connection with a commitment by a bank or other
financial institution to lend so that the indebtedness is treated as though it
had a maturity in excess of 12 months pursuant to GAAP.

                                       4
<PAGE>

         "Global Security" shall mean, with respect to the Debt Securities, a
Debt Security executed by the Company and delivered by the Trustee to the
Depositary or pursuant to the Depositary's instruction, all in accordance with
this Indenture, which shall be registered in the name of the Depositary or its
nominee.

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

         "Government Obligations" means:

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

         (b) certificates, depositary receipts or other instruments which
evidence a direct ownership interest in obligations described in clause (a)
above or in any specific interest or principal payments due in respect thereof;
provided, however, that the custodian of such obligations or specific interest
or principal payments shall be a bank or trust company (which may include the
Trustee or any Paying Agent) subject to Federal or state supervision or
examination with a combined capital and surplus of at least $100,000,000; and
provided, further, that except as may be otherwise required by law, such
custodian shall be obligated to pay to the holders of such certificates,
depositary receipts or other instruments the full amount received by such
custodian in respect of such obligations or specific payments and shall not be
permitted to make any deduction therefrom.

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

         "Indebtedness" means any indebtedness for money borrowed or
representing the deferred purchase price of property or assets purchased.

         "Indenture" means this instrument as originally executed and delivered
and as it may from time to time be supplemented or amended by one or more
indentures or Officer's Certificates supplemental hereto entered into pursuant
to the applicable provisions hereof and shall include the terms of particular
series of Debt Securities established as contemplated by Section 3.01.

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

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

                                       5
<PAGE>

         "Mortgage" means and includes any mortgage, pledge, lien, security
interest, conditional sale or other title retention agreement or other similar
encumbrance.

         "Offshore" means the lands beneath the navigable waters of the United
States or Canada, or the continental shelf of the United States or Canada.

         "Officer's Certificate" means a certificate signed by an Authorized
Officer and delivered to the Trustee.

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

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

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

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

         (c) Debt Securities which have been paid pursuant to Section 3.06 or in
exchange for or in lieu of which other Debt Securities have been authenticated
and delivered pursuant to this Indenture, other than any such Debt Securities in
respect of which there shall have been presented to the Trustee proof
satisfactory to it and the Company that such Debt Securities are held by a bona
fide purchaser or purchasers in whose hands such Debt Securities are valid
obligations of the Company;

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

                  (x) Debt Securities owned by the Company or any other obligor
         upon the Debt Securities or any Affiliate of the Company or of such
         other obligor (unless the Company, such Affiliate or such obligor owns
         all Debt Securities Outstanding under this Indenture, or all
         Outstanding Debt Securities of each such series and each such Tranche,
         as the case may be, determined without regard to this clause (x)) shall
         be disregarded and deemed not to be Outstanding, except that, in
         determining whether the Trustee shall be protected in relying upon any
         such request, demand, authorization, direction, notice, consent or
         waiver or upon any such determination as to the presence of a quorum,
         only Debt Securities which the Trustee knows to be so owned shall be so
         disregarded; provided, however, that Debt 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 Debt Securities and that the
         pledgee is not the Company or any other obligor upon the Debt
         Securities or any Affiliate of the Company or of such other obligor;
         and

                                       6
<PAGE>

                  (y) the principal amount of a Discount Debt 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 8.02;

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

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

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

         "Person" means any individual, corporation, limited liability company,
partnership, joint venture, trust or unincorporated organization or any
Governmental Authority.

         "Place of Payment", when used with respect to the Debt Securities of
any series, or Tranche thereof, means the place or places, specified as
contemplated by Section 3.01, at which, subject to Section 6.02, principal of
and premium, if any, and interest (including Additional Interest), if any, on
the Debt Securities of such series or Tranche are payable.

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

         "Principal Property" means any oil, gas or mineral producing property,
or any refining, processing, smelting or manufacturing facility located in the
United States, Canada or Offshore, other than: (1) property employed in
transportation, distribution or marketing; (2) information and electronic data
processing equipment; or (3) any property that, in the opinion of the Board of
Directors of the Company, is not materially important to the total business
conducted by the Company and its Subsidiaries as an entirety.

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

                                       7
<PAGE>

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

         "Required Currency" has the meaning specified in Section 3.11.

         "Responsible Officer," when used with respect to the Trustee, means any
officer of the Trustee assigned by the Trustee to administer its corporate trust
matters.

         "Restricted Subsidiary" means any Subsidiary of the Company: (1) a
substantial portion of the property of which is located, or a substantial
portion of the business of which is carried on, within the United States, Canada
or Offshore; (2) that owns or leases under a capital lease any Principal
Property; and (3) that has a Stockholders' Equity exceeding 2% of Consolidated
Net Tangible Assets.

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

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

         "Stockholders' Equity" means, with respect to any corporation,
partnership, joint venture, association, joint stock company, limited liability
company, unlimited liability company, trust, unincorporated organization or
government, or any agency or political subdivision thereof, stockholders'
equity, as computed in accordance with GAAP.

         "Subsidiary" of any Person means any corporation, association or other
business entity of which more than 50% of the total voting power of the Capital
Interests of such Person entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof
or, in the case of a partnership, more than 50% of the partners' Capital
Interests (considering all partners' Capital Interests as a single class), is at
the time owned or controlled, directly or indirectly, by such Person or one or
more of the other Subsidiaries of such Person or a combination thereof.

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

         "Tranche" means a group of Debt Securities which (a) are of the same
series and (b) have identical terms except as to principal amount.

                                       8
<PAGE>

         "Trust Indenture Act" means the Trust Indenture Act of 1939 as in force
and effect as of the date of execution of this Indenture; provided, however,
that in the event the Trust Indenture Act of 1939 is succeeded by another
statute or is amended after such date, "Trust Indenture Act" shall mean such
successor statute or the Trust Indenture Act of 1939, as so amended, to the
extent such successor statute or amendment is applicable to this Indenture or to
the actions of the Company or the Trustee under or pursuant to this Indenture.

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

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

SECTION 1.02 Compliance Certificates and Opinions.

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

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

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

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

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

                                       9
<PAGE>

SECTION 1.03 Form of Documents Delivered to Trustee.

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

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

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

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

SECTION 1.04 Acts of Holders.

         (a) Any request, demand, authorization, direction, notice, consent,
election, waiver or other action provided by this Indenture to be made, given or
taken by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent duly
appointed in writing or, alternatively, may be embodied in

                                       10
<PAGE>

and evidenced by the record of Holders voting in favor thereof, either in person
or by proxies duly appointed in writing, at any meeting of Holders duly called
and held in accordance with the provisions of Article XIII, or a combination of
such instruments and any such record. Except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
or record or both are delivered to the Trustee and, where it is hereby expressly
required, to the Company. Such instrument or instruments and any such record
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the "Act" of the Holders signing such instrument or instruments
and so voting at any such meeting. Proof of execution of any such instrument or
of a writing appointing any such agent, or of the holding by any Person of a
Debt Security, shall be sufficient for any purpose of this Indenture and
(subject to Section 9.01) conclusive in favor of the Trustee and the Company, if
made in the manner provided in this Section. The record of any meeting of
Holders shall be proved in the manner provided in Section 13.06.

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

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

         (d) Any request, demand, authorization, direction, notice, consent,
election, waiver or other Act of a Holder shall bind every future Holder of the
same Debt Security and the Holder of every Debt 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 Debt Security.

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

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

                                       11
<PAGE>

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

SECTION 1.05 Notices, Etc. to Trustee and Company.

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

If to the Trustee, to:

        Attention:                          Telephone:
                  ---------------------               --------------------
        Telecopy:
                  ---------------------

If to the Company:

         Devon Energy Corporation
         20 North Broadway, Suite 1500
         Oklahoma City, Oklahoma 73102-8260
         Attention: General Counsel
         Telephone No.: (405) 235-3611
         Telecopier No.: (405) 552-4550

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

                                       12
<PAGE>

SECTION 1.06 Notice to Holders of Debt Securities; Waiver.

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

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

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

SECTION 1.07 Conflict with Trust Indenture Act.

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

SECTION 1.08 Effect of Headings and Table of Contents.

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

SECTION 1.09 Successors and Assigns.

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

SECTION 1.10 Separability Clause.

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

SECTION 1.11 Benefits of Indenture.

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

                                       13
<PAGE>

SECTION 1.12 Governing Law.

         This Indenture and the Debt Securities shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to conflicts of law principles thereof, except to the extent that the law of any
other jurisdiction shall be mandatorily applicable.

SECTION 1.13 Legal Holidays.

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

                                   ARTICLE II

                               DEBT SECURITY FORMS

SECTION 2.01 Forms Generally.

         The definitive Debt Securities of each series shall be in substantially
the form or forms thereof established in the indenture supplemental hereto
establishing such series or in a Board Resolution establishing such series, or
in an Officer's Certificate pursuant to such supplemental indenture or Board
Resolution, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may be required to comply
with the rules of any securities exchange or as may, consistently herewith, be
determined by the officers executing such Debt Securities, as evidenced by their
execution of the Debt Securities. If the form or forms of Debt Securities of any
series are established in a Board Resolution or in an Officer's Certificate
pursuant to an indenture supplement hereto or to a Board Resolution, such Board
Resolution and Officer's Certificate, if any, shall be delivered to the Trustee
at or prior to the delivery of the Company Order contemplated by Section 3.03
for the authentication and delivery of such Debt Securities.

         Unless otherwise specified as contemplated by Sections 3.01 or
12.01(g), the Debt Securities of each series shall be issuable in registered
form without coupons. The definitive Debt Securities shall be produced in such
manner as shall be determined by the officers executing such Debt Securities, as
evidenced by their execution thereof.

                                       14
<PAGE>

SECTION 2.02 Form of Trustee's Certificate of Authentication.

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

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

Dated:
      -----------------------               ------------------------------------
                                            as Trustee

                                            By:
                                               ---------------------------------
                                               Authorized Representative

SECTION 2.03 Debt Securities Issuable in the Form of a Global Security.

         (a) If the Company shall establish pursuant to Section 3.01 that the
Debt Securities of a particular series are to be issued in whole or in part in
the form of one or more Global Securities, then the Company shall execute and
the Trustee shall, in accordance with Section 3.03 and the Company Order
delivered to the Trustee thereunder, authenticate and deliver such Global
Security or Securities, which (i) shall represent, and shall be denominated in
an amount equal to the aggregate principal amount of the Outstanding Debt
Securities of such series to be represented by such Global Security or
Securities, (ii) may provide that the aggregate amount of Outstanding Debt
Securities represented thereby may from time to time be increased or reduced to
reflect exchanges, (iii) shall be registered in the name of the Depositary for
such Global Security or Securities or its nominee, (iv) shall be delivered by
the Trustee to the Depositary or pursuant to the Depositary's instruction and
(v) shall bear a legend in accordance with the requirements of the Depositary.

         (b) Notwithstanding any other provision of this Section or of Section
3.05, except as contemplated by the provisions of paragraph (c) below, unless
the terms of a Global Security expressly permit such Global Security to be
exchanged in whole or in part for individual Debt Securities, a Global Security
may be transferred, in whole but not in part and in the manner provided in
Section 3.05, only to a nominee of the Depositary for such Global Security, or
to the Depositary, or to a successor Depositary for such Global Security
selected or approved by the Company, or to a nominee of such successor
Depositary.

         (c) (1) If at any time the Depositary for a Global Security notifies
the Company that it is unwilling or unable to continue as the Depositary for
such Global Security or if at any time the Depositary for the Debt Securities
for such series shall no longer be eligible or in good standing under the
Exchange Act, or other applicable statute or regulation, the Company shall
appoint a successor Depositary with respect to such Global Security. If a
successor Depositary for such Global Security is not appointed by the Company
within 90 days after the Company receives such notice or becomes aware of such
ineligibility, the Company will execute, and the Trustee, upon receipt of a
Company Order for the authentication and delivery of Debt Securities of such
series in the form of definitive certificates in exchange for such Global
Security, will authenticate and deliver Debt Securities of such series in the
form of definitive certificates of like tenor and terms in an aggregate
principal amount equal to the principal amount of the Global

                                       15
<PAGE>

Security in exchange for such Global Security. Such Debt Securities will be
issued to and registered in the name of such Person or Persons as are specified
by the Depositary.

