Document:

SERIES A CONVERTIBLE  PREFERRED STOCK PURCHASE AGREEMENT (this "Agreement")
is made as of April 4, 2001, by and between ECCS, Inc., a New Jersey corporation
(the  "Company"),  and the  investors  set forth on the  Schedule of  Purchasers
attached hereto as Exhibit A (the "Purchasers").

     The parties hereby agree as follows:

                                   ARTICLE I
                          PURCHASE AND SALE OF SERIES A
                           CONVERTIBLE PREFERRED STOCK

     SECTION 1.01.  Sale and Issuance of Series A Convertible  Preferred  Stock.
                    ------------------------------------------------------------

          (a) The Company has file with the  Secretary  of State of the State of
New  Jersey  on  March  8,  2001,  an  amendment  to the  Restated  and  Amended
Certificate of  Incorporation  (the "March 8,2001  Amendment") and shall file an
additional  amendment  with the Secretary of State of the State of New Jersey on
or before the Closing (the March 8, 2001 Amendment,  together with the amendment
to be filed, the "Restated  Certificate").  The Restated Certificate is attached
hereto as Exhibit B.

          (b)  Subject  to the  terms  and  conditions  of this  Agreement,  the
Purchasers  agree to purchase at the Closing and the Company  agrees to sell and
issue to the Purchasers at the Closing 250,000 shares of preferred stock,  $0.01
par value,  designated as 6% Cumulative  Convertible  Preferred Stock,  Series A
("Series A Convertible  Preferred  Stock" or the "Shares") as set forth opposite
each  Purchaser's  name on  Exhibit  A hereto at a  purchase  price of $2.00 per
share.

     SECTION 1.02.  Closing.  (a) The purchase and sale of 250,000  Shares shall
                    -------
take place at the offices of Cravath,  Swaine & Moore,  825 Eighth  Avenue,  New
York,  New York, at 10:00 a.m. on April 4, 2001, or at such other time and place
as the  Company and the  Purchasers  mutually  agree upon,  orally or in writing
(which time and place are  designated  as the  "Closing").  At the Closing,  the
Company  also shall  deliver to the  Purchasers  certificates  representing  the
Shares  against  delivery by the  Purchasers of the purchase  price  therefor by
certified  or official  bank check  payable to the Company in New York  Clearing
House  (next-day)  funds or by wire transfer of Federal  (same-day) funds to the
account specified by the Company.

                               PURCHASE AGREEMENT

                                   ARTICLE II
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company hereby represents and warrants to each Purchaser that:

     SECTION 2.01.  Organization, Good Standing and Qualification.   The Company
                    ---------------------------------------------
is a corporation duly organized, validly existing and in good standing under the
laws of the  State of New  Jersey  and has all  requisite  corporate  power  and
authority  to carry on its  business  as now  conducted  and as  proposed  to be
conducted. The Company is duly qualified to transact business

<PAGE>

and is in good standing in each  jurisdiction in which the failure so to qualify
would have a material adverse effect on its business or properties.

     SECTION 2.02.  Capitalization.   The  authorized  capital  of  the  Company
                    --------------
consists, or will consist, immediately prior to the Closing, of:

          (a) Preferred  Stock.  3,000,000  shares of Preferred  Stock, of which
1,793,750 shares have been designated Series A Convertible  Preferred Stock. The
rights,  privileges and preferences of the Series A Convertible  Preferred Stock
are as stated in the Restated Certificate.

          (b)  Common  Stock.  50,000,000  shares  of  Common  Stock,  of  which
11,522,971 shares are issued and outstanding.

          (c) Options and Warrants.  Except for the  conversion  privileges  and
preemptive rights of the Series A Convertible Preferred Stock issued pursuant to
this  Agreement,  and shares of Common Stock  subject to the (i) options  issued
under the 1989 Stock Option Plan, (ii) options issued or issuable under the 1996
Stock  Plan,  (iii)  options  issued or  issuable  under  the 1996  Non-Employee
Directors Stock Option Plan, (iv) 298,848 Common Stock purchase warrants granted
to Michael E. Faherty on December 6, 1994,  (v) shares of Common Stock  issuable
under the 1995 Employee  Stock  Purchase  Plan,  and (vi) options to purchase an
additional  508,490  shares of Common  Stock  issued to  certain  employees  and
consultants of the Company outside of any option plan,  there are no outstanding
options,  warrants,  rights  (including  conversion  or  preemptive  rights)  or
agreements,  orally or in  writing,  for the  purchase or  acquisition  from the
Company of any shares of its  capital  stock (the  rights and options in clauses
(i) through (vi) above being collectively  called the "Existing Equity Rights").
There  previously  exist no rights of first refusal or similar rights in respect
of shares of the Company's  capital stock issued or sold by the Company,  except
as described above. As of December 31, 2000, the Company has reserved  2,338,966
shares of Common Stock for future issuance to officers, directors, employees and
consultants  pursuant to equity  incentive  plans and agreements  adopted by the
Company.

     SECTION 2.03.  Subsidiaries.   Each subsidiary of the company (individually
                    ------------
a  "Subsidiary"  and  collectively  the  "Subsidiaries")  is  inactive,  and the
Subsidiaries  do not, either  individually  or in the aggregate,  own or lease a
material  portion  of the  Company's  property  or assets or  conduct a material
portion of the Company's  business;  and each of the  Subsidiaries has been duly
incorporated and is validly existing as a corporation in good standing under the
laws of its respective  jurisdiction of  incorporation,  is duly qualified to do
business and is in good standing as a foreign  corporation in each  jurisdiction
in which its  respective  ownership  or lease or  property or the conduct of its
respective  business requires such qualification and has all power and authority
necessary to own or hold its  respective  properties and to conduct the business
in which it is engaged.

     SECTION 2.04.  Authorization.   All  corporate  action  on the  part of the
                    -------------
Company,   its   officers,   directors  and   shareholders   necessary  for  the
authorization,  execution and delivery of this Agreement, the performance of all
obligations  of the  Company  hereunder  and  the  authorization,  issuance  and
delivery  of the  Shares  and the  Common  Stock  issuable  upon the  payment of
dividends  on the  Shares or the  redemption  or the  conversion  of the  Shares
(collectively with the

                                       2
<PAGE>

Shares,  the "Securities") has been taken or will be taken prior to the Closing,
and the Agreement,  when executed and delivered by the Company, shall constitute
a valid and legally binding obligation of the Company,  enforceable  against the
Company in accordance with its terms.

     SECTION 2.05.  Valid Issuance of Securities.   The Shares being  issued  to
                    ----------------------------
the Purchasers hereunder, when issued, sold and delivered in accordance with the
terms hereof for the consideration  expressed  herein,  will be duly and validly
issued,  fully paid and nonassessable and free of restrictions on transfer other
than  restrictions  on transfer under this  Agreement and  applicable  state and
federal  securities laws and not subject to any preemptive rights of others. The
issued and outstanding shares of the Company's Common Stock are duly and validly
issued,  fully paid and  nonassessable  and have been issued in compliance  with
applicable  state and federal  securities laws and are approved for quotation on
the Nasdaq National Market under the symbol "ECCS",  subject to events described
on Schedule 2.05.  Based in part upon the  representations  of the Purchasers in
this Agreement and subject to the  provisions of Section 2.06 below,  the Shares
will be issued in compliance  with all applicable  federal and state  securities
laws.  The Common Stock issuable upon the redemption or conversion of the Shares
has been duly and validly reserved for issuance, and upon issuance in accordance
with the terms of the  Restated  Certificate  will be duly and  validly  issued,
fully paid and  nonassessable  and free of  restrictions  on transfer other than
restrictions  on transfer under this Agreement and applicable  state and federal
securities laws and will be issued in compliance with all applicable federal and
state securities laws.

     SECTION 2.06.  Governmental Consents.    No  consent,  approval,  order  or
                    ---------------------
authorization of, or registration,  qualification,  designation,  declaration or
filing with, any federal,  state or local governmental  authority on the part of
the Company is required in connection with the  consummation of the transactions
contemplated by this Agreement.

     SECTION 2.07.  Litigation.   Except as described in the SEC  Documents  (as
                    ----------
defined in Section 2.14), there is no action, suit,  proceeding or investigation
pending or, to the Company's knowledge, currently threatened against the Company
that  questions  the  validity of this  Agreement or the right of the Company to
enter into it, or to consummate the transactions  contemplated  hereby,  or that
would reasonably be expected to result, either individually or in the aggregate,
in any material adverse change in the business,  assets,  condition,  affairs or
prospects of the Company, financially or otherwise, or any change in the current
equity  ownership  of the  Company,  nor is the Company  aware that there is any
basis for the foregoing. The foregoing includes, without limitation, any actions
pending or threatened (or any basis therefor known to the Company) involving the
prior employment of any of the Company's employees, their use in connection with
the Company's business of any information or techniques allegedly proprietary to
any of their former  employers,  or their  obligations under any agreements with
prior employers.  The Company is not a party or subject to the provisions of any
order, writ, injunction, judgment or decree of any court or government agency or
instrumentality.

     SECTION 2.08.  Employee  Agreement.   Each  current or former  employee and
                    -------------------
officer of the Company with access to the Company's  confidential or proprietary
information has executed an agreement with the Company regarding confidentiality
and  proprietary  information,  the forms of which have been included in the SEC
Documents.

                                       3
<PAGE>

     SECTION 2.09.  Patents and  Trademarks.   The SEC  Documents  disclose  all
                    -----------------------
material information pertaining to all patents,  registered trademarks and trade
names, and pending applications  therefor,  owned by the Company,  except as set
forth on Schedule  2.09(a).  The Company has title and ownership of all patents,
trademarks,  service marks, trade names, copyrights, trade secrets, information,
proprietary  rights  and  process  material  to its  business  as now  conducted
without,  to  the  best  of  the  Company's  knowledge,  any  conflict  with  or
infringement  of the rights of others.  Except as included in the SEC  Documents
and as set forth on  Schedule  2.09(b),  the Company is not party to and has not
granted  any  options,  licenses,  or  agreements  of any kind  relating  to the
foregoing,  nor is the Company  bound by or a party to any options,  licenses or
agreements of any kind with respect to the patents,  trademarks,  service marks,
trade names,  copyrights,  trade  secrets,  licenses,  information,  proprietary
rights or  processes  of any  other  person  or  entity.  Except as set forth on
schedule 2.09(c), the Company has not received any communications  alleging that
the Company has violated  or, by  conducting  its  business as  proposed,  would
violate any of the patents,  trademarks,  service marks, trade names, copyrights
or trade secrets or other  proprietary  rights of any other person or entity. To
the Company's  knowledge,  none of its employees is obligated under any contract
(including licenses, covenants or commitments of any nature) or other agreement,
or  subject  to any  judgment,  decree or order of any  court or  administrative
agency,  that would interfere in any material respect with the use of his or her
best efforts to promote the interests of the Company or that would conflict with
the Company's  business as proposed to be  conducted.  Neither the execution nor
delivery of this Agreement, nor the carrying on of the Company's business by the
employees of the Company, will conflict with or result in a breach of the terms,
conditions  or  provisions  of, or  constitute a default  under,  any  contract,
covenant or instrument under which any of such employees is now obligated.

     SECTION 2.10.  Compliance with Other Instruments.   The Company is not, nor
                    ---------------------------------
will it be on the date of Closing, in violation or default in any respect of any
provisions of its Restated  Certificate or By-laws or, in any material  respect,
of any instrument,  judgment,  order,  writ, decree or contract to which it is a
party or by which it is bound or of any  provision of federal or state  statute,
rule or  regulation  applicable  to the  Company.  The  execution,  delivery and
performance  of  this  Agreement  and  the   consummation  of  the  transactions
contemplated hereby will not result in any such violation or be in conflict with
or constitute,  with or without the passage of time and giving of notice, either
a default under any such provision, instrument, judgment, order, writ, decree or
contract or an event which results in the creation of any material lien,  charge
or encumbrance upon any assets of the Company.

     SECTION 2.11.  Agreements; Action.
                    -------------------

          (a) Since September 30, 2000, except as described in the SEC Documents
or as set forth on Schedule  2.11(a),  there have been no  material  agreements,
understandings  or  proposed  transactions  between  the  Company and any of its
officers,  directors,   affiliates,  or  any  affiliate  thereof;  and  no  such
agreement,  understanding  or  transaction  entered into prior to September  30,
2000,  will have any  material  effect  on the  Company's  business,  prospects,
financial condition or results of operations.

          (b)  Except  as  included  in the SEC  Documents  and as set  forth on
Schedule  2.11(b),  there  are  no  agreements,   understandings,   instruments,
contracts or proposed transactions

                                       4
<PAGE>

to which  the  Company  is a party or by which  it is  bound  that  involve  (i)
obligations  (contingent  or otherwise) of, or payments to the Company in excess
of,  $50,000,  other than in the ordinary course of the Company's  business,  or
(ii) the license of any patent,  copyright,  trade  secret or other  proprietary
right to or from the Company other than in the ordinary  course of the Company's
business.

          (c) Since September 30, 2000, the Company has not (i) declared or paid
any dividends,  or authorized or made any  distribution  upon or with respect to
any class or series of its capital  stock,  (ii) except as  disclosed in the SEC
Documents,  incurred any  indebtedness  for money borrowed or incurred any other
liabilities  individually  in excess of $50,000 or in excess of  $200,000 in the
aggregate,  (iii) made any loans, or advances to any person, other than ordinary
advances for travel expenses,  or (iv) except as set forth on Schedule  2.11(c),
other than in the ordinary course of business and consistent with past practice,
sold, exchanged or otherwise disposed of any of its assets or rights.

          (d) The  Company  is not a party to and is not bound by any  contract,
agreement  or  instrument,  or subject  to any  restriction  under its  Restated
Certificate or Bylaws,  that materially and adversely  affects its business,  as
now conducted, its properties or its financial condition.

     SECTION 2.12.  Registration  Rights.  Except as  contemplated  herein,  the
                    --------------------
Company has not  granted or agreed to grant any  registration rights,  including
piggyback rights, to any person or entity.

     SECTION 2.13.  Title to  Property and  Assets.     Except as  set forth  on
                    ------------------------------
Schedule  2.13,  the Company  owns its property and assets free and clear of all
mortgages,  liens,  loans and  encumbrances,  except such encumbrances and liens
which arise in the ordinary course of business and do not materially  impair the
Company's  ownership  or use of such  property  or assets.  With  respect to the
property and assets it leases, the Company is in compliance with such leases and
holds a valid leasehold interest free of any liens, claims or encumbrances.

     SECTION 2.14.  SEC Documents, Financial Statements.    Since  September 30,
                    -----------------------------------
2000, the Company has filed all reports, schedules, forms, statements,  exhibits
and other documents  required to be filed by it with the Securities and Exchange
Commission  (the  "Commission")  pursuant to the reporting  requirements  of the
Securities Exchange Act of 1934 (the "Exchange Act") (all of the foregoing being
referred to herein as the "SEC  Documents").  As of their respective  dates, the
SEC Documents complied in all material respects with the applicable requirements
of the Exchange Act and the rules and regulations of the Commission  promulgated
thereunder applicable to such SEC Documents,  and, as of their respective dates,
none of the SEC Documents taken as a whole (when read together with all exhibits
included therein and financial  statement schedules thereto and documents (other
than exhibits) incorporated by reference therein) contained any untrue statement
of a material  fact or omitted to state a material  fact  required  to be stated
therein or necessary in order to make the  statements  therein,  in light of the
circumstances under which they were made, not misleading. As of their respective
dates,  the financial  statements  of the Company  included in the SEC Documents
complied  as to  form  in  all  material  respects  with  applicable  accounting
requirements  and the published  rules and  regulations of the  Commission  with
respect thereto. Such financial statements have been

                                       5
<PAGE>

prepared in accordance with generally accepted accounting  principles applied on
a consistent  basis during the periods  involved (except (i) as may be otherwise
indicated in such financial  statements or the notes thereto or (ii) in the case
of unaudited interim statements, to the extent they may not include footnotes or
may be  condensed  or summary  statements)  and fairly  present in all  material
respects the  financial  position of the Company as of the dates thereof and the
results of its operations and cash flows for the periods then ended (subject, in
the case of unaudited statements, to normal year-end audit adjustment).

     SECTION 2.15.  Employee  Benefit Plans. The Company is in compliance in all
                    -----------------------
material  respects  with all  presently  applicable  provisions  of the Employee
Retirement  Income  Security Act of 1974, as amended,  including the regulations
and published  interpretations  thereunder ("ERISA");  no "reportable event" (as
defined in ERISA) has occurred with respect to any "pension plan" (as defined in
ERISA) for which the  Company  would have any  liability;  the  Company  has not
incurred and does not expect to incur liability under (i) Title IV of ERISA with
respect to  termination  of, or  withdrawal  from,  any  "pension  plan" or (ii)
Section 412 or 4971 of the Internal Revenue Code of 1986, as amended,  including
the regulations and published interpretations  thereunder (the "Code"); and each
"pension  plan" for which the Company would have any liability  that intended to
be qualified  under  Section  401(a) of the Code is so qualified in all material
respects and nothing has occurred, whether by action or by failure to act, which
would cause the loss of such qualification.

     SECTION 2.16.  Tax  Returns  and  Payments.  The  Company has filed all tax
                    ---------------------------
returns and reports as required by law.  These  returns and reports are true and
correct  in all  material  respects.  The  Company  has paid all taxes and other
assessments due.

     SECTION 2.17.  Insurance. The Company has in full force and effect fire and
                    ---------
casualty  insurance  policies,  with  extended  coverage,  sufficient  in amount
(subject to reasonable deductibles) to allow it to replace any of its properties
that might be damaged or destroyed.

     SECTION 2.18.  Labor Agreements and Actions. The Company is not bound by or
                    ----------------------------
subject to (and none of its assets or  properties is bound by or subject to) any
written or oral,  express or implied,  contract,  commitment or arrangement with
any labor union,  and no labor union has  requested  or, to the knowledge of the
Company, has sought to represent any of the employees, representatives or agents
of the Company.  There is no strike or other labor dispute involving the Company
pending,  or to the  knowledge  of the  Company  threatened,  which could have a
material  adverse  effect  on  the  assets,  properties,   financial  condition,
operating  results or business of the  Company  (as such  business is  presently
conducted  and as it is proposed to be  conducted),  nor is the Company aware of
any labor  organization  activity  involving its  employees.  The Company is not
aware that any officer or key  employee  intends to terminate  their  employment
with the Company, nor does the Company have a present intention to terminate the
employment  of any of the  foregoing.  The Company has  complied in all material
respects with all applicable state and federal equal employment opportunity laws
and with other laws related to employment.

     SECTION 2.19.  Offering.   Subject  to  the  truth  and  accuracy  of  each
                    --------
Purchaser's  representations  set forth in this Agreement,  the offer,  sale and
issuance of the Shares as  contemplated  by this  Agreement  are exempt from the
registration requirements of the Securities

                                       6
<PAGE>

Act of 1933 (the  "Securities  Act"), and neither the Company nor any authorized
agent acting on its behalf will take any action  hereafter  that would cause the
loss of such exemption.

     SECTION 2.20.  Permits.   The Company has all franchises, permits, licenses
                    -------
and any similar authority necessary for the conduct of its business as now being
conducted by it, the lack of which could  materially  and  adversely  affect the
business,  properties,  prospects  or  financial  condition  of the  Company and
believes  that it can  obtain,  without  undue  burden or  expense,  any similar
authority  for the  conduct of its  business  as planned  to be  conducted.  The
Company is not in default in any material  respect under any of such franchises,
permits, licenses or other similar authority.

                                  ARTICLE III
                REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

     Each Purchaser hereby severally and not jointly  represents and warrants to
the Company that:

     SECTION 3.01.  Authorization. It has full power and authority to enter into
                    -------------
this  Agreement and this  Agreement  constitutes  its valid and legally  binding
obligation, enforceable against such Purchaser in accordance with its terms.

     SECTION 3.02.  Purchase  Entirely for Own Account.   The  Securities  to be
                    ----------------------------------
acquired by it will be acquired for  investment  for its own  account,  not as a
nominee or agent,  and not with a view to the resale or distribution of any part
thereof, and it has no present intention of selling,  granting any participation
in, or otherwise distributing the same. It does not presently have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participations to such person or to any third person, with respect to any of the
Securities.  It  understands  that this sale of the Securities has not been, and
will not be,  registered  under  the  Securities  Act by  reason  of a  specific
exemption from the  registration  provisions of the Securities Act which depends
upon, among other things,  the bona fide nature of its investment intent and the
accuracy of its  representations  as expressed herein. It represents that it has
not been formed for the specific purpose of acquiring the Securities.

     SECTION 3.03.  Disclosure  of  Information.     It  has  received  all  the
                    ---------------------------
information  it considers  necessary  or  appropriate  for  deciding  whether to
acquire the Securities.  It further represents that it has had an opportunity to
ask  questions  and receive  answers  from the Company  regarding  the terms and
conditions of the offering of the Securities.  The foregoing,  however, does not
limit or modify the  representations and warranties of the Company in Article II
of this Agreement or the right of such Purchaser to rely thereon.

     SECTION 3.04.  Investment  Experience.   It has  substantial  experience in
                    ----------------------
evaluating and investing in private placement  transactions so that Purchaser is
capable of evaluating the merits and risks of its investment in the Company.  By
reason of its  business or  financial  experience  or the  business or financial
experience of its professional  advisors who are  unaffiliated  with and who are
not compensated by the Company or any affiliate or selling agent of the Company,
directly or  indirectly,  it has the  capacity to protect its own  interests  in
connection with the purchase of the Securities hereunder.

                                       7
<PAGE>

     SECTION 3.05.  Restricted Securities.    It understands that the Securities
                    ---------------------
are characterized as "restricted  securities" under the federal  securities laws
inasmuch  as they are being  acquired  from the  Company  in a  transaction  not
involving a public offering and that under such laws and applicable  regulations
such Securities may be resold without registration under the Securities Act only
in certain  limited  circumstances.  In this respect,  it represents  that it is
familiar with Rule 144  promulgated  under the  Securities  Act, as presently in
effect, and understands the resale limitations  imposed thereby and otherwise by
the Securities Act.

