Document:

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                                                                     Exhibit 4.7

                         REGISTRATION RIGHTS AGREEMENT

                           dated as of March 5, 2002

                                    between

                       CIRCUS AND ELDORADO JOINT VENTURE
                                      and
                          SILVER LEGACY CAPITAL CORP.
                                   as Issuers

                                      and

                        BANC OF AMERICA SECURITIES LLC,
                  as Representative for the Initial Purchasers

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                      <C>
1.   Definitions ....................................................     1

2.   Exchange Offer .................................................     4

3.   Shelf Registration .............................................     7

4.   Liquidated Damages .............................................     8

5.   Registration Procedures ........................................     9

6.   Registration Expenses ..........................................    17

7.   Indemnification ................................................    18

8.   Rules 144 and 144A .............................................    21

9.   Underwritten Registrations .....................................    21

10.  Miscellaneous ..................................................    22
</TABLE>

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                  This Registration Rights Agreement (the "Agreement") is dated
as of March 5, 2002, by and between Circus and Eldorado Joint Venture, a Nevada
general partnership (the "Partnership"), and Silver Legacy Capital Corp., a
Nevada corporation ("Capital"), as the issuers ("Issuers"), and Banc of America
Securities LLC, as representative ("Representative") for the initial purchasers
listed on Schedule A of the Purchase Agreement (as defined below)(the "Initial
Purchasers").

                  This Agreement is entered into in connection with the Purchase
Agreement, dated as of February 22, 2002, between the Issuers and the
Representative, on behalf of the Initial Purchasers (the "Purchase Agreement"),
relating to the sale by the Issuers to the Initial Purchasers of $160,000,000
aggregate principal amount of the Issuers' 10 1/8% Mortgage Notes due 2012 (the
"Notes"). In order to induce the Representative, on behalf of the Initial
Purchasers, to enter into the Purchase Agreement, the Issuers have agreed to
provide the registration rights set forth in this Agreement for the equal
benefit of the Initial Purchasers and their respective direct and indirect
transferees. The execution and delivery of this Agreement is a condition to the
Initial Purchasers' obligation to purchase the Notes under the Purchase
Agreement.

                  The parties hereby agree as follows:

1. DEFINITIONS
   -----------

                  As used in this Agreement, the following terms shall have the
following meanings:

                  "Advice": See Section 5.

                  "Applicable Period":  See Section 2.

                  "Capital": See the introductory paragraphs to this Agreement.

                  "Closing Date": The closing of the offering of the Notes to
the Initial Purchasers.

                  "Commission": The United States Securities and Exchange
Commission.

                  "Effectiveness Date": The 150/th/ day after the Closing Date.

                  "Effectiveness Target Date": See Section 4.

                  "Effectiveness Period": See Section 3.

                  "Event Date": See Section 4.

                  "Exchange Act":  The Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated thereunder.

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                  "Exchange Deadline":  See Section 2.

                  "Exchange Notes":  See Section 2.

                  "Exchange Offer":  See Section 2.

                  "Exchange Offer Registration Statement":  See Section 2.

                  "Filing Date":  The 60/th/ day after the Closing Date.

                  "Holder":  Any holder of Transfer Restricted Securities.

                  "Holders Counsel":  See Section 5.

                  "Indenture": The Indenture, dated as of March 5, 2002, between
the Issuers and The Bank of New York, as trustee, pursuant to which the Notes
are being issued, as amended or supplemented from time to time in accordance
with the terms thereof.

                  "Initial Purchasers":  See the introductory paragraph to this
Agreement.

                  "Initial Shelf Registration Statement":  See Section 3.

                  "Inspectors":  See Section 5.

                  "Issuers":  See the introductory paragraph to this Agreement.

                  "Liquidated Damages":  See Section 4.

                  "NASD":  See Section 5.

                  "Notes":  See the introductory paragraphs to this Agreement.

                  "Participant":  See Section 7.

                  "Participating Broker-Dealer":  See Section 2.

                  "Partnership": See the introductory paragraph to this
Agreement.

                  "Person": An individual, trustee, corporation, partnership,
joint stock company, limited liability company, trust, unincorporated
association, union, business association, firm or other legal entity.

                  "Private Exchange":  See Section 2.

                  "Private Exchange Notes":  See Section 2.

                  "Prospectus": The prospectus included in any Registration
Statement (including, without limitation, any prospectus subject to completion
and a prospectus that includes any

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information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Transfer Restricted
Securities covered by such Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference or deemed to be incorporated by reference in
such Prospectus.

                  "Records":  See Section 5.

                  "Registration Default":  See Section 4.

                  "Registration Statement": Any registration statement of the
Issuers, including, but not limited to, the Exchange Offer Registration
Statement, that covers the distribution of any of the Transfer Restricted
Securities pursuant to the provisions of this Agreement, including the
Prospectus, amendments and supplements to such registration statement, including
post-effective amendments, all exhibits, and all material incorporated by
reference or deemed to be incorporated by reference in such registration
statement.

                  "Rule 144": Rule 144 under the Securities Act, as such Rule
may be amended from time to time, or any similar rule (other than Rule 144A) or
regulation hereafter adopted by the Commission providing for offers and sales of
securities made in compliance therewith resulting in offers and sales by
subsequent holders that are not affiliates of an issuer of such securities being
free of the registration and prospectus delivery requirements of the Securities
Act.

                  "Rule 144A": Rule 144A under the Securities Act, as such Rule
may be amended from time to time, or any similar rule (other than Rule 144) or
regulation hereafter adopted by the Commission providing for offers and sales of
securities made in compliance therewith resulting in offers and sales by
subsequent holders that are not affiliates of an issuer of such securities being
free of the registration and prospectus delivery requirements of the Securities
Act.

                  "Rule 415": Rule 415 under the Securities Act, as such Rule
may be amended from time to time, or any similar rule or regulation hereafter
adopted by the Commission.

                  "Securities Act":  The Securities Act of 1933, as amended, and
the rules and regulations of the Commission promulgated thereunder.

                  "Selling Holders":  See Section 5.