                           (2) The Company may at any time and in its sole
                  discretion determine that the Debt Securities of any series
                  issued or issuable in the form of one or more Global
                  Securities shall no longer be represented by such Global
                  Security or Securities. In any such event the Company will
                  execute, and the Trustee, upon receipt of a Company Request
                  for the authentication and delivery of Debt Securities in the
                  form of definitive certificates in exchange in whole or in
                  part for such Global Security, will authenticate and deliver
                  without service charge to each Person specified by the
                  Depositary Debt Securities in the form of definitive
                  certificates of like tenor and terms in an aggregate principal
                  amount equal to the principal amount of such Global Security
                  representing such series, or the aggregate principal amount of
                  such Global Securities representing such series, in exchange
                  for such Global Security or Securities.

                           (3) If specified by the Company pursuant to Section
                  3.01 with respect to Debt Securities issued or issuable in the
                  form of a Global Security, the Depositary for such Global
                  Security may surrender such Global Security in exchange in
                  whole or in part for Debt Securities in the form of definitive
                  certificates of like tenor and terms on such terms as are
                  acceptable to the Company and such Depositary. Thereupon the
                  Company shall execute, and the Trustee shall authenticate and
                  deliver, without service charge, (A) to each Person specified
                  by such Depositary a new Debt Security or Securities of the
                  same series of like tenor and terms and any authorized
                  denomination as requested by such Person in aggregate
                  principal amount equal to and in exchange for such Person's
                  beneficial interest in the Global Security and (B) to such
                  Depositary a new Global Security of like tenor and terms and
                  in an authorized denomination equal to the difference, if any,
                  between the principal amount of the surrendered Global
                  Security and the aggregate principal amount of Debt Securities
                  delivered to Holders thereof.

                           (4) In any exchange provided for in any of the
                  preceding three subparagraphs, the Company shall execute and
                  the Trustee shall authenticate and deliver Debt Securities in
                  the form of definitive certificates in authorized
                  denominations. Upon the exchange of the entire principal
                  amount of a Global Security for Debt Securities in the form of
                  definitive certificates, such Global Security shall be
                  canceled by the Trustee. Except as provided in the immediately
                  preceding subparagraph, Debt Securities issued in exchange for
                  a Global Security pursuant to this Section shall be registered
                  in such names and in such authorized denominations as the
                  Depositary for such Global Security, acting pursuant to
                  instructions from its direct or indirect participants or
                  otherwise, shall instruct the Trustee. Provided that the
                  Company and the Trustee have so agreed, the Trustee shall
                  deliver such Debt Securities to the Persons in whose names the
                  Debt Securities are so to be registered.

                                       16
<PAGE>

                           (5) Any endorsement of a Global Security to reflect
                  the principal amount thereof, or any increase or decrease in
                  such principal amount, or changes in the rights of Holders of
                  Outstanding Debt Securities represented thereby shall be made
                  in such manner and by such Person or Persons as shall be
                  specified in or pursuant to any applicable letter of
                  representations or other arrangement entered into with, or
                  procedures of, the Depositary with respect to such Global
                  Security or in the Company Order delivered or to be delivered
                  pursuant to Section 3.03 with respect thereto. Subject to the
                  provisions of Section 3.03, the Trustee shall deliver and
                  redeliver any such Global Security in the manner and upon
                  instructions given by the Person or Persons specified in or
                  pursuant to any applicable letter of representations or other
                  arrangement entered into with, or procedures of, the
                  Depositary with respect to such Global Security or in any
                  applicable Company Order. If a Company Order pursuant to
                  Section 3.03 is so delivered, any instructions by the Company
                  with respect to such Global Security contained therein shall
                  be in writing but need not be accompanied by or contained in
                  an Officer's Certificate and need not be accompanied by an
                  Opinion of Counsel.

                           (6) The Depositary or, if there be one, its nominee,
                  shall be the Holder of a Global Security for all purposes
                  under this Indenture; and beneficial owners with respect to
                  such Global Security shall hold their interests pursuant to
                  applicable procedures of such Depositary. The Company, the
                  Trustee and the Debt Security Registrar shall be entitled to
                  deal with such Depositary for all purposes of this Indenture
                  relating to such Global Security (including the payment of
                  principal, premium, if any, and interest (including any
                  Additional Interest) and the giving of instructions or
                  directions by or to the beneficial owners of such Global
                  Security as the sole Holder of such Global Security and shall
                  have no obligations to the beneficial owners thereof
                  (including any direct or indirect participants in such
                  Depositary). None of the Company, the Trustee, any Paying
                  Agent or the Debt Security Registrar shall have any
                  responsibility or liability for any aspect of the records
                  relating to or payments made on account of beneficial
                  ownership interests of a Global Security in or pursuant to any
                  applicable letter of representations or other arrangement
                  entered into with, or procedures of, the Depositary with
                  respect to such Global Security or for maintaining,
                  supervising or reviewing any records relating to such
                  beneficial ownership interests.

                                   ARTICLE III

                               THE DEBT SECURITIES

SECTION 3.01 Amount Unlimited; Issuable in Series.

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

         The Debt Securities may be issued in one or more series. Subject to the
last paragraph of this Section, prior to the authentication and delivery of Debt
Securities of any series there shall

                                       17
<PAGE>

be established by specification in a supplemental indenture or in a Board
Resolution, or in an Officer's Certificate pursuant to a supplemental indenture
or a Board Resolution:

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

         (b) any limit upon the aggregate principal amount of the Debt
Securities of such series which may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Debt Securities of the
series pursuant to Section 3.04, 3.05, 3.06, 4.06 or 12.06 and, except for any
Debt Securities which, pursuant to Section 3.03, are deemed never to have been
authenticated and delivered hereunder);

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

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

         (e) the rate or rates at which the Debt Securities of such series, or
any Tranche thereof, shall bear interest, if any (including (i) the rate or
rates at which overdue principal shall bear interest, if different from the rate
or rates at which such Debt Securities shall bear interest prior to Maturity,
(ii) if applicable, the rate or rates at which overdue premium shall bear
interest, if any and (iii) if applicable, the rate or rates and extent to which
Additional Interest, if any, shall be payable), the period or periods during
which such rate or rates shall be applicable, or any formulary or other method
or other means by which such rate or rates, and any period or periods, shall be
determined, by reference to an index or other fact or event ascertainable
outside of this Indenture or otherwise; the date or dates from which such
interest shall accrue; whether and under what circumstances Additional Amounts
shall be payable; the Interest Payment Dates on which such interest shall be
payable and the Regular Record Date, if any, for the interest payable on such
Debt Securities on any Interest Payment Date; and the basis of computation of
interest, if other than as provided in Section 3.10;

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

                                       18
<PAGE>

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

         (h) the obligation or obligations or options, if any, of the Company to
redeem or purchase the Debt Securities of such series, or any Tranche thereof,
pursuant to any sinking fund or other mandatory redemption or tender provisions
or at the option of a Holder thereof and the period or periods within which or
the date or dates on which, the price or prices at which and the terms and
conditions upon which such Debt Securities shall be redeemed or purchased, in
whole or in part, pursuant to such obligation, and applicable exceptions to the
requirements of Section 4.04 in the case of mandatory redemption or redemption
at the option of the Holder;

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

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

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

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

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

         (n) if other than the principal amount thereof, the portion of the
principal amount of Debt Securities of such series, or any Tranche thereof,
which shall be payable upon declaration of acceleration of the Maturity thereof
pursuant to Section 8.02;

         (o) any Events of Default, in addition to those specified in Section
8.01, with respect to the Debt Securities of such series, any covenants of the
Company for the benefit of the Holders of the Debt Securities of such series, or
any Tranche thereof, in addition to those set

                                       19
<PAGE>

forth in Article VI, and the terms, if any, pursuant to which any covenants of
the Company for the benefit of the Holders of the Debt Securities of such series
are subject to defeasance;

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

         (q) the obligations or instruments, if any, which shall be considered
to be Eligible Obligations in respect of the Debt Securities of such series, or
any Tranche thereof, denominated in a currency other than Dollars or in a
composite currency, and any additional or alternative provisions for the
reinstatement of the Company's indebtedness in respect of such Debt Securities
after the satisfaction and discharge thereof as provided in Section 7.01;

         (r) whether the Debt Securities of the series shall be issued in whole
or in part in the form of a Global Security or Securities; the terms and
conditions, if any, upon which such Global Security or Securities may be
exchanged in whole or in part for certificated Debt Securities of such series
and of like tenor of any authorized denomination and the circumstances under
which such exchange may occur, if other than in the manner provided for in
Section 2.03; the Depositary for such Global Security or Securities; and the
form of any legend or legends to be borne by any such Global Security in
addition to or in lieu of the legend referred to in Section 2.03;

         (s) if the Debt Securities of such series, or any Tranche thereof, are
to be issuable in bearer form, any and all matters incidental thereto which are
not specifically addressed in a supplemental indenture as contemplated by clause
(g) of Section 12.01;

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

         (u) any exceptions to Section 1.13, or variation in the definition of
Business Day, with respect to the Debt Securities of such series, or any Tranche
thereof;

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

         (w) any credit enhancement applicable to the Debt Securities of such
series; and

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

         With respect to Debt Securities of a series subject to a Periodic
Offering, the indenture supplemental hereto or the Board Resolution which
establishes such series, or the Officer's Certificate pursuant to such
supplemental indenture or Board Resolution, as the case may be, may provide
general terms or parameters for Debt Securities of such series and provide
either that the specific terms of Debt Securities of such series, or any Tranche
thereof, shall be specified in a Company Order or that such terms shall be
determined by the Company or its

                                       20
<PAGE>

agents in accordance with procedures specified in a Company Order as
contemplated by clause (b) of the third paragraph of Section 3.03.

SECTION 3.02 Denominations.

         Unless otherwise provided as contemplated by Section 3.01 with respect
to any series of Securities, or any Tranche thereof, the Debt Securities of each
series shall be issuable in denominations of $1,000 and any integral multiple
thereof.

SECTION 3.03 Execution, Authentication, Delivery and Dating.

         Unless otherwise provided as contemplated by Section 3.01 with respect
to any series of Debt Securities, or any Tranche thereof, the Debt Securities
shall be executed on behalf of the Company by an Authorized Officer and may have
the corporate seal of the Company affixed thereto or reproduced thereon attested
by any other Authorized Officer. The signature of any or all of these officers
on the Debt Securities may be manual or facsimile.

         Debt Securities bearing the manual or facsimile signatures of
individuals who were at the time of execution Authorized 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 Debt Securities or did not hold such offices at the date of such Debt
Securities.