     SECTION 3.06.  Further  Limitations  on  Disposition.  Without  in any  way
                    -------------------------------------
limiting the  representations  set forth above, each Purchaser severally and not
jointly  further agrees not to make any disposition of all or any portion of the
Securities unless and until:

          (a) There is in effect a registration  statement  under the Securities
Act  covering  such  proposed  disposition  and  such  disposition  is  made  in
accordance  with such  registration  statements or (i) such Purchaser shall have
notified the Company of the proposed  disposition  and shall have  furnished the
Company with a detailed statement of the circumstances  surrounding the proposed
disposition,  and (ii) if reasonably  requested by the Company,  such  Purchaser
shall  have  furnished  the  Company  with an  opinion  of  counsel,  reasonably
satisfactory to the Company, that such disposition will not require registration
under  the  Securities  Act.  It is agreed  that the  Company  will not  require
opinions of counsel for transactions made pursuant to Rule 144 except in unusual
circumstances;  provided, however, each Purchaser acknowledges that the transfer
agent for the Common Stock may require  opinions of counsel for any transactions
made pursuant to Rule 144.

          (b)  Notwithstanding  the  provisions of paragraph (a) above,  no such
registration  statement or opinion of counsel  shall be necessary for a transfer
by such Purchaser to a constituent shareholder or constituent partner (including
any  constituent  of a  constituent)  of such  Purchaser,  if the  transferee or
transferees  agree in  writing  to be  subject  to the terms  hereof to the same
extent as if they were the Purchaser hereunder.

     SECTION 3.07.  Legends.  It is  understood  that  the  Securities,  and any
                    -------
securities issued in respect thereof or exchange  therefor,  may bear one or all
of the following legends:

          (a) "THESE  SECURITIES HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES
ACT OF 1933. THEY MAY NOT BE SOLD,  OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES
UNDER SUCH ACT OR AN OPINION OF COUNSEL  REASONABLY  SATISFACTORY TO THE COMPANY
THAT SUCH  REGISTRATION  IS NOT REQUIRED OR UNLESS SOLD  PURSUANT TO RULE 144 OF
SUCH ACT."

          (b) Any  legend  required  by the Blue  Sky  laws of any  state to the
extent such laws are applicable to the shares  represented by the certificate so
legended.

     SECTION 3.08.  Accredited  Investor.   It  is  an  accredited  investor  as
                    --------------------
defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

                                       8
<PAGE>

                                   ARTICLE IV
                CONDITIONS OF PURCHASERS, OBLIGATIONS AT CLOSING

     The  obligations  of each  Purchaser to the Company under this Agreement at
the Closing are subject to the fulfillment,  on or before such Closing,  of each
of the following conditions:

     SECTION 4.01.  Representations  and  Warranties.  The  representations  and
                    --------------------------------
warranties of the Company contained in Article II shall be true on and as of the
Closing with the same effect as though such  representations  and warranties had
been made on and as of such date.

     SECTION 4.02.  Performance.  The Company shall have  performed and complied
                    -----------
with all agreements, obligations and conditions contained in this Agreement that
are required to be performed or complied with by it on or before such Closing.

     SECTION 4.03.  Certificates  of Officers.  The Company shall deliver to the
                    -------------------------
Purchasers  at  such  Closing  certificates  of  the  officers  of  the  Company
certifying  that the  conditions  specified in Sections  4.01 and 4.02 have been
fulfilled and as to such other matters as the Purchaser may reasonably request.

     SECTION 4.04.  Proceedings   and  Documents.    All  corporate  and   other
                    ----------------------------
proceedings in connection with the transactions  contemplated at the Closing and
all documents  incident  thereto shall be  reasonably  satisfactory  in form and
substance to each Purchaser,  and they shall have received all such  counterpart
original and certified or other copies of such  documents as they may reasonably
request.

     SECTION 4.05.  Opinion of Counsel.  Each Purchaser shall have received from
                    ------------------
Hale & Dorr LLP, counsel for the Company,  an opinion,  dated as of the Closing,
in the form attached hereto as Exhibit C.

     SECTION 4.06.  No Material Adverse Change.  Except as set forth on Schedule
                    --------------------------
4.06,  the Company shall not have  sustained  since  September 30, 2000, (i) any
loss or  interference  with its business  from fire,  explosion,  flood or other
calamity,  whether or not  covered by  insurance,  or from any labor  dispute or
court or governmental action, order or decree, and (ii) other than the Amendment
to the Restated  Certificate  filed on March 8, 2001,  there shall not have been
any change in the capital stock or long-term  debt of the Company or any change,
or any development involving a prospective change, in or affecting the condition
(financial  or  other),  earnings,   general  affairs,   business,   operations,
properties, management, stockholders' equity, results of operations or prospects
of the  Company,  taken  as a whole,  the  effect  of  which,  in any such  case
described in clause (i) or (ii), is in the Purchasers' sole judgment so material
and  adverse as to make it  impracticable  or  inadvisable  to proceed  with the
purchase of the Shares.

     SECTION 4.07.  NASDAQ Listing.    The Common Stock of the  Company shall be
                    --------------
duly authorized for listing on the Nasdaq  National  Market  ("NNM"),  except as
disclosed on Schedule 4.07.

                                       9
<PAGE>

                                   ARTICLE V
               CONDITIONS OF THE COMPANY'S OBLIGATIONS AT CLOSING

     The  obligations of the Company to each Purchaser  under this Agreement are
subject to the fulfillment,  on or before the Closing,  of each of the following
conditions:

     SECTION 5.01.  Representations  and  Warranties.  The  representations  and
                    --------------------------------
warranties of each Purchaser contained in Article III shall be true on and as of
the Closing with the same effect as though such  representations  and warranties
had been made on and as of such date.

                                   ARTICLE VI
                            COVENANTS OF THE COMPANY

     SECTION 6.01.  Voting  Rights.   The  holders of record of Shares  shall be
                    --------------
entitled to vote on all matters that the holders of the  Company's  Common Stock
are entitled to vote upon. In exercising the voting rights set forth above, each
share of Series A  Convertible  Preferred  Stock shall be entitled to vote on an
as-converted basis with the holders of the Company's Common Stock.

     In addition  to the voting  rights set forth  above,  so long as any Shares
shall remain outstanding, the Company agrees that without the vote of holders of
at least 66-2/3% of the then  outstanding  Shares at a meeting of the holders of
the Shares  called for such  purpose,  the Company will not (A) amend,  alter or
repeal any provision hereof or of the Restated Certificate or By-laws;  provided
that any such amendment that changes the dividend  payable on or the liquidation
preference  of the  Series A  Convertible  Preferred  Stock  shall  require  the
affirmative vote at a meeting of holders of Series A Convertible Preferred Stock
called for such purpose,  or written consent,  of the holders of at least 80% of
the then  outstanding  Shares;  (B) create any class or classes of stock ranking
equal  or prior  to the  Series  A  Convertible  Preferred  Stock  either  as to
dividends or upon liquidation,  dissolution or winding up or increase the number
of authorized  shares of any class or classes of stock ranking equal or prior to
the  Series  A  Convertible  Preferred  Stock  either  as to  dividends  or upon
liquidation,  dissolution or winding up; provided that the holders of the Series
A Convertible Preferred Stock shall not be entitled to affirmatively vote at any
meeting of the  stockholders of the Company or by written consent on any matters
relating to the  issuance by the  Company of any  additional  shares of Series A
Convertible  Preferred Stock to be issued within 90 days of the date of Closing;
(C) redeem or  otherwise  acquire any shares of its  capital  stock or issue any
capital stock or any option, warrant or right relating thereto or any securities
convertible  into or  exchangeable  for any  shares  of  capital  stock  (except
pursuant to the Existing Equity Rights); (D) cancel any material indebtedness or
waive any claims or rights of substantial value; (E) permit, allow or suffer any
of  its  assets  to  be  subject  to  any  mortgage,  lien,  security  interest,
encumbrance,  easement, covenant, right-of-way or other similar restriction of a
material nature other than in the ordinary course of business; or (F) effect any
sale,  lease,  assignment,  transfer or other conveyance of all or substantially
all  of  the  assets  of  the  Company  or  any  of  its  subsidiaries,  or  any
consolidation or merger involving the Company or any of its subsidiaries, or any
reclassification  or other change of any stock, or any  recapitalization  of the
Company. In exercising the voting rights set forth in this paragraph, each share
of Series A Convertible Preferred Stock entitled to vote shall have one

                                       10
<PAGE>

vote per share,  except that when any other series of preferred stock shall have
the  right to vote with the  Series A  Convertible  Preferred  Stock as a single
class on any matter,  then the Series A Convertible  Preferred  Stock shall have
with respect to such  matters one vote per $1,000 (or  fraction  thereof) of the
aggregate Liquidation Preference.

     Except as otherwise  required by applicable law or as set forth herein, the
shares of Series A  Convertible  Preferred  Stock  shall not have any  relative,
participating,  optional or other  special  voting  rights and  powers,  and the
consent  of the  holders  thereof  shall not be  required  for the taking of any
corporate action.

                                  ARTICLE VII
                               REGISTRATION RIGHTS

     SECTION 7.01.  (a) Definitions.  As used in this Article VII, the following
                        -----------
capitalized defined terms shall have the following meanings.

     "Affiliate"  of or a person  "affiliated"  with, a specified  person,  is a
person that directly or indirectly through one or more intermediaries,  controls
or is controlled by, or is under common control with, the person specified.

     "Damages  Payment Date" means each of the quarterly  dividend payment dates
set forth in the  Certificate of Amendment to the Restated  Certificate of ECCS,
Inc.  (attached  hereto as Exhibit  B)  setting  forth the terms of the Series A
Convertible Preferred Stock.

     "Effectiveness Target Date" shall mean 180 days after the Closing.

     "Holders"  means the  Purchasers  and any  persons or  entities to whom the
rights granted under this Article VII are transferred by any  Purchasers,  their
successors or assigns.

     "Holder  Affiliate"  means any Holder who is an Affiliate or any Holder who
reasonably believes that they are deemed to be an Affiliate of the Company.

     "Incorporated  Documents"  means  filings  made  by the  Company  with  the
Commission pursuant to Section 13, 14 or 15 of the Exchange Act and incorporated
by reference in the Shelf Registration Statement.

     "Majority  Holders"  means the  Holders of a majority  of the shares of the
Series A Convertible Preferred Stock registered (or if no shares are registered,
entitled  to be  registered)  under a Shelf  Registration  Statement;  provided,
however,  that  Holders  of Common  Stock  issued  in  respect  of the  Series A
Convertible  Preferred  Stock  shall be deemed to be  holders  of the  number of
shares of Series A Convertible Preferred Stock which, when converted, would have
resulted in such number of shares of Common Stock.

     "Preferred Stock Liquidated Damages" shall have the meaning as set forth in
Section 7.02(a).

     "Prospectus"  means  the  prospectus  included  in any  Shelf  Registration
Statement, as amended or supplemented by any prospectus supplement, with respect
to the terms of the  offering  of any  portion  of the  Shares  or Common  Stock
issuable upon conversion thereof covered by such Shelf  Registration  Statement,
and all amendments and supplements to the Prospectus,  including  post-effective
amendments.

                                       11
<PAGE>

     "Registration  Default"  shall  have the  meaning  as set forth in  Section
7.01(d).

     "Registrable Securities" shall mean (i) the shares of Common Stock issuable
or issued upon the  conversion or  redemption  of the Shares,  (ii) Common Stock
issued or issuable  upon the  conversion  or  redemption of Shares issued in the
form of a dividend on the Shares and (iii) the shares of Common  Stock  issuable
or issued upon the  conversion or redemption of additional  Series A Convertible
Preferred Stock issued as Preferred Stock Liquidated Damages pursuant to Section
7.02(a).

     A "Shelf  Registration  Period"  shall  have the  meaning  as set  forth in
Section 7.01(b).

     "Shelf Registration  Statement" means a "shelf"  registration  statement of
the Company  pursuant to the  provisions of Section  7.01(b) hereof which covers
all of the Registrable  Securities,  on an appropriate form under Rule 415 under
the  Securities  Act or any similar rule that may be adopted by the  Commission,
and all amendments and  supplements to such  registration  statement,  including
post-effective  amendments,  in each case  including  the  Prospectus  contained
therein,  all  exhibits  thereto  and all  material  incorporated  by  reference
therein.

          (b) Shelf Registration Statement.  (a) The Company shall use its  best
              ----------------------------
efforts to cause to be filed as soon as practicable  after the Closing and shall
cause to be declared  effective  under the Securities Act no later than 180 days
following the Closing (the  "Effectiveness  Target Date"), a Shelf  Registration
Statement  relating to the offer and sale of the  Registrable  Securities by the
Holders from time to time in accordance with the methods of distribution elected
by such Holders and set forth in such Shelf Registration Statement.

          (b)  The  Company   shall  keep  the  Shelf   Registration   Statement
continuously effective in order to permit the Prospectus forming part thereof to
be usable by the Holders  until the later of (i) the second  anniversary  of the
Closing and (ii) such time as (A) such  Registrable  Securities  shall no longer
constitute  restricted  securities for purposes of Rule 144(k) of the Securities
Act or (B) all such Registrable  Securities have been sold pursuant to the Shelf
Registration  Statement  (in any such case,  such period being called the "Shelf
Registration  Period").  The  Company  shall  be  deemed  not to have  used  its
reasonable efforts to keep the Shelf Registration Statement effective during the
requisite period if it voluntarily takes any action that would result in Holders
of Registrable  Securities covered thereby not to be able to offer and sell such
securities during that period,  unless such action is (i) required by applicable
law or (ii) taken pursuant to Section  7.01(c)  hereof,  and, in either case, so
long as the  Company  promptly  thereafter  complies  with the  requirements  of
Section 7.04(i) hereof, if applicable.

          (c) The Company may suspend the use of the  Prospectus for a period of
not to exceed 60 days (or such longer  period as is reasonably  necessary  under
the  circumstances)  in any  calendar  year  for  valid  business  reasons  (not
including  avoidance of the  Company's  obligations  hereunder),  including  the
acquisition  or  divestiture  of assets,  public  filings  with the  Commission,
pending corporate developments and similar events.

          (d) In the event  that (i) the  Shelf  Registration  Statement  is not
declared  effective by the  Commission on or prior to the  Effectiveness  Target
Date, or (ii) the Shelf  Registration  Statement has been declared  effective by
the Commission and such Shelf  Registration  Statement ceases to be effective or
to be usable as contemplated by Section 7.01(b)

                                       12
<PAGE>

(each of (i) and (ii), a "Registration Default") the Holders will be entitled to
the remedies provided for in Section 7.02.

     SECTION 7.02.  Remedies.  (a) The Company and the Purchasers agree that the
                    --------
Holders of Registrable  Securities  shall suffer damages if the Company fails to
fulfill its obligations pursuant to Section 7.01(b) hereof and that it would not
be possible to ascertain the extent of such damages.  Accordingly,  in the event
of a Registration Default under Section 7.01(d)(i) hereof, the Company shall pay
liquidated  damages,  ("Preferred  Stock Liquidated  Damages") to each Holder of
Registrable  Securities  at a rate of 5% of the  Liquidation  Preference  of the
Shares constituting such Registrable Securities, in cash or additional shares of
Series A Convertible  Preferred  Stock, at the option of the Company.  Preferred
Stock Liquidated  Damages that are payable under 7.01(d)(i) shall be paid by the
Company  within 30 business  days  following  such  Registration  Default to the
record  holders of Shares that are  Registrable  Securities by mailing checks or
certificates  evidencing additional shares to their registered addresses as they
appear in the Preferred Stock register.  In the event of a Registration  Default
under  Section  7.01(d)(ii)  hereof,  the  Company  shall  pay  Preferred  Stock
Liquidated Damages to each Holder of Registrable  Securities at a rate of 5% per
annum of the Liquidation  Preference of the Shares constituting such Registrable
Securities,  in cash or  additional  shares  of Series A  Convertible  Preferred
Stock,  at the option of the  Company,  which shall  accrue from the date of the
Registration  Default.  Following the cure of such Registration Default relating
to Shares  that are  Registrable  Securities,  the  accrual of  Preferred  Stock
Liquidated  Damages with respect to such Shares that are Registrable  Securities
shall cease. A Registration Default under 7.01(d)(ii) shall be cured on the date
the Shelf  Registration  Statement  is  declared  effective  or becomes  usable.
Preferred  Stock  Liquidated  Damages for a  Registration  Default under Section
7.01(d)(ii)  shall be paid by the  Company to the record  holders of shares that
are  Registrable  Securities on each Damages  Payment Date by mailing  checks or
certificates  evidencing additional Shares to their registered addresses as they
appear in the  Preferred  Stock  register;  provided  that any  Preferred  Stock
Liquidated  Damages  accrued  with  respect  to any  Preferred  Stock or portion
thereof  called for  redemption  on a redemption  date or converted  into Common
Stock on a conversion date prior to the Damages Payment Date, shall, in any such
event,  be paid instead to the Holder that submitted  such  Preferred  Stock for
redemption  date or conversion  date, as the case may be, on such date (promptly
following the conversion date, in the case of conversion of Preferred Stock).

     If the Company shall choose to pay such Preferred Stock Liquidated  Damages
for any  Registration  Defaults  in the form of Series A  Convertible  Preferred
Stock, such shares of additional  Series A Convertible  Preferred Stock shall be
valued at the Liquidation  Preference of the Shares.  Any additional Shares that
are issued as part of the Preferred  Stock  Liquidated  Damages  described above
will  be  included  by the  Company  in the  Shelf  Registration  Statement.  No
fractional  Shares of Series A Convertible  Preferred Stock will be delivered to
the Holders but the Company  will instead pay a cash  adjustment  to each Holder
that would  otherwise  be  entitled  to a fraction  of a Share of such  Series A
Convertible  Stock. All Preferred Stock  Liquidated  Damages with respect to any
shares of Preferred  Stock that are Registrable  Securities,  that remain unpaid
when such Shares cease to be Registrable  Securities or cease to be outstanding,
shall  remain  unpaid  obligations  of the Company  until they have been paid in
full.

                                       13
<PAGE>

          (b)  If  during  the  Shelf   Registration   Period   there  occurs  a
Registration  Default,  and the  Company  proposes  to file on its  behalf or on
behalf  of any of its  security  holders  (other  than  Holders  of  Registrable
Securities) (the "demanding  security  holders") a registration  statement under
the Securities Act on any form (other than a Registration  Statement on Form S-4
or S-8 or any successor  form for  securities to be offered in a transaction  of
the type referred to in Rule 145 under the Securities Act or to employees of the
Company  pursuant to any employee  benefit plan,  respectively)  for the general
registration  of securities to be sold for cash with respect to its Common Stock
or any other class of equity  security  (as  defined in Section  3(a)(11) of the
Exchange Act) of the Company,  it will give written notice to all Holders of the
Registrable  Securities  at least 45 days  before the  initial  filing  with the
Commission  of such  registration  statement,  which  notice shall set forth the
intended  method of disposition  of the securities  proposed to be registered by
the  Company.  The notice  shall offer to include in such  filing the  aggregate
number of shares of Registrable Securities, as such Holders may request.

     Each Holder of any  Registrable  Securities  desiring to have Common  Stock
registered under this Section 7.02(b) shall advise the Company in writing within
30 days after the date of receipt of such offer from the Company,  setting forth
the amount of such Common Stock for which registration is requested. The Company
shall thereupon  include in such filing the number of shares of Common Stock for
which registration is so requested, subject to the following sentence, and shall
use its best efforts to effect  registration  under the  Securities  Act of such
shares.  If a public offering is proposed for the securities being registered by
the Company or such demanding  security  holder and the managing  underwriter of
such public  offering  advises the Company in writing that, in its opinion,  the
distribution  of the Common Stock  requested to be included in the  registration
concurrently  with  the  securities  being  registered  by the  Company  or such
demanding security holder would materially and adversely affect the distribution
of such securities by the Company or such demanding  security  holder,  then the
Company,  if  applicable,  and  all  selling  security  holders  (including,  if
applicable,  the  Holders  and  the  demanding  security  holder  who  initially
requested such registration) shall reduce the amount of securities each intended
to distribute through such offering on a pro rata basis; provided, however, that
the  Company  shall not be  required  to reduce the amount of  securities  to be
distributed on its behalf to less than 50% of the aggregate number of securities
to be registered in such offering.

     SECTION 7.03.  Additional  Registration  Rights.    (a)  If after the Shelf
                    --------------------------------
Registration  Period there remains a Holder of  Registrable  Securities and such
Holder is an Affiliate of the Company or such Holder  reasonably  believes  that
they are deemed to be an Affiliate of the Company (both, a "Holder  Affiliate"),
and the  company  proposes  to file on its  behalf  or on  behalf  of any of its
security holders (other than Holders of Registrable  Securities) (the "demanding
security holders") a registration statement under the Securities Act on any form
(other than a  Registration  Statement on Form S-4 or S-8 or any successor  form
for  securities to be offered in a  transaction  of the type referred to in Rule
145 under the  Securities  Act or to  employees  of the Company  pursuant to any
employee benefit plan,  respectively) for the general registration of securities
to be sold for cash with  respect  to its  Common  Stock or any  other  class of
equity  security  (as defined in Section  3(a)(11) of the  Exchange  Act) of the
Company, it will give written notice to such Holder Affiliate of the Registrable
Securities  at least 45 days before the initial  filing with the  Commission  of
such registration  statement which notice shall set forth the intended method of
disposition  of the  securities  proposed to be registered  by the Company.

                                       14
<PAGE>

The notice shall offer to include in such filing the aggregate  number of shares
of Registrable Securities, as such Holder Affiliate may request.