                  "Shelf Effectiveness Date":  See Section 3.

                  "Shelf Notice":  See Section 2.

                  "Shelf Registration Statement":  See Section 3.

                  "Subsequent Shelf Registration Statement":  See Section 3.

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                  "TIA":  The Trust Indenture Act of 1939, as amended.

                  "Transfer Restricted Security":  Each Note until:

                  (i)     the date on which such Note has been exchanged by a
     Person other than a broker-dealer for an Exchange Note in the Exchange
     Offer;

                  (ii)    following the exchange by a broker-dealer in the
     Exchange Offer of a Note for an Exchange Note, the date on which such
     Exchange Note is sold to a purchaser who receives from such broker-dealer
     on or prior to the date of such sale a copy of the Prospectus contained in
     the Exchange Offer Registration Statement;

                  (iii)   the date on which such Note has been effectively
     registered under the Securities Act and disposed of in accordance with the
     Shelf Registration Statement;

                  (iv)    the date on which such Note is distributed to the
     public pursuant to Rule 144 under the Securities Act; or

                  (v)     the date on which such Note can be sold pursuant to
     paragraph (k) of Rule 144 under the Securities Act.

                  "Trustee":  The trustee under the Indenture and, if existent,
the trustee under any indenture governing the Exchange Notes and Private
Exchange Notes (if any).

                  "Underwritten registration or underwritten offering":  A
registration in which securities of the Issuers are sold to an underwriter for
reoffering to the public.

2. EXCHANGE OFFER
   --------------

                  (a) The Issuers agree to file with the Commission as soon as
practicable after the Closing Date, but in no event later than the Filing Date,
an offer to exchange (the "Exchange Offer") for any and all of the Transfer
Restricted Securities a like aggregate principal amount of debt securities of
the Issuers, the terms of which are substantially identical to the Notes (the
"Exchange Notes") (and which are entitled to the benefits of the Indenture or a
trust indenture which is identical to the Indenture (other than such changes to
the Indenture or any such identical trust indenture as are necessary to comply
with any requirements of the Commission to effect or maintain the qualification
thereof under the TIA) in all material respects and which, in either case, has
been qualified under the TIA), except that the Exchange Notes shall have been
registered pursuant to an effective Registration Statement under the Securities
Act. The Exchange Offer will be registered under the Securities Act on the
appropriate form (the "Exchange Offer Registration Statement") and will comply
with all applicable tender offer rules and regulations under the Exchange Act.
Unless the Exchange Offer would not be permitted by applicable law or Commission
policy, the Issuers will commence the Exchange Offer and use their best efforts
to (x) cause the Exchange Offer Registration Statement to be declared effective
under the Securities Act on or before the Effectiveness Date; (y) keep the
Exchange Offer open for at least 30 days (or longer if required by applicable
law) after the date

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that notice of the Exchange Offer is mailed to Holders; and (z) issue, on or
prior to the later of (1) the 30th business day following the date on which the
Exchange Offer Registration Statement was declared effective by the Commission,
and (2) the earliest possible date following such 30th business day if a longer
period is required by federal securities laws (such later date being the
"Exchange Deadline"), Exchange Notes in exchange for all Notes tendered prior
thereto in the Exchange Offer and not validly withdrawn. Each Holder who
participates in the Exchange Offer will be required to represent that any
Exchange Notes received by it will be acquired in the ordinary course of its
business, that at the time of the consummation of the Exchange Offer such Holder
will have no arrangement or understanding with any person to participate in the
distribution (within the meaning of the Securities Act) of the Exchange Notes,
and that such Holder is not an affiliate of either Issuer within the meaning of
the Securities Act. Upon consummation of the Exchange Offer in accordance with
this Section 2, the provisions of this Agreement shall continue to apply,
mutatis mutandis, solely with respect to Transfer Restricted Securities that are
Private Exchange Notes and Exchange Notes held by Participating Broker-Dealers,
and neither Issuer shall have any further obligation to register Transfer
Restricted Securities (other than Private Exchange Notes) pursuant to Section 3
of this Agreement.

                  (b) The Issuers shall include within the Prospectus contained
in the Exchange Offer Registration Statement a section entitled "Plan of
Distribution" reasonably acceptable to the Representative, which shall contain a
summary statement of the positions taken or policies made by the Staff of the
Commission with respect to the potential "underwriter" status of any
broker-dealer that is the beneficial owner (as defined in Rule 13d-3 under the
Exchange Act) of Exchange Notes received by such broker-dealer in the Exchange
Offer (a "Participating Broker-Dealer"), whether such positions or policies have
been publicly disseminated by the Staff of the Commission or such positions or
policies, in the judgment of the Representative, represent the prevailing views
of the Staff of the Commission. Such "Plan of Distribution" section shall also
allow the use of the Prospectus by all persons subject to the prospectus
delivery requirements of the Securities Act, including all Participating
Broker-Dealers, and include a statement describing the means by which
Participating Broker-Dealers may resell the Exchange Notes.

                  The Issuers shall use their best efforts to keep the Exchange
Offer Registration Statement effective and to amend and supplement the
Prospectus contained therein, in order to permit such Prospectus to be lawfully
delivered by all persons subject to the prospectus delivery requirements of the
Securities Act for such period of time as such persons must comply with such
requirements in order to resell the Exchange Notes, provided that such period
shall not exceed 180 days (or such longer period if extended pursuant to the
last paragraph of Section 5) (the "Applicable Period").

                  If, prior to the commencement or consummation of the Exchange
Offer, any Initial Purchaser holds any Notes acquired by it and having the
status as an unsold allotment in the initial distribution, the Issuers, upon the
request of the Initial Purchaser, shall issue and deliver to such Initial
Purchaser, in exchange (the "Private Exchange") for such Notes held by such
Initial Purchaser, a like principal amount of debt securities of the Issuers
that are identical to the Exchange Notes (the "Private Exchange Notes") (and
which are issued pursuant to the same indenture as the Exchange Notes). The
Private Exchange Notes shall bear the same CUSIP

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number as the Exchange Notes. Interest on the Exchange Notes and Private
Exchange Notes will accrue from the last interest payment date on which interest
was paid to the Initial Purchasers on the Notes surrendered in exchange therefor
or, if no interest has been paid on the Notes, from the date of original issue.