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

         (a) the instrument or instruments establishing the form or forms and
terms of such series, as provided in Sections 2.01 and 3.01;

         (b) a Company Order requesting the authentication and delivery of such
Debt Securities and, to the extent that the terms of such Debt Securities shall
not have been established in an indenture supplemental hereto or in a Board
Resolution, or in an Officer's Certificate pursuant to a supplemental indenture
or Board Resolution, all as contemplated by Sections 2.01 and 3.01, either (i)
establishing such terms or (ii) in the case of Debt Securities of a series
subject to a Periodic Offering, specifying procedures, acceptable to the
Trustee, by which such terms are to be established (which procedures may
provide, to the extent acceptable to the Trustee, for authentication and
delivery pursuant to oral or electronic instructions from the Company or any
agent or agents thereof, which oral instructions are to be promptly confirmed
electronically or in writing), in either case in accordance with the instrument
or instruments delivered pursuant to clause (a) above;

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

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

                                       21
<PAGE>

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

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

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

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

                  (x) when the terms of such Debt Securities shall have been
         established pursuant to a Company Order or Orders or pursuant to such
         procedures (acceptable to the Trustee) as may be specified from time to
         time by a Company Order or Orders, all as contemplated by and in
         accordance with the instrument or instruments delivered pursuant to
         clause (a) above, such terms will have been duly authorized by the
         Company and will have been established in conformity with the
         provisions of this Indenture; and

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

         With respect to Debt 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 Debt 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 Sections 2.01 and 3.01 and
this Section, as applicable, at or prior to the time of the first authentication
of Debt Securities of such series unless and until such opinion or other
documents have been superseded or revoked or expire by their terms. In
connection with the authentication and delivery of Debt Securities of a

                                       22
<PAGE>

series subject to a Periodic Offering, the Trustee shall be entitled to assume
that the Company's instructions to authenticate and deliver such Debt Securities
do not violate any rules, regulations or orders of any Governmental Authority
having jurisdiction over the Company.

         If the form or terms of the Debt Securities of any series have been
established by or pursuant to a Board Resolution or an Officer's Certificate as
permitted by Sections 2.01 or 3.01, the Trustee shall not be required to
authenticate such Debt Securities if the issuance of such Debt Securities
pursuant to this Indenture will materially or adversely affect the Trustee's own
rights, duties or immunities under the Debt Securities and this Indenture or
otherwise in a manner which is not reasonably acceptable to the Trustee.

         Unless otherwise specified as contemplated by Section 3.01 with respect
to any series of Debt Securities, or any Tranche thereof, each Debt Security
shall be dated the date of its authentication.

         Unless otherwise specified as contemplated by Section 3.01 with respect
to any series of Debt Securities, or any Tranche thereof, no Debt Security shall
be entitled to any benefit under this Indenture or be valid or obligatory for
any purpose unless there appears on such Debt Security a certificate of
authentication substantially in the form provided for herein executed by the
Trustee or its agent by manual signature, and such certificate upon any Debt
Security shall be conclusive evidence, and the only evidence, that such Debt
Security has been duly authenticated and delivered hereunder and is entitled to
the benefits of this Indenture. Notwithstanding the foregoing, if any Debt
Security shall have been authenticated and delivered hereunder to the Company,
or any Person acting on its behalf, but shall never have been issued and sold by
the Company, and the Company shall deliver such Debt Security to the Debt
Security Registrar for cancellation as provided in Section 3.09 together with a
written statement (which need not comply with Section 1.02 and need not be
accompanied by an Opinion of Counsel) stating that such Debt Security has never
been issued and sold by the Company, for all purposes of this Indenture such
Debt Security shall be deemed never to have been authenticated and delivered
hereunder and shall never be entitled to the benefits hereof.

SECTION 3.04 Temporary Debt Securities.

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

         Unless otherwise specified as contemplated by Section 3.01 with respect
to the Debt Securities of any series, or any Tranche thereof, after the
preparation of definitive Debt Securities of such series or Tranche, the
temporary Debt Securities of such series or Tranche shall be exchangeable,
without charge to the Holder thereof, for definitive Debt Securities of

                                       23
<PAGE>

such series or Tranche, upon surrender of such temporary Debt Securities at the
office or agency of the Company maintained pursuant to Section 6.02 in a Place
of Payment for such Debt Securities. Upon such surrender of temporary Debt
Securities, the Company shall, except as aforesaid, execute and the Trustee
shall authenticate and deliver in exchange therefor definitive Debt Securities
of the same series and Tranche, of authorized denominations and of like tenor
and aggregate principal amount.

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

SECTION 3.05 Registration, Registration of Transfer and Exchange.

         The Company shall cause to be kept in each office designated pursuant
to Section 6.02, with respect to the Debt Securities of each series or any
Tranche thereof, a register (all registers kept in accordance with this Section
being collectively referred to as the "Debt Security Register") in which,
subject to such reasonable regulations as it may prescribe, the Company shall
provide for the registration of Debt Securities of such series or Tranche and
the registration of transfer thereof. The Company shall designate one Person to
maintain the Debt Security Register for the Debt Securities of each series on a
consolidated basis, and such Person is referred to herein, with respect to such
series, as the "Debt Security Registrar". Anything herein to the contrary
notwithstanding, the Company may designate one or more of its offices as an
office in which a register with respect to the Debt Securities of one or more
series, or any Tranche or Tranches thereof, shall be maintained, and the Company
may designate itself the Debt Security Registrar with respect to one or more of
such series. The Debt Security Register shall be open for inspection by the
Trustee and the Company at all reasonable times.

         Except as otherwise specified as contemplated by Section 3.01 with
respect to the Debt Securities of any series, or any Tranche thereof, upon
surrender for registration of transfer of any Debt Security of such series or
Tranche at the office or agency of the Company maintained pursuant to Section
6.02 in a Place of Payment for such series or Tranche, the Company shall
execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Debt Securities of the
same series and Tranche, of authorized denominations and of like tenor and
aggregate principal amount.

         Except as otherwise specified as contemplated by Section 3.01 with
respect to the Debt Securities of any series, or any Tranche thereof, any Debt
Security of such series or Tranche may be exchanged at the option of the Holder,
for one or more new Debt Securities of the same series and Tranche, of
authorized denominations and of like tenor and aggregate principal amount, upon
surrender of the Debt Securities to be exchanged at any such office or agency.
Whenever any Debt Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Debt Securities
which the Holder making the exchange is entitled to receive.

         All Debt Securities delivered upon any registration of transfer or
exchange of Debt Securities shall be valid obligations of the Company,
evidencing the same debt, and entitled to

                                       24
<PAGE>

the same benefits under this Indenture, as the Debt Securities surrendered upon
such registration of transfer or exchange.

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

         Unless otherwise specified as contemplated by Section 3.01 with respect
to Debt Securities of any series, or any Tranche thereof, no service charge
shall be made for any registration of transfer or exchange of Debt 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 Debt Securities, other than exchanges
pursuant to Section 3.04, 4.06 or 12.06 not involving any transfer.

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

         None of the Company, the Trustee, any Paying Agent or the Debt 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 Global Security or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

SECTION 3.06 Mutilated, Destroyed, Lost and Stolen Debt Securities.

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

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

                                       25
<PAGE>

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

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

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

SECTION 3.07 Payment of Interest and Additional Interest; Interest Rights
             Preserved.

         Unless otherwise specified as contemplated by Section 3.01 with respect
to the Debt Securities of any series, or any Tranche thereof, interest and
Additional Interest on any Debt 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 Debt Security (or one or more Predecessor Debt
Securities) is registered at the close of business on the Regular Record Date
for such interest.

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

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

                                       26
<PAGE>

and the Special Record Date therefor to be mailed, first-class postage prepaid,
to each Holder of Debt Securities of such series at the address of such Holder
as it appears in the Debt 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 Debt Securities of such
series (or their respective Predecessor Debt Securities) are registered at the
close of business on such Special Record Date.

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

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

SECTION 3.08 Persons Deemed Owners.

         Prior to due presentment of a Debt 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 Debt Security is registered as the
absolute owner of such Debt Security for the purpose of receiving payment of
principal of and premium, if any, and (subject to Sections 3.05 and 3.07)
interest (including Additional Interest), if any, on such Debt Security and for
all other purposes whatsoever, whether or not such Debt Security is overdue, and
neither the Company, the Trustee nor any agent of the Company or the Trustee
shall be affected by notice to the contrary.

SECTION 3.09 Cancellation by Debt Security Registrar.

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

                                       27
<PAGE>

canceled Debt Securities be returned to it. The Debt Security Registrar shall
promptly deliver evidence of any cancellation of a Debt Security in accordance
with this Section to the Trustee and the Company. If the Trustee is the entity
acting as Debt Security Registrar, it shall promptly deliver to the Company a
certificate of disposition with respect to any certificates disposed of and/or
evidence of any cancellation of a Debt Security, in each case in accordance with
this Section, if so requested by a Company Order.

SECTION 3.10 Computation of Interest.

         Except as otherwise specified as contemplated by Section 3.01 for Debt
Securities of any series, or any Tranche thereof, interest on the Debt
Securities of each series shall be computed on the basis of a 360-day year
consisting of twelve 30-day months and on the basis of the actual number of days
elapsed within any month in relation to the deemed 30 days of such month.

SECTION 3.11 Payment to be in Proper Currency.

         In the case of the Debt Securities of any series, or any Tranche
thereof, denominated in any currency other than Dollars or in a composite
currency (the "Required Currency"), except as otherwise specified with respect
to such Debt Securities as contemplated by Section 3.01, the obligation of the
Company to make any payment of the principal thereof, or the premium or interest
thereon, shall not be discharged or satisfied by any tender by the Company, or
recovery by the Trustee, in any currency other than the Required Currency,
except to the extent that such tender or recovery shall result in the Trustee
timely holding the full amount of the Required Currency then due and payable. If
any such tender or recovery is in a currency other than the Required Currency,
the Trustee may take such actions as it considers appropriate to exchange such
currency for the Required Currency. The costs and risks of any such exchange,
including without limitation the risks of delay and exchange rate fluctuation,
shall be borne by the Company, the Company shall remain fully liable for any
shortfall or delinquency in the full amount of Required Currency then due and
payable, and in no circumstances shall the Trustee be liable therefor except in
the case of its negligence or willful misconduct.

                                   ARTICLE IV

                          REDEMPTION OF DEBT SECURITIES

SECTION 4.01 Applicability of Article.

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

SECTION 4.02 Election to Redeem; Notice to Trustee.

         The election of the Company to redeem any Debt Securities shall be
evidenced by a Board Resolution and/or an Officer's Certificate. The Company
shall, at least 60 days prior to the Redemption Date fixed by the Company
(unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee in writing of such Redemption Date and of the principal amount of

                                       28
<PAGE>

such Debt Securities to be redeemed. In the case of any redemption of Debt
Securities (a) prior to the expiration of any restriction on such redemption
provided in the terms of such Debt Securities or elsewhere in this Indenture or
(b) pursuant to an election of the Company which is subject to a condition
specified in the terms of such Debt Securities, the Company shall furnish the
Trustee with an Officer's Certificate evidencing compliance with such
restriction or condition.

SECTION 4.03 Selection of Debt Securities to be Redeemed.

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

         If the Debt Securities are then held in the form of a Global Security,
the Trustee shall select Debt Securities to be redeemed in accordance with the
customary procedures for the Depositary.

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

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

SECTION 4.04 Notice of Redemption.

         Notice of redemption shall be given in the manner provided in Section
1.06 to the Holders of the Debt Securities to be redeemed not less than 30 nor
more than 60 days prior to the Redemption Date.

         All notices of redemption shall state:

         (a) the Redemption Date,

                                       29
<PAGE>

         (b) the Redemption Price,

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

         (d) that on the Redemption Date, the Redemption Price, together with
accrued interest (including Additional Interest), if any, to the Redemption
Date, will become due and payable upon each such Debt Security to be redeemed
and, if applicable and provided that the Redemption Price is received by the
Paying Agent or Agents on or prior to the Redemption Date, that interest
(including any Additional Interest) thereon will cease to accrue on and after
said date,

         (e) the place or places where such Debt Securities are to be
surrendered for payment of the Redemption Price and accrued interest (including
Additional Interest), if any, unless it shall have been specified as
contemplated by Section 3.01 with respect to such Debt Securities that such
surrender shall not be required,

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

         (g) such other matters as the Company shall deem desirable or
appropriate (including CUSIP numbers with respect to such Debt Securities, if
the Company shall so elect, in which event such notice of redemption may contain
a disclaimer as to the correctness of such numbers either as printed on the Debt
Securities or on such notice of redemption).