     Each Holder Affiliate of any Registrable Securities desiring to have Common
Stock  registered  under this  Section  7.03 shall advise the Company in writing
within 30 days after the date of receipt of such offer from the Company, setting
forth the amount of such Common Stock for which  registration is requested.  The
Company  shall  thereupon  include in such filing the number of shares of Common
Stock for which registration is so requested, subject to the following sentence,
and shall use its best efforts to effect  registration  under the Securities Act
of such  shares.  If a public  offering is  proposed  for the  securities  being
registered  by the Company or such  demanding  security  holder and the managing
underwriter of such public offering  advises the Company in writing that, in its
opinion,  the  distribution  of the Common Stock requested to be included in the
registration concurrently with the securities being registered by the Company or
such  demanding  security  holder  would  materially  and  adversely  affect the
distribution  of such  securities  by the  Company  or such  demanding  security
holder,  then the  Company,  if  applicable,  and all selling  security  holders
(including,  if applicable,  the Holder and the demanding  security  holders who
initially  requested  such  registration)  shall reduce the amount of securities
each intended to distribute through such offering on a pro rata basis; provided,
however,  that the  company  shall  not be  required  to  reduce  the  amount of
securities  to be  distributed  on its behalf to less than 50% of the  aggregate
number of securities to be registered in such offering.

          (b) The Holder  Affiliates  of at least a majority of the  Registrable
Securities held by Holder Affiliates that remain  outstanding may make a written
request to the Company after the Shelf  Registration  Period requesting that the
Company  effect  the  registration  of such  Registrable  Securities  under  the
Securities  Act  specifying  the  aggregate  number  of  Shares  of  Registrable
Securities  proposed to be sold by the Holder Affiliates and the intended method
or methods of disposition  thereof.  The Company shall promptly  notify all such
Holder Affiliates in writing of the receipt of such request and each such Holder
Affiliate may elect (by written  notice sent to the Company  within ten business
days from the date of such  Holder  Affiliate's  receipt  of the  aforementioned
notice from the  Company) to have its  Registrable  Securities  included in such
registration  thereof pursuant to this Section 7.03(b).  Thereupon,  the Company
shall,  as  expeditiously  as is  possible,  effect the  registration  under the
Securities  Act of all  shares of Common  Stock  which the  Company  has been so
requested  to  register by such Holder  Affiliates  for sale,  all to the extent
required to permit the  disposition  (in accordance  with the intended method or
methods  thereof,  as  aforesaid) of the Common Stock so  registered;  provided,
however, that (i) at least 25% of the Registrable  Securities held by Affiliates
must be registered pursuant to such demand registration,  (ii) the Company shall
not be  required  to  effect  more than one  registration  of any  Common  Stock
pursuant to this Section 7.03(b),  (iii) a demand registration will not count as
such until it has become effective, and, (a) if the demand registration does not
become  effective  because  a  material  adverse  change  has  occurred,  or  is
reasonably likely to occur, in the condition (financial or otherwise), business,
assets or results of operations of the Company and its  subsidiaries  taken as a
whole  subsequent  to the  date  of  the  written  request  made  by the  Holder
Affiliates or (b) if, after the demand  registration  has become  effective,  an
offering of Registrable Securities pursuant to a registration is interfered with
by any stop order,  injunction,  or other order or requirement of the Commission
or other governmental  agency or court then the demand registration shall not be
deemed to have been effected and will not count as a demand registration, (iv) a
demand registration will not count as such if the

                                       15
<PAGE>

Company offers any shares of stock pursuant to such  registration  in accordance
with the next  sentence  and (v) the Company may delay  filing one  registration
statement  pursuant to this Section  7.03(b) for a period of up to 90 days. If a
demand  registration  was  initiated  pursuant to this  Section  7.03(b) and the
Company  then  wishes  to  offer  shares  of  stock  in  connection   with  such
registration,  then such registration will be considered a registration pursuant
to Section  7.03(a) and the  provisions of Section  7.03(a) and not this Section
7.03(b) shall apply.

     If the  Holder  Affiliates  so  elect,  the  offering  of such  Registrable
Securities  pursuant to such demand registration shall be in the form of a "firm
commitment"  underwritten  offering.  A  majority  in  interest  of  the  Holder
Affiliates  shall have the right to select  the  managing  underwriters  and any
additional  investment  bankers and managers to be used in  connection  with any
offering under this Section 7.03(b),  subject to the Company's  approval,  which
approval shall not be unreasonably withheld.

     SECTION 7.04.  Registration  Procedures.   In  connection  with  any  Shelf
                    ------------------------
Registration Statement, the following provisions shall apply:

          (a) The Company shall furnish to you, prior to the filing thereof with
the Commission,  a copy of any Shelf Registration Statement,  and each amendment
thereof and each  amendment or supplement,  if any, to the  Prospectus  included
therein and shall use its best efforts to reflect in each such document, when so
filed  with  the  Commission,  such  comments  as you  reasonably  may  propose;
provided,  however,  that the  Company  shall be  required  only to  furnish  an
Incorporated  Document to you as promptly as  practicable  following  its filing
with the Commission.

          (b) The Company shall ensure that (i) any Shelf Registration Statement
and any  amendment  thereto  and any  Prospectus  forming  part  thereof and any
amendment  or  supplement  thereto  complies in all material  respects  with the
Securities Act, (ii) any Shelf Registration  Statement and any amendment thereto
does not, when it becomes  effective,  contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements  therein not misleading and (iii) any Prospectus  forming
part of any Shelf  Registration  Statement,  and any  amendment or supplement to
such Prospectus, does not include an untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements  therein,  in
the light of the circumstances under which they were made, not misleading.

          (c)  (1)  The  Company  shall  advise  you  and the  Holders  and,  if
requested by you or any such Holder, confirm such advice in writing:

               (i) when a Shelf Registration Statement and any amendment thereto
has been filed with the Commission and when the Shelf Registration  Statement or
any post-effective amendment thereto has become effective; and

               (ii)  of  any  request  by  the   Commission  for  amendments  or
supplements  to the Shelf  Registration  Statement  or the  Prospectus  included
therein or for additional information.

                                       16
<PAGE>

               (2)  The  Company  shall  advise  you  and the  Holders  and,  if
requested by you or any such Holder, confirm such advice in writing:

               (i)  of  the  issuance  by  the  Commission  of  any  stop  order
suspending  the  effectiveness  of  the  Shelf  Registration  Statement  or  the
initiation of any proceedings for that purpose;

               (ii) of the  receipt  by the  Company  of any  notification  with
respect to the suspension of the qualification of the securities included in any
Shelf  Registration  Statement for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose; and

               (iii) of the suspension of the use of the Prospectus  pursuant to
Section 7.01(c) hereof or of the happening of any event that requires the making
of any changes in the Shelf Registration Statement or the Prospectus so that, as
of such date, the statements therein are not misleading and do not omit to state
a  material  fact  required  to be  stated  therein  or  necessary  to make  the
statements therein (in the case of the Prospectus, in light of the circumstances
under which they were made) not misleading (which advice shall be accompanied by
an instruction to suspend the use of the Prospectus until the requisite  changes
have been made);  provided that such notice shall not be required to specify the
nature of the event giving rise to the notice requirement hereunder.

          (d) The Company shall use its best efforts to obtain the withdrawal of
any order suspending the  effectiveness of any Shelf  Registration  Statement at
the earliest possible time.

          (e) The Company shall  furnish to each Holder of  securities  included
within the coverage of any Shelf  Registration  Statement,  without  charge,  at
least  one copy of such  Shelf  Registration  Statement  and any  post-effective
amendment  thereto,  including  documents  incorporated  by  reference  therein,
financial  statements and schedules,  and, if the Holder so requests in writing,
all exhibits (including those incorporated by reference).

          (f) The Company shall, during the Shelf Registration  Period,  deliver
to  each  Holder  of  securities  included  within  the  coverage  of any  Shelf
Registration  Statement,  without  charge,  as  many  copies  of the  Prospectus
(including  each  preliminary  Prospectus)  included in such Shelf  Registration
Statement and any amendment or supplement  thereto as such Holder may reasonably
request;  and the Company consents to the use of the Prospectus or any amendment
or supplement thereto by each of the selling Holders of securities in connection
with the offering and sale of the  securities  covered by the  Prospectus or any
amendment or supplement thereto.

          (g)  Prior  to any  offering  of  securities  pursuant  to  any  Shelf
Registration Statement,  the Company shall register or qualify or cooperate with
the  Holders of  securities  included  therein and their  respective  counsel in
connection with the  registration or  qualification of such securities for offer
and sale under the securities or blue sky laws of such jurisdictions as any such
Holders  reasonably  request in writing  and do any and all other acts or things
reasonably  necessary  or  advisable  to  enable  the  offer  and  sale  in such
jurisdictions of the securities covered

                                       17
<PAGE>

by such Shelf Registration Statement;  provided,  however, that the Company will
not be required to qualify generally to do business in any jurisdiction where it
is not then so qualified or to take any action which would subject it to general
service of process or to taxation in any such jurisdiction  where it is not then
so subject.

          (h) The Company  shall  cooperate  with the Holders of  securities  to
facilitate  the timely  preparation  and delivery of  certificates  representing
securities to be sold pursuant to any Shelf  Registration  Statement free of any
restrictive  legends and in such  denominations  and registered in such names as
Holders  may  request  prior to  sales  of  securities  pursuant  to such  Shelf
Registration Statement.

          (i)  Upon  the  occurrence  of any  event  contemplated  by  paragraph
(c)(2)(iii)  above,  the  Company  shall,  if  required  pursuant  to the Act or
paragraph (c)(2)(iii) above, as promptly as practicable prepare a post-effective
amendment to any Shelf  Registration  Statement or an amendment or supplement to
the  related  Prospectus  or file  any  other  required  document  so  that,  as
thereafter  delivered to  purchasers of the  securities  included  therein,  the
Prospectus  will not include an untrue  statement of a material  fact or omit to
state any material fact necessary to make the statements  therein,  in the light
of the circumstances under which they were made, not misleading.

          (j) Not  later  than  the  effective  date of any  Shelf  Registration
Statement hereunder,  the Company shall provide a CUSIP number for each class of
securities registered under such Shelf Registration  Statement,  and provide the
Transfer Agent with printed certificates for such securities, in a form eligible
for deposit with The Depository Trust Company.

          (k) The  Company  shall  use its  best  efforts  to  comply  with  all
applicable  rules and  regulations  of the  Commission  and shall make generally
available to its security  holders as soon as  practicable  after the  effective
date of the  applicable  Shelf  Registration  Statement  an  earnings  statement
satisfying the provisions of Section 11(a) of the Act.

          (l) The  Company  may require  each  Holder of  securities  to be sold
pursuant  to any Shelf  Registration  Statement  to  furnish  to the  Company in
writing  such  information  regarding  the Holder and the  distribution  of such
securities as the Company may from time to time reasonably require for inclusion
in such Shelf  Registration  Statement.  Any  Holder  who fails to provide  such
information shall not be entitled to use the Prospectus.

          (m)  The  Company  shall,  if  requested,  promptly  incorporate  in a
Prospectus  supplement  or  post-effective  amendment  to a  Shelf  Registration
Statement,  such  information as the Managing  Underwriters and Majority Holders
reasonably  agree should be included therein and shall make all required filings
of such Prospectus supplement or post-effective amendment as soon as notified of
the matters to be incorporated in such Prospectus  supplement or  post-effective
amendment.

          (n)  The  Company   shall  enter  into  such   agreements   (including
underwriting  agreements)  and take all other  appropriate  actions  in order to
expedite or facilitate the  registration  or the  disposition of any securities,
and in connection therewith, if an underwriting agreement is entered into, cause
the same to contain indemnification  provisions and procedures

                                       18
<PAGE>

no less favorable than those set forth in Section 7.06 (or such other provisions
and procedures acceptable to the Majority Holders and the Managing Underwriters,
if any), with respect to all parties to be indemnified pursuant to Section 7.06,
it being  understood that all underwriting  discounts and  commissions,  and all
other underwriting fees,  associated with such agreement in connection with such
offering of the securities  shall,  except as otherwise  expressly agreed herein
(including  those expenses  covered by Section 7.05),  be for the account of the
Holders or the underwriters.

          (o) The Company shall (i) make reasonably  available for inspection by
Holders of securities to be registered  thereunder and any Managing  Underwriter
participating in any disposition pursuant to such Shelf Registration  Statement,
and any attorney,  accountant or other agent retained by the Majority Holders of
securities to be registered  thereunder or by any such Managing  Underwriter all
relevant  financial  and  other  records,   pertinent  corporate  documents  and
properties of the Company;  (ii) cause the officers,  directors and employees of
the Company to supply all relevant information  reasonably requested by any such
Holders or Managing  Underwriter,  attorney,  accountant  or agent in connection
with such Shelf Registration Statement as is customary for similar due diligence
examinations;  provided,  however,  that any  information  that is designated in
writing by the Company in good faith, as confidential at the time of delivery of
such  information  shall be kept  confidential  by any such Holders and Managing
Underwriter, attorney, accountant or agent, unless disclosure thereof is made in
connection with a court  proceeding or required by law, or such  information has
become available (not in violation of this Agreement) to the public generally or
through a third party without an  accompanying  obligation  of  confidentiality;
(iii) make such  representations  and  warranties  to the Holders of  securities
registered thereunder and the underwriters, if any, in form, substance and scope
as are  customarily  made by issuers  to  underwriters  in primary  underwritten
offerings  and  covering  matters  including  those  set  forth in the  Purchase
Agreement;  (iv) obtain  opinions of counsel to the Company and updates  thereof
(which counsel and opinions (in form,  scope and substance)  shall be reasonably
satisfactory to the Holders and Managing Underwriter,  if any) addressed to each
selling  Holder  and the  underwriters,  if any,  covering  such  matters as are
customarily  covered in opinions  requested in  underwritten  offerings and such
other  matters as may be  reasonably  requested by the  Majority  Holders of the
securities  covered by such Shelf  Registration  Statement  and by such Managing
Underwriter;  (v) obtain  "cold  comfort"  letters and updates  thereof from the
independent certified public accountants of the Company (and, if necessary,  use
its reasonable  best efforts to retain any other  independent  certified  public
accountants of any subsidiary of the Company or of any business  acquired by the
Company for which  financial  statements and financial data are, or are required
to be, included in the Shelf Registration Statement),  addressed to each selling
Holder of securities  registered  thereunder  and the  underwriters,  if any, in
customary  form and covering  matters of the type  customarily  covered in "cold
comfort"  letters in connection with primary  underwritten  offerings;  and (vi)
deliver such documents and  certificates  as may be reasonably  requested by the
Majority  Holders and the  Managing  Underwriters,  if any,  including  those to
evidence  compliance  with  Section  3(i)  and  with  any  customary  conditions
contained in the underwriting  agreement or other agreement  entered into by the
Company. The foregoing actions set forth in clauses (iii), (iv), (v) and (vi) of
this  Section 3(o) shall be  performed  at (A) the  effectiveness  of such Shelf
Registration  Statement and each  post-effective  amendment thereto and (B) each
closing  under  any  underwriting  or  similar  agreement  as and to the  extent
required thereunder.

                                       19
<PAGE>

     SECTION 7.05.  Expenses.   All  expenses  incurred in  complying  with this
                    --------
Article VII,  including,  without  limitation,  all registration and filing fees
(including all expenses  incident to filing with the NASD),  printing  expenses,
fees and disbursements of a single counsel and accountants for the Company,  the
fees and expenses of counsel for the Holders or Holder  Affiliates,  as the case
may be effecting a  registration,  expenses of any special audits incident to or
required by any such  registration and expenses of complying with the securities
or blue sky laws of any jurisdictions pursuant to Section 7.04(g), shall be paid
by the Company, it being understood that underwriting  discounts and commissions
and all other  underwriting  fees  shall be for the  account  of the  Holders or
Holder Affiliates, as the case may be.

     SECTION 7.06.  Indemnification and Contribution.
                    --------------------------------

          (a) In the event of any registration under the Securities Act pursuant
to this Article VII of any  Registrable  Securities,  the Company will indemnify
and hold  harmless  the Holder  thereof  against  any losses,  claims,  damages,
liabilities  or  expenses,  joint or  several,  to which such  Holder may become
subject; under the Securities Act or otherwise,  insofar as such losses, claims,
damages, liabilities or expenses (or actions in respect thereof) arise out of or
are based upon an untrue  statement or alleged untrue  statement of any material
fact contained,  on the effective date thereof,  in any  registration  statement
under which such  securities  were  registered  under the  Securities  Act,  any
preliminary  prospectus or final prospectus  contained therein, or any amendment
or supplement thereto, or arise out of or are based upon the omission or alleged
omission  to state  therein a material  fact  required  to be stated  therein or
necessary to make the statements therein not misleading, and will reimburse such
Holder for any legal or any other expenses incurred by such Holder in connection
with  investigating  or defending  any such action or claim as such expenses are
incurred;  provided,  however,  that the Company shall not be liable in any such
case to the extent that such loss,  claim,  damage,  liability or expense arises
out of or is based upon an untrue  statement  or  alleged  untrue  statement  or
omission or alleged omission made in such  registration  statement,  preliminary
prospectus,  prospectus  or  amendment  or  supplement  in reliance  upon and in
conformity with written  information  furnished to the Company by such Holder or
an underwriter on behalf of such Holder expressly for use therein;  and provided
further that the foregoing  indemnity  agreement  with respect to any prospectus
shall not inure to the benefit of the Holder if it is conclusively determined by
a court  of  competent  jurisdiction  not  subject  to  appeal  that a copy of a
prospectus  was not sent or given by or on behalf of the Holder to the purchaser
of the Common Stock who has asserted a claim, if required by law to have been so
delivered,  at or prior to the written  confirmation of the sale of Common Stock
to such person,  and if a prospectus  would have cured the defect giving rise to
such loss, claim, damage or liability;

          (b) Each  Holder  of  Registrable  Securities,  by  acceptance  of the
registration  provisions provided herein,  agrees to indemnify and hold harmless
the Company against any losses, claims, damages,  liabilities or expenses, joint
or several, to which the Company may become subject, under the Securities Act or
otherwise,  insofar as such losses, claims, damages, liabilities or expenses (or
actions in respect  thereof) arise out of or are based upon an untrue  statement
or alleged  untrue  statement of a material fact  contained in any  registration
statement under which securities were registered under the Securities Act at the
request of such Holder, any preliminary prospectus or final prospectus contained
therein,  or any amendment or supplement  thereto,  or arise out of or are based
upon the omission or alleged omission to state therein a

                                       20
<PAGE>

material fact required to be stated  therein or necessary to make the statements
therein not misleading, in each case to the extent, but only to the extent, that
such  untrue  statement  or alleged  untrue  statement  or  omission  or alleged
omission was made in any such registration  statement,  preliminary  prospectus,
prospectus or amendment or  supplement  in reliance upon and in conformity  with
written  information  furnished to the Company by such Holder  expressly for use
therein;  and will  reimburse  the  Company  for any  legal  or  other  expenses
reasonably incurred by the Company in connection with investigating or defending
any such action or claim as such expenses are incurred.

          (c) Promptly  after receipt by an indemnified  party under  subsection
(a) or (b) above of notice of the  commencement of any action,  such indemnified
party shall, if a claim in respect thereof is to be made against an indemnifying
party under such  subsection,  notify the  indemnifying  party in writing of the
commencement thereof; but the omission so to notify the indemnifying party shall
not relieve it from any  liability  which it may have to any  indemnified  party
otherwise than under such subsection except to the extent it has been materially
prejudiced by such failure. In case any such action shall be brought against any
indemnified party and it shall notify the indemnifying party of the commencement
thereof, the indemnifying party shall be entitled to participate therein and, to
the  extent  that it shall  wish,  jointly  with any  other  indemnifying  party
similarly notified,  to assume the defense thereof, with counsel satisfactory to
such  indemnified  party  (which  shall  not,  except  with the  consent  of the
indemnified party, be counsel to the indemnifying party), and, after notice from
the indemnifying  party to such  indemnified  party of its election so to assume
the  defense  thereof,  the  indemnifying  party  shall  not be  liable  to such
indemnified  party under such subsection for any legal expenses of other counsel
or any other expenses,  in each case  subsequently  incurred by such indemnified
party, in connection  with the defense  thereof other than  reasonable  costs of
investigation.

          (d) If the  indemnification  provided  for in  this  Section  7.06  is
unavailable  to or  insufficient  to hold  harmless an  indemnified  party under
subsection  (a),  (b) or (c) above in respect of any  losses,  claims,  damages,
liabilities or expenses (or actions in respect  thereof)  referred to therein or
if the indemnified party failed to give the notice required under subsection (c)
above,  then each  indemnifying  party  shall  contribute  to the amount paid or
payable by such indemnified party as a result of such losses,  claims,  damages,
liabilities or expenses (or actions in respect thereof) in such proportion as is
appropriate to reflect the relative fault of the Company on the one hand and the
relevant  Holder on the other in  connection  with the  statements  or omissions
which  resulted in such losses,  claims,  damages,  liabilities  or expenses (or
actions  in  respect  thereof),   as  well  as  any  other  relevant   equitable
considerations.  The relative  fault shall be  determined by reference to, among
other things,  whether the untrue or alleged untrue statement of a material fact
or the  omission  or  alleged  omission  to state a  material  fact  relates  to
information  supplied by the Company on the one hand or the  relevant  Holder on
the other and the parties' relative intent, knowledge, access to information and
opportunity  to correct or prevent such  statement or omission.  The Company and
each Holder  registering  securities  under this Article VII agree that it would
not be just and equitable if contributions  pursuant to this subsection (d) were
determined by pro rata  allocation  or by any other method of  allocation  which
does not take account of the equitable  considerations referred to above in this
subsection  (d). The amount paid or payable by an indemnified  party as a result
of the losses,  claims,  damages or liabilities (or actions in respect  thereof)
referred to above in this subsection (d) shall be deemed to include any legal or
other expenses  reasonably incurred by such indemnified party in

                                       21
<PAGE>

connection   with   investigating   or  defending  any  such  action  or  claim.
Notwithstanding  the provisions of this  subsection  (d), no Holder  registering
securities  under this Article VII shall be required to contribute any amount in
excess of the amount by which the total price at which the securities registered
and sold by such Holder  exceeds the amount of any damages which such Holder has
otherwise  been  required  to pay by reason of such  untrue  or  alleged  untrue
statement  or  omission  or alleged  omission.  No person  guilty of  fraudulent
misrepresentation  (within the meaning of Section 11(f) of the  Securities  Act)
shall be  entitled  to  contribution  from any person who was not guilty of such
fraudulent misrepresentation.