                  In connection with the Exchange Offer, the Issuers shall:

                  (i)     mail to each Holder a copy of the Prospectus forming
     part of the Exchange Offer Registration Statement, together with an
     appropriate letter of transmittal and related documents;

                  (ii)    utilize the services of a depositary for the Exchange
     Offer with an address in the Borough of Manhattan, The City of New York;
     and

                  (iii)   permit Holders to withdraw tendered Notes at any time
     prior to the close of business, New York time, on the last business day on
     which the Exchange Offer shall remain open.

                  As soon as practicable after the close of the Exchange Offer
or the Private Exchange, as the case may be, the Issuers shall:

                          (1) accept for exchange all Notes tendered and not
     validly withdrawn pursuant to the Exchange Offer or the Private Exchange;

                          (2) deliver to the Trustee for cancellation all Notes
     so accepted for exchange; and

                          (3) cause the Trustee to authenticate and deliver
     promptly to each Holder of Notes, Exchange Notes or Private Exchange Notes,
     as the case may be, equal in principal amount to the Notes of such Holder
     so accepted for exchange.

                  The Exchange Notes and the Private Exchange Notes may be
issued under (A) the Indenture or (B) an indenture substantially identical to
the Indenture, which in either event will provide that the Exchange Notes will
not be subject to the transfer restrictions set forth in the Indenture and that
the Exchange Notes, the Private Exchange Notes and the Notes will vote and
consent together on all matters as one class and that neither the Exchange
Notes, the Private Exchange Notes nor the Notes will have the right to vote or
consent as a separate class on any matter.

                  (c) If (i) the Exchange Offer is not permitted by applicable
law or Commission policy, (ii) any Holder of Transfer Restricted Securities
notifies the Issuers prior to the 20/th/ day following the Exchange Offer that
(A) such Holder is prohibited by law or Commission policy from participating in
the Exchange Offer; (B) such Holder may not resell the Exchange Notes acquired
by it in the Exchange Offer to the public without delivering a prospectus and
the Prospectus contained in the Exchange Offer Registration Statement is neither
appropriate nor available for such resales; or (C) it is a broker-dealer and
owns Notes acquired directly from the Issuers or an affiliate of either Issuer
or (iii) the Exchange Offer is commenced and not

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consummated within 180 days after the Closing Date for any reason, then the
Issuers shall promptly deliver to the Holders and the Trustee written notice
thereof (the "Shelf Notice") and shall file an Initial Shelf Registration
Statement pursuant to Section 3. Following the delivery of a Shelf Notice to the
Holders of Transfer Restricted Securities (only in the circumstances
contemplated by clause (i) of the preceding sentence and only if the Issuers
shall have satisfied their obligations, if any, pursuant to Section 5(w) below),
the Issuers shall not have any further obligation to conduct the Exchange Offer
or the Private Exchange under this Section 2.

3. Shelf Registration
   ------------------

          If a Shelf Notice is delivered as contemplated by Section 2(c), then:

          (a) Initial Shelf Registration Statement. The Issuers shall prepare
              ------------------------------------
and file with the Commission a Registration Statement for an offering to be made
on a continuous basis pursuant to Rule 415 covering all of the Transfer
Restricted Securities (the "Initial Shelf Registration Statement"). The Issuers
shall use their best efforts to file such Initial Shelf Registration Statement
with the Commission as promptly as practicable after such obligation arises and
to cause the Shelf Registration Statement to be declared effective by the
Commission on or prior to 90 days after such obligation arises (the "Shelf
Effectiveness Date"). The Initial Shelf Registration Statement shall be on Form
S-3 or another appropriate form permitting registration of such Transfer
Restricted Securities for resale by such Holders in the manner or manners
designated by them (including, without limitation, one or more underwritten
offerings). The Issuers shall not permit any securities other than the Transfer
Restricted Securities to be included in the Initial Shelf Registration Statement
or any Subsequent Shelf Registration Statement. No Holder of Transfer Restricted
Securities may include any of its Transfer Restricted Securities in any Shelf
Registration Statement pursuant to this Agreement unless and until such Holder
furnishes to the Issuers in writing, within 15 business days after receipt of a
request therefor, such information as the Issuers may reasonably request for use
in connection with any Shelf Registration Statement or Prospectus or preliminary
Prospectus included therein. No Holder of Transfer Restricted Securities shall
be entitled to Liquidated Damages pursuant to Section 4 hereof unless and until
such Holder shall have used its best efforts to provide all such reasonably
requested information. Each Holder as to which any Shelf Registration Statement
is being effected agrees to furnish promptly to the Issuers all information to
be disclosed in order to make the information previously furnished to the
Issuers by such Holder not materially misleading. The Issuers shall use their
best efforts to cause the Initial Shelf Registration Statement to be declared
effective under the Securities Act on or prior to the Shelf Effectiveness Date
and to keep the Initial Shelf Registration Statement continuously effective
under the Securities Act until the date which is 24 months from the date that
the Initial Shelf Registration Statement is declared effective (subject to
extension pursuant to the last paragraph of Section 5 hereof) (the
"Effectiveness Period"), or such shorter period ending when (i) all Transfer
Restricted Securities covered by the Initial Shelf Registration Statement have
been sold in the manner set forth and as contemplated in the Initial Shelf
Registration Statement, (ii) a Subsequent Shelf Registration Statement covering
all of the Transfer Restricted Securities has been declared effective under the
Securities Act or (iii) during any period in which all Transfer Restricted
Securities may be sold pursuant to Rule 144(k) under the Securities Act.