         Unless otherwise specified with respect to any Debt Securities in
accordance with Section 3.01, with respect to any notice of redemption of Debt
Securities at the election of the Company, unless, upon the giving of such
notice, such Debt Securities shall be deemed to have been paid in accordance
with Section 7.01, such notice may state that such redemption shall be
conditional upon the receipt by the Paying Agent or Agents for such Debt
Securities, on or prior to the date fixed for such redemption, of money
sufficient to pay the principal of and premium, if any, and interest (including
Additional Interest), if any, on such Debt Securities and that if such money
shall not have been so received such notice shall be of no force or effect and
the Company shall not be required to redeem such Debt Securities. In the event
that such notice of redemption contains such a condition and such money is not
so received, the redemption shall not be made and within a reasonable time
thereafter notice shall be given, in the manner in which the notice of
redemption was given, that such money was not so received and such redemption
was not required to be made, and the Paying Agent or Agents for the Debt
Securities otherwise to have been redeemed shall promptly return to the Holders
thereof any of such Debt Securities which had been surrendered for payment upon
such redemption.

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

                                       30
<PAGE>

SECTION 4.05 Debt Securities Payable on Redemption Date.

         Notice of redemption having been given as aforesaid, and the
conditions, if any, set forth in such notice having been satisfied, the Debt
Securities or portions thereof so to be redeemed shall, on the Redemption Date,
become due and payable at the Redemption Price therein specified, and from and
after such date (unless, in the case of an unconditional notice of redemption,
the Company shall default in the payment of the Redemption Price and accrued
interest (including Additional Interest), if any) such Debt Securities or
portions thereof, if interest-bearing, shall cease to bear interest. Upon
surrender of any such Debt Security for redemption in accordance with such
notice, such Debt Security or portion thereof shall be paid by the Company at
the Redemption Price, together with accrued interest (including Additional
Interest), if any, to the Redemption Date; provided, however, that no such
surrender shall be a condition to such payment if so specified as contemplated
by Section 3.01 with respect to such Debt Security; and provided, further, that
except as otherwise specified as contemplated by Section 3.01 with respect to
such Debt Security, any installment of interest on any Debt Security the Stated
Maturity of which installment is on or prior to the Redemption Date shall be
payable to the Holder of such Debt Security, or one or more Predecessor Debt
Securities, registered as such at the close of business on the related Regular
Record Date according to the terms of such Debt Security and subject to the
provisions of Section 3.07.

SECTION 4.06 Debt Securities Redeemed in Part.

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

                                    ARTICLE V

                                  SINKING FUNDS

SECTION 5.01 Applicability of Article.

         The provisions of this Article shall be applicable to any sinking fund
for the retirement of the Debt Securities of any series, or any Tranche thereof,
except as otherwise specified as contemplated by Section 3.01 for Debt
Securities of such series or Tranche.

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

                                       31
<PAGE>

Tranche thereof, the cash amount of any sinking fund payment may be subject to
reduction as provided in Section 5.02. Each sinking fund payment shall be
applied to the redemption of Debt Securities of the series or Tranche in respect
of which it was made as provided for by the terms of such Debt Securities.

SECTION 5.02 Satisfaction of Sinking Fund Payments with Debt Securities.

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

SECTION 5.03 Redemption of Debt Securities for Sinking Fund.

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

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

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

         (c) the aggregate sinking fund payment;

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

         (e) the portion, if any, of such aggregate sinking fund payment which
is to be satisfied by delivering and crediting Debt Securities of such series or
Tranche pursuant to Section 5.02 and stating the basis for such credit and that
such Debt Securities have not previously been so credited, and the Company shall
also deliver to the Trustee any Debt Securities to be so delivered.

         If the Company shall not have delivered such Officer's Certificate and,
to the extent applicable, all such Debt Securities, on or prior to the 45th day
prior to such sinking fund payment date, the sinking fund payment for such
series or Tranche in respect of such sinking fund payment date shall be made
entirely in cash in the amount of the mandatory sinking fund payment. Not less
than 30 days before each such sinking fund payment date the Trustee shall

                                       32
<PAGE>

select the Debt Securities to be redeemed upon such sinking fund payment date in
the manner specified in Section 4.03 and the Debt Security Registrar shall 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 4.04. Such notice having been
duly given, the redemption of such Debt Securities shall be made upon the terms
and in the manner stated in Sections 4.05 and 4.06.

                                   ARTICLE VI

                                    COVENANTS

SECTION 6.01 Payment of Principal, Premium and Interest.

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

SECTION 6.02 Maintenance of Office or Agency.

         The Company shall maintain in each Place of Payment for the Debt
Securities of each series, or any Tranche thereof, an office or agency where
payment of such Debt Securities shall be made, where the registration of
transfer or exchange of such Debt Securities may be effected and where notices
and demands to or upon the Company in respect of such Debt Securities and this
Indenture may be served. The Company shall give prompt written notice to the
Trustee of the location, and any change in the location, of each such office or
agency and prompt notice to the Holders of any such change in the manner
specified in Section 1.06. If at any time the Company shall fail to maintain any
such required office or agency in respect of Debt Securities of any series, or
any Tranche thereof, or shall fail to furnish the Trustee with the address
thereof, payment of such Debt Securities shall be made, registration of transfer
or exchange thereof may be effected and notices and demands in respect thereof
may be served at the Corporate Trust Office of the Trustee, and the Company
hereby appoints the Trustee as its agent for all such purposes in any such
event.

         The Company may also from time to time designate one or more other
offices or agencies with respect to the Debt Securities of one or more series,
or any Tranche thereof, for any or all of the foregoing purposes and may from
time to time rescind such designations; provided, however, that, unless
otherwise specified as contemplated by Section 3.01 with respect to the Debt
Securities of such series or Tranche no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency
for such purposes in each Place of Payment for such Debt Securities in
accordance with the requirements set forth above. The Company shall give prompt
written notice to the Trustee, and prompt notice to the Holders in the manner
specified in Section 1.06, of any such designation or rescission and of any
change in the location of any such other office or agency.

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

                                       33
<PAGE>

SECTION 6.03 Money for Debt Securities Payments to be Held in Trust.

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

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

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

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

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

         (c) 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 and furnish to the Trustee such information as it
possesses regarding the names and addresses of the Persons entitled to such
sums.

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

                                       34
<PAGE>

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

SECTION 6.04 Corporate Existence.

         Subject to the rights of the Company under Article XI, the Company
shall do or cause to be done all things necessary to preserve and keep in full
force and effect its corporate existence; provided, however, that the Company
shall not be required to preserve any such right if the Board of Directors of
the Company 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 of Debt Securities.

SECTION 6.05 Annual Officer's Certificate as to Compliance.

         Not later than ______________ in each year, commencing _______________,
the Company shall deliver to the Trustee an Officer's Certificate which need not
comply with Section 1.02, executed by the principal executive officer, the
principal financial officer or the principal accounting officer of the Company,
stating whether, to such officer's knowledge, the Company is in compliance with
all conditions and covenants under this Indenture, such compliance to be
determined without regard to any period of grace or requirement of notice under
this Indenture, and making any other statements as may be required by the
provisions of Section 314(a)(4) of the Trust Indenture Act.

SECTION 6.06 Limitation on Liens.

         The Company will not itself, nor will the Company permit any Restricted
Subsidiary to, incur, issue, assume or guarantee any indebtedness for money
borrowed (all such indebtedness for money borrowed being hereinafter in this
Article VI called "Debt") secured by a Mortgage on any Principal Property or on
any shares of stock or Indebtedness of any Restricted Subsidiary, without first
effectively providing that the Debt Securities of any series (together with, if
the Company shall so determine, any other indebtedness of the Company or any
Restricted Subsidiary which is not subordinate in right of payment to the prior
right of payment in full of the Debt Securities of any series) shall be secured
equally and ratably with (or prior to) such secured Debt, for so long as such
secured Debt shall be so secured, unless, after giving effect

                                       35
<PAGE>

thereto, the principal amount of all Debt so secured would not exceed 10% of
Consolidated Net Tangible Assets; provided, however, that this Section 6.06
shall not apply to, and there shall be excluded from secured Debt in any
computation under this Section 6.06, Debt secured by:

         (a) Mortgages existing at the date of this Indenture;

         (b) Mortgages on property of, or on any shares of stock or Indebtedness
of, any entity existing at the time such entity is merged into or consolidated
with the Company or becomes a Restricted Subsidiary;

         (c) Mortgages in favor of the Company or any Restricted Subsidiary;

         (d) Mortgages on property, shares of stock or Indebtedness existing at
the time of acquisition thereof (including acquisitions through merger,
consolidation or other reorganization) or to secure the payment of all or any
part of the purchase price thereof or construction thereon or to secure any Debt
incurred prior to, at the time of, or within one year after the later of the
acquisition, the completion of construction or the commencement of full
operation of such property or within one year after the acquisition of such
shares or Indebtedness for the purpose of financing all or any part of the
purchase price thereof or construction thereon, it being understood that if a
commitment for such financing is obtained prior to or within such one-year
period, the applicable Mortgage shall be deemed to be included in this clause
(4) whether or not such Mortgage is created within such one-year period;

         (e) Mortgages in favor of the United States of America, any State
thereof, Canada, or any province thereof, or any department, agency or
instrumentality or political subdivision of the United States of America, any
State thereof, Canada, or any province thereof, or in favor of any other country
or any political subdivision thereof;

         (f) Mortgages on minerals or geothermal resources in place, or on
related leasehold or other property interests, that are incurred to finance
development, production or acquisition costs (including, but not limited to,
Mortgages securing advance sale obligations);

         (g) Mortgages on equipment used or usable for drilling, servicing or
operating oil, gas, coal or other mineral properties or geothermal properties;

         (h) Mortgages required by any contract or statute in order to permit
the Company or any of its Subsidiaries to perform any contract or subcontract
made with or at the request of, the United States of America, any State thereof,
Canada, any province thereof, or in favor of any other country or any political
subdivision thereof or any department, agency or instrumentality of the United
States, any State thereof, Canada, any province thereof or any other country or
political subdivision thereof;

         (i) any Mortgage resulting from the deposit of moneys or evidence of
indebtedness in trust for the purpose of defeasing Debt of the Company or any
Restricted Subsidiary or secured Debt of the Company or any Restricted
Subsidiary the net proceeds of which are used, substantially concurrent with the
funding thereof, and taking into consideration, among other things, required
notices to be given to the holders of the outstanding securities in connection
with the refunding, refinancing or repurchase thereof, and the required
corresponding durations

                                       36
<PAGE>

thereof, to refund, refinance or repurchase all of the outstanding securities,
including the amount of all accrued interest thereon and reasonable fees and
expenses and premiums, if any, incurred by the Company or any Restricted
Subsidiary in connection therewith; and

         (j) any extension, renewal or replacement (or successive extensions,
renewals or replacements) of any Mortgage referred to in the foregoing clauses
(1) to (9) of this Section 6.06, inclusive; provided, however, that such
extension, renewal or replacement Mortgage shall be limited to all or a part of
the same property (including any improvements on such property), shares of stock
or Indebtedness that secured the Mortgage so extended, renewed or replaced.

         The following transactions shall not be deemed to create Debt secured
by a Mortgage;

                  (i) the sale or other transfer of oil, gas, coal or other
         minerals in place for a period of time until, or in an amount such
         that, the transferee will realize therefrom a specified amount of money
         (however determined) or a specified amount of oil, gas, coal or other
         minerals, or the sale or other transfer of any other interest in
         property of the character commonly referred to as an oil, gas, coal or
         other mineral payment or a production payment, and including in any
         case, overriding royalty interests, net profit interests, reversionary
         interests and carried interests and other similar burdens on
         production; and

                  (ii) the sale or other transfer by the Company or a Restricted
         Subsidiary of properties to a partnership, joint venture or other
         entity whereby the Company or such Restricted Subsidiary would retain
         partial ownership of such properties.

SECTION 6.07 Waiver of Certain Covenants.