          (e) The obligations of the Company under this Section 7.06 shall be in
addition to any liability which the Company may otherwise have and shall extend,
upon the same terms and conditions,  to each person (including each underwriter)
who  participated  in the  offering  of the  registered  securities  and to each
person,  if any,  who  controls  any Holder  registering  securities  under this
Article  VII or any such person  (including  each such  underwriter)  within the
meaning of Section 15 of the  Securities  Act;  and the  obligations  under this
Section 7.06 of any Holder  registering  securities under this Article VII shall
be in addition to any liability  which such Holder may otherwise  have and shall
extend, upon the same terms and conditions,  to each officer and director of the
Company and to each person,  if any, who controls the Company within the meaning
of Section 15 of the Securities Act.

     SECTION 7.07.  Selection of Managing Underwriters. The managing underwriter
                    ----------------------------------
or  underwriters  for any offering of Common Stock to be registered  pursuant to
Section  7.01 shall be selected by the Holders of a majority of the  Registrable
Securities being so registered (other than any shares being registered  pursuant
to Section  7.02(b) and 7.03) and shall be reasonably  acceptable to the Company
and such  consent  by the  Company  to the  choice of  managing  underwriter  or
underwriters shall not be unreasonably withheld.

     SECTION 7.08.  Inspection  of Records  and  Documents.    Each  Holder  and
                    --------------------------------------
underwriter  participating  in any  disposition  pursuant  to the  registrations
described  in this  Article VII,  and any  attorney,  accountant  or other agent
retained by any such Holder or  underwriter  (collectively,  the  "Inspectors"),
shall have conducted, at dates, times and locations reasonably specified by such
Inspectors, such investigations,  inquiries and conferences with such directors,
officers,   employees  and  agents  (including,   without  limitation,   outside
accountants and counsel) of the Company and its subsidiaries, been furnished and
reviewed such  documentation  of the Company and its  subsidiaries and conducted
such other procedures, as the Inspectors deem necessary, in their sole judgment,
to  have  a  satisfactory  "due  diligence"  defense  under  Section  11 of  the
Securities Act in connection with such registrations.

     SECTION 7.09. Assignment of Registration Rights. Each Holder of Registrable
                   ---------------------------------
Securities  may assign all or any part of its rights  under this  Article VII to
any person to whom such Holder  sells,  transfers  or assigns  such  Registrable
Securities.  In the event that the Holder  shall  assign its rights  pursuant to
this  Article  VII in  connection  with  the  transfer  of  less  than  all  its
Registrable Securities,  the Holder shall also retain his rights with respect to
its remaining Registrable Securities.

                                       22
<PAGE>

                                  ARTICLE VIII
                                ADDITIONAL RIGHTS

     SECTION 8.01.  Right of First Offer.
                    ---------------------

          (a)  Subject to the terms and  conditions  specified  in this  Section
8.01,  the  Company  hereby  grants to each  Holder the right of first  offer to
purchase a pro rata share of New Securities (as  hereinafter  defined) which the
Company may, from time to time,  propose to sell and issue;  provided,  however,
that any Holder shall have such right of first offer only if the  percentage  of
outstanding  Common  Stock owned (or into which the Shares are  convertible)  by
such Holder  would be diluted by 10% or more in the  aggregate  by any such sale
(or any series of sales over any 48 month period) of New Securities.  A Holder's
pro rata share,  for purposes of this right of first offer,  is the ratio of the
number of shares of Common Stock owned by such Holder  immediately  prior to the
issuance of the New Securities,  assuming full conversion of the Shares,  to the
total  number of shares of Common  Stock  outstanding  immediately  prior to the
issuance of New Securities,  assuming full conversion of the Shares.  Subject to
applicable  securities  laws,  each Holder shall have a right of over  allotment
such that if any Holder fails to exercise its right under  hereunder to purchase
its pro rata  share of New  Securities,  the  other  Holders  may  purchase  the
nonpurchasing  Holder's portion or a pro rata basis within 10 days from the date
such nonpurchasing  Holder fails to exercise its right hereunder to purchase its
pro rata share of New Securities. Each Holder shall be entitled to apportion the
right of first offer hereby granted among itself and its partners,  shareholders
and  affiliates in such  proportions  as it deems  appropriate.  As used in this
Article VIII,  "Holders"  means the  Purchasers and any persons or entities that
beneficially own shares of the Series A Convertible Preferred Stock.

          (b) In the event the Company  proposes to issue New Securities (and in
the  event  over-allotment  rights  exist  with  respect  to  any  issue  of New
Securities),  it shall give each Holder  written  notice (the  "Notice")  of its
intention  stating (i) a description of the New Securities it proposes to issue,
(ii) the number of shares of New  Securities  it  proposes  to offer,  (iii) the
price per share at which,  and other  terms on which,  it proposes to offer such
New  Securities  and (iv) the number of shares  that the Holder has the right to
purchase under this Section 8.01.

          (c)  Within 10 days  after the  Notice  is given (in  accordance  with
Section 9.06),  the Holder may elect to purchase,  at the price specified in the
Notice, up to its pro rata share of New Securities, as provided for in paragraph
(a). An  election to purchase  shall be made in writing and must be given to the
Company within such 10-day period (in accordance with Section 9.06). The closing
of the sale of New  Securities by the Company to the  participating  Holder upon
exercise of its rights under this  Section 8.01 shall take place  simultaneously
with the closing of the sale of New Securities to third parties.

          (d) The  Company  shall have 120 days after the last date on which the
Holder's  right of first offer  lapsed to enter into an  agreement  (pursuant to
which the sale of New  Securities  covered  thereby shall be closed,  if at all,
within 60 days from the execution  thereof) to sell the New Securities which the
Holders did not elect to purchase under this Section 8.01, at or above the price
and upon terms not more favorable to the purchasers of such  securities than the
terms specified in the initial Notice given in connection with such sale. In the
event the Company has not entered into an  agreement to sell the New  Securities
within such 120-day period (or sold and

                                       23
<PAGE>

issued New Securities in accordance  with the foregoing  within 60 days from the
date of said agreement),  the Company shall not thereafter issue or sell any New
Securities  without first  offering such New  Securities to the Purchaser in the
manner provided in this Section 8.01.

          (e)  "New  Securities"   shall  mean  any  shares  of,  or  securities
convertible  into or  exercisable  for any shares of, any class of the Company's
capital stock, provided that "New Securities" does not include: (A) the Series A

     Convertible Preferred Stock or the Common Stock issuable upon conversion of
the Series A Convertible  Preferred  Stock;  (B) shares of Common Stock issuable
upon the  exercise of  Existing  Equity  Rights;  (C) Common  Stock  issued upon
exercise of warrants,  options or convertible securities if the issuance of such
warrants,  options or convertible securities was a result of the exercise of the
right of first offer granted under this Section 8.01 or was subject to the right
of first offer granted under this Section 8.01; and (D)  securities  sold to the
public in an  offering  pursuant  to a  registration  statement  filed  with the
Securities and Exchange Commission under the Securities Act.

                                   ARTICLE IX
                                  MISCELLANEOUS

     SECTION 9.01.  Survival.  The warranties and representations of the Company
                    --------
and the Purchasers contained in or made pursuant to this Agreement shall survive
for a period of 4 years after the execution  and delivery of this  Agreement and
the Closing and shall in no way be affected by any  investigation of the subject
matter  thereof  made by or on  behalf of the  Purchasers  or the  Company.  All
agreements and covenants  contained herein shall survive  indefinitely until, by
their respective terms, they are no longer operative.

     SECTION 9.02.  Transfer; Successors and Assigns.   The terms and conditions
                    --------------------------------
of this  Agreement  shall  inure  to the  benefit  of and be  binding  upon  the
respective  successors  and assigns of the parties.  Nothing in this  Agreement,
express or implied,  is intended to confer upon any party other than the parties
hereto  or  their  respective  successors  and  assigns  any  rights,  remedies,
obligations,  or  liabilities  under or by reason of this  Agreement,  except as
expressly provided in this Agreement.

     SECTION 9.03.  Governing  Law.  This  Agreement  shall be  governed  by and
                    --------------
construed under the laws of the State of New York.

     SECTION 9.04.  Counterparts.  This  Agreement  may  be  executed  in two or
                    ------------
more counterparts,  each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

     SECTION 9.05.  Title and  Subtitles.  The titles and subtitles used in this
                    --------------------
Agreement  are  used for  convenience  only  and are not to be  considered  in
construing or interpreting this Agreement.

                                       24
<PAGE>

     SECTION 9.06.  Notices.
                    -------

          (a) All notices, requests, demands and other communications under this
Agreement  or in  connection  herewith  shall  be  given  to or  made  upon  the
Purchasers  at the address set forth with  respect to such party on the Schedule
of Purchasers attached hereto as Exhibit A, or, if to the Company to ECCS, Inc.,
One Sheila Drive, Tinton Falls, NJ 07724.

          (b) In order to exercise the  conversion  right  pursuant to paragraph
(8)(a)(i)  of the  Restated  Certificate,  the  holder of the shares of Series A
Convertible  Preferred  Stock to be converted  shall  surrender the  certificate
representing  such shares at the office of the Company,  or at the office of the
conversion agent for the Series A Convertible Preferred Stock appointed for such
purpose by the Company,  with a written notice of election to convert  completed
and signed specifying the number of shares to be converted.

          Such notice shall be substantially in the following form:

                          NOTICE OF ELECTION TO CONVERT

                  The  undersigned,   being  a  holder  of  the  6%  Convertible
      Preferred  Stock,  Series  A  ("Preferred  Stock"),  of  ECCS,  Inc.  (the
      "Corporation"),  irrevocably  exercises  the right to convert  outstanding
      shares of Preferred Stock on        [ ], 2001, into shares of Common Stock
                                   ------
      of the  Corporation in accordance  with the terms of the Preferred  Stock,
      and directs that the shares issuable and deliverable  upon the conversion,
      be  issued  and  delivered  in the  denominations  indicated  below to the
      registered holder hereof unless a different name has been indicated below.
      If  shares  are to be  issued  in the  name of a  Person  other  than  the
      undersigned,  the  undersigned  will pay all transfer  taxes  payable with
      respect thereto.

          (c) All notices,  requests,  demands and other communications given or
made in accordance  with the provisions of this  Agreement  shall be in writing,
and shall be sent by airmail,  return receipt requested, or by telex or telecopy
(facsimile)  with  confirmation  of receipt,  and shall be deemed to be given or
made where receipt is so confirmed.

          (d) Any party may, by written  notice to the other,  alter its address
or  respondent,  and such notice shall be  considered to have been given 10 days
after the airmailing, telexing or telecopying thereof.

     SECTION 9.07.  Finder's Fee.   Each party  represents  and warrants that it
                    ------------
neither  is nor  will  be  obligated  for  any  finder's  fee or  commission  in
connection with this transaction. Each Purchaser agrees to indemnify and to hold
harmless the Company from any liability for any  commission or  compensation  in
the nature of a finder's fee (and the costs and  expenses of  defending  against
such  liability or asserted  liability)  for which such  Purchaser or any of its
officers,  employees,  or representatives is responsible in connection with this
transaction,  other than as provided  in Section  9.09.  The  Company  agrees to
indemnify and hold harmless each Purchaser from any liability for any commission
or  compensation  in the nature of a finder's fee (and the costs and expenses of
defending against such liability or asserted liability) for which the

                                       25
<PAGE>

Company or any of its officers,  employees or  representatives is responsible in
connection with this transaction.

     SECTION 9.08.  Expenses.    The  Company  covenants  and  agrees  with  the
                    --------
Purchasers  that  the  Company  will pay or cause  to be paid  upon  demand  the
following: (i) the fees, disbursements and expenses of the Company's counsel and
accountants  in  connection  with the purchase and sale of the Shares;  (ii) the
cost of  printing  or  producing  this  Agreement  and any  other  documents  in
connection with the offering,  purchase,  sale and delivery of the Shares; (iii)
all expenses in connection with the  qualification  of the Shares,  for offering
and sale under state  securities laws,  including the fees and  disbursements of
counsel for the Purchasers in connection with such qualification;  (iv) the cost
of preparing stock certificates;  (v) the cost and charges of any transfer agent
or registrar; (vi) all out-of-pocket expenses of the Purchasers,  including fees
and disbursements of counsel,  and stock transfer taxes on the Shares; (vii) all
fees and  expenses  provided  for in Article VII; and (viii) all other costs and
expenses incident to the performance of its obligations  hereunder which are not
otherwise specifically provided for in this Section 9.08.

     SECTION 9.09.  Fees.  The Company  covenants and agrees with the Purchasers
                    ----
that the  Company  shall pay at the Closing (i) the fees set forth in the letter
agreement  between the Company and C.E.  Unterberg,  Towbin  dated  February 14,
2001,  (ii) the  reasonable  expenses of investors,  including the legal fees of
Cravath, Swaine & Moore, incurred in connection with this financing arrangement,
and (iii) the  reasonable  out-of-pocket  expenses  incurred by C.E.  Unterberg,
Towbin in  carrying  out its  duties  set forth in the  letter  agreement  dated
February 14, 2001,  provided that such expenses  shall not exceed $50,000 in the
aggregate to be paid at Closing.

     The  letter   agreement   dated   February  14,  2001,   provides  that  in
consideration of C.E. Unterberg,  Towbins services as a financial advisor to the
Company and for carrying out the duties described in such letter agreement,  the
Company will issue to C.E.  Unterberg,  Towbin up to 125,000  shares of Series A
Convertible Preferred Stock adjusted according to the number of Shares of Series
A Convertible Preferred Stock purchased by the Purchasers upon the Closing. C.E.
Unterberg,  Towbin will be entitled to the same rights with regard to the shares
of Series A Convertible Preferred Stock as if it were a Purchaser hereunder.

     SECTION 9.10.  Amendments  and Waivers.  Any term of this  Agreement may be
                    -----------------------
amended and the  observance of and term of this  Agreement may be waived (either
generally   or  in  a   particular   instance   and  either   retroactively   or
prospectively),  only with the written consent of the Company and the holders of
a majority of the Securities  (calculated on an  as-converted  basis)  purchased
hereunder.  Any  amendment or waiver  effected in  accordance  with this Section
shall be binding upon each transferee of any  Securities,  each future holder of
all such  Securities,  and the  Company;  provided,  however,  that  none of the
conditions  set forth in  Article  IV hereof  may be waived  with  respect  to a
particular Purchaser unless it consents thereto.

     SECTION 9.11.  Severability.   If one or more provisions of this  Agreement
                    ------------
are held to be  unenforceable  under  applicable  law, such  provision  shall be
excluded  from  this  Agreement  and the  balance  of this  Agreement  shall  be
interpreted  as if such  provision  were so excluded and shall be enforceable in
accordance with its terms.

                                       26
<PAGE>

     SECTION 9.12.  Entire  Agreement.   This  Agreement  dated  April 4,  2001,
                    -----------------
constitutes the entire  Agreement  between the parties hereto  pertaining to the
subject  matter hereof and thereof,  and any and all other prior written or oral
agreements existing between the parties hereto are expressly canceled.

     This  Series  A  Convertible  Preferred  Stock  Purchase  Agreement  may be
executed in one or more counterparts,  each of which shall be deemed an original
and all of  which,  when  taken  together,  shall  constitute  one and the  same
instrument.

                                       27
<PAGE>

     IN WITNESS  WHEREOF,  the parties have  executed  this Series A Convertible
Preferred Stock Purchase Agreement as of the date first above written.

                                          PURCHASERS:

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

                                          COMPANY:

                                          ECCS, INC.,

                                          By: /s/ Gregg M. Azcuy
                                              --------------------------------
                                          Name:  Gregg M. Azcuy
                                          Title: President and Chief Executive
                                                 Officer<PAGE>

                                                                   EXHIBIT 4.1

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

                           NEON COMMUNICATIONS, INC.,

                                     Issuer

                                       AND

                                 [             ],

                                     Trustee

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

                                    INDENTURE

                             Dated as of [ ], 200[ ]

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

                             Senior Debt Securities

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

<PAGE>

                           CROSS-REFERENCE TABLE(1)

Section of
Trust Indenture Act                                        Section of
of 1939, as Amended                                        Indenture
-------------------                                        ----------
310(a)........................................................7.09
310(b)........................................................7.08
                                                              7.10
310(c)........................................................Inapplicable
311(a)........................................................7.13(a)
311(b)........................................................7.13(b)
311(c)........................................................Inapplicable
312(a)........................................................5.02(a)
312(b)........................................................5.02(b)
312(c)........................................................5.02(c)
313(a)........................................................5.04(a)
313(b)........................................................5.04(b)
313(c)........................................................5.04(a)
                                                              5.04(b)
313(d)........................................................5.04(c)
314(a)........................................................5.03
314(b)........................................................Inapplicable
314(c)........................................................13.06
314(d)........................................................Inapplicable
314(e)........................................................13.06
314(f)........................................................Inapplicable
315(a)........................................................7.01(a)
                                                              7.02
315(b)........................................................6.07
315(c)........................................................7.01
315(d)........................................................7.01(b)
                                                              7.01(c)
315(e)........................................................6.07
316(a)........................................................6.06
                                                              8.04
316(b)........................................................6.04
316(c)........................................................8.01
317(a)........................................................6.02
317(b)........................................................4.03
318(a)........................................................13.08

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

1    This Cross-Reference Table does not constitute part of the Indenture and
     shall not have any bearing on the interpretation of any of its terms or
     provisions.

                                       ii

<PAGE>

                              TABLE OF CONTENTS (2)

<TABLE>
<CAPTION>

                                                                                                                PAGE
<S>                 <C>   <C>                                                                                   <C>
ARTICLE I           DEFINITIONS...................................................................................1

   SECTION 1.01           Definitions of Terms....................................................................1

ARTICLE II          ISSUE, DESCRIPTION, TERMS, EXECUTION,
                    REGISTRATION AND EXCHANGE OF SECURITIES.......................................................5

   SECTION 2.01           Designation and Terms of Securities.....................................................5
   SECTION 2.02           Form of Securities and Trustee's Certificate............................................7
   SECTION 2.03           Denominations:  Provisions for Payment..................................................7
   SECTION 2.04           Execution and Authentications...........................................................9
   SECTION 2.05           Registration of Transfer and Exchange..................................................10
   SECTION 2.06           Temporary Securities...................................................................11
   SECTION 2.07           Mutilated, Destroyed, Lost or Stolen Securities........................................11
   SECTION 2.08           Cancellation...........................................................................12
   SECTION 2.09           Benefits of Indenture..................................................................12
   SECTION 2.10           Authenticating Agent...................................................................12
   SECTION 2.11           Global Securities......................................................................13

ARTICLE III         REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS.........................................14

   SECTION 3.01           Redemption.............................................................................14
   SECTION 3.02           Notice of Redemption...................................................................14
   SECTION 3.03           Payment Upon Redemption................................................................15
   SECTION 3.04           Sinking Fund...........................................................................16
   SECTION 3.05           Satisfaction of Sinking Fund Payments with Securities..................................16
   SECTION 3.06           Redemption of Securities for Sinking Fund..............................................16

ARTICLE IV          COVENANTS....................................................................................17

   SECTION 4.01           Payment of Principal, Premium and Interest.............................................17
   SECTION 4.02           Maintenance of Office or Agency........................................................17
   SECTION 4.03           Paying Agents..........................................................................17
   SECTION 4.04           Appointment to Fill Vacancy in Office of Trustee.......................................18
   SECTION 4.05           Compliance with Consolidation Provisions...............................................19

ARTICLE V           SECURITYHOLDERS'LISTS AND REPORTS BY
                    THE COMPANY AND THE TRUSTEE..................................................................19

   SECTION 5.01           Company to Furnish Trustee Names and Addresses of Securityholders......................19
   SECTION 5.02           Preservation Of Information; Communications With Securityholders.......................19
   SECTION 5.03           Reports by the Company.................................................................19
   SECTION 5.04           Reports by the Trustee.................................................................20

ARTICLE VI          REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS
                    ON EVENT OF DEFAULT..........................................................................21

   SECTION 6.01           Events of Default......................................................................21

                                      iii

<PAGE>

   SECTION 6.02           Collection of Indebtedness and Suits for Enforcement by Trustee........................22
   SECTION 6.03           Application of Moneys Collected........................................................24
   SECTION 6.04           Limitation on Suits....................................................................24
   SECTION 6.05           Rights and Remedies Cumulative; Delay or Omission Not Waiver...........................25
   SECTION 6.06           Control by Securityholders.............................................................25
   SECTION 6.07           Undertaking to Pay Costs...............................................................26

ARTICLE VII         CONCERNING THE TRUSTEE.......................................................................26

   SECTION 7.01           Certain Duties and Responsibilities of Trustee.........................................26
   SECTION 7.02           Certain Rights of Trustee..............................................................27
   SECTION 7.03           Trustee Not Responsible for Recitals or Issuance or Securities.........................29
   SECTION 7.04           May Hold Securities....................................................................29
   SECTION 7.05           Moneys Held in Trust...................................................................29
   SECTION 7.06           Compensation and Reimbursement.........................................................29
   SECTION 7.07           Reliance on Officers'Certificate.......................................................30
   SECTION 7.08           Disqualification; Conflicting Interests................................................30
   SECTION 7.09           Corporate Trustee Required; Eligibility................................................30
   SECTION 7.10           Resignation and Removal; Appointment of Successor......................................31
   SECTION 7.11           Acceptance of Appointment By Successor.................................................32
   SECTION 7.12           Merger, Conversion, Consolidation or Succession to Business............................33
   SECTION 7.13           Preferential Collection of Claims Against the Company..................................33

ARTICLE VIII        CONCERNING THE SECURITYHOLDERS...............................................................34

   SECTION 8.01           Evidence of Action by Securityholders..................................................34
   SECTION 8.02           Proof of Execution by Securityholders..................................................34
   SECTION 8.03           Who May be Deemed Owners...............................................................35
   SECTION 8.04           Certain Securities Owned by Company Disregarded........................................35
   SECTION 8.05           Actions Binding on Future Securityholders..............................................35

ARTICLE IX          SUPPLEMENTAL INDENTURES......................................................................36

   SECTION 9.01           Supplemental Indentures Without the Consent of  Securityholders........................36
   SECTION 9.02           Supplemental Indentures With Consent of Securityholders................................37
   SECTION 9.03           Effect of Supplemental Indentures......................................................37
   SECTION 9.04           Securities Affected by Supplemental Indentures.........................................38
   SECTION 9.05           Execution of Supplemental Indentures...................................................38

ARTICLE X           SUCCESSOR ENTITY.............................................................................38

   SECTION 10.01          Company May Consolidate, Etc...........................................................38
   SECTION 10.02          Successor Entity Substituted...........................................................39
   SECTION 10.03          Evidence of Consolidation, Etc. to Trustee.............................................39

ARTICLE XI          SATISFACTION AND DISCHARGE...................................................................40

   SECTION 11.01          Satisfaction and Discharge of Indenture................................................40
   SECTION 11.02          Discharge of Obligations...............................................................40
   SECTION 11.03          Deposited Moneys to be Held in Trust...................................................41
   SECTION 11.04          Payment of Moneys Held by Paying Agents................................................41
   SECTION 11.05          Repayment to Company...................................................................41

                                       iv

<PAGE>

ARTICLE XII         IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
                    OFFICERS AND DIRECTORS.......................................................................41

   SECTION 12.01          No Recourse............................................................................41

ARTICLE XIII        MISCELLANEOUS PROVISIONS.....................................................................42

   SECTION 13.01          Effect on Successors and Assigns.......................................................42
   SECTION 13.02          Actions by Successor...................................................................42
   SECTION 13.03          Surrender of Company Powers............................................................42
   SECTION 13.04          Notices................................................................................42
   SECTION 13.05          Governing Law..........................................................................43
   SECTION 13.06          Treatment of Securities as Debt........................................................43
   SECTION 13.07          Compliance Certificates and Opinions...................................................43
   SECTION 13.08          Payments on Business Days..............................................................43
   SECTION 13.09          Conflict with Trust Indenture Act......................................................43
   SECTION 13.10          Counterparts...........................................................................44
   SECTION 13.11          Separability...........................................................................44
   SECTION 13.12          Assignment.............................................................................44

</TABLE>

(2)      This Table of Contents does not constitute part of the Indenture and
         shall not have any bearing on the interpretation of any of its terms or
         provisions.