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          (b) Subsequent Shelf Registration Statements. If the Initial Shelf
              ----------------------------------------
Registration Statement or any Subsequent Shelf Registration Statement ceases to
be effective for any reason at any time during the Effectiveness Period (other
than because of the sale of all of the securities registered thereunder or all
of the securities registered thereunder are sold pursuant to Rule 144(k) under
the Securities Act), the Issuers shall use their best efforts to obtain the
prompt withdrawal of any order suspending the effectiveness thereof, and in any
event shall within 45 days of such cessation of effectiveness amend the Shelf
Registration Statement in a manner reasonably expected to obtain the withdrawal
of the order suspending the effectiveness thereof, or file an additional
Registration Statement pursuant to Rule 415 covering all of the Transfer
Restricted Securities (a "Subsequent Shelf Registration Statement"). If a
Subsequent Shelf Registration Statement is filed, the Issuers shall use their
best efforts to cause the Subsequent Shelf Registration Statement to be declared
effective as soon as practicable after such filing and to keep such Registration
Statement continuously effective for a period equal to the number of days in the
Effectiveness Period less the aggregate number of days during which the Initial
Shelf Registration Statement or any Subsequent Shelf Registration Statement was
previously continuously effective or such period ending when (i) all Transfer
Restricted Securities covered by the Initial Shelf Registration Statement have
been sold in the manner set forth and as contemplated in the Initial Shelf
Registration Statement, (ii) a Subsequent Shelf Registration Statement covering
all of the Transfer Restricted Securities has been declared effective under the
Securities Act or (iii) during any period in which all Transfer Restricted
Securities may be sold pursuant to Rule 144(k) under the Securities Act. As used
herein, the term "Shelf Registration Statement" means the Initial Shelf
Registration Statement and any Subsequent Shelf Registration Statement.

          (c) Supplements and Amendments. The Issuers shall promptly supplement
              --------------------------
and amend the Shelf Registration Statement if required by the rules, regulations
or instructions applicable to the registration form used for such Shelf
Registration Statement, if required by the Securities Act, or if requested by
the Holders of a majority in aggregate principal amount of the Transfer
Restricted Securities covered by such Registration Statement or by any
underwriter of such Transfer Restricted Securities.

4. LIQUIDATED DAMAGES
   ------------------

          (a) If (i) any Registration Statement required by this Agreement is
not filed with the Commission on or prior to the applicable filing deadline
specified for such filing where a specific deadline is specified, (ii) any such
Registration Statement has not been declared effective by the Commission on or
prior to the date specified herein for such effectiveness (the "Effectiveness
Target Date"), (iii) the Exchange Offer has not been consummated within 30 days
of the Effectiveness Target Date with respect to such Exchange Offer
Registration Statement or (iv) any Registration Statement required by this
Agreement is filed and declared effective but shall thereafter cease to be
effective or fail to be usable for its intended purpose without being succeeded
immediately by a post-effective amendment to such Registration Statement that
cures such failure and that is itself declared effective immediately (each such
event referred to in clauses (i) through (iv), a "Registration Default"), then
the Issuers hereby

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agree to pay, jointly and severally, to each Holder of Transfer Restricted
Securities affected thereby liquidated damages (the "Liquidated Damages") in an
amount equal to $.05 per week per $1,000 in principal amount of Transfer
Restricted Securities held by such Holder for each week or portion thereof that
the Registration Default continues for the first 90-day period immediately
following the occurrence of such Registration Default. The amount of the
Liquidated Damages shall increase by an additional $.05 per week per $1,000 in
principal amount of Transfer Restricted Securities with respect to each
subsequent 90-day period until all Registration Defaults have been cured, up to
a maximum amount of Liquidated Damages of $.25 per week per $1,000 in principal
amount of Transfer Restricted Securities; provided that the Issuers shall in no
event be required to pay Liquidated Damages for more than one Registration
Default at any given time. Notwithstanding anything to the contrary set forth
herein, (1) upon filing of the Exchange Offer Registration Statement (and/or, if
applicable, the Shelf Registration Statement), in the case of (i) above, (2)
upon the effectiveness of the Exchange Offer Registration Statement (and/or, if
applicable, the Shelf Registration Statement), in the case of (ii) above, (3)
upon Consummation of the Exchange Offer, in the case of (iii) above, or (4) upon
the filing of a post-effective amendment to the Registration Statement or an
additional Registration Statement that causes the Exchange Offer Registration
Statement (and/or, if applicable, the Shelf Registration Statement) to again be
declared effective or made usable in the case of (iv) above, the Liquidated
Damages payable with respect to the Transfer Restricted Securities as a result
of such clause (i), (ii), (iii) or (iv), as applicable, shall cease.

          (b) The Issuers shall notify the Trustee within one business day after
each and every date on which an event occurs in respect of which Liquidated
Damages are required to be paid (an "Event Date"). Liquidated Damages shall be
paid by depositing with the Trustee, in trust, for the benefit of the Holders
thereof, on or before the applicable semi-annual interest payment date,
immediately available funds in sums sufficient to pay the Liquidated Damages
then due to Holders of Notes with respect to which the Trustee serves. The
Liquidated Damages due shall be payable on each interest payment date to the
record Holder of Notes entitled to receive the interest payment to be paid on
such date as set forth in the Indenture. Each obligation to pay Liquidated
Damages shall be deemed to accrue on the applicable Event Date. The amount of
Liquidated Damages will be determined by multiplying the applicable Liquidated
Damages rate by a fraction, the numerator of which is the principal amount of
the Notes and the denominator of which is $1,000, and further multiplying such
product by a fraction, the numerator of which is the number of days such
Liquidated Damages rate was applicable during such period and the denominator of
which is 7.