         The Company may omit in any particular instance to comply with any
term, provision or condition set forth in (a) Section 6.02 or any additional
covenant or restriction specified with respect to the Debt Securities of any
series, or any Tranche thereof, as contemplated by Section 3.01 if before the
time for such compliance the Holders of at least a majority in aggregate
principal amount of the Outstanding Debt Securities of all series and Tranches
with respect to which compliance with Section 6.02 or such additional covenant
or restriction is to be omitted, considered as one class, shall, by Act of such
Holders, either waive such compliance in such instance or generally waive
compliance with such term, provision or condition and (b) Sections 6.04, 6.06 or
Article XI if before the time for such compliance the Holders of at least a
majority in principal amount of Debt Securities Outstanding under this Indenture
shall, by Act of such Holders, either waive such compliance in such instance or
generally waive compliance with such term, provision or condition; but, in the
case of (a) or (b), no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Company and the duties of
the Trustee in respect of any such term, provision or condition shall remain in
full force and effect.

                                       37
<PAGE>

                                   ARTICLE VII

                           SATISFACTION AND DISCHARGE

SECTION 7.01 Satisfaction and Discharge of Debt Securities.

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

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

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

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

                  (x) if such deposit shall have been made prior to the Maturity
         of such Debt Securities, a Company Order stating that the money and
         Eligible Obligations deposited in accordance with this Section shall be
         held in trust, as provided in Section 7.03;

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

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

                                       38
<PAGE>

         If the Company shall make any deposit of money and/or Eligible
Obligations with respect to any Debt Securities, or any portion of the principal
amount thereof, as contemplated by this section, the Company shall not deliver
an Officer's Certificate described in clause (z) above unless the Company shall
also deliver to the Trustee, together with such Officer's Certificate, an
Opinion of Counsel to the effect that, as a result of a change in law occurring
after the date of this Indenture, the Holders of such Debt Securities, or
portions thereof, will not recognize income, gain or loss for United States
federal income tax purposes as a result of the satisfaction and discharge of the
Company's indebtedness in respect thereof and will be subject to United States
federal income tax on the same amounts, at the same times and in the same manner
as if such satisfaction and discharge had not been effected.

         Upon the deposit of money or Eligible Obligations, or both, in
accordance with this Section, together with the documents required by clauses
(x), (y) and (z) above, the Trustee shall, upon receipt of a Company Request,
acknowledge in writing that the Debt Security or Debt Securities or portions
thereof with respect to which such deposit was made are deemed to have been paid
for all purposes of this Indenture and that the entire indebtedness of the
Company in respect thereof has been satisfied and discharged as contemplated in
this Section. In the event that all of the conditions set forth in the first
paragraph of this Section shall have been satisfied in respect of any Debt
Securities or portions thereof except that, for any reason, the Officer's
Certificate specified in clause (z) shall not have been delivered, such Debt
Securities or portions thereof shall nevertheless be deemed to have been paid
for all purposes of this Indenture, and the Holders of such Debt Securities or
portions thereof shall nevertheless be no longer entitled to the benefits of
this Indenture or of any of the covenants of the Company under Article VI
(except the covenants contained in Sections 6.02 and 6.03) or any other
covenants made in respect of such Debt Securities or portions thereof as
contemplated by Section 3.01, but the indebtedness of the Company in respect of
such Debt Securities or portions thereof shall not be deemed to have been
satisfied and discharged prior to Maturity for any other purpose, and the
Holders of such Debt Securities or portions thereof shall continue to be
entitled to look to the Company for payment of the indebtedness represented
thereby; and, upon receipt of a Company Request, the Trustee shall acknowledge
in writing that such Debt Securities or portions thereof are deemed to have been
paid for all purposes of this Indenture.

         If payment at Stated Maturity of less than all of the Debt Securities
of any series, or any Tranche thereof, is to be provided for in the manner and
with the effect provided in this Section, the Trustee shall select such Debt
Securities, or portions of principal amount thereof, in the manner specified by
Section 4.03 for selection for redemption of less than all the Debt Securities
of a series or Tranche.

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

                                       39
<PAGE>

         Notwithstanding that any Debt Securities shall be deemed to have been
paid for purposes of this Indenture, as aforesaid, the obligations of the
Company and the Trustee in respect of such Debt Securities under Sections 3.04,
3.05, 3.06, 4.04, 5.03 (as to notice of redemption), 6.02, 6.03, 9.07, 9.14 and
9.15 and this Article shall survive.

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

         Anything herein to the contrary notwithstanding, (a) if, at any time
after a Debt Security would be deemed to have been paid for purposes of this
Indenture, and, if such is the case, the Company's indebtedness in respect
thereof would be deemed to have been satisfied or discharged, pursuant to this
Section (without regard to the provisions of this paragraph), the Trustee or any
Paying Agent, as the case may be, shall be required to return the money or
Eligible Obligations, or combination thereof, deposited with it as aforesaid to
the Company or its representative under any applicable Federal or State
bankruptcy, insolvency or other similar law, such Debt Security shall thereupon
be deemed retroactively not to have been paid and any satisfaction and discharge
of the Company's indebtedness in respect thereof shall retroactively be deemed
not to have been effected, and such Debt Security shall be deemed to remain
Outstanding and (b) any satisfaction and discharge of the Company's indebtedness
in respect of any Debt Security shall be subject to the provisions of the last
paragraph of Section 6.03.

SECTION 7.02 Satisfaction and Discharge of Indenture.

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

         (a) no Debt Securities remain Outstanding hereunder; and

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

         provided, however, that if, in accordance with the last paragraph of
Section 7.01, any Debt Security, previously deemed to have been paid for
purposes of this Indenture, shall be deemed retroactively not to have been so
paid, this Indenture shall thereupon be deemed retroactively not to have been
satisfied and discharged, as aforesaid, and to remain in full force and effect,
and the Company shall execute and deliver such instruments as the Trustee shall
reasonably request to evidence and acknowledge the same.

         Notwithstanding the satisfaction and discharge of this Indenture as
aforesaid, the obligations of the Company and the Trustee under Sections 3.04,
3.05, 3.06, 4.04, 5.03 (as to notice of redemption), 6.02, 6.03, 9.07, 9.14 and
9.15 and this Article shall survive.

         Upon satisfaction and discharge of this Indenture as provided in this
Section, the Trustee shall assign, transfer and turn over to the Company,
subject to the lien provided by Section 9.07,

                                       40
<PAGE>

any and all money, securities and other property then held by the Trustee for
the benefit of the Holders of the Debt Securities other than money and Eligible
Obligations held by the Trustee pursuant to Section 7.03.

SECTION 7.03 Application of Trust Money.

         Neither the Eligible Obligations nor the money deposited pursuant to
Section 7.01, nor the principal or interest payments on any such Eligible
Obligations, shall be withdrawn or used for any purpose other than, and shall be
held in trust for, the payment of the principal of, and premium, if any, and
interest (including Additional Interest), if any, on, the Debt Securities or
portions of principal amount thereof in respect of which such deposit was made,
all subject, however, to the provisions of Section 6.03; provided, however,
that, so long as there shall not have occurred and be continuing an Event of
Default, or an event which, with the giving of notice or the passage of time,
would become an Event of Default, any cash received from such principal or
interest payments on such Eligible Obligations, if not then needed for such
purpose, shall, to the extent practicable, be invested in Eligible Obligations
of the type described in clause (b) in the first paragraph of Section 7.01
maturing at such times and in such amounts as shall be sufficient to pay when
due the principal of and premium, if any, and interest (including Additional
Interest), if any, due and to become due on such Debt Securities or portions
thereof on and prior to the Maturity thereof, and interest earned from such
reinvestment shall be paid over to the Company as received, free and clear of
any trust, lien or pledge under this Indenture except the lien provided by
Section 9.07; and provided, further, that, so long as there shall not have
occurred and be continuing an Event of Default, or an event which, with the
giving of notice or the passage of time, would become an Event of Default, any
moneys held in accordance with this Section on the Maturity of all such Debt
Securities in excess of the amount required to pay the principal of and premium,
if any, and interest (including Additional Interest), if any, then due on such
Debt Securities shall be paid over to the Company free and clear of any trust,
lien or pledge under this Indenture except the lien provided by Section 9.07;
and provided, further, that if an Event of Default, or an event which, with the
giving of notice or the passage of time, would become an Event of Default, shall
have occurred and be continuing, moneys to be paid over to the Company pursuant
to this Section shall be held until such Event of Default, or event which, with
the giving of notice or the passage of time, would become an Event of Default,
shall have been waived or cured.

                                  ARTICLE VIII

                           EVENTS OF DEFAULT; REMEDIES

SECTION 8.01 Events of Default.

         "Event of Default", wherever used herein with respect to Debt
Securities of any series, means, except as otherwise specified pursuant to
Section 3.01, any one of the following events:

         (a) failure to pay interest (including Additional Interest), if any, on
any Debt Security of such series within thirty (30) days after the same becomes
due and payable; or

                                       41
<PAGE>

         (b) failure to pay the principal of or premium, if any, on any Debt
Security of such series when due and payable; or

         (c) failure to perform or breach of any covenant or warranty of the
Company in this Indenture (other than a covenant or warranty a default in the
performance of which or breach of which is elsewhere in this Section
specifically dealt with or which has expressly been included in this Indenture
solely for the benefit of one or more series of Debt Securities other than such
series) for a period of 60 days after there has been given, by registered or
certified mail, to the Company by the Trustee, or to the Company and the Trustee
by the Holders of at least 25% in principal amount of the Outstanding Debt
Securities of such series, a written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a "Notice of
Default" hereunder, unless the Trustee, or the Trustee and the Holders of a
principal amount of Debt Securities of such series not less than the principal
amount of Debt Securities the Holders of which gave such notice, as the case may
be, shall agree in writing to an extension of such period prior to its
expiration; provided, however, that the Trustee, or the Trustee and the Holders
of such principal amount of Debt Securities of such series, as the case may be,
shall be deemed to have agreed to an extension of such period for a maximum of
one hundred twenty (120) days if corrective action is initiated by the Company
within such period and is being diligently pursued; or

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

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

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

                                       42
<PAGE>

SECTION 8.02 Acceleration of Maturity; Rescission and Annulment.

         If an Event of Default due to the default in payment of principal of,
or premium, if any, or interest (including Additional Interest) on, any series
of Debt Securities or due to the default in the performance or breach of any
other covenant or warranty of the Company applicable to the Debt Securities of
such series but not applicable to all Outstanding Debt Securities shall have
occurred and be continuing, either the Trustee or the Holders of not less than
25% in principal amount of the Debt Securities of such series may then declare
the principal amount (or, if any of the Debt Securities of such series are
Discount Debt Securities, such portion of the principal amount as may be
specified in the terms thereof as contemplated by Section 3.01) of all Debt
Securities of such series and premium, if payment of any thereof be in default,
and interest (including Additional Interest) accrued thereon to be due and
payable immediately, by a notice in writing to the Company (and to the Trustee
if given by the Holders). If an Event of Default due to default in the
performance of any other of the covenants or warranties herein applicable to all
Outstanding Debt Securities or an Event of Default specified in Section 8.01(d)
or (e) shall have occurred and be continuing, either the Trustee or the Holders
of not less than 25% in principal amount of all Debt Securities then Outstanding
(considered as one class), and not the Holders of the Debt Securities of any one
of such series, may declare the principal amount (or, if any of the Debt
Securities are Discount Debt Securities, such portion of the principal amount of
such Debt Securities as may be specified in the terms thereof as contemplated by
Section 3.01) of all Debt Securities and premium, if payment of any thereof be
in default, and interest accrued thereon to be due and payable immediately, by a
notice in writing to the Company (and to the Trustee if given by the Holders).
As a consequence of each such declaration (herein referred to as a declaration
of acceleration) with respect to Debt Securities of any series, the principal
amount (or portion thereof in the case of Discount Debt Securities) of such Debt
Securities, premium, if any, and interest (including Additional Interest)
accrued thereon shall become due and payable immediately.