                                       v

<PAGE>

         INDENTURE, dated as of [ ], 200[ ], among NEON Communications, Inc., a
Delaware corporation (the "Company"), and [ ], as trustee (the "Trustee"):

         WHEREAS, for its lawful corporate purposes, the Company has duly
authorized the execution and delivery of this Indenture to provide for the
issuance of unsecured debt securities (hereinafter referred to as the
"Securities"), in an unlimited aggregate principal amount to be issued from time
to time in one or more series as in this Indenture provided, as registered
Securities without coupons, to be authenticated by the certificate of the
Trustee;

         WHEREAS, to provide the terms and conditions upon which the Securities
are to be authenticated, issued and delivered, the Company has duly authorized
the execution of this Indenture; and

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

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

                                    ARTICLE I

                                   DEFINITIONS

SECTION 1.01      Definitions of Terms.

         The terms defined in this Section (except as in this Indenture
otherwise expressly provided or unless the context otherwise requires) for all
purposes of this Indenture and of any indenture supplemental hereto shall have
the respective meanings specified in this Section and shall include the plural
as well as the singular. All other terms used in this Indenture that are defined
in the Trust Indenture Act of 1939, as amended, or that are by reference in such
Act defined in the Securities Act of 1933, as amended (except as herein
otherwise expressly provided or unless the context otherwise requires), shall
have the meanings assigned to such terms in said Trust Indenture Act and in said
Securities Act as in force at the date of the execution of this instrument.

         "Authenticating Agent" means an authenticating agent with respect to
all or any of the series of Securities appointed with respect to all or any
series of the Securities by the Trustee pursuant to Section 2.10.

         "Bankruptcy Law" means Title 11, U.S. Code, or any similar federal or
state law for the relief of debtors.

<PAGE>

         "Board of Directors" means the Board of Directors of the Company or any
duly authorized committee of such Board.

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

         "Business Day" means, with respect to any series of Securities, any day
other than a day on which Federal or State banking institutions in the Borough
of Manhattan, The City of New York, are authorized or obligated by law,
executive order or regulation to close.

         "Certificate" means a certificate signed by the principal executive
officer, the principal financial officer or the principal accounting officer of
the Company. The Certificate need not comply with the provisions of Section
13.07.

         "Company" means NEON Communications, Inc., a corporation duly organized
and existing under the laws of the State of Delaware, and, subject to the
provisions of Article Ten, shall also include its successors and assigns.

         "Corporate Trust Office" means the office of the Trustee at which, at
any particular time, its corporate trust business shall be principally
administered, which office at the date hereof is located at [ ], except that
whenever a provision herein refers to an office or agency of the Trustee in the
Borough of Manhattan, The City of New York, such office is located, at the date
hereof, at [ ].

         "Custodian" means any receiver, trustee, assignee, liquidator, or
similar official under any Bankruptcy Law.

         "Default" means any event, act or condition that with notice or lapse
of time, or both, would constitute an Event of Default.

         "Depositary" means, with respect to Securities of any series, for which
the Company shall determine that such 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 Securities
and Exchange Act of 1934, as amended (the "Exchange Act"), or other applicable
statute or regulation, which, in each case, shall be designated by the Company
pursuant to either Section 2.01 or 2.11.

         "Event of Default" means, with respect to Securities of a particular
series any event specified in Section 6.01, continued for the period of time, if
any, therein designated.

         "Global Security" means, with respect to any series of Securities, a
Security executed by the Company and delivered by the Trustee to the Depositary
or pursuant to the Depositary's

                                       2
<PAGE>

instruction, all in accordance with the Indenture, which shall be registered in
the name of the Depositary or its nominee.

         "Governmental Obligations" means securities that are (i) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America, the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America that, in either case, are not
callable or redeemable at the option of the issuer thereof, and shall also
include a depositary receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act of 1933, as amended) as custodian with respect to any such
Governmental Obligation or a specific payment of principal of or interest on any
such Governmental Obligation held by such custodian for the account of the
holder of such depositary receipt; provided, however, that (except as required
by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depositary receipt from any amount received by the
custodian in respect of the Governmental Obligation or the specific payment of
principal of or interest on the Governmental Obligation evidenced by such
depositary receipt.

         "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.

         "Indenture" means this instrument as originally executed or as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into in accordance with the terms hereof.

         "Interest Payment Date", when used with respect to any installment of
interest on a Security of a particular series, means the date specified in such
Security or in a Board Resolution or in an indenture supplemental hereto with
respect to such series as the fixed date on which an installment of interest
with respect to Securities of that series is due and payable.

         "Officers' Certificate" means a certificate signed by the President or
a Vice President and by the Treasurer or an Assistant Treasurer or the
Controller or an Assistant Controller or the Secretary or an Assistant Secretary
of the Company that is delivered to the Trustee in accordance with the terms
hereof. Each such certificate shall include the statements provided for in
Section 13.07, if and to the extent required by the provisions thereof.

         "Opinion of Counsel" means an opinion in writing of legal counsel, who
may be an employee of or counsel for the Company that is delivered to the
Trustee in accordance with the terms hereof. Each such opinion shall include the
statements provided for in Section 13.07, if and to the extent required by the
provisions thereof.

         "Outstanding", when used with reference to Securities of any series,
means, subject to the provisions of Section 8.04, as of any particular time, all
Securities of that series theretofore authenticated and delivered by the Trustee
under this Indenture, except (a) Securities theretofore

                                       3
<PAGE>

canceled by the Trustee or any paying agent, or delivered to the Trustee or any
paying agent for cancellation or that have previously been canceled; (b)
Securities or portions thereof for the payment or redemption of which moneys or
Governmental Obligations in the necessary amount shall have been deposited in
trust with the Trustee or with any paying agent (other than the Company) or
shall have been set aside and segregated in trust by the Company (if the Company
shall act as its own paying agent); provided, however, that if such Securities
or portions of such Securities are to be redeemed prior to the maturity thereof,
notice of such redemption shall have been given as in Article Three provided, or
provision satisfactory to the Trustee shall have been made for giving such
notice; and (c) Securities in lieu of or in substitution for which other
Securities shall have been authenticated and delivered pursuant to the terms of
Section 2.07.

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

         "Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 2.07 in lieu of a lost, destroyed or
stolen Security shall be deemed to evidence the same debt as the lost, destroyed
or stolen Security.

         "Responsible Officer" when used with respect to the Trustee means the
Chairman of the Board of Directors, the President, any Vice President, the
Secretary, the Treasurer, any trust officer, any corporate trust officer or any
other officer or assistant officer of the Trustee customarily performing
functions similar to those performed by the Persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred
because of his or her knowledge of and familiarity with the particular subject.

         "Securities" means the debt Securities authenticated and delivered
under this Indenture.

         "Securityholder", "holder of Securities", "registered holder", or other
similar term, means the Person or Persons in whose name or names a particular
Security shall be registered on the books of the Company kept for that purpose
in accordance with the terms of this Indenture.

         "Subsidiary" means, with respect to any Person, (i) any corporation at
least a majority of whose outstanding Voting Stock shall at the time be owned,
directly or indirectly, by such Person or by one or more of its Subsidiaries or
by such Person and one or more of its Subsidiaries, (ii) any general
partnership, joint venture or similar entity, at least a majority of whose
outstanding partnership or similar interests shall at the time be owned by such
Person, or by one or more of its Subsidiaries, or by such Person and one or more
of its Subsidiaries and (iii) any limited partnership of which such Person or
any of its Subsidiaries is a general partner.

         "Trustee" means [ ], and, subject to the provisions of Article Seven,
shall also include its successors and assigns, and, if at any time there is more
than one Person acting in

                                       4
<PAGE>

such capacity hereunder, "Trustee" shall mean each such Person. The term
"Trustee" as used with respect to a particular series of the Securities shall
mean the trustee with respect to that series.

         "Trust Indenture Act" means the Trust Indenture Act of 1939, as
amended, subject to the provisions of Sections 9.01, 9.02, and 10.01, as in
effect at the date of execution of this instrument.

         "Voting Stock", as applied to stock of any Person, means shares,
interests, participations or other equivalents in the equity interest (however
designated) in such Person having ordinary voting power for the election of a
majority of the directors (or the equivalent) of such Person, other than shares,
interests, participations or other equivalents having such power only by reason
of the occurrence of a contingency.

                                   ARTICLE II

                      ISSUE, DESCRIPTION, TERMS, EXECUTION,
                     REGISTRATION AND EXCHANGE OF SECURITIES

SECTION 2.01      Designation and Terms of Securities.

         (a) The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited. The Securities
may be issued in one or more series up to the aggregate principal amount of
Securities of that series from time to time authorized by or pursuant to a Board
Resolution of the Company or pursuant to one or more indentures supplemental
hereto. Prior to the initial issuance of Securities of any series, there shall
be established in or pursuant to a Board Resolution of the Company, and set
forth in an Officers' Certificate of the Company, or established in one or more
indentures supplemental hereto:

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

              (2) any limit upon the aggregate principal amount of the
Securities of that series that may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Securities of that
series);

              (3) the date or dates on which the principal of the Securities of
the series is payable and the place(s) of payment;

              (4) the rate or rates at which the Securities of the series shall
bear interest or the manner of calculation of such rate or rates, if any;

                                       5
<PAGE>

              (5) the date or dates from which such interest shall accrue, the
Interest Payment Dates on which such interest will be payable or the manner of
determination of such Interest Payment Dates, the place(s) of payment, and the
record date for the determination of holders to whom interest is payable on any
such Interest Payment Dates;

              (6) the right, if any, to extend the interest payment periods and
the duration of such extension;

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

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

              (9) the form of the Securities of the series including the form of
the Certificate of Authentication for such series;

              (10) if other than denominations of one thousand U.S. dollars
($1,000) or any integral multiple thereof, the denominations in which the
Securities of the series shall be issuable;

              (11) any and all other terms with respect to such series (which
terms shall not be inconsistent with the terms of this Indenture, as amended by
any supplemental indenture) including any terms which may be required by or
advisable under United States laws or regulations or advisable in connection
with the marketing of Securities of that series;

              (12) whether the Securities are issuable as a Global Security and,
in such case, the identity of the Depositary for such series;

              (13) whether the Securities will be convertible into shares of
common stock or other securities of the Company and, if so, the terms and
conditions upon which such Securities will be so convertible, including the
conversion price and the conversion period;

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

                                       6
<PAGE>

              (15) any additional or different Events of Default or restrictive
covenants provided for with respect to the Securities of the series.

         All Securities of any one series shall be substantially identical
except as to denomination and except as may otherwise be provided in or pursuant
to any such Board Resolution or in any indentures supplemental hereto.

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

         Securities of any particular series may be issued at various times,
with different dates on which the principal or any installment of principal is
payable, with different rates of interest, if any, or different methods by which
rates of interest may be determined, with different dates on which such interest
may be payable and with different redemption dates.

SECTION 2.02      Form of Securities and Trustee's Certificate.

         The Securities of any series and the Trustee's certificate of
authentication to be borne by such Securities shall be substantially of the
tenor and purport as set forth in one or more indentures supplemental hereto or
as provided in a Board Resolution of the Company and as set forth in an
Officers' Certificate of the Company and the and may have such letters, numbers
or other marks of identification or designation and such legends or endorsements
printed, lithographed or engraved thereon as the Company may deem appropriate
and as are not inconsistent with the provisions of this Indenture, or as may be
required to comply with any law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange on which Securities
of that series may be listed, or to conform to usage.

SECTION 2.03      Denominations:  Provisions for Payment.

         The Securities shall be issuable as registered Securities and in the
denominations of one thousand U.S. dollars ($1,000) or any integral multiple
thereof, subject to Section 2.01(10). The Securities of a particular series
shall bear interest payable on the dates and at the rate specified with respect
to that series. The principal of and the interest on the Securities of any
series, as well as any premium thereon in case of redemption thereof prior to
maturity, shall be payable in the coin or currency of the United States of
America that at the time is legal tender for public and private debt, at the
office or agency of the Company maintained for that purpose in the Borough of
Manhattan, the City and State of New York. Each Security shall be dated the date
of its authentication. Interest on the Securities shall be computed on the basis
of a 360-day year composed of twelve 30-day months.

         The interest installment on any Security that is payable, and is
punctually paid or duly provided for, on any Interest Payment Date for
Securities of that series shall be paid to the

                                       7
<PAGE>

Person in whose name said Security (or one or more Predecessor Securities) is
registered at the close of business on the regular record date for such interest
installment. In the event that any Security of a particular series or portion
thereof is called for redemption and the redemption date is subsequent to a
regular record date with respect to any Interest Payment Date and prior to such
Interest Payment Date, interest on such Security will be paid upon presentation
and surrender of such Security as provided in Section 3.03.

         Any interest on any Security that is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date for Securities of the
same series (herein called "Defaulted Interest") shall forthwith cease to be
payable to the registered holder on the relevant regular record date by virtue
of having been such holder; and such Defaulted Interest shall be paid by the
Company, at its election, as provided in clause (1) or clause (2) below:

              (1) The Company may make payment of any Defaulted Interest on
Securities to the Persons in whose names such Securities (or their respective
Predecessor Securities) are registered at the close of business on a special
record date for the payment of such Defaulted Interest, which shall be fixed in
the following manner: the Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each such Security 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 not be more than 15 nor less than 10 days prior
to the date of the proposed payment and not less than 10 days after the receipt
by the Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such special record date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the special record date therefor to be mailed, first
class postage prepaid, to each Securityholder at his or her address as it
appears in the Security Register (as hereinafter defined), 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 mailed as
aforesaid, such Defaulted Interest shall be paid to the Persons in whose names
such Securities (or their respective Predecessor Securities) are registered on
such special record date.

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

         Unless otherwise set forth in a Board Resolution of the Company or one
or more indentures supplemental hereto establishing the terms of any series of
Securities pursuant to Section 2.01 hereof, the term "regular record date" as
used in this Section with respect to a series of Securities with respect to any
Interest Payment Date for such series shall mean either the

                                       8
<PAGE>

fifteenth day of the month immediately preceding the month in which an Interest
Payment Date established for such series pursuant to Section 2.01 hereof shall
occur, if such Interest Payment Date is the first day of a month, or the last
day of the month immediately preceding the month in which an Interest Payment
Date established for such series pursuant to Section 2.01 hereof shall occur, if
such Interest Payment Date is the fifteenth day of a month, whether or not such
date is a Business Day.

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

SECTION 2.04      Execution and Authentications.

         The Securities shall be signed on behalf of the Company by its
President, or one of its Vice Presidents, or its Treasurer, or one of its
Assistant Treasurers, or its Secretary, or one of its Assistant Secretaries,
under its corporate seal attested by its Secretary or one of its Assistant
Secretaries. Signatures may be in the form of a manual or facsimile signature.
The Company may use the facsimile signature of any Person who shall have been a
President or Vice President thereof, or of any Person who shall have been a
Secretary or Assistant Secretary thereof, notwithstanding the fact that at the
time the Securities shall be authenticated and delivered or disposed of such
Person shall have ceased to be the President or a Vice President, or the
Secretary or an Assistant Secretary, of the Company. The seal of the Company may
be in the form of a facsimile of such seal and may be impressed, affixed,
imprinted or otherwise reproduced on the Securities. The Securities may contain
such notations, legends or endorsements required by law, stock exchange rule or
usage. Each Security shall be dated the date of its authentication by the
Trustee.

         A Security shall not be valid until authenticated manually by an
authorized signatory of the Trustee, or by an Authenticating Agent. Such
signature shall be conclusive evidence that the Security so authenticated has
been duly authenticated and delivered hereunder and that the holder is entitled
to the benefits of this Indenture. At any time and from time to time after the
execution and delivery of this Indenture, the Company may deliver Securities of
any series executed by the Company to the Trustee for authentication, together
with a written order of the Company for the authentication and delivery of such
Securities, signed by its President or any Vice President and its Secretary or
any Assistant Secretary, and the Trustee in accordance with such written order
shall authenticate and deliver such Securities.

         In authenticating such Securities and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall be entitled to receive, and (subject to Section 7.01) shall be
fully protected in relying upon, an Opinion of Counsel stating that the form and
terms thereof have been established in conformity with the provisions of this
Indenture.

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

                                       9
<PAGE>

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

SECTION 2.05      Registration of Transfer and Exchange.

         (a) Securities of any series may be exchanged upon presentation thereof
at the office or agency of the Company designated for such purpose in the
Borough of Manhattan, the City and State of New York, for other Securities of
such series of authorized denominations, and for a like aggregate principal
amount, upon payment of a sum sufficient to cover any tax or other governmental
charge in relation thereto, all as provided in this Section. In respect of any
Securities so surrendered for exchange, the Company shall execute, the Trustee
shall authenticate and such office or agency shall deliver in exchange therefor
the Security or Securities of the same series that the Securityholder making the
exchange shall be entitled to receive, bearing numbers not contemporaneously
outstanding.

         (b) The Company shall keep, or cause to be kept, at its office or
agency designated for such purpose in the Borough of Manhattan, the City and
State of New York, or such other location designated by the Company a register
or registers (herein referred to as the "Security Register") in which, subject
to such reasonable regulations as it may prescribe, the Company shall register
the Securities and the transfers of Securities as in this Article provided and
which at all reasonable times shall be open for inspection by the Trustee. The
registrar for the purpose of registering Securities and transfer of Securities
as herein provided shall be appointed as authorized by Board Resolution (the
"Security Registrar").

         Upon surrender for transfer of any Security at the office or agency of
the Company designated for such purpose, the Company shall execute, the Trustee
shall authenticate and such office or agency shall deliver in the name of the
transferee or transferees a new Security or Securities of the same series as the
Security presented for a like aggregate principal amount.

         All Securities presented or surrendered for exchange or registration of
transfer, as provided in this Section, shall be accompanied (if so required by
the Company or the Security Registrar) by a written instrument or instruments of
transfer, in form satisfactory to the Company or the Security Registrar, duly
executed by the registered holder or by such holder's duly authorized attorney
in writing.

         (c) No service charge shall be made for any exchange or registration of
transfer of Securities, or issue of new Securities in case of partial redemption
of any series, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge in relation thereto, other than exchanges
pursuant to Section 2.06, Section 3.03(b) and Section 9.04 not involving any
transfer.

         (d) The Company shall not be required (i) to issue, exchange or
register the transfer of any Securities during a period beginning at the opening
of business 15 days before the day of the mailing of a notice of redemption of
less than all the Outstanding Securities of the same series

                                       10
<PAGE>

and ending at the close of business on the day of such mailing, nor (ii) to
register the transfer of or exchange any Securities of any series or portions
thereof called for redemption. The provisions of this Section 2.05 are, with
respect to any Global Security, subject to Section 2.11 hereof.

SECTION 2.06      Temporary Securities.

         Pending the preparation of definitive Securities of any series, the
Company may execute, and the Trustee shall authenticate and deliver, temporary
Securities (printed, lithographed or typewritten) of any authorized
denomination. Such temporary Securities shall be substantially in the form of
the definitive Securities in lieu of which they are issued, but with such
omissions, insertions and variations as may be appropriate for temporary
Securities, all as may be determined by the Company. Every temporary Security of
any series shall be executed by the Company and be authenticated by the Trustee
upon the same conditions and in substantially the same manner, and with like
effect, as the definitive Securities of such series. Without unnecessary delay
the Company will execute and will furnish definitive Securities of such series
and thereupon any or all temporary Securities of such series may be surrendered
in exchange therefor (without charge to the holders), at the office or agency of
the Company designated for the purpose in the Borough of Manhattan, the City and
State of New York, and the Trustee shall authenticate and such office or agency
shall deliver in exchange for such temporary Securities an equal aggregate
principal amount of definitive Securities of such series, unless the Company
advises the Trustee to the effect that definitive Securities need not be
executed and furnished until further notice from the Company. Until so
exchanged, the temporary Securities of such series shall be entitled to the same
benefits under this Indenture as definitive Securities of such series
authenticated and delivered hereunder.

SECTION 2.07      Mutilated, Destroyed, Lost or Stolen Securities.