5. Registration Procedures
   -----------------------

          In connection with the registration of any Transfer Restricted
Securities or Private Exchange Notes pursuant to Sections 2 or 3 hereof, the
Issuers shall effect such registrations to permit the sale of such Transfer
Restricted Securities or Private Exchange Notes in accordance with the intended
method or methods of disposition thereof, and, pursuant thereto, the Issuers
shall:

          (a) Prepare and file with the Commission, as soon as practicable after
the date hereof but in any event prior to the Filing Date, a Registration
Statement or Registration

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Statements as prescribed by Section 2 or 3, and use its best efforts to cause
each such Registration Statement to become effective and remain effective as
provided herein; provided, that, if (1) such filing is pursuant to Section 3, or
(2) a Prospectus contained in an Exchange Offer Registration Statement filed
pursuant to Section 2 is required to be delivered under the Securities Act by
any Participating Broker-Dealer who seeks to sell Exchange Notes during the
Applicable Period, before filing any Registration Statement or Prospectus or any
amendments or supplements thereto, the Issuers shall, if requested, furnish to
and afford the Holders of the Transfer Restricted Securities and each such
Participating Broker-Dealer (the "Selling Holders"), as the case may be, covered
by such Registration Statement, one special counsel for the Selling Holders (the
"Holders Counsel") and the managing underwriters, if any, a reasonable
opportunity to review copies of all such documents (including copies of any
documents to be incorporated by reference therein and all exhibits thereto)
proposed to be filed (at least 5 business days prior to such filing). The
Issuers shall not file any Registration Statement or Prospectus or any
amendments or supplements thereto in respect of which the Holders must be
afforded an opportunity to review prior to the filing of such document, if the
Holders of a majority in aggregate principal amount of the Transfer Restricted
Securities covered by such Registration Statement, or such Participating
Broker-Dealer, as the case may be, the Holders Counsel, or the managing
underwriters, if any, shall reasonably object.

          (b) Use their best efforts to keep such Registration Statement
continuously effective and provide all requisite financial statements for the
period specified in Section 2 or 3 of this Agreement, as applicable. Upon the
occurrence of any event that would cause any such Registration Statement or the
Prospectus contained therein (A) to contain an untrue statement of material fact
or omit to state any material fact necessary to make the statements therein not
misleading or (B) not to be effective and usable for resale of Transfer
Restricted Securities during the period required by this Agreement, the Issuers
shall file promptly an appropriate amendment to such Registration Statement
curing such defect, and, if Commission review is required, use its best efforts
to cause such amendment to be declared effective as soon as practicable.

          (c) Prepare and file with the Commission such amendments and post-
effective amendments to each Shelf Registration Statement or Exchange Offer
Registration Statement, as the case may be, as may be necessary to keep such
Registration Statement continuously effective for the Effectiveness Period or
the Applicable Period, as the case may be; cause the related Prospectus to be
supplemented by any required Prospectus supplement, and as so supplemented to be
filed pursuant to Rule 424 (or any similar provisions then in force) under the
Securities Act; and comply with the provisions of the Securities Act, the
Exchange Act and the rules and regulations of the Commission promulgated
thereunder applicable to it with respect to the disposition of all securities
covered by such Registration Statement as so amended or in such Prospectus as so
supplemented and with respect to the subsequent resale of any securities being
sold by a Participating Broker-Dealer covered by any such Prospectus. The
Issuers shall be deemed not to have used their best efforts to keep a
Registration Statement effective during the Applicable Period if they
voluntarily take any action that would result in Selling Holders of the Transfer
Restricted Securities covered thereby or Participating Broker-Dealers seeking to
sell Exchange Notes not being able to sell such Transfer Restricted Securities
or such Exchange Notes during that period unless such action is required by
applicable law.

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          (d) If (1) a Shelf Registration Statement is filed pursuant to Section
3, or (2) a Prospectus contained in an Exchange Offer Registration Statement
filed pursuant to Section 2 is required to be delivered under the Securities Act
by any Participating Broker-Dealer who seeks to sell Exchange Notes during the
Applicable Period, the Issuers shall notify the Selling Holders, the Holders
Counsel and the managing underwriters, if any, promptly (but in any event within
two business days), and confirm such notice in writing, (i) when a Prospectus or
any Prospectus supplement or post-effective amendment has been filed, and, with
respect to a Registration Statement or any post-effective amendment, when the
same has become effective (including in such notice a written statement that any
Holder may, upon request, obtain, without charge, one conformed copy of such
Registration Statement or post-effective amendment including financial
statements and schedules, documents incorporated or deemed to be incorporated by
reference and exhibits), (ii) of the issuance by the Commission of any stop
order suspending the effectiveness of a Registration Statement or of any order
preventing or suspending the use of any preliminary prospectus or the initiation
of any proceedings for that purpose, (iii) if at any time when a prospectus is
required by the Securities Act to be delivered in connection with sales of the
Transfer Restricted Securities the representations and warranties of the Issuers
contained in any agreement (including any underwriting agreement) contemplated
by Section 5(o) below cease to be true and correct, (iv) of the receipt by the
Issuers of any notification with respect to the suspension of the qualification
or exemption from qualification of a Registration Statement or any of the
Transfer Restricted Securities or the Exchange Notes to be sold by any
Participating Broker-Dealer for offer or sale in any jurisdiction, or the
initiation or threatening of any proceeding for such purpose, (v) of the
happening of any event or any information becoming known that makes any
statement made in such Registration Statement or related Prospectus or any
document incorporated or deemed to be incorporated therein by reference untrue
in any material respect or that requires the making of any changes in such
Registration Statement, Prospectus or documents so that, in the case of the
Registration Statement, it will not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading, and that in the case of
the Prospectus, it will not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading, and (vi) of the Issuers' reasonable determination that a
post-effective amendment to a Registration Statement would be appropriate.

          (e) If (1) a Shelf Registration Statement is filed pursuant to Section
3, or (2) a Prospectus contained in an Exchange Offer Registration Statement
filed pursuant to Section 2 is required to be delivered under the Securities Act
by any Participating Broker-Dealer who seeks to sell Exchange Notes during the
Applicable Period, use their best efforts to prevent the issuance of any order
suspending the effectiveness of a Registration Statement or of any order
preventing or suspending the use of a Prospectus or suspending the qualification
(or exemption from qualification) of any of the Transfer Restricted Securities
or the Exchange Notes to be sold by any Participating Broker-Dealer, for sale in
any jurisdiction, and, if any such order is issued, to use its best efforts to
obtain the withdrawal of any such order at the earliest possible moment.