         With respect to a series of Debt Securities to which a credit
enhancement is applicable, the applicable supplemental indenture may provide
that the provider of such credit enhancement may, if default has occurred and is
continuing with respect to such series, have all or any part of the rights with
respect to remedies that would otherwise have been exercisable by the Holders of
Debt Securities of that series.

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

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

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

                           (2) the principal of and premium, if any, on any Debt
                  Securities of such series which have become due otherwise than
                  by such declaration of

                                       43
<PAGE>

                  acceleration and interest and Additional Interest thereon at
                  the rate or rates prescribed therefor in such Debt Securities;

                           (3) any accrued Additional Interest on all Debt
                  Securities of such series;

                           (4) all amounts due to the Trustee under Section
                  9.07;

         and

         (b) any other Event or Events of Default with respect to Debt
Securities of such series, other than the non-payment of the principal of Debt
Securities of such series which shall have become due solely by such declaration
of acceleration, shall have been cured or waived as provided in Section 8.13.

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

SECTION 8.03 Collection of Indebtedness and Suits for Enforcement by Trustee.

         If an Event of Default described in clause (a) or (b) of Section 8.01
shall have occurred and be continuing, the Company shall, upon demand of the
Trustee, pay to it, for the benefit of the Holders of the Debt Securities of the
series with respect to which such Event of Default shall have occurred, the
whole amount then due and payable on such Debt Securities for principal and
premium, if any, and interest, if any, and, to the extent permitted by law, (i)
interest on premium, if any, (ii) interest on any overdue principal and (iii)
Additional Interest, at the rate or rates prescribed therefor in such Debt
Securities, and, in addition thereto, such further amount as shall be sufficient
to cover any amounts due to the Trustee under Section 9.07.

         If the Company shall fail to pay such amounts forthwith upon such
demand, the Trustee, in its own name and as trustee of an express trust, may
institute a judicial proceeding for the collection of the sums so due and
unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company or any other obligor upon such Debt
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 Debt Securities, wherever situated.

         If an Event of Default with respect to Debt Securities of any series
shall have occurred and be continuing, the Trustee may in its discretion proceed
to protect and enforce its rights and the rights of the Holders of Debt
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 8.04 Trustee May File Proofs of Claim.

         In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the

                                       44
<PAGE>

Company or any other obligor upon the Debt Securities or the property of the
Company or of such other obligor or their creditors, the Trustee (irrespective
of whether the principal of the Debt 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 (including Additional Interest)) shall be entitled and
empowered, by intervention in such proceeding or otherwise,

         (a) to file and prove a claim for the whole amount of principal,
premium, if any, and interest (including Additional Interest), if any, owing and
unpaid in respect of the Debt Securities and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for amounts due to the Trustee under Section 9.07)
and of the Holders allowed in such judicial proceeding, and

         (b) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same, and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
amounts due it under Section 9.07.

         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 Debt
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 8.05 Trustee May Enforce Claims Without Possession of Debt Securities.

         All rights of action and claims under this Indenture or the Debt
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Debt Securities or the production thereof in any proceeding
relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be
for the ratable benefit of the Holders in respect of which such judgment has
been recovered.

SECTION 8.06 Application of Money Collected.

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

         First: To the payment of all amounts due the Trustee under Section
9.07;

         Second: To the payment of the amounts then due and unpaid upon the Debt
Securities for principal of and premium, if any, and interest (including
Additional Interest), if any, in respect of

                                       45
<PAGE>

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 Debt Securities for principal, premium, if any, and interest
(including Additional Interest), if any, respectively; and

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

SECTION 8.07 Limitation on Suits.

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

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

         (b) the Holders of not less than 25% in aggregate principal amount of
the Outstanding Debt Securities of all series in respect of which an Event of
Default shall have occurred and be continuing, considered as one class, shall
have made a written request to the Trustee to institute proceedings in respect
of such Event of Default in its own name as Trustee hereunder;

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

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

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

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

SECTION 8.08 Unconditional Right of Holders to Receive Principal, Premium and
             Interest.

         Notwithstanding any other provision in this Indenture, the Holder of
any Debt 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
3.07) interest (including Additional Interest), if any, on such Debt Security on
the Stated Maturity or Maturities expressed in such Debt 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.

                                       46
<PAGE>

SECTION 8.09 Restoration of Rights and Remedies.

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

SECTION 8.10 Rights and Remedies Cumulative.

         Except as otherwise provided in the last paragraph of Section 3.06, 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 8.11 Delay or Omission Not Waiver.

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

SECTION 8.12 Control by Holders of Debt Securities.

         If an Event of Default shall have occurred and be continuing in respect
of a series of Debt Securities, the Holders of a majority in principal amount of
the Outstanding Debt Securities of such series shall have the right to direct
the time, method and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred on the Trustee, with
respect to the Debt Securities of such series; provided, however, that if an
Event of Default shall have occurred and be continuing with respect to more than
one series of Debt Securities, the Holders of a majority in aggregate principal
amount of the Outstanding Debt Securities of all such series, considered as one
class, shall have the right to make such direction, and not the Holders of the
Debt Securities of any one of such series; and provided, further, that

         (a) such direction shall not be in conflict with any rule of law or
with this Indenture, and could not involve the Trustee in personal liability in
circumstances where indemnity would not in the Trustee's reasonable discretion
be adequate, and

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

                                       47
<PAGE>

         Before proceeding to exercise any right or power hereunder at the
direction of such Holders, the Trustee shall be entitled to receive from such
Holders reasonable security or indemnity, against the costs, expenses and
liabilities which might be incurred by it in compliance with any such direction.

SECTION 8.13 Waiver of Past Defaults.

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

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

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

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

SECTION 8.14 Undertaking for Costs.

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

SECTION 8.15 Waiver of Stay or Extension Laws.

         The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it

                                       48
<PAGE>

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 IX

                                   THE TRUSTEE

SECTION 9.01 Certain Duties and Responsibilities.

         (a) The Trustee shall have and be subject to all the duties and
responsibilities specified with respect to an indenture trustee in the Trust
Indenture Act, and no implied covenants or obligations shall be read into this
Indenture against the Trustee. For purposes of Sections 315(a) and 315(c) of the
Trust Indenture Act, the term "default" is hereby defined as an Event of Default
which has occurred and is continuing.

         (b) The Trustee, prior to the occurrence of an Event of Default and
after the curing or waiving of all Events of Default which may have occurred,
undertakes to perform such duties and only such duties as are specifically set
forth in this Indenture. In case an Event of Default of which a Responsible
Officer of the Trustee has actual knowledge has occurred (which has not been
cured or waived), 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 person would exercise or use under the
circumstances in the conduct of such person's 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 willful misconduct, except that prior to the occurrence of an
Event of Default and after the curing or waiving of all Events of Default which
may have occurred:

                  (i) the duties and obligations of the Trustee shall be
         determined solely by the express provisions of this Indenture, and the
         Trustee shall not be liable except for the performance of such duties
         and obligations as are specifically set forth in this Indenture, and no
         implied covenants or obligations shall be read into this Indenture
         against the Trustee; and

                  (ii) in the absence of bad faith on the part of the Trustee,
         the Trustee may conclusively rely, as to the truth of the statements
         and the correctness of the opinions expressed therein, upon any
         certificates or opinions furnished to the Trustee and conforming to the
         requirements of this Indenture; but, in the case of any such
         certificates or opinions that 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.

         (d) The Trustee shall not be liable for any error of judgment made in
good faith by a Responsible Officer or Officers of the Trustee, unless it shall
be proven that the Trustee was negligent in ascertaining the pertinent facts.

                                       49
<PAGE>

         (e) 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 Debt Securities pursuant to Section 8.12, 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.

         (f) 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, satisfactory to the Trustee in
its reasonable judgment, against such risk or liability is not reasonably
assured to it.

         (g) Notwithstanding anything contained in this Indenture to the
contrary, the duties and responsibilities of the Trustee under this Indenture
shall be subject to the protections, exculpations and limitations on liability
afforded to the Trustee under the provisions of the Trust Indenture Act,
including those provisions of such Act deemed by such Act to be included herein.

         (h) 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 9.02 Notice of Defaults.

         The Trustee shall give the Holders notice of any default hereunder with
respect to the Debt Securities of any series to the Holders of Debt Securities
of such series of which it has knowledge (within the meaning of Section 9.03(h)
hereof) in the manner and to the extent required to do so by the Trust Indenture
Act, unless such default shall have been cured or waived; provided, however,
that in the case of any default of the character specified in Section 8.01(c),
no such notice to Holders shall be given until at least 60 days after the
occurrence thereof. For the purpose of this Section, the term "default" means
any event which is, or after notice or lapse of time, or both, would become, an
Event of Default.

SECTION 9.03 Certain Rights of Trustee.

         Subject to the provisions of Section 9.01 and to the applicable
provisions of the Trust Indenture Act:

         (a) the Trustee may rely and shall be protected in acting or refraining
from acting 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;

                                       50
<PAGE>

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

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

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

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

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

         (h) the Trustee shall not be charged with knowledge of any default or
Event of Default with respect to the Debt Securities of any series for which it
is acting as Trustee unless either (1) a Responsible Officer of the Trustee
shall have actual knowledge of the default or Event of Default or (2) written
notice of such default or Event of Default (which shall state that such notice
is a "Notice of Default" or a "Notice of an Event of Default" hereunder, as the
case may be) shall have been given to the Trustee by the Company, any other
obligor on such Debt Securities or by any Holder of such Debt Securities.

SECTION 9.04 Not Responsible for Recitals or Issuance of Debt Securities.

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

                                       51
<PAGE>

SECTION 9.05 May Hold Debt Securities.

         Each of the Trustee, any Authenticating Agent, any Paying Agent, any
Debt Security Registrar or any other agent of the Company, in its individual or
any other capacity, may become the owner or pledgee of Debt Securities and,
subject to Sections 9.08 and 9.13, may otherwise deal with the Company with the
same rights it would have if it were not the Trustee, Authenticating Agent,
Paying Agent, Debt Security Registrar or such other agent.

SECTION 9.06 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 investment of any money received by it
hereunder except as expressly provided herein or otherwise agreed with, and for
the sole benefit of, the Company.

SECTION 9.07 Compensation and Reimbursement.

         The Company shall

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

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

         (c) indemnify the Trustee and hold it harmless from and against any and
all losses, demands, claims, liabilities, causes of action or expenses
(including reasonable attorney's fees and expenses) incurred by it arising out
of or in connection with the acceptance or administration of the trust or trusts
hereunder or the performance of its duties hereunder (including the reasonable
costs and expenses of defending itself against any claim or liability in
connection with the exercise or performance of any of its powers or duties
hereunder, except to the extent any such loss, demand, claim, liability, cause
of action or expense may be attributable to its negligence, willful misconduct
or bad faith) and assume the defense of the Trustee with counsel acceptable to
the Trustee, unless the Trustee shall have been advised by counsel that there
may be one or more legal defenses available to it which are different from or
additional to those available to the Company,

         As security for the performance of the obligations of the Company under
this Section, the Trustee shall have a lien prior to the Debt Securities upon
all property and funds held or collected by the Trustee as such other than
property and funds held in trust under Section 7.03 (except as otherwise
provided in Section 7.03). "Trustee" for purposes of this Section shall include
any predecessor Trustee; provided, however, that the negligence, willful
misconduct or bad faith of any Trustee hereunder shall not affect the rights of
any other Trustee hereunder.

                                       52
<PAGE>

         When a Trustee incurs expenses or renders services in connection with
an Event of Default specified in Section 8.01(d) or Section 8.01(e), the
expenses (including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Federal or state bankruptcy, insolvency or
other similar law.

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

SECTION 9.08 Disqualification; Conflicting Interests.