         In case any temporary or definitive Security shall become mutilated or
be destroyed, lost or stolen, the Company (subject to the next succeeding
sentence) shall execute, and upon the Company's request the Trustee (subject as
aforesaid) shall authenticate and deliver, a new Security of the same series,
bearing a number not contemporaneously outstanding, in exchange and substitution
for the mutilated Security, or in lieu of and in substitution for the Security
so destroyed, lost or stolen. In every case the applicant for a substituted
Security shall furnish to the Company and the Trustee such security or indemnity
as may be required by them to save each of them harmless, and, in every case of
destruction, loss or theft, the applicant shall also furnish to the Company and
the Trustee evidence to their satisfaction of the destruction, loss or theft of
the applicant's Security and of the ownership thereof. The Trustee may
authenticate any such substituted Security and deliver the same upon the written
request or authorization of any officer of the Company. Upon the issuance of any
substituted Security, the Company may require the payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee)
connected therewith. In case any Security that has matured or is about to mature
shall become mutilated or be destroyed, lost or stolen, the Company may, instead
of issuing a substitute Security, pay or authorize the payment of the same
(without surrender thereof except in the case

                                       11
<PAGE>

of a mutilated Security) if the applicant for such payment shall furnish to the
Company and the Trustee such security or indemnity as they may require to save
them harmless, and, in case of destruction, loss or theft, evidence to the
satisfaction of the Company and the Trustee of the destruction, loss or theft of
such Security and of the ownership thereof.

         Every replacement Security issued pursuant to the provisions of this
Section shall constitute an additional contractual obligation of the Company
whether or not the mutilated, destroyed, lost or stolen Security shall be found
at any time, or be enforceable by anyone, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other
Securities of the same series duly issued hereunder. All Securities shall be
held and owned upon the express condition that the foregoing provisions are
exclusive with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities, and shall preclude (to the extent lawful) any and all
other rights or remedies, notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.

SECTION 2.08      Cancellation.

         All Securities surrendered for the purpose of payment, redemption,
exchange or registration of transfer shall, if surrendered to the Company or any
paying agent, be delivered to the Trustee for cancellation, or, if surrendered
to the Trustee, shall be cancelled by it, and no Securities shall be issued in
lieu thereof except as expressly required or permitted by any of the provisions
of this Indenture. On request of the Company at the time of such surrender, the
Trustee shall deliver to the Company canceled Securities held by the Trustee. In
the absence of such request the Trustee may dispose of canceled Securities in
accordance with its standard procedures and deliver a certificate of disposition
to the Company. If the Company shall otherwise acquire any of the Securities,
however, such acquisition shall not operate as a redemption or satisfaction of
the indebtedness represented by such Securities unless and until the same are
delivered to the Trustee for cancellation.

SECTION 2.09      Benefits of Indenture.

         Nothing in this Indenture or in the Securities, express or implied,
shall give or be construed to give to any Person, other than the parties hereto
and the holders of the Securities any legal or equitable right, remedy or claim
under or in respect of this Indenture, or under any covenant, condition or
provision herein contained; all such covenants, conditions and provisions being
for the sole benefit of the parties hereto and of the holders of the Securities.

SECTION 2.10      Authenticating Agent.

         So long as any of the Securities of any series remain Outstanding there
may be an Authenticating Agent for any or all such series of Securities which
the Trustee shall have the right to appoint. Said Authenticating Agent shall be
authorized to act on behalf of the Trustee to authenticate Securities of such
series issued upon exchange, transfer or partial redemption

                                       12
<PAGE>

thereof, and Securities so authenticated shall be entitled to the benefits of
this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. All references in this Indenture to the
authentication of Securities by the Trustee shall be deemed to include
authentication by an Authenticating Agent for such series. Each Authenticating
Agent shall be acceptable to the Company and shall be a corporation that has a
combined capital and surplus, as most recently reported or determined by it,
sufficient under the laws of any jurisdiction under which it is organized or in
which it is doing business to conduct a trust business, and that is otherwise
authorized under such laws to conduct such business and is subject to
supervision or examination by Federal or State authorities. If at any time any
Authenticating Agent shall cease to be eligible in accordance with these
provisions, it shall resign immediately.

         Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Trustee and to the Company. The Trustee may at any
time (and upon request by the Company shall) terminate the agency of any
Authenticating Agent by giving written notice of termination to such
Authenticating Agent and to the Company. Upon resignation, termination or
cessation of eligibility of any Authenticating Agent, the Trustee may appoint an
eligible successor Authenticating Agent 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 as if
originally named as an Authenticating Agent pursuant hereto.

SECTION 2.11      Global Securities.

         (a) If the Company shall establish pursuant to Section 2.01 that the
Securities of a particular series are to be issued as a Global Security, then
the Company shall execute and the Trustee shall, in accordance with Section
2.04, authenticate and deliver, a Global Security that (i) shall represent, and
shall be denominated in an amount equal to the aggregate principal amount of,
all of the Outstanding Securities of such series, (ii) shall be registered in
the name of the Depositary or its nominee, (iii) shall be delivered by the
Trustee to the Depositary or pursuant to the Depositary's instruction and (iv)
shall bear a legend substantially to the following effect: "Except as otherwise
provided in Section 2.11 of the Indenture, this Security may be transferred, in
whole but not in part, only to another nominee of the Depositary or to a
successor Depositary or to a nominee of such successor Depositary."

         (b) Notwithstanding the provisions of Section 2.05, the Global Security
of a series may be transferred, in whole but not in part and in the manner
provided in Section 2.05, only to another nominee of the Depositary for such
series, or to a successor Depositary for such series selected or approved by the
Company or to a nominee of such successor Depositary.

         (c) If at any time the Depositary for a series of the Securities
notifies the Company that it is unwilling or unable to continue as Depositary
for such series or if at any time the Depositary for such series shall no longer
be registered or in good standing under the Exchange Act, or other applicable
statute or regulation, and a successor Depositary for such series is not
appointed by the Company within 90 days after the Company receives such notice
or becomes aware of such

                                       13
<PAGE>

condition, as the case may be, this Section 2.11 shall no longer be applicable
to the Securities of such series and the Company will execute, and subject to
Section 2.05, the Trustee will authenticate and deliver the Securities of such
series in definitive registered form without coupons, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security of such series in exchange for such Global
Security. In addition, the Company may at any time determine that the Securities
of any series shall no longer be represented by a Global Security and that the
provisions of this Section 2.11 shall no longer apply to the Securities of such
series. In such event the Company will execute and subject to Section 2.05, the
Trustee, upon receipt of an Officers' Certificate evidencing such determination
by the Company, will authenticate and deliver the Securities of such series in
definitive registered form without coupons, in authorized denominations, and in
an aggregate principal amount equal to the principal amount of the Global
Security of such series in exchange for such Global Security. Upon the exchange
of the Global Security for such Securities in definitive registered form without
coupons, in authorized denominations, the Global Security shall be canceled by
the Trustee. Such Securities in definitive registered form issued in exchange
for the Global Security pursuant to this Section 2.11(c) shall be registered in
such names and in such authorized denominations as the Depositary, pursuant to
instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. The Trustee shall deliver such Securities to the
Depositary for delivery to the Persons in whose names such Securities are so
registered.

                                  ARTICLE III

              REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

SECTION 3.01      Redemption.

         The Company may redeem the Securities of any series issued hereunder on
and after the dates and in accordance with the terms established for such series
pursuant to Section 2.01 hereof.

SECTION 3.02      Notice of Redemption.

         (a) In case the Company shall desire to exercise such right to redeem
all or, as the case may be, a portion of the Securities of any series in
accordance with the right reserved so to do, the Company shall, or shall cause
the Trustee to, give notice of such redemption to holders of the Securities of
such series to be redeemed by mailing, first class postage prepaid, a notice of
such redemption not less than 30 days and not more than 90 days before the date
fixed for redemption of that series to such holders at their last addresses as
they shall appear upon the Security Register unless a shorter period is
specified in the Securities to be redeemed. Any notice that is mailed in the
manner herein provided shall be conclusively presumed to have been duly given,
whether or not the registered holder receives the notice. In any case, failure
duly to give such notice to the holder of any Security of any series designated
for redemption in whole or in part, or any defect in the notice, shall not
affect the validity of the proceedings for the redemption of any other
Securities of such series or any other series. In the case of any redemption of
Securities prior to the expiration of any restriction on such redemption
provided in the terms of

                                       14
<PAGE>

such Securities or elsewhere in this Indenture, the Company shall furnish the
Trustee with an Officers' Certificate evidencing compliance with any such
restriction.

         Each such notice of redemption shall specify the date fixed for
redemption and the redemption price at which Securities of that series are to be
redeemed, and shall state that payment of the redemption price of such
Securities to be redeemed will be made at the office or agency of the Company in
the Borough of Manhattan, the City and State of New York, upon presentation and
surrender of such Securities, that interest accrued to the date fixed for
redemption will be paid as specified in said notice, that from and after said
date interest will cease to accrue and that the redemption is for a sinking
fund, if such is the case. If less than all the Securities of a series are to be
redeemed, the notice to the holders of Securities of that series to be redeemed
in whole or in part shall specify the particular Securities to be so redeemed.
In case any Security is to be redeemed in part only, the notice that relates to
such Security shall state the portion of the principal amount thereof to be
redeemed, and shall state that on and after the redemption date, upon surrender
of such Security, a new Security or Securities of such series in principal
amount equal to the unredeemed portion thereof will be issued.

         (b) If less than all the Securities of a series are to be redeemed, the
Company shall give the Trustee at least 45 days' notice in advance of the date
fixed for redemption as to the aggregate principal amount of Securities of the
series to be redeemed, and thereupon the Trustee shall select, by lot or in such
other manner as it shall deem appropriate and fair in its discretion and that
may provide for the selection of a portion or portions (equal to one thousand
U.S. dollars ($1,000) or any integral multiple thereof) of the principal amount
of such Securities of a denomination larger than $1,000, the Securities to be
redeemed and shall thereafter promptly notify the Company in writing of the
numbers of the Securities to be redeemed, in whole or in part. The Company may,
if and whenever it shall so elect, by delivery of instructions signed on its
behalf by its President or any Vice President, instruct the Trustee or any
paying agent to call all or any part of the Securities of a particular series
for redemption and to give notice of redemption in the manner set forth in this
Section, such notice to be in the name of the Company or its own name as the
Trustee or such paying agent may deem advisable. In any case in which notice of
redemption is to be given by the Trustee or any such paying agent, the Company
shall deliver or cause to be delivered to, or permit to remain with, the Trustee
or such paying agent, as the case may be, such Security Register, transfer books
or other records, or suitable copies or extracts therefrom, sufficient to enable
the Trustee or such paying agent to give any notice by mail that may be required
under the provisions of this Section.

SECTION 3.03      Payment Upon Redemption.

         (a) If the giving of notice of redemption shall have been completed as
above provided, the Securities or portions of Securities of the series to be
redeemed specified in such notice shall become due and payable on the date and
at the place stated in such notice at the applicable redemption price, together
with interest accrued to the date fixed for redemption and interest on such
Securities or portions of Securities shall cease to accrue on and after the date
fixed for redemption, unless the Company shall default in the payment of such
redemption price and accrued interest with respect to any such Security or
portion thereof. On presentation and

                                       15
<PAGE>

surrender of such Securities on or after the date fixed for redemption at the
place of payment specified in the notice, said Securities shall be paid and
redeemed at the applicable redemption price for such series, together with
interest accrued thereon to the date fixed for redemption (but if the date fixed
for redemption is an interest payment date, the interest installment payable on
such date shall be payable to the registered holder at the close of business on
the applicable record date pursuant to Section 2.03).

         (b) Upon presentation of any Security of such series that is to be
redeemed in part only, the Company shall execute and the Trustee shall
authenticate and the office or agency where the Security is presented shall
deliver to the holder thereof, at the expense of the Company, a new Security of
the same series of authorized denominations in principal amount equal to the
unredeemed portion of the Security so presented.

SECTION 3.04      Sinking Fund.

         The provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to
any sinking fund for the retirement of Securities of a series, except as
otherwise specified as contemplated by Section 2.01 for Securities of such
series.

         The minimum amount of any sinking fund payment provided for by the
terms of Securities of any series is herein referred to as a "mandatory sinking
fund payment," and any payment in excess of such minimum amount provided for by
the terms of Securities of any series is herein referred to as an "optional
sinking fund payment". If provided for by the terms of Securities of any series,
the cash amount of any sinking fund payment may be subject to reduction as
provided in Section 3.05. Each sinking fund payment shall be applied to the
redemption of Securities of any series as provided for by the terms of
Securities of such series.

SECTION 3.05      Satisfaction of Sinking Fund Payments with Securities.

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

SECTION 3.06      Redemption of Securities for Sinking Fund.

         Not less than 45 days prior to each sinking fund payment date for any
series of Securities, the Company will deliver to the Trustee an Officers'
Certificate specifying the amount of the

                                       16
<PAGE>

next ensuing sinking fund payment for that series pursuant to the terms of the
series, the portion thereof, if any, that is to be satisfied by delivering and
crediting Securities of that series pursuant to Section 3.05 and the basis for
such credit and will, together with such Officers' Certificate, deliver to the
Trustee any Securities to be so delivered. Not less than 30 days before each
such sinking fund payment date the Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section
3.02 and cause notice of the redemption thereof to be given in the name of and
at the expense of the Company in the manner provided in Section 3.02. Such
notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Section 3.03.

                                   ARTICLE IV

                                    COVENANTS

SECTION 4.01      Payment of Principal, Premium and Interest.

         The Company will duly and punctually pay or cause to be paid the
principal of (and premium, if any) and interest on the Securities of that series
at the time and place and in the manner provided herein and established with
respect to such Securities.

SECTION 4.02      Maintenance of Office or Agency.

         So long as any series of the Securities remain Outstanding, the Company
agrees to maintain an office or agency in the Borough of Manhattan, the City and
State of New York, with respect to each such series and at such other location
or locations as may be designated as provided in this Section 4.02, where (i)
Securities of that series may be presented for payment, (ii) Securities of that
series may be presented as herein above authorized for registration of transfer
and exchange, and (iii) notices and demands to or upon the Company in respect of
the Securities of that series and this Indenture may be given or served, such
designation to continue with respect to such office or agency until the Company
shall, by written notice signed by its President or a Vice President and
delivered to the trustee, designate some other office or agency for such
purposes or any of them. If at any time the Company shall fail to maintain any
such required office or agency or shall fail to furnish the Trustee with the
address thereof, such presentations, notices and demands may be made or served
at the Corporate Trust Office of the Trustee, and the Company hereby appoints
the Trustee as its agent to receive all such presentations, notices and demands.

SECTION 4.03      Paying Agents.

         (a) If the Company shall appoint one or more paying agents for all or
any series of the Securities, other than the Trustee, the Company will cause
each such paying agent to execute and deliver to the Trustee an instrument in
which such agent shall agree with the Trustee, subject to the provisions of this
Section:

                                       17
<PAGE>

              (1) that it will hold all sums held by it as such agent for the
payment of the principal of (and premium, if any) or interest on the Securities
of that series (whether such sums have been paid to it by the Company or by any
other obligor of such Securities) in trust for the benefit of the Persons
entitled thereto;

              (2) that it will give the Trustee notice of any failure by the
Company (or by any other obligor of such Securities) to make any payment of the
principal of (and premium, if any) or interest on the Securities of that series
when the same shall be due and payable;

              (3) that it will, at any time during the continuance of any
failure referred to in the preceding paragraph (a)(2) above, upon the written
request of the Trustee, forthwith pay to the Trustee all sums so held in trust
by such paying agent; and

              (4) that it will perform all other duties of paying agent as set
forth in this Indenture.

         (b) If the Company shall act as its own paying agent with respect to
any series of the Securities, it will on or before each due date of the
principal of (and premium, if any) or interest on Securities of that series, set
aside, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay such principal (and premium, if any) or interest
so becoming due on Securities of that series until such sums shall be paid to
such Persons or otherwise disposed of as herein provided and will promptly
notify the Trustee of such action, or any failure (by it or any other obligor on
such Securities) to take such action. Whenever the Company shall have one or
more paying agents for any series of Securities, it will, prior to each due date
of the principal of (and premium, if any) or interest on any Securities of that
series, deposit with the paying agent a sum sufficient to pay the principal (an
premium, if any) or interest so becoming due, such sum to be held in trust for
the benefit of the Persons entitled to such principal, premium or interest, and
(unless such paying agent is the Trustee) the Company will promptly notify the
Trustee of this action or failure so to act.

         (c) Notwithstanding anything in this Section to the contrary, (i) the
agreement to hold sums in trust as provided in this Section is subject to the
provisions of Section 11.05, and (ii) the Company may at any time, for the
purpose of obtaining the satisfaction and discharge of this Indenture or for any
other purpose, pay, or direct any paying agent to pay, to the Trustee all sums
held in trust by the Company or such paying agent, such sums to be held by the
Trustee upon the same terms and conditions as those upon which such sums were
held by the Company or such paying agent; and, upon such payment by any paying
agent to the Trustee, such paying agent shall be released from all further
liability with respect to such money.

SECTION 4.04     Appointment to Fill Vacancy in Office of Trustee.

         The Company, whenever necessary to avoid or fill a vacancy in the
office of Trustee, will appoint, in the manner provided in Section 7.10, a
Trustee, so that there shall at all times be a Trustee hereunder.

                                       18
<PAGE>

SECTION 4.05      Compliance with Consolidation Provisions.

         The Company will not, while any of the Securities remain Outstanding,
consolidate with or merge into any other Person, in either case where the
Company is not the survivor of such transaction, or sell or convey all or
substantially all of its property to any other company unless the provisions of
Article Ten hereof are complied with.

                                   ARTICLE V

                       SECURITYHOLDERS' LISTS AND REPORTS
                         BY THE COMPANY AND THE TRUSTEE

SECTION 5.01      Company to Furnish Trustee Names and Addresses of
                  Securityholders.

         The Company will furnish or cause to be furnished to the Trustee (a) on
each regular record date (as defined in Section 2.03) a list, in such form as
the Trustee may reasonably require, of the names and addresses of the holders of
each series of Securities as of such regular record date, provided that the
Company shall not be obligated to furnish or cause to furnish such list at any
time that the list shall not differ in any respect from the most recent list
furnished to the Trustee by the Company and (b) at such other times as the
Trustee may request in writing within 30 days after the receipt by the Company
of any such request, a list of similar form and content as of a date not more
than 15 days prior to the time such list is furnished; provided, however, that,
in either case, no such list need be furnished for any series for which the
Trustee shall be the Security Registrar.

SECTION 5.02      Preservation Of Information; Communications With
                  Securityholders.

         (a) The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the holders of
Securities contained in the most recent list furnished to it as provided in
Section 5.01 and as to the names and addresses of holders of Securities received
by the Trustee in its capacity as Security Registrar (if acting in such
capacity).

         (b) The Trustee may destroy any list furnished to it as provided in
Section 5.01 upon receipt of a new list so furnished.

         (c) Securityholders may communicate as provided in Section 312(b) of
the Trust Indenture Act with other Securityholders with respect to their rights
under this Indenture or under the Securities.

SECTION 5.03      Reports by the Company.

                                       19
<PAGE>

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

         (b) The Company covenants and agrees to file with the Trustee and the
Commission, in accordance with the rules and regulations prescribed from to time
by the Commission, such additional information, documents and reports with
respect to compliance by the Company with the conditions and covenants provided
for in this Indenture as may be required from time to time by such rules and
regulations.

         (c) The Company covenants and agrees to transmit by mail, first class
postage prepaid, or reputable over-night delivery service that provides for
evidence of receipt, to the Securityholders, as their names and addresses appear
upon the Security Register, within 30 days after the filing thereof with the
Trustee, such summaries of any information, documents and reports required to be
filed by the Company pursuant to subsections (a) and (b) of this Section as may
be required by rules and regulations prescribed from time to time by the
Commission.

SECTION 5.04      Reports by the Trustee.

         (a) On or before [ ] in each year in which any of the Securities are
Outstanding, the Trustee shall transmit by mail, first class postage prepaid, to
the Securityholders, as their names and addresses appear upon the Security
Register, a brief report dated as of the preceding [ ], if and to the extent
required under Section 313(a) of the Trust Indenture Act.

         (b) The Trustee shall comply with Section 313(b) and 313(c) of the
Trust Indenture Act.

         (c) A copy of each such report shall, at the time of such transmission
to Securityholders, be filed by the Trustee with the Company, with each stock
exchange upon which any Securities are listed (if so listed) and also with the
Commission. The Company agrees to notify the Trustee when any Securities become
listed on any stock exchange.

                                       20
<PAGE>

                                   ARTICLE VI

         REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

SECTION 6.01      Events of Default.

         (a) Whenever used herein with respect to Securities of a particular
series, "Event of Default" means any one or more of the following events that
has occurred and is continuing:

              (1) the Company defaults in the payment of any installment of
interest upon any of the Securities of that series, as and when the same shall
become due and payable, and continuance of such default for a period of 90 days;
provided, however, that a valid extension of an interest payment period by the
Company in accordance with the terms of any indenture supplemental hereto shall
not constitute a default in the payment of interest for this purpose;

              (2) the Company defaults in the payment of the principal of (or
premium, if any, on) any of the Securities of that series as and when the same
shall become due and payable whether at maturity, upon redemption, by
declaration or otherwise, or in any payment required by any sinking or analogous
fund established with respect to that series; provided, however, that a valid
extension of the maturity of such Securities in accordance with the terms of any
indenture supplemental hereto shall not constitute a default in the payment of
principal or premium, if any;

              (3) the Company fails to observe or perform any other of its
covenants or agreements with respect to that series contained in this Indenture
or otherwise established with respect to that series of Securities pursuant to
Section 2.01 hereof (other than a covenant or agreement that has been expressly
included in this Indenture solely for the benefit of one or more series of
Securities other than such series) for a period of 90 days after the date on
which written notice of such failure, requiring the same to be remedied and
stating that such notice is a "Notice of Default" hereunder, shall have been
given to the Company by the Trustee, by registered or certified mail, or to the
Company and the Trustee by the holders of at least 25% in principal amount of
the Securities of that series at the time Outstanding;

              (4) the Company pursuant to or within the meaning of any
Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry of an
order for relief against it in an involuntary case, (iii) consents to the
appointment of a Custodian of it or for all or substantially all of its property
or (iv) makes a general assignment for the benefit of its creditors; or

              (5) a court of competent jurisdiction enters an order under any
Bankruptcy Law that (i) is for relief against the Company in an involuntary
case, (ii) appoints a Custodian of the Company for all or substantially all of
its property, or (iii) orders the liquidation of the Company, and the order or
decree remains unstayed and in effect for 90 days.