          (f) If a Shelf Registration Statement is filed pursuant to Section 3
and if requested by the managing underwriters, if any, or the Holders of a
majority in aggregate principal amount of the Transfer Restricted Securities
being sold in connection with an underwritten offering, (i)

                                       11

<PAGE>

promptly incorporate in a prospectus supplement or post-effective amendment such
information as the managing underwriters, if any, or such Holders or counsel
reasonably request to be included therein, (ii) make all required filings of
such prospectus supplement or such post-effective amendment as soon as
practicable after the Issuers have received notification of the
matters to be incorporated in such prospectus supplement or post-effective
amendment, and (iii) supplement or make amendments to such Registration
Statement.

          (g) If (1) a Shelf Registration Statement is filed pursuant to
Section 3, or (2) a Prospectus contained in an Exchange Offer Registration
Statement filed pursuant to Section 2 is required to be delivered under the
Securities Act by any Participating Broker-Dealer who seeks to sell Exchange
Notes during the Applicable Period, furnish to each Selling Holder who so
requests and to the Holders Counsel and each managing underwriter, if any,
without charge, one conformed copy of the Registration Statement or Registration
Statements and each post-effective amendment thereto, including financial
statements and schedules, and, if requested, all documents incorporated or
deemed to be incorporated therein by reference and all exhibits.

          (h) If (1) a Shelf Registration Statement is filed pursuant to Section
3, or (2) a Prospectus contained in an Exchange Offer Registration Statement
filed pursuant to Section 2 is required to be delivered under the Securities Act
by any Participating Broker-Dealer who seeks to sell Exchange Notes during the
Applicable Period, deliver to each Selling Holder, their counsel, and the
underwriters, if any, without charge, as many copies of the Prospectus or
Prospectuses (including each form of preliminary prospectus) and each amendment
or supplement thereto and any documents incorporated by reference therein as
such Persons may reasonably request; and, subject to the last paragraph of this
Section 5, the Issuers hereby consent to the use of such Prospectus and each
amendment or supplement thereto by each of the Selling Holders, and the
underwriters or agents, if any, and dealers (if any), in connection with the
offering and sale of the Transfer Restricted Securities covered by or the sale
by Participating Broker-Dealers of the Exchange Notes pursuant to such
Prospectus and any amendment or supplement thereto.

          (i) Prior to any public offering of Transfer Restricted Securities or
any delivery of a Prospectus contained in the Exchange Offer Registration
Statement by any Participating Broker-Dealer who seeks to sell Exchange Notes
during the Applicable Period, to use their best efforts to register or qualify,
and to cooperate with the Selling Holders, the underwriters, if any, and their
respective counsel in connection with the registration or qualification (or
exemption from such registration or qualification) of such Transfer Restricted
Securities for offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as any Selling Holder or the managing
underwriters reasonably request in writing; provided, that where Exchange Notes
held by Participating Broker-Dealers or Transfer Restricted Securities are
offered other than through an underwritten offering, the Issuers agree to cause
their counsel to perform Blue Sky investigations and file registrations and
qualifications required to be filed pursuant to this Section 5(i); keep each
such registration or qualification (or exemption therefrom) effective during the
period such Registration Statement is required to be kept effective and do any
and all other acts or things reasonably necessary or advisable to enable the
disposition in such jurisdictions of the Exchange Notes held by Participating
Broker-Dealers or the Transfer Restricted Securities covered by the applicable
Registration Statement; provided, further, that the Issuers shall not be
required to (A) qualify generally to do business in any jurisdiction where it is

                                       12

<PAGE>

not then so qualified, (B) take any action that would subject it to general
service of process in any such jurisdiction where it is not then so subject or
(C) subject itself to taxation in excess of a nominal dollar amount in any such
jurisdiction.

         (j) If a Shelf Registration Statement is filed pursuant to Section 3,
cooperate with the selling Holders of Transfer Restricted Securities and the
managing underwriters, if any, to facilitate the timely preparation and delivery
of certificates representing Transfer Restricted Securities to be sold, which
certificates shall not bear any restrictive legends and shall be in a form
eligible for deposit with The Depository Trust Company; and enable such Transfer
Restricted Securities to be in such denominations and registered in such names
as the managing underwriters, if any, or Holders may reasonably request.

         (k) Use their best efforts to cause the Transfer Restricted Securities
covered by the Registration Statement to be registered with or approved by such
other governmental agencies or authorities as may be necessary to enable the
seller or sellers thereof or the underwriters, if any, to consummate the
disposition of such Transfer Restricted Securities, except as may be required
solely as a consequence of the nature of such selling Holder's business, in
which case the Issuers will cooperate in all reasonable respects with the filing
of such Registration Statement and the granting of such approvals.

         (l) If (1) a Shelf Registration Statement is filed pursuant to Section
3, or (2) a Prospectus contained in an Exchange Offer Registration Statement
filed pursuant to Section 2 is required to be delivered under the Securities Act
by any Participating Broker-Dealer who seeks to sell Exchange Notes during the
Applicable Period, upon the occurrence of any event contemplated by paragraph
5(d)(v) or 5(d)(vi) above, as promptly as practicable prepare and (subject to
Section 5(a) above) file with the Commission, at the expense of the Issuers, a
supplement or post-effective amendment to the Registration Statement or a
supplement to the related Prospectus or any document incorporated or deemed to
be incorporated therein by reference, or file any other required document so
that, as thereafter delivered to the purchasers of the Transfer Restricted
Securities being sold thereunder or to the purchasers of the Exchange Notes to
whom such Prospectus will be delivered by a Participating Broker-Dealer any such
Prospectus will not 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, in light of the circumstances under which they were made,
not misleading.

         (m) Use their best efforts to cause the Transfer Restricted Securities
covered by a Registration Statement or the Exchange Notes, as the case may be,
to be rated with the appropriate rating agencies, if so requested by the Holders
of a majority in aggregate principal amount of Transfer Restricted Securities
covered by such Registration Statement or the Exchange Notes, as the case may
be, or the managing underwriters, if any.

         (n) Prior to the effective date of the first Registration Statement
relating to the Transfer Restricted Securities, (i) provide the Trustee with
printed certificates for the Transfer Restricted Securities in a form eligible
for deposit with The Depository Trust Company and (ii) provide a CUSIP number
for the Transfer Restricted Securities.