         If the Trustee shall have or acquire any conflicting interest within
the meaning of the Trust Indenture Act, it shall either eliminate such
conflicting interest or resign to the extent, in the manner and with the effect,
and subject to the conditions, provided in the Trust Indenture Act and this
Indenture. For purposes of Section 310(b)(1) of the Trust Indenture Act and to
the extent permitted thereby, the Trustee shall not be deemed to have a
conflicting interest by virtue of being a Trustee under (i) this Indenture with
respect to Debt Securities of more than one series, (ii) the Indenture (For
Subordinated Debt Securities), between the Company and the Trustee, dated as of
_____________, 200_, (iii) the Indenture among Devon Financing Corporation
U.L.C., the Company and the Trustee, dated as of __________, 200_, or (iv) the
Mortgage and Deed of Trust, dated as of May 1, 1940, as supplemented, or with
respect to the securities issued thereunder.

SECTION 9.09 Corporate Trustee Required; Eligibility.

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

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

         (b) if and to the extent permitted by the Commission by rule,
regulation or order upon application, a corporation or other Person organized
and doing business under the laws of a foreign government, authorized under such
laws to exercise corporate trust powers, having a combined capital and surplus
of at least $50,000,000 or the Dollar equivalent of the applicable foreign
currency and subject to supervision or examination by authority of such foreign
government or a political subdivision thereof substantially equivalent to
supervision or examination applicable to United States institutional trustees,
and, in either case, qualified and eligible under this Article and the Trust
Indenture Act. If such corporation publishes reports of condition at least
annually, pursuant to law or to the requirements of such supervising or
examining authority, then for the purposes of this Section, the combined capital
and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article.

                                       53
<PAGE>

SECTION 9.10 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 9.11.

         (b) The Trustee may resign at any time with respect to the Debt
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 9.11 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 Debt Securities of such series.

         (c) The Trustee may be removed at any time with respect to the Debt
Securities of any series by Act of the Holders of a majority in principal amount
of the Outstanding Debt 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
                  9.08 after written request therefor by the Company or by any
                  Holder who has been a bona fide Holder for at least six
                  months, or

                           (2) the Trustee shall cease to be eligible under
                  Section 9.09 and shall fail to resign after written request
                  therefor by the Company or by any Holder who has been a bona
                  fide Holder for at least six months, or

                           (3) the Trustee shall become incapable of acting or
                  shall be adjudged a bankrupt or insolvent or a receiver of the
                  Trustee or of its property shall be appointed or any public
                  officer shall take charge or control of the Trustee or of its
                  property or affairs for the purpose of rehabilitation,
                  conservation or liquidation, then, in any such case, (x) the
                  Company by a Board Resolution may remove the Trustee with
                  respect to all Debt Securities or (y) subject to Section 8.14,
                  any Holder who has been a bona fide Holder for at least six
                  months may, on behalf of himself and all others similarly
                  situated, petition any court of competent jurisdiction for the
                  removal of the Trustee with respect to all Debt Securities and
                  the appointment of a successor Trustee or Trustees.

         (e) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause
(other than as contemplated in clause (y) in subsection (d) of this Section),
with respect to the Debt Securities of one or more series, the Company, by a
Board Resolution, shall promptly appoint a successor Trustee or Trustees with
respect to the Debt Securities of that or those series (it being understood that
any such successor Trustee may be appointed with respect to the Debt Securities
of one or more or all of such series and that at any time there shall be only
one Trustee with respect to the Debt Securities of any particular series) and
shall comply with the applicable requirements of Section 9.11. If, within one
year after such resignation, removal or incapability, or the occurrence of such
vacancy, a successor Trustee with respect to the Debt Securities of any series
shall be appointed

                                       54
<PAGE>

by Act of the Holders of a majority in principal amount of the Outstanding Debt
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 9.11,
become the successor Trustee with respect to the Debt Securities of such series
and to that extent supersede the successor Trustee appointed by the Company. If
no successor Trustee with respect to the Debt Securities of any series shall
have been so appointed by the Company or the Holders and accepted appointment in
the manner required by Section 9.11, any Holder who has been a bona fide Holder
of a Debt Security of such series for at least six months may, on behalf of
itself and all others similarly situated, petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the Debt
Securities of such series.

         (f) So long as no event which is, or after notice or lapse of time, or
both, would become, an Event of Default shall have occurred and be continuing,
and except with respect to a Trustee appointed by Act of the Holders of a
majority in principal amount of the Outstanding Debt Securities pursuant to
subsection (e) of this Section, if the Company shall have delivered to the
Trustee (i) a Board Resolution appointing a successor Trustee, effective as of a
date specified therein, and (ii) an instrument of acceptance of such
appointment, effective as of such date, by such successor Trustee in accordance
with Section 9.11, the Trustee shall be deemed to have resigned as contemplated
in subsection (b) of this Section, the successor Trustee shall be deemed to have
been appointed by the Company pursuant to subsection (e) of this Section and
such appointment shall be deemed to have been accepted as contemplated in
Section 9.11, all as of such date, and all other provisions of this Section and
Section 9.11 shall be applicable to such resignation, appointment and acceptance
except to the extent inconsistent with this subsection (f).

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

SECTION 9.11 Acceptance of Appointment by Successor.

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

                                       55
<PAGE>

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

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

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

SECTION 9.12 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 Debt 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 Debt Securities so authenticated with the
same effect as if such successor Trustee had itself authenticated such Debt
Securities.

                                       56
<PAGE>

SECTION 9.13 Preferential Collection of Claims Against Company.

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

SECTION 9.14 Co-trustees and Separate Trustees.

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

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

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

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

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

         (c) the Trustee at any time, by an instrument in writing executed by
it, with the concurrence of the Company, may accept the resignation of or remove
any co-trustee or separate trustee appointed under this Section, and, if an
Event of Default shall have occurred and be continuing, the Trustee shall have
power to accept the resignation of, or remove, any such

                                       57
<PAGE>

co-trustee or separate trustee without the concurrence of the Company. Upon the
written request of the Trustee, the Company shall join with the Trustee in the
execution and delivery of all instruments and agreements necessary or proper to
effectuate such resignation or removal. A successor to any co-trustee or
separate trustee so resigned or removed may be appointed in the manner provided
in this Section;

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

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

SECTION 9.15 Appointment of Authenticating Agent.

         The Trustee may appoint an Authenticating Agent or Agents with respect
to the Debt Securities of one or more series, or any Tranche thereof, which
shall be authorized to act on behalf of the Trustee to authenticate Debt
Securities of such series or Tranche issued upon original issuance, exchange,
registration of transfer or partial redemption thereof or pursuant to Section
3.06, and Debt 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 Debt Securities by the Trustee
or the Trustee's certificate of authentication, such reference shall be deemed
to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States, any State or territory
thereof or the District of Columbia or the Commonwealth of Puerto Rico,
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 45 days
written notice thereof to the Trustee and to the Company. The Trustee may at any
time terminate the agency of an

                                       58
<PAGE>

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

         The provisions of Sections 3.08, 9.04 and 9.05 shall be applicable to
each Authenticating Agent.

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

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

         Dated:
               ------------------------

                                            By
                                               ---------------------------
                                                        As Trustee

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

                                            By
                                               ---------------------------
                                                  Authorized Signatory

         If all of the Debt Securities of a series may not be originally issued
at one time, and if the Trustee does not have an office capable of
authenticating Debt Securities upon original issuance located in a Place of
Payment where the Company wishes to have Debt Securities of such series
authenticated upon original issuance, the Trustee, if so requested by the
Company in writing (which writing need not comply with Section 1.02 and need not
be accompanied by an Opinion of Counsel), shall appoint, in accordance with this
Section and in accordance with such procedures as shall be acceptable to the
Trustee, an Authenticating Agent having an office in a Place of Payment
designated by the Company with respect to such series of Debt Securities.

                                       59
<PAGE>

                                    ARTICLE X

                           HOLDERS' LISTS AND REPORTS
                             BY TRUSTEE AND COMPANY

SECTION 10.01 Lists of Holders.

         Semiannually, not later than _______________ and _______________ in
each year, commencing with the year 200_, and at such other times as the Trustee
may request in writing, the Company shall furnish or cause to be furnished to
the Trustee information as to the names and addresses of the Holders, and the
Trustee shall preserve such information and similar information received by it
in any other capacity and afford to the Holders access to information so
preserved by it, all to such extent, if any, and in such manner as shall be
required by the Trust Indenture Act; provided, however, that no such list need
be furnished so long as the Trustee shall be the Debt Security Registrar. Every
holder of Debt 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 of Debt Securities
in accordance with Section 312 of the Trust Indenture Act, or any successor
section of such Act, 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 312(b) of the Trustee
Indenture Act, or any successor section of such Act.

SECTION 10.02 Reports by Trustee and Company.

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

         The Company shall notify the Trustee of the listing of any Debt
Securities on any securities exchange. Delivery of such reports, information and
documents by the Company 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 Officer's
Certificates).

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<PAGE>

                                   ARTICLE XI

                             CONSOLIDATION, MERGER,
                          CONVEYANCE OR OTHER TRANSFER

SECTION 11.01 Company May Consolidate, Etc., Only on Certain Terms.

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

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

         (b) immediately after giving effect to such transaction and treating
any indebtedness for borrowed money which becomes an obligation of the Company
as a result of such transaction as having been incurred by the Company 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 occurred
and be continuing; and

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

SECTION 11.02 Successor Corporation Substituted.

         Upon any consolidation by the Company with or merger by the Company
into any other corporation or any conveyance, or other transfer or lease of the
properties and assets of the Company substantially as an entirety in accordance
with Section 11.01, the successor corporation formed by such consolidation or
into which the Company is merged or the Person to which such conveyance,
transfer or lease is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor Person had been named as the Company herein,
and thereafter, except in the case of a lease, the predecessor Person shall be
relieved of all obligations and covenants under this Indenture and the Debt
Securities Outstanding hereunder.

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<PAGE>

                                   ARTICLE XII

                             SUPPLEMENTAL INDENTURES

SECTION 12.01 Supplemental Indentures Without Consent of Holders.

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

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

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

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

         (d) to change or eliminate any provision of this Indenture or to add
any new provision to this Indenture; provided, however, that if such change,
elimination or addition shall adversely affect the interests of the Holders of
Debt Securities of any series or Tranche Outstanding on the date of such
indenture supplemental hereto in any material respect, such change, elimination
or addition shall become effective with respect to such series or Tranche only
pursuant to the provisions of Section 12.02 hereof or when no Debt Security of
such series or Tranche remains Outstanding; or

         (e) to provide collateral security for the Debt Securities; or

         (f) to establish the form or terms of Debt Securities of any series or
Tranche as contemplated by Sections 2.01 and 3.01; or

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

         (h) to evidence and provide for the acceptance of appointment hereunder
by a separate or successor Trustee with respect to the Debt 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
9.11(b); or

                                       62
<PAGE>

         (i) to provide for the procedures required to permit the Company to
utilize, at its option, a non-certificated system of registration for all, or
any series or Tranche of, the Debt Securities; or to provide for the
authentication and delivery of bearer securities and coupons appertaining
thereto representing interest, if any, thereon and for the procedures for the
registration, exchange and replacement thereof and for the giving of notice to,
and the solicitation of the vote or consent of, the holders thereof, and for any
and all other matters incidental thereto; or

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

         (k) to cure any ambiguity or to correct or supplement any provision
herein which may be defective or inconsistent with any other provision herein;
provided that no such changes or additions shall adversely affect the interests
of the Holders of Debt Securities of any series or Tranche in any material
respect.

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

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

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

SECTION 12.02 Supplemental Indentures With Consent of Holders.