         (b) In each and every such case, unless the principal of all the
Securities of that series shall have already become due and payable, either the
Trustee or the holders of not less than 25%

                                       21
<PAGE>

in aggregate principal amount of the Securities of that series then Outstanding
hereunder, by notice in writing to the Company (and to the Trustee if given by
such Securityholders), may declare the principal of all the Securities of that
series to be due and payable immediately, and upon any such declaration the same
shall become and shall be immediately due and payable.

         (c) At any time after the principal of the Securities of that series
shall have been so declared due and payable, and before any judgment or decree
for the payment of the moneys due shall have been obtained or entered as
hereinafter provided, the holders of a majority in aggregate principal amount of
the Securities of that series then Outstanding hereunder, by written notice to
the Company and the Trustee, may rescind and annul such declaration and its
consequences if: (i) the Company has paid or deposited with the Trustee a sum
sufficient to pay all matured installments of interest upon all the Securities
of that series and the principal of (and premium, if any, on) any and all
Securities of that series that shall have become due otherwise than by
acceleration (with interest upon such principal and premium, if any, and, to the
extent that such payment is enforceable under applicable law, upon overdue
installments of interest, at the rate per annum expressed in the Securities of
that series to the date of such payment or deposit) and the amount payable to
the Trustee under Section 7.06, and (ii) any and all Events of Default under the
Indenture with respect to such series, other than the nonpayment of principal on
Securities of that series that shall not have become due by their terms, shall
have been remedied or waived as provided in Section 6.06.

         No such rescission and annulment shall extend to or shall affect any
subsequent default or impair any right consequent thereon.

         (d) In case the Trustee shall have proceeded to enforce any right with
respect to Securities of that series under this Indenture and such proceedings
shall have been discontinued or abandoned because of such rescission or
annulment or for any other reason or shall have been determined adversely to the
Trustee, then and in every such case, subject to any determination in such
proceedings, the Company, and the Trustee shall be restored respectively to
their former positions and rights hereunder, and all rights, remedies and powers
of the Company and the Trustee shall continue as though no such proceedings had
been taken.

SECTION 6.02 Collection of Indebtedness and Suits for Enforcement by Trustee.

         (a) The Company covenants that (1) in case it shall default in the
payment of any installment of interest on any of the Securities of a series, or
any payment required by any sinking or analogous fund established with respect
to that series as and when the same shall have become due and payable, and such
default shall have continued for a period of 90 Business Days, or (2) in case it
shall default in the payment of the principal of (or premium, if any, on) any of
the Securities of a series when the same shall have become due and payable,
whether upon maturity of the Securities of a series or upon redemption or upon
declaration or otherwise, then, upon demand of the Trustee, the Company will pay
to the Trustee, for the benefit of the holders of the Securities of that series,
the whole amount that then shall have been become due and payable on all such
Securities for principal (and premium, if any) or interest, or both, as the case
may be, with interest upon the overdue principal (and premium, if any) and (to
the extent that

                                       22
<PAGE>

payment of such interest is enforceable under applicable law) upon overdue
installments of interest at the rate per annum expressed in the Securities of
that series; and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, and the amount payable
to the Trustee under Section 7.06.

         (b) 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, shall
be entitled and empowered to institute any action or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or other obligor upon the
Securities of that series and collect the moneys adjudged or decreed to be
payable in the manner provided by law out of the property of the Company or
other obligor upon the Securities of that series, wherever situated.

         (c) In case of any receivership, insolvency, liquidation, bankruptcy,
reorganization, readjustment, arrangement, composition or judicial proceedings
affected the Company, or its creditors or property, the Trustee shall have power
to intervene in such proceedings and take any action therein that may be
permitted by the court and shall (except as may be otherwise provided by law) be
entitled to file such proofs of claim and other papers and documents as may be
necessary or advisable in order to have the claims of the Trustee and of the
holders of Securities of such series allowed for the entire amount due and
payable by the Company under the Indenture at the date of institution of such
proceedings and for any additional amount that may become due and payable by the
Company after such date, and to collect and receive any moneys or other property
payable or deliverable on any such claim, and to distribute the same after the
deduction of the amount payable to the Trustee under Section 7.06; and any
receiver, assignee or trustee in bankruptcy or reorganization is hereby
authorized by each of the holders of Securities of such series to make such
payments to the Trustee, and, in the event that the Trustee shall consent to the
making of such payments directly to such Securityholders, to pay to the Trustee
any amount due it under Section 7.06.

         (d) All rights of action and of asserting claims under this Indenture,
or under any of the terms established with respect to Securities of that series,
may be enforced by the Trustee without the possession of any of such Securities,
or the production thereof at any trial or other proceeding relative thereto, and
any such suit or 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 payment to the Trustee of any amounts due under Section
7.06, be for the ratable benefit of the holders of the Securities of such
series.

         In case of an Event of Default hereunder, the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by this
Indenture by such appropriate judicial proceedings as the Trustee shall deem
most effectual to protect and enforce any of such rights, either at law or in
equity or in bankruptcy or otherwise, whether for the specific enforcement of
any covenant or agreement contained in the Indenture or in aid of the exercise
of any power granted in this Indenture, or to enforce any other legal or
equitable right vested in the Trustee by this Indenture or by law.

                                       23
<PAGE>

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

SECTION 6.03      Application of Moneys Collected.

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

         FIRST: To the payment of costs and expenses of collection and of all
amounts payable to the Trustee under Section 7.06; and

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

SECTION 6.04      Limitation on Suits.

         No holder of any Security of any series shall have any right by virtue
or by availing of any provision of this Indenture to institute any suit, action
or proceeding in equity or at law upon or under or with respect to this
Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless (i) such holder previously shall have given to the
Trustee written notice of an Event of Default and of the continuance thereof
with respect to the Securities of such series specifying such Event of Default,
as hereinbefore provided; (ii) the holders of not less than 25% in aggregate
principal amount of the Securities of such series then Outstanding shall have
made written request upon the Trustee to institute such action, suit or
proceeding in its own name as trustee hereunder; (iii) such holder or holders
shall have offered to the Trustee such reasonable indemnity as it may require
against the costs, expenses and liabilities to be incurred therein or thereby;
and (iv) the Trustee for 60 days after its receipt of such notice, request and
offer of indemnity, shall have failed to institute any such action, suit or
proceeding and (v) during such 60 day period, the holders of a majority in
principal amount of the Securities of that series do not give the Trustee a
direction inconsistent with the request.

         Notwithstanding anything contained herein to the contrary, any other
provisions of this Indenture, the right of any holder of any Security to receive
payment of the principal of (and premium, if any) and interest on such Security,
as therein provided, on or after the respective due dates expressed in such
Security (or in the case of redemption, on the redemption date), or to

                                       24
<PAGE>

institute suit for the enforcement of any such payment on or after such
respective dates or redemption date, shall not be impaired or affected without
the consent of such holder and by accepting a Security hereunder it is expressly
understood, intended and covenanted by the taker and holder of every Security of
such series with every other such taker and holder and the Trustee, that no one
or more holders of Securities of such series shall have any right in any manner
whatsoever by virtue or by availing of any provision of this Indenture to
affect, disturb or prejudice the rights of the holders of any other of such
Securities, or to obtain or seek to obtain priority over or preference to any
other such holder, or to enforce any right under this Indenture, except in the
manner herein provided and for the equal, ratable and common benefit of all
holders of Securities of such series. For the protection and enforcement of the
provisions of this Section, each and every Securityholder and the Trustee shall
be entitled to such relief as can be given either at law or in equity.

SECTION 6.05      Rights and Remedies Cumulative; Delay or Omission Not Waiver.

         (a) Except as otherwise provided in Section 2.07, all powers and
remedies given by this Article to the Trustee or to the Securityholders shall,
to the extent permitted by law, be deemed cumulative and not exclusive of any
other powers and remedies available to the Trustee or the holders of the
Securities, by judicial proceedings or otherwise, to enforce the performance or
observance of the covenants and agreements contained in this Indenture or
otherwise established with respect to such Securities.

         (b) No delay or omission of the Trustee or of any holder of any of the
Securities to exercise any right or power accruing upon any Event of Default
occurring and continuing as aforesaid shall impair any such right or power, or
shall be construed to be a waiver of any such default or on acquiescence
therein; and, subject to the provisions of Section 6.04, every power and remedy
given by this Article or by law to the Trustee or the Securityholders may be
exercised from time to time, and as often as shall be deemed expedient, by the
Trustee or by the Securityholders.

SECTION 6.06      Control by Securityholders.

         The holders of a majority in aggregate principal amount of the
Securities of any series at the time Outstanding, determined in accordance with
Section 8.01, 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 such series;
provided, however, that such direction shall not be in conflict with any rule of
law or with this Indenture or be unduly prejudicial to the rights of holders of
Securities of any other series at the time Outstanding determined in accordance
with Section 8.01. Subject to the provisions of Section 7.01, the Trustee shall
have the right to decline to follow any such direction if the Trustee in good
faith shall, by a Responsible Officer or Officers of the Trustee, determine that
the proceeding so directed would involve the Trustee in personal liability. The
holders of a majority in aggregate principal amount of the Securities of any
series at the time Outstanding affected thereby, determined in accordance with
Section 8.01, may on behalf of the holders of all of the Securities of such
series waive any past default in the performance of any of the covenants

                                       25
<PAGE>

contained herein or established pursuant to Section 2.01 with respect to such
series and its consequences, except a default in the payment of the principal
of, or premium, if any, or interest on, any of the Securities of that series as
and when the same shall become due by the terms of such Securities otherwise
than by acceleration (unless such default has been cured and a sum sufficient to
pay all matured installments of interest and principal and any premium has been
deposited with the Trustee (in accordance with Section 6.01(c)). Upon any such
waiver, the default covered thereby shall be deemed to be cured for all purposes
of this Indenture and the Company, the Trustee and the holders of the Securities
of such series shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other default
or impair any right consequent thereon.

SECTION 6.07      Undertaking to Pay Costs.

         All parties to this Indenture agree, and each holder of any Securities
by such holder's 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 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
Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding more than 10% in aggregate principal amount of the
Outstanding Securities of any series, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of (or
premium, if any) or interest on any Security of such series, on or after the
respective due dates expressed in such Security or established pursuant to this
Indenture.

                                  ARTICLE VII

                             CONCERNING THE TRUSTEE

SECTION 7.01      Certain Duties and Responsibilities of Trustee.

         (a) The Trustee, prior to the occurrence of an Event of Default with
respect to the Securities of a series and after the curing of all Events of
Default with respect to the Securities of that series that may have occurred,
shall undertake to perform with respect to the Securities of such series such
duties and only such duties as are specifically set forth in this Indenture, and
no implied covenants shall be read into this Indenture against the Trustee. In
case an Event of Default with respect to the Securities of a series has occurred
(that has not been cured or waived), the Trustee shall exercise with respect to
Securities of that series such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his
own affairs.

                                       26
<PAGE>

         (b) 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:

               (1) prior to the occurrence of an Event of Default with respect
to the Securities of a series and after the curing or waiving of all such Events
of Default with respect to that series that may have occurred:

                   (i) the duties and obligations of the Trustee shall with
respect to the Securities of such series be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable with respect
to the Securities of such series 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 with respect to the Securities of such series 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 requirement of this
Indenture;

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

              (3) the Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with the
direction of the holders of not less than a majority in principal amount of the
Securities of any series at the time Outstanding relating to the time, method
and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred upon the Trustee under this Indenture
with respect to the Securities of that series; and

              (4) None of the provisions contained in this Indenture shall
require the Trustee to expend or risk its own funds or otherwise incur personal
financial liability in the performance of any of its duties or in the exercise
of any of its rights or powers, if there is reasonable ground for believing that
the repayment of such funds or liability is not reasonably assured to it under
the terms of this Indenture or adequate indemnity against such risk is not
reasonably assured to it.

SECTION 7.02      Certain Rights of Trustee.

         Except as otherwise provided in Section 7.01:

                                       27
<PAGE>

         (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, consent, order, approval, bond, security 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, direction, order or demand of the Company mentioned
herein shall be sufficiently evidenced by a Board Resolution or an instrument
signed in the name of the Company, by the President or any Vice President and by
the Secretary or an Assistant Secretary or the Treasurer or an Assistant
Treasurer thereof (unless other evidence in respect thereof is specifically
prescribed herein);

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

         (d) The Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request, order or
direction of any of the Securityholders, pursuant to the provisions of this
Indenture, unless such Securityholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities
that may be incurred therein or thereby; nothing contained herein shall,
however, relieve the Trustee of the obligation, upon the occurrence of an Event
of Default with respect to a series of the Securities (that has not been cured
or waived) to exercise with respect to Securities of that series such of the
rights and powers vested in it by this Indenture, and to use the same degree of
care and skill in their exercise, as a prudent man would exercise or use under
the circumstances in the conduct of his own affairs;

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

         (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, consent, order, approval, bond, security, or
other papers or documents, unless requested in writing so to do by the holders
of not less than a majority in principal amount of the Outstanding Securities of
the particular series affected thereby (determined as provided in Section 8.04);
provided, however, that if the payment within a reasonable time to the Trustee
of the costs, expenses or liabilities likely to be incurred by it in the making
of such investigation is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms of this Indenture,
the Trustee may require reasonable indemnity against such costs, expenses or
liabilities as a condition to so proceeding. The reasonable expense of every
such examination shall be paid by the Company or, if paid by the Trustee, shall
be repaid by the Company upon demand; and

         (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

                                       28
<PAGE>

responsible for any misconduct or negligence on the part of any agent or
attorney appointed with due care by it hereunder.

SECTION 7.03      Trustee Not Responsible for Recitals or Issuance or
                  Securities.

         (a) The recitals contained herein and in the Securities shall be taken
as the statements of the Company, and the Trustee assumes no responsibility for
the correctness of the same.

         (b) The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities.

         (c) The Trustee shall not be accountable for the use or application by
the Company of any of the Securities or of the proceeds of such Securities, or
for the use or application of any moneys paid over by the Trustee in accordance
with any provision of this Indenture or established pursuant to Section 2.01, or
for the use or application of any moneys received by any paying agent other than
the Trustee.

SECTION 7.04      May Hold Securities.

         The Trustee or any paying agent or Security Registrar, in its
individual or any other capacity, may become the owner or pledgee of Securities
with the same rights it would have if it were not Trustee, paying agent or
Security Registrar.

SECTION 7.05      Moneys Held in Trust.

         Subject to the provisions of Section 11.05, all moneys received by the
Trustee shall, until used or applied as herein provided, be held in trust for
the purposes for which they were received, but need not be segregated from other
funds except to the extent required by law. The Trustee shall be under no
liability for interest on any moneys received by it hereunder except such as it
may agree with the Company to pay thereon.

SECTION 7.06      Compensation and Reimbursement.

         (a) The Company covenants and agrees to pay to the Trustee, and the
Trustee shall be entitled to, such reasonable compensation (which shall not be
limited by any provision of law in regard to the compensation of a trustee of an
express trust), as the Company, and the Trustee may from time to time agree in
writing, for all services rendered by it in the execution of the trusts hereby
created and in the exercise and performance of any of the powers and duties
hereunder of the Trustee, and, except as otherwise expressly provided herein,
the Company will pay or reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee
in accordance with any of the provisions of this Indenture (including the
reasonable compensation and the expenses and disbursements of its counsel and of
all Persons not regularly in its employ) except any such expense, disbursement
or

                                       29
<PAGE>

advance as may arise from its negligence or bad faith. The Company also
covenants to indemnify the Trustee (and its officers, agents, directors and
employees) for, and to hold it harmless against, any loss, liability or expense
incurred without negligence or bad faith on the part of the Trustee and arising
out of or in connection with the acceptance or administration of this trust,
including the costs and expenses of defending itself against any claim of
liability in the premises.

         (b) The obligations of the Company under this Section to compensate and
indemnify the Trustee and to pay or reimburse the Trustee for expenses,
disbursements and advances shall constitute additional indebtedness hereunder.
Such additional indebtedness shall be secured by a lien prior to that of the
Securities upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the benefit of the holders of particular
Securities.

SECTION 7.07      Reliance on Officers' Certificate.

         Except as otherwise provided in Section 7.01, whenever in the
administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or
suffering or omitting to take any action hereunder, such matter (unless other
evidence in respect thereof be herein specifically prescribed) may, in the
absence of negligence or bad faith on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers' Certificate delivered to the
Trustee and such certificate, in the absence of negligence or bad faith on the
part of the Trustee, shall be full warrant to the Trustee for any action taken,
suffered or omitted to be taken by it under the provisions of this Indenture
upon the faith thereof.

SECTION 7.08      Disqualification; Conflicting Interests.

         If the Trustee has or shall acquire any "conflicting interest" within
the meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the
Company shall in all respects comply with the provisions of Section 310(b) of
the Trust Indenture Act.

SECTION 7.09      Corporate Trustee Required; Eligibility.

         There shall at all times be a Trustee with respect to the Securities
issued hereunder which shall at all times be a corporation organized and doing
business under the laws of the United States of America or any State or
Territory thereof or of the District of Columbia, or a corporation or other
Person permitted to act as trustee by the Commission, authorized under such laws
to exercise corporate trust powers, having a combined capital and surplus of at
least 50 million U.S. dollars ($50,000,000), and subject to supervision or
examination by Federal, State, Territorial, or District of Columbia authority.
If such corporation publishes reports of condition at least annually, pursuant
to law or to the requirements of the aforesaid 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. The
Company may not, nor may any Person directly or indirectly controlling,
controlled by, or under common control with the Company, serve as

                                       30
<PAGE>

Trustee. In case at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, the Trustee shall resign
immediately in the manner and with the effect specified in Section 7.10.

SECTION 7.10      Resignation and Removal; Appointment of Successor.

         (a) The Trustee or any successor hereafter appointed, may at any time
resign with respect to the Securities of one or more series by giving written
notice thereof to the Company and by transmitting notice of resignation by mail,
first class postage prepaid, to the Securityholders of such series, as their
names and addresses appear upon the Security Register. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor trustee
with respect to Securities of such series by written instrument, in duplicate,
executed by order of the Board of Directors, one copy of which instrument shall
be delivered to the resigning Trustee and one copy to the successor trustee. If
no successor trustee shall have been so appointed and have accepted appointment
within 30 days after the mailing 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 Securities of such series, or any
Securityholder of that series who has been a bona fide holder of a Security or
Securities for at least six months may on behalf of himself and all others
similarly situated, petition any such court for the appointment of a successor
trustee. Such court may thereupon after such notice, if any, as it may deem
proper and prescribe, appoint a successor trustee.

         (b) In case at any time any one of the following shall occur:

              (1) the Trustee shall fail to comply with the provisions of
Section 7.08 after written request therefor by the Company or by any
Securityholder who has been a bona fide holder of a Security or Securities for
at least six months; or

              (2) the Trustee shall cease to be eligible in accordance with the
provisions of Section 7.09 and shall fail to resign after written request
therefor by the Company or by any such Securityholder; or

              (3) the Trustee shall become incapable of acting, or shall be
adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy proceeding,
or a receiver of the Trustee or of its property shall be appointed or consented
to, 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, the Company may remove the Trustee with
respect to all Securities and appoint a successor trustee by written instrument,
in duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the
successor trustee, or, unless the Trustee's duty to resign is stayed as provided
herein, any Securityholder who has been a bona fide holder of a Security or
Securities for at least six months may, on behalf of that holder and all others
similarly situated, petition any court of competent jurisdiction for the removal
of the Trustee and the appointment of a successor trustee. Such court may
thereupon after such notice, if any, as it may deem proper and prescribe, remove
the Trustee and appoint a successor trustee.

                                       31
<PAGE>

         (c) The holders of a majority in aggregate principal amount of the
Securities of any series at the time Outstanding may at any time remove the
Trustee with respect to such series by so notifying the Trustee and the Company
and may appoint a successor Trustee for such series with the consent of the
Company.

         (d) Any resignation or removal of the Trustee and appointment of a
successor trustee with respect to the Securities of a series pursuant to any of
the provisions of this Section shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 7.11.

         (e) Any successor trustee appointed pursuant to this Section may be
appointed with respect to the Securities of one or more series or all of such
series, and at any time there shall be only one Trustee with respect to the
Securities of any particular series.

SECTION 7.11      Acceptance of Appointment By Successor.

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

         (b) In case of the appointment hereunder of a successor trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor trustee relates, (2)
shall contain such provisions as shall be deemed necessary or desirable to
confirm that all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee, and
(3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such Trustees co-trustees of the
same trust, 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 that no Trustee shall be responsible for any act or
failure to act on the part of any other Trustee hereunder; and upon the
execution and delivery of such supplemental indenture the resignation or removal
of the retiring Trustee shall

                                       32
<PAGE>

become effective to the extent provided therein, such retiring Trustee shall
with respect to the Securities of that or those series to which the appointment
of such successor trustee relates have no further responsibility for the
exercise of rights and powers or for the performance of the duties and
obligations vested in the Trustee under this Indenture, and each such successor
trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor trustee relates; but, on request of the Company or any successor
trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor trustee, to the extent contemplated by such supplemental indenture,
the property and money held by such retiring Trustee hereunder with respect to
the Securities of that or those series to which the appointment of such
successor trustee relates.

         (c) Upon request of any such successor trustee, the Company shall
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor trustee all such rights, powers and trusts referred
to in paragraph (a) 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.

         (e) Upon acceptance of appointment by a successor trustee as provided
in this Section, the Company shall transmit notice of the succession of such
trustee hereunder by mail, first class postage prepaid, to the Securityholders,
as their names and addresses appear upon the Security Register. If the Company
fails to transmit such notice within ten days after acceptance of appointment by
the successor trustee, the successor trustee shall cause such notice to be
transmitted at the expense of the Company.