                                       13

<PAGE>

         (o) In the event of an underwritten offering of Transfer Restricted
Securities pursuant to a Shelf Registration Statement, enter into an
underwriting agreement as is customary in underwritten offerings and take all
such other actions as are reasonably requested by the managing underwriters in
order to expedite or facilitate the registration or the disposition of such
Transfer Restricted Securities, and in such connection, (i) make such
representations and warranties to the underwriters, with respect to the business
of each Issuer and its subsidiaries and the Registration Statement, Prospectus
and documents, if any, incorporated or deemed to be incorporated by reference
therein, in each case, as are customarily made by issuers to underwriters in
underwritten offerings, and confirm the same if and when requested; (ii) obtain
opinions of counsel to the Issuers and updates thereof in form and substance
reasonably satisfactory to the managing underwriters, addressed to the
underwriters covering the matters customarily covered in opinions requested in
underwritten offerings and such other matters as may be reasonably requested by
underwriters; (iii) obtain "cold comfort" letters and updates thereof in form
and substance reasonably satisfactory to the managing underwriters from the
independent certified public accountants of the Issuers (and, if necessary, any
other independent certified public accountants of any subsidiary of either
Issuer or of any business acquired by such Issuer for which financial statements
and financial data are, or are required to be, included in the Registration
Statement), addressed to each of the underwriters, such letters to be in
customary form and covering matters of the type customarily covered in "cold
comfort" letters in connection with underwritten offerings and such other
matters as reasonably requested by underwriters; and (iv) if an underwriting
agreement is entered into, the same shall contain indemnification provisions and
procedures no less favorable than those set forth in Section 7 hereof (or such
other provisions and procedures acceptable to the Issuers and Holders of a
majority in aggregate principal amount of Transfer Restricted Securities covered
by such Registration Statement and the managing underwriters or agents) with
respect to all parties to be indemnified pursuant to said Section. The above
shall be done at each closing under such underwriting agreement, or as and to
the extent required thereunder.

         (p) If (1) a Shelf Registration Statement is filed pursuant to Section
3, or (2) a Prospectus contained in an Exchange Offer Registration Statement
filed pursuant to Section 2 is required to be delivered under the Securities Act
by any Participating Broker-Dealer who seeks to sell Exchange Notes during the
Applicable Period, make available for inspection by any Selling Holder, any
underwriter participating in any such disposition of Transfer Restricted
Securities, if any, and any attorney, accountant or other agent retained by any
such Selling Holder or underwriter (collectively, the "Inspectors"), at the
offices where normally kept, during reasonable business hours, all financial and
other records, pertinent corporate documents and properties of either Issuer and
its subsidiaries (collectively, the "Records") as shall be reasonably necessary
to enable them to exercise any applicable due diligence responsibilities, and
cause the officers, directors and employees of such Issuer and its subsidiaries
to supply all information in each case reasonably requested by any such
Inspector in connection with such Registration Statement. Records which such
Issuer determines, in good faith, to be confidential and any Records which it
notifies the Inspectors are confidential shall not be disclosed by the
Inspectors unless (i) the disclosure of such Records is necessary to avoid or
correct a misstatement or omission in such Registration Statement, (ii) the
release of such Records is ordered pursuant to a subpoena or other order from a
court of competent jurisdiction or (iii) the information in such

                                       14

<PAGE>

Records has been made generally available to the public. Each Selling Holder
will be required to agree that information obtained by it as a result of such
inspections shall be deemed confidential and shall not be used by it as the
basis for any market transactions in the securities of the Issuers unless and
until such is made generally available to the public. Each Selling Holder will
be required to further agree that it will, upon learning that disclosure of such
Records is sought in a court of competent jurisdiction, give notice to the
Issuers and allow the Issuers to undertake appropriate action to prevent
disclosure of the Records deemed confidential at their expense.

         (q) Provide an indenture trustee for the Transfer Restricted Securities
or the Exchange Notes, as the case may be, and cause the Indenture or the trust
indenture provided for in Section 2(a), as the case may be, to be qualified
under the TIA not later than the effective date of the Exchange Offer or the
first Registration Statement relating to the Transfer Restricted Securities; and
in connection therewith, cooperate with the trustee under any such indenture and
the Holders of the Transfer Restricted Securities, to effect such changes to
such indenture as may be required for such indenture to be so qualified in
accordance with the terms of the TIA; and execute, and use its best efforts to
cause such trustee to execute, all documents as may be required to effect such
changes, and all other forms and documents required to be filed with the
Commission to enable such indenture to be so qualified in a timely manner.

         (r) Comply with all applicable rules and regulations of the Commission
and make generally available to its securityholders earnings statements
satisfying the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder (or any similar rule promulgated under the Securities Act) no later
than 45 days after the end of any 12-month period (or 90 days after the end of
any 12-month period if such period is a fiscal year) (i) commencing at the end
of any fiscal quarter in which Transfer Restricted Securities are sold to
underwriters in a firm commitment or best efforts underwritten offering and (ii)
if not sold to underwriters in such an offering, commencing on the first day of
the first fiscal quarter of the Issuers after the effective date of a
Registration Statement, which statements shall cover said 12-month periods.

         (s) Upon consummation of an Exchange Offer or a Private Exchange,
obtain an opinion of counsel to the Issuers addressed to the Trustee for the
benefit of all Holders of Transfer Restricted Securities participating in the
Exchange Offer or the Private Exchange, as the case may be, and which includes
an opinion that (i) each Issuer has duly authorized, executed and delivered the
Exchange Notes and Private Exchange Notes and the related indenture, and (ii)
each of the Exchange Notes or the Private Exchange Notes, as the case may be,
and related indenture constitute a legal, valid and binding obligation of such
Issuer, enforceable against such Issuer in accordance with its respective terms
(with customary exceptions).

         (t) If an Exchange Offer or a Private Exchange is to be consummated,
upon delivery of the Transfer Restricted Securities by Holders to the Issuers
(or to such other Person as directed by the Issuers) in exchange for the
Exchange Notes or the Private Exchange Notes, as the case may be, the Issuers
shall mark, or cause to be marked, on such Transfer Restricted Securities that
such Transfer Restricted Securities are being cancelled in exchange for the
Exchange Notes or the Private Exchange Notes, as the case may be; in no event
shall such Transfer Restricted Securities be marked as paid or otherwise
satisfied.

                                       15

<PAGE>

         (u) Cooperate with each seller of Transfer Restricted Securities
covered by any Registration Statement and each underwriter, if any,
participating in the disposition of such Transfer Restricted Securities and
their respective counsel in connection with any filings required to be made with
the National Association of Securities Dealers, Inc. (the "NASD").

         (v) Use their best efforts to take all other steps necessary to effect
the registration of the Transfer Restricted Securities covered by a Registration
Statement contemplated hereby.

         (w) If, following the date hereof there has been announced a change in
Commission policy with respect to exchange offers such as the Exchange Offer,
that in the reasonable opinion of counsel to the Issuers raises a substantial
question as to whether the Exchange Offer is permitted by applicable federal
law, seek a no-action letter or other favorable decision from the Commission
allowing the Issuers to consummate an Exchange Offer for such Transfer
Restricted Securities. The Issuers hereby agree to pursue the issuance of such a
decision to the Commission staff level. In connection with the foregoing, the
Issuers hereby agree to take all such other actions as may be requested by the
Commission or otherwise required in connection with the issuance of such
decision, including without limitation (A) participating in telephonic
conferences with the Commission, (B) delivering to the Commission staff an
analysis prepared by counsel to the Issuers setting forth the legal bases, if
any, upon which such counsel has concluded that such an Exchange Offer should be
permitted and (C) diligently pursuing a resolution by the Commission staff.

         The Issuers may require each seller of Transfer Restricted Securities
or Participating Broker-Dealer as to which any registration is being effected to
furnish to the Issuers such information regarding such seller or Participating
Broker-Dealer and the distribution of such Transfer Restricted Securities or
Exchange Notes to be sold by such Participating Broker-Dealer, as the case may
be, as the Issuers may, from time to time, reasonably request including, without
limitation, a written representation to the Issuers (which may be contained in
the letter of transmittal contemplated by the Exchange Offer Registration
Statement or Shelf Registration Statement, as applicable) stating that (A) it is
not an affiliate of either Issuer, (B) the amount of Transfer Restricted
Securities held by such Holder prior to the Exchange Offer, (C) the amount of
Transfer Restricted Securities owned by such Holder to be exchanged in the
Exchange Offer and representing that such Holder is not engaged in, and does not
intend to engage in, and has no arrangement or understanding with any Person to
participate in, a distribution of the Exchange Notes to be issued and (D) it is
acquiring the Exchange Notes in its ordinary course of business. The Issuers may
exclude from such registration the Transfer Restricted Securities of any seller
or Participating Broker-Dealer who unreasonably fails to furnish such
information within 20 business days after receiving such request.

         Each Holder of Transfer Restricted Securities and each Participating
Broker-Dealer agrees by acquisition of such Transfer Restricted Securities or
Exchange Notes to be sold by such Participating Broker-Dealer, as the case may
be, that, upon receipt of any notice from the Issuers of the happening of any
event of the kind described in Section 5(d)(ii), 5(d)(iv), 5(d)(v), or 5(d)(vi),
such Holder will forthwith discontinue the use of any applicable Prospectus and
disposition of such Transfer Restricted Securities covered by such Registration
Statement or Prospectus or Exchange Notes to be sold by such Participating
Broker-Dealer, as the case may

                                       16

<PAGE>

be, until such Holder's receipt of the copies of the supplemented or amended
Prospectus contemplated by Section 5(l), or until it is advised in writing (the
"Advice") by the Issuers that the use of the applicable Prospectus may be
resumed, and has received copies of any amendments or supplements thereto. In
the event the Issuers shall give any such notice, each of the Effectiveness
Period and the Applicable Period shall be extended by the number of days during
such periods from and including the date of the giving of such notice to and
including the date when each seller of Transfer Restricted Securities covered by
such Registration Statement or Exchange Notes to be sold by such Participating
Broker-Dealer, as the case may be, shall have received (x) the copies of the
supplemented or amended Prospectus contemplated by Section 5(l) or (y) the
Advice.

6. REGISTRATION EXPENSES
   ---------------------

         (a) All fees and expenses incident to the performance of or compliance
with this Agreement by the Issuers shall be borne, jointly and severally by the
Issuers, whether or not the Exchange Offer or a Shelf Registration Statement is
filed or becomes effective, including, without limitation, (i) all registration
and filing fees (including, without limitation, (A) fees with respect to filings
required to be made with the NASD in connection with an underwritten offering
and (B) fees and expenses of compliance with state securities or Blue Sky laws
(including, without limitation, reasonable fees and disbursements of its counsel
in connection with Blue Sky qualifications of the Transfer Restricted Securities
or Exchange Notes and determination of the eligibility of the Transfer
Restricted Securities or Exchange Notes for investment under the laws of such
jurisdictions (x) where the Holders of Transfer Restricted Securities are
located, in the case of the Exchange Notes, or (y) as provided in Section 5(i),
in the case of Transfer Restricted Securities or Exchange Notes to be sold by a
Participating Broker-Dealer during the Applicable Period)), (ii) printing
expenses (including, without limitation, expenses (A) of printing certificates
for the Notes in a form eligible for deposit with The Depository Trust Company
and (B) of printing prospectuses if the printing of prospectuses is requested by
(I) the managing underwriters, if any, or, (II) in respect of Notes to be sold
by any Participating Broker-Dealer during the Applicable Period, by the Holders
of a majority in aggregate principal amount of the Notes included in any
Registration Statement), (iii) messenger, telephone and delivery expenses, (iv)
fees and disbursements of counsel for the Issuers and fees and disbursements of
the Holders Counsel (subject to the provisions of Section 6(b)), (v) fees and
all independent certified public accountants referred to in Section 5(o)(iii)
(including, without limitation, the expenses of any special audit and "cold
comfort" letters required