         With the consent of the Holders of not less than a majority in
aggregate principal amount of the Debt Securities of all series then Outstanding
under this Indenture, considered as one class, by Act of said Holders delivered
to the Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, or changing in
any manner or

                                       63
<PAGE>

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

         (a) change the Stated Maturity of the principal of, or any installment
of principal of or interest (including Additional Interest) on any Debt
Security, or reduce the principal amount thereof or the rate of interest thereon
(or the amount of any installment of interest thereon) or change the method of
calculating such rate or reduce any premium payable upon the redemption thereof,
or reduce the amount of the principal of a Discount Debt Security that would be
due and payable upon a declaration of acceleration of the Maturity thereof
pursuant to Section 8.02, or change the coin or currency (or other property), in
which any Debt Security or any premium or the interest (including any Additional
Interest) thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity of any Debt
Security (or, in the case of redemption, on or after the Redemption Date),
without, in any such case, the consent of the Holder of such Debt Security, or

         (b) reduce the percentage in principal amount of the Outstanding Debt
Securities of any series or any Tranche thereof, the consent of the Holders of
which is required for any such supplemental indenture, or the consent of the
Holders of which is required for any waiver of compliance with any provision of
this Indenture or of any default hereunder and its consequences, or reduce the
requirements of Section 13.04 for quorum or voting, without, in any such case,
the consent of the Holders of each Outstanding Debt Security of such series or
Tranche, or

         (c) modify any of the provisions of this Section, Section 6.07 or
Section 8.13 with respect to the Debt Securities of any series, or any Tranche
thereof (except to increase the percentages in principal amount referred to in
this Section or such other Sections or to provide that other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each
Outstanding Debt Security affected thereby); provided, however, that this clause
shall not be deemed to require the consent of any Holder with respect to changes
in the references to "the Trustee" and concomitant changes in this Section, or
the deletion of this proviso, in accordance with the requirements of Sections
9.11(b), 9.14 and 12.01(h).

         A supplemental indenture that changes or eliminates any covenant or
other provision of this Indenture that has expressly been included solely for
the benefit of one or more particular series of Debt Securities, or of one or
more Tranches thereof, or any corresponding series of Trust Preferred Securities
of a Trust that holds the Debt Securities of any series, or that modifies the
rights of the Holders of Debt Securities of such series or Tranches or holders
of such Trust Preferred Securities of such corresponding series with respect to
such covenant or other

                                       64
<PAGE>

provision, shall be deemed not to affect the rights under this Indenture of the
Holders of Debt Securities of any other series or Tranche or holders of Trust
Preferred Securities of any other such corresponding series.

         Upon the request of the Company, accompanied by a copy of the Board
Resolution authorizing the execution of any such supplemental indenture,
compliance by the Company with Section 12.03 hereof, and the filing with the
Trustee of evidence of the consent of the Holders of the Debt Securities
required hereunder with respect to the proposed supplemental indenture, the
Trustee shall join with the Company in the execution of such supplemental
indenture unless the supplemental indenture affects the Trustee's own rights,
duties or immunities under this Indenture, or otherwise, in which case the
Trustee may in its discretion but shall not be obligated to enter into such
supplemental indenture.

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

SECTION 12.03 Execution of Supplemental Indentures.

         In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive,
and (subject to Section 9.01) 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.

SECTION 12.04 Effect of Supplemental Indentures.

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

SECTION 12.05 Conformity With Trust Indenture Act.

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

SECTION 12.06 Reference in Debt Securities to Supplemental Indentures.

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

                                       65
<PAGE>

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 Debt Securities of such series or Tranche.

SECTION 12.07 Modification Without Supplemental Indenture.

         If the terms of any particular series of Debt Securities shall have
been established in a Board Resolution or an Officer's Certificate pursuant to a
Board Resolution as contemplated by Section 3.01, and not in an indenture
supplemental hereto, additions to, changes in or the elimination of any of such
terms may be effected by means of a supplemental Board Resolution or Officer's
Certificate, as the case may be, delivered to, and accepted by, the Trustee;
provided, however, that such supplemental Board Resolution or Officer's
Certificate shall not be accepted by the Trustee or otherwise be effective
unless all conditions set forth in this Indenture which would be required to be
satisfied if such additions, changes or elimination were contained in a
supplemental indenture shall have been appropriately satisfied. Upon the
acceptance thereof by the Trustee, any such supplemental Board Resolution or
Officer's Certificate shall be deemed to be a "supplemental indenture" for
purposes of Section 12.04 and 12.06.

                                  ARTICLE XIII

                   MEETINGS OF HOLDERS; ACTION WITHOUT MEETING

SECTION 13.01 Purposes for Which Meetings May be Called.

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

SECTION 13.02 Call, Notice and Place of Meetings.

         (a) The Trustee may at any time call a meeting of Holders of Debt
Securities of one or more, or all, series, or any Tranche or Tranches thereof,
for any purpose specified in Section 13.01, to be held at such time and at such
place __________________________, as the Trustee shall determine, or, with the
approval of the Company, at any other place. Notice of every such meeting,
setting forth the time and the place of such meeting and in general terms the
action proposed to be taken at such meeting, shall be given, in the manner
provided in Section 1.06, not less than 21 nor more than 180 days prior to the
date fixed for the meeting.

         (b) If the Trustee shall have been requested to call a meeting of the
Holders of Debt Securities of one or more, or all, series, or any Tranche or
Tranches thereof, by the Company or by the Holders of 33% in aggregate principal
amount of all of such series and Tranches, considered as one class, for any
purpose specified in Section 13.01, by written request setting forth in
reasonable detail the action proposed to be taken at the meeting, and the
Trustee shall not have given the notice of such meeting within 21 days after
receipt of such request or shall not thereafter proceed to cause the meeting to
be held as provided herein, then the Company or the Holders of Debt Securities
of such series and Tranches in the amount above specified, as the case

                                       66
<PAGE>

may be, may determine the time and the place in the ___________________________,
or in such other place as shall be determined or approved by the Company, for
such meeting and may call such meeting for such purposes by giving notice
thereof as provided in subsection (a) of this Section.

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

SECTION 13.03 Persons Entitled to Vote at Meetings.

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

SECTION 13.04 Quorum; Action.

         The Persons entitled to vote a majority in aggregate principal amount
of the Outstanding Debt Securities of the series and Tranches with respect to
which a meeting shall have been called as hereinbefore provided, considered as
one class, shall constitute a quorum for a meeting of Holders of Debt Securities
of such series and Tranches; provided, however, that if any action is to be
taken at such meeting which this Indenture expressly provides may be taken by
the Holders of a specified percentage, which is less than a majority, in
principal amount of the Outstanding Debt Securities of such series and Tranches,
considered as one class, the Persons entitled to vote such specified percentage
in principal amount of the Outstanding Debt Securities of such series and
Tranches, considered as one class, shall constitute a quorum. In the absence of
a quorum within one hour of the time appointed for any such meeting, the meeting
shall, if convened at the request of Holders of Debt Securities of such series
and Tranches, be dissolved. In any other case the meeting may be adjourned for
such period as may be determined by the chairman of the meeting prior to the
adjournment of such meeting. In the absence of a quorum at any such adjourned
meeting, such adjourned meeting may be further adjourned for such period as may
be determined by the chairman of the meeting prior to the adjournment of such
adjourned meeting. Except as provided by Section 13.05(e), notice of the
reconvening of any meeting adjourned for more than 30 days shall be given as
provided in Section 13.02(a) not less than ten 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 Debt Securities of such series and
Tranches which shall constitute a quorum.

                                       67
<PAGE>

         Except as limited by Section 12.02, any resolution presented to a
meeting or adjourned meeting duly reconvened at which a quorum is present as
aforesaid may be adopted only by the affirmative vote of the Holders of a
majority in aggregate principal amount of the Outstanding Debt Securities of the
series and Tranches with respect to which such meeting shall have been called,
considered as one class; provided, however, that, except as so limited, any
resolution with respect to any action which this Indenture expressly provides
may be taken by the Holders of a specified percentage, which is less than a
majority, in principal amount of the Outstanding Debt Securities of such series
and Tranches, considered as one class, may be adopted at a meeting or an
adjourned meeting duly reconvened and at which a quorum is present as aforesaid
by the affirmative vote of the Holders of such specified percentage in principal
amount of the Outstanding Debt Securities of such series and Tranches,
considered as one class.

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

SECTION 13.05 Attendance at Meetings; Determination of Voting Rights; Conduct
              and Adjournment of Meetings.

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

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

         (c) The Trustee shall, by an instrument in writing, appoint a temporary
chairman of the meeting, unless the meeting shall have been called by the
Company or by Holders as provided in Section 13.02(b), in which case the Company
or the Holders of Debt Securities of the series and Tranches calling the
meeting, as the case may be, shall in like manner appoint a temporary chairman.
A permanent chairman and a permanent secretary of the meeting shall be elected
by vote of the Persons entitled to vote a majority in aggregate principal amount
of the Outstanding Debt Securities of all series and Tranches represented at the
meeting, considered as one class.

                                       68
<PAGE>

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

         (e) Any meeting duly called pursuant to Section 13.02 at which a quorum
is present may be adjourned from time to time by Persons entitled to vote a
majority in aggregate principal amount of the Outstanding Debt Securities of all
series and Tranches represented at the meeting, considered as one class; and the
meeting may be held as so adjourned without further notice.

SECTION 13.06 Counting Votes and Recording Action of Meetings.

         The vote upon any resolution submitted to any meeting of Holders shall
be by written ballots on which shall be subscribed the signatures of the Holders
or of their representatives by proxy and the principal amounts and serial
numbers of the Outstanding Debt Securities, of the series and Tranches with
respect to which the meeting shall have been called, held or represented by
them. The permanent chairman of the meeting shall appoint two inspectors of
votes who shall count all votes cast at the meeting for or against any
resolution and who shall make and file with the secretary of the meeting their
verified written reports of all votes cast at the meeting. A record of the
proceedings of each meeting of Holders shall be prepared by the secretary of the
meeting and there shall be attached to said record the original reports of the
inspectors of votes on any vote by ballot taken thereat and affidavits by one or
more persons having knowledge of the facts setting forth a copy of the notice of
the meeting and showing that said notice was given as provided in Section 13.02
and, if applicable, Section 13.04. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company, and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated.

SECTION 13.07 Action Without Meeting.

         In lieu of a vote of Holders at a meeting as hereinbefore contemplated
in this Article, any request, demand, authorization, direction, notice, consent,
waiver or other action may be made, given or taken by Holders by written
instruments as provided in Section 1.04.

                                   ARTICLE XIV

                           IMMUNITY OF INCORPORATORS,
                      STOCKHOLDERS, OFFICERS AND DIRECTORS

SECTION 14.01 Liability Solely Corporate.

         No recourse shall be had for the payment of the principal of or
premium, if any, or interest (including Additional Interest), if any, on any
Debt Securities, or any part thereof, or for any claim based thereon or
otherwise in respect thereof, or of the indebtedness represented thereby, or
upon any obligation, covenant or agreement under this Indenture, against any
incorporator, stockholder, officer or director, as such, past, present or future
of the Company or

                                       69
<PAGE>

of any predecessor or successor corporation (either directly or through the
Company or a predecessor or successor corporation), whether by virtue of any
constitutional provision, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly agreed and understood
that this Indenture and all the Debt Securities are solely corporate
obligations, and that no personal liability whatsoever shall attach to, or be
incurred by, any incorporator, stockholder, officer or director, past, present
or future, of the Company or of any predecessor or successor corporation, either
directly or indirectly through the Company or any predecessor or successor
corporation, because of the indebtedness hereby authorized or under or by reason
of any of the obligations, covenants or agreements contained in this Indenture
or in any of the Debt Securities or to be implied herefrom or therefrom, and
that any such personal liability is hereby expressly waived and released as a
condition of, and as part of the consideration for, the execution of this
Indenture and the issuance of the Debt Securities.

                                       70
<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.

                                       DEVON ENERGY CORPORATION

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

ATTEST:

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

                       (Trustee's Signature Page Follows)

                                       71
<PAGE>

                                                                       , Trustee
                                       --------------------------------

                                       By:
                                          --------------------------------------
                                                Authorized Representative

[SEAL]

ATTEST:

Authorized Representative

                                       72

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