SECTION 7.12      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 the corporate trust business of the Trustee, shall be
the successor of the Trustee hereunder, provided that such corporation shall be
qualified under the provisions of Section 7.08 and eligible under the provisions
of Section 7.09, without the execution or filing of any paper or any further act
on the part of any of the parties hereto, anything herein to the contrary
notwithstanding. In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion or
consolidation to such authenticating Trustee may adopt such authentication and
deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.

SECTION 7.13      Preferential Collection of Claims Against the Company.

                                       33
<PAGE>

         The Trustee shall comply with Section 311(a) of the Trust Indenture
Act, excluding any creditor relationship described in Section 311(b) of the
Trust Indenture Act. A Trustee who has resigned or been removed shall be subject
to Section 311(a) of the Trust Indenture Act to the extent included therein.

                                  ARTICLE VIII

                         CONCERNING THE SECURITYHOLDERS

SECTION 8.01      Evidence of Action by Securityholders.

         Whenever in this Indenture it is provided that the holders of a
majority or specified percentage in aggregate principal amount of the Securities
of a particular series may take any action (including the making of any demand
or request, the giving of any notice, consent or waiver or the taking of any
other action), the fact that at the time of taking any such action the holders
of such majority or specified percentage of that series have joined therein may
be evidenced by any instrument or any number of instruments of similar tenor
executed by such holders of Securities of that series in Person or by agent or
proxy appointed in writing.

         If the Company shall solicit from the Securityholders of any series any
request, demand, authorization, direction, notice, consent, waiver or other
action, the Company may, at its option, as evidenced by an Officers'
Certificate, fix in advance a record date for such series for the determination
of Securityholders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other action, 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 action may be given
before or after the record date, but only the Securityholders of record at the
close of business on the record date shall be deemed to be Securityholders for
the purposes of determining whether Securityholders of the requisite proportion
of Outstanding Securities of that series have authorized or agreed or consented
to such request, demand, authorization, direction, notice, consent, waiver or
other action, and for that purpose the Outstanding Securities of that series
shall be computed as of the record date; provided, however, that no such
authorization, agreement or consent by such Securityholders on the record date
shall be deemed effective unless it shall become effective pursuant to the
provisions of this Indenture not later than six months after the record date.

SECTION 8.02      Proof of Execution by Securityholders.

         Subject to the provisions of Section 7.01, proof of the execution of
any instrument by a Securityholder (such proof will not require notarization) or
his agent or proxy and proof of the holding by any Person of any of the
Securities shall be sufficient if made in the following manner:

              (1) The fact and date of the execution by any such Person of any
instrument may be proved in any reasonable manner acceptable to the Trustee.

                                       34
<PAGE>

              (2) The ownership of Securities shall be proved by the Security
Register of such Securities or by a certificate of the Security Registrar
thereof.

              (3) The Trustee may require such additional proof of any matter
referred to in this Section as it shall deem necessary.

SECTION 8.03      Who May be Deemed Owners.

         Prior to the due presentment for registration of transfer of any
Security, the Company, the Trustee, any paying agent and any Security Registrar
may deem and treat the Person in whose name such Security shall be registered
upon the books of the Company as the absolute owner of such Security (whether or
not such Security shall be overdue and notwithstanding any notice of ownership
or writing thereon made by anyone other than the Security Registrar) for the
purpose of receiving payment of or on account of the principal of, premium, if
any, and (subject to Section 2.03) interest on such Security and for all other
purposes; and neither the Company nor the Trustee nor any paying agent nor any
Security Registrar shall be affected by any notice to the contrary.

SECTION 8.04      Certain Securities Owned by Company Disregarded.

         In determining whether the holders of the requisite aggregate principal
amount of Securities of a particular series have concurred in any direction,
consent of waiver under this Indenture, the Securities of that series that are
owned by the Company or any other obligor on the Securities of that series or by
any Person directly or indirectly controlling or controlled by or under common
control with the Company or any other obligor on the Securities of that series
shall be disregarded and deemed not to be Outstanding for the purpose of any
such determination, except that for the purpose of determining whether the
Trustee shall be protected in relying on any such direction, consent or waiver,
only Securities of such series that the Trustee actually knows are so owned
shall be so disregarded. The Securities so owned that have been pledged in good
faith may be regarded as Outstanding for the purposes of this Section, if the
pledgee shall establish to the satisfaction of the Trustee the pledgee's right
so to act with respect to such Securities and that the pledgee is not a Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with the Company or any such other obligor. In case of a dispute
as to such right, any decision by the Trustee taken upon the advice of counsel
shall be full protection to the Trustee.

SECTION 8.05      Actions Binding on Future Securityholders.

         At any time prior to (but not after) the evidencing to the Trustee, as
provided in Section 8.01, of the taking of any action by the holders of the
majority or percentage in aggregate principal amount of the Securities of a
particular series specified in this Indenture in connection with such action,
any holder of a Security of that series that is shown by the evidence to be
included in the Securities the holders of which have consented to such action
may, by filing written notice with the Trustee, and upon proof of holding as
provided in Section 8.02, revoke

                                       35
<PAGE>

such action so far as concerns such Security. Except as aforesaid any such
action taken by the holder of any Security shall be conclusive and binding upon
such holder and upon all future holders and owners of such Security, and of any
Security issued in exchange therefor, on registration of transfer thereof or in
place thereof, irrespective of whether or not any notation in regard thereto is
made upon such Security. Any action taken by the holders of the majority or
percentage in aggregate principal amount of the Securities of a particular
series specified in this Indenture in connection with such action shall be
conclusively binding upon the Company, the Trustee and the holders of all the
Securities of that series.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

SECTION 9.01      Supplemental Indentures Without the Consent of
                  Securityholders.

         In addition to any supplemental indenture otherwise authorized by this
Indenture, the Company and the Trustee may from time to time and at any time
enter into an indenture or indentures supplemental hereto (which shall conform
to the provisions of the Trust Indenture Act as then in effect), without the
consent of the Securityholders, for one or more of the following purposes:

         (a) to cure any ambiguity, defect, or inconsistency herein, in the
Securities of any series;

         (b) to comply with Article Ten;

         (c) to provide for uncertificated Securities in addition to or in place
of certificated Securities;

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

         (e) to add to, delete from, or revise the conditions, limitations, and
restrictions on the authorized amount, terms, or purposes of issue,
authentication, and delivery of Securities, as herein set forth;

         (f) to make any change that does not adversely affect the rights of any
Securityholder in any material respect; or

         (g) to provide for the issuance of and establish the form and terms and
conditions of the Securities of any series as provided in Section 2.01, to
establish the form of any certifications

                                       36
<PAGE>

required to be furnished pursuant to the terms of this Indenture or any series
of Securities, or to add to the rights of the holders of any series of
Securities.

         The Trustee is hereby authorized to join with the Company in the
execution of any such supplemental indenture, and to make any further
appropriate agreements and stipulations that may be therein contained, but the
Trustee shall not be obligated to enter into any such supplemental indenture
that affects the Trustee's own rights, duties or immunities under this Indenture
or otherwise.

         Any supplemental indenture authorized by the provisions of this Section
may be executed by the Company and the Trustee without the consent of the
holders of any of the Securities at the time Outstanding, notwithstanding any of
the provisions of Section 9.02.

SECTION 9.02      Supplemental Indentures With Consent of Securityholders.

         With the consent (evidenced as provided in Section 8.01) of the holders
of not less than a majority in aggregate principal amount of the Securities of
each series affected by such supplemental indenture or indentures at the time
Outstanding, the Company, when authorized by Board Resolutions, and the Trustee
may from time to time and at any time enter into an indenture or indentures
supplemental hereto (which shall conform to the provisions of the Trust
Indenture Act as then in effect) for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or
of any supplemental indenture or of modifying in any manner not covered by
Section 9.01 the rights of the holders of the Securities of such series under
this Indenture; provided, however, that no such supplemental indenture shall,
without the consent of the holders of each Security then Outstanding and
affected thereby, (i) extend the fixed maturity of any Securities of any series,
or reduce the principal amount thereof, or reduce the rate or extend the time of
payment of interest thereon, or reduce any premium payable upon the redemption
thereof or (ii) reduce the aforesaid percentage of Securities, the holders of
which are required to consent to any such supplemental indenture.

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

SECTION 9.03      Effect of Supplemental Indentures.

         Upon the execution of any supplemental indenture pursuant to the
provisions of this Article or of Section 10.01, this Indenture shall, with
respect to such series, be and be deemed to be modified and amended in
accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, the
Company and the holders of Securities of the series affected thereby shall
thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

                                       37
<PAGE>

SECTION 9.04      Securities Affected by Supplemental Indentures.

         Securities of any series affected by a supplemental indenture,
authenticated and delivered after the execution of such supplemental indenture
pursuant to the provisions of this Article or of Section 10.01, may bear a
notation in form approved by the Company, provided such form meets the
requirements of any exchange upon which such series may be listed, as to any
matter provided for in such supplemental indenture. If the Company shall so
determine, new Securities of that series so modified as to conform, in the
opinion of the Board of Directors of the Company, to any modification of this
Indenture contained in any such supplemental indenture may be prepared by the
Company, authenticated by the Trustee and delivered in exchange for the
Securities of that series then Outstanding.

SECTION 9.05      Execution of Supplemental Indentures.

         Upon the request of the Company, accompanied by its Board Resolutions
authorizing the execution of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of Securityholders required
to consent thereto as aforesaid, the Trustee shall join with the Company in the
execution of such supplemental indenture unless such 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. The Trustee, subject to the
provisions of Section 7.01, may receive an Opinion of Counsel as conclusive
evidence that any supplemental indenture executed pursuant to this Article is
authorized or permitted by, and conforms to, the terms of this Article and that
it is proper for the Trustee under the provisions of this Article to join in the
execution thereof; provided, however, that such Opinion of Counsel need not be
provided in connection with the execution of a supplemental indenture that
establishes the terms of a series of Securities pursuant to Section 2.01 hereof.

         Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Trustee
shall transmit by mail, first class postage prepaid, a notice, setting forth in
general terms the substance of such supplemental indenture, to the
Securityholders of all series affected thereby as their names and addresses
appear upon the Security Register. Any failure of the Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

                                    ARTICLE X

                                SUCCESSOR ENTITY

SECTION 10.01     Company May Consolidate, Etc.

         Nothing contained in this Indenture or in any of the Securities shall
prevent any consolidation or merger of the Company with or into any other Person
(whether or not affiliated

                                       38
<PAGE>

with the Company) or successive consolidations or mergers in which the Company
or its successor or successors shall be a party or parties, or shall prevent any
sale, conveyance, transfer or other disposition of the property of the Company
or its successor or successors as an entirety, or substantially as an entirety,
to any other corporation (whether or not affiliated with the Company or its
successor or successors) authorized to acquire and operate the same; provided,
however, the Company hereby covenants and agrees that, upon any such
consolidation or merger (in each case, if the Company is not the survivor of
such transaction), sale, conveyance, transfer or other disposition, the due and
punctual payment of the principal of (premium, if any) and interest on all of
the Securities of all series in accordance with the terms of each series,
according to their tenor and the due and punctual performance and observance of
all the covenants and conditions of this Indenture with respect to each series
or established with respect to such series pursuant to Section 2.01 to be kept
or performed by the Company shall be expressly assumed, by supplemental
indenture (which shall conform to the provisions of the Trust Indenture Act, as
then in effect) satisfactory in form to the Trustee executed and delivered to
the Trustee by the entity formed by such consolidation, or into which the
Company shall have been merged, or by the entity which shall have acquired such
property.

SECTION 10.02     Successor Entity Substituted.

         (a) In case of any such consolidation, merger, sale, conveyance,
transfer or other disposition and upon the assumption by the successor entity by
supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the due and punctual payment of the principal of,
premium, if any, and interest on all of the Securities of all series Outstanding
and the due and punctual performance of all of the covenants and conditions of
this Indenture or established with respect to each series of the Securities
pursuant to Section 2.01 to be performed by the Company with respect to each
series, such successor entity shall succeed to and be substituted for the
Company with the same effect as if it had been named as the Company herein, and
thereupon the predecessor corporation shall be relieved of all obligations and
covenants under this Indenture and the Securities.

         (b) In case of any such consolidation, merger, sale, conveyance,
transfer or other disposition such changes in phraseology and form (but not in
substance) may be made in the Securities thereafter to be issued as may be
appropriate.

         (c) Nothing contained in this Article shall require any action by the
Company in the case of a consolidation or merger of any Person into the Company
where the Company is the survivor of such transaction, or the acquisition by the
Company, by purchase or otherwise, of all or any part of the property of any
other Person (whether or not affiliated with the Company).

SECTION 10.03     Evidence of Consolidation, Etc. to Trustee.

         The Trustee, subject to the provisions of Section 7.01, may receive an
Opinion of Counsel as conclusive evidence that any such consolidation, merger,
sale, conveyance, transfer or other disposition, and any such assumption, comply
with the provisions of this Article.

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<PAGE>

                                   ARTICLE XI

                           SATISFACTION AND DISCHARGE

SECTION 11.01     Satisfaction and Discharge of Indenture.

         If at any time: (a) the Company shall have delivered to the Trustee for
cancellation all Securities of a series theretofore authenticated (other than
any Securities that shall have been destroyed, lost or stolen and that shall
have been replaced or paid as provided in Section 2.07) and Securities for whose
payment money or Governmental Obligations have theretofore been deposited in
trust or segregated and held in trust by the Company (and thereupon repaid to
the Company or discharged from such trust, as provided in Section 11.05); or (b)
all such Securities of a particular series not theretofore delivered to the
Trustee for cancellation shall have become due and payable, or are by their
terms to become due and payable within one year or are to be called for
redemption within one year under arrangements satisfactory to the Trustee for
the giving of notice of redemption, and the Company shall deposit or cause to be
deposited with the Trustee as trust funds the entire amount in moneys or
Governmental Obligations sufficient or a combination thereof, sufficient in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay at
maturity or upon redemption all Securities of that series not theretofore
delivered to the Trustee for cancellation, including principal (and premium, if
any) and interest due or to become due to such date of maturity or date fixed
for redemption, as the case may be, and if the Company shall also pay or cause
to be paid all other sums payable hereunder with respect to such series by the
Company then this Indenture shall thereupon cease to be of further effect with
respect to such series except for the provisions of Sections 2.03, 2.05, 2.07,
4.01, 4.02, 4.03 and 7.10, that shall survive until the date of maturity or
redemption date, as the case may be, and Sections 7.06 and 11.05, that shall
survive to such date and thereafter, and the Trustee, on demand of the Company
and at the cost and expense of the Company shall execute proper instruments
acknowledging satisfaction of and discharging this Indenture with respect to
such series.

SECTION 11.02     Discharge of Obligations.

         If at any time all such Securities of a particular series not
heretofore delivered to the Trustee for cancellation or that have not become due
and payable as described in Section 11.01 shall have been paid by the Company by
depositing irrevocably with the Trustee as trust funds moneys or an amount of
Governmental Obligations sufficient to pay at maturity or upon redemption all
such Securities of that series not theretofore delivered to the Trustee for
cancellation, including principal (and premium, if any) and interest due or to
become due to such date of maturity or date fixed for redemption, as the case
may be, and if the Company shall also pay or cause to be paid all other sums
payable hereunder by the Company with respect to such series, then after the
date such moneys or Governmental Obligations, as the case may be, are deposited
with the Trustee the obligations of the Company under this Indenture with
respect to such series shall cease to be of further effect except for the
provisions of Sections 2.03, 2.05, 2.07, 4,01, 4.02, 4,03, 7.06, 7.10 and 11.05
hereof that shall survive until such Securities shall mature and be paid.
Thereafter, Sections 7.06 and 11.05 shall survive.

                                       40
<PAGE>

SECTION 11.03     Deposited Moneys to be Held in Trust.

         All moneys or Governmental Obligations deposited with the Trustee
pursuant to Sections 11.01 or 11.02 shall be held in trust and shall be
available for payment as due, either directly or through any paying agent
(including the Company acting as its own paying agent), to the holders of the
particular series of Securities for the payment or redemption of which such
moneys or Governmental Obligations have been deposited with the Trustee.

SECTION 11.04     Payment of Moneys Held by Paying Agents.

         In connection with the satisfaction and discharge of this Indenture all
moneys or Governmental Obligations then held by any paying agent under the
provisions of this Indenture shall, upon demand of the Company, be paid to the
Trustee and thereupon such paying agent shall be released from all further
liability with respect to such moneys or Governmental Obligations.

SECTION 11.05     Repayment to Company.

         Any moneys or Governmental Obligations deposited with any paying agent
or the Trustee, or then held by the Company, in trust for payment of principal
of or premium or interest on the Securities of a particular series that are not
applied but remain unclaimed by the holders of such Securities for at least two
years after the date upon which the principal of (and premium, if any) or
interest on such Securities shall have respectively become due and payable,
shall be repaid to the Company on May 31 of each year or (if then held by the
Company) shall be discharged from such trust; and thereupon the paying agent and
the Trustee shall be released from all further liability with respect to such
moneys or Governmental Obligations, and the holder of any of the Securities
entitled to receive such payment shall thereafter, as an unsecured general
creditor, look only to the Company for the payment thereof.

                                  ARTICLE XII

         IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

SECTION 12.01     No Recourse.

         No recourse under or upon any obligation, covenant or agreement of this
Indenture, or of any Security, or for any claim based thereon or otherwise in
respect thereof, shall be had against any incorporator, stockholder, officer or
director, past, present or future as such, of the Company or of any predecessor
or successor corporation, either directly or through the Company or any such
predecessor or successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise; it being expressly understood that this Indenture and the obligations
issued hereunder are solely corporate obligations, and that no such personal
liability whatever shall attach to, or is or shall be incurred by, the
incorporators, stockholders, officers or directors as such, of the Company or of
any

                                       41
<PAGE>

predecessor or successor corporation, or any of them, because of the creation of
the indebtedness hereby authorized, or under or by reason of the obligations,
covenants or agreements contained in this Indenture or in any of the Securities
or implied therefrom; and that any and all such personal liability of every name
and nature, either at common law or in equity or by constitution or statute, of,
and any and all such rights and claims against, every such incorporator,
stockholder, officer or director as such, because of the creation of the
indebtedness hereby authorized, or under or by reason of the obligations,
covenants or agreements contained in this Indenture or in any of the Securities
or implied therefrom, are hereby expressly waived and released as a condition
of, and as a consideration for, the execution of this Indenture and the issuance
of such Securities.

                                  ARTICLE XIII

                            MISCELLANEOUS PROVISIONS

SECTION 13.01     Effect on Successors and Assigns.

         All the covenants, stipulations, promises and agreements in this
Indenture contained by or on behalf of the Company shall bind its successors and
assigns, whether so expressed or not.

SECTION 13.02     Actions by Successor.

         Any act or proceeding by any provision of this Indenture authorized or
required to be done or performed by any board, committee or officer of the
Company shall and may be done and performed with like force and effect by the
corresponding board, committee or officer of any corporation that shall at the
time be the lawful successor of the Company.

SECTION 13.03     Surrender of Company Powers.

         The Company by instrument in writing executed by authority of its Board
of Directors and delivered to the Trustee may surrender any of the powers
reserved to the Company, and thereupon such power so surrendered shall terminate
both as to the Company and as to any successor corporation.

SECTION 13.04     Notices.

         Except as otherwise expressly provided herein any notice or demand that
by any provision of this Indenture is required or permitted to be given or
served by the Trustee or by the holders of Securities to or on the Company may
be given or served by being deposited first class postage prepaid in a
post-office letterbox addressed (until another address is filed in writing by
the Company with the Trustee), as follows: [ ]. Any notice, election, request or
demand by the Company or any Securityholder to or upon the Trustee shall be
deemed to have been sufficiently given or made, for all purposes, if given or
made in writing at the Corporate Trust Office of the Trustee.

                                       42
<PAGE>

SECTION 13.05     Governing Law.

         This Indenture and each Security shall be deemed to be a contract made
under the internal laws of the State of New York, and for all purposes shall be
construed in accordance with the laws of said State.

SECTION 13.06     Treatment of Securities as Debt.

         It is intended that the Securities will be treated as indebtedness and
not as equity for federal income tax purposes. The provisions of this Indenture
shall be interpreted to further this intention.

SECTION 13.07     Compliance Certificates and Opinions.

         (a) Upon any application or demand by the Company to the Trustee to
take any action under any of the provisions of this Indenture, the Company,
shall furnish to the Trustee an Officers' Certificate stating that all
conditions precedent 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 have been complied with,
except that in the case of any such application or demand as to which the
furnishing of such documents is specifically required by any provision of this
Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.

         (b) Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
in this Indenture shall include (1) a statement that the Person making such
certificate or opinion has read such covenant or condition; (2) a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based; (3) a statement that, in the opinion of such Person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and (4) a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been complied with.

SECTION 13.08     Payments on Business Days.

         Except as provided pursuant to Section 2.01 pursuant to a Board
Resolution, and as set forth in an Officers' Certificate, or established in one
or more indentures supplemental to this Indenture, in any case where the date of
maturity of interest or principal of any Security or the date of redemption of
any Security shall not be a Business Day, then payment of interest or principal
(and premium, if any) may be made on the next succeeding Business Day with the
same force and effect as if made on the nominal date of maturity or redemption,
and no interest shall accrue for the period after such nominal date.

SECTION 13.09     Conflict with Trust Indenture Act.

                                       43
<PAGE>

         If and to the extent that any provision of this Indenture limits,
qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act, such imposed duties shall control.

SECTION 13.10     Counterparts.

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

SECTION 13.11     Separability.

         In case any one or more of the provisions contained in this Indenture
or in the Securities of any series shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Indenture or of
such Securities, but this Indenture and such Securities shall be construed as if
such invalid or illegal or unenforceable provision had never been contained
herein or therein.

SECTION 13.12     Assignment.

         The Company will have the right at all times to assign any of its
rights or obligations under this Indenture to a direct or indirect wholly-owned
Subsidiary of the Company, provided that, in the event of any such assignment,
the Company, will remain liable for all such obligations. Subject to the
foregoing, the Indenture is binding upon and inures to the benefit of the
parties thereto and their respective successors and assigns. This Indenture may
not otherwise be assigned by the parties thereto.

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

                                     NEON COMMUNICATIONS, INC.

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

                                     [                  ],
                                     as Trustee

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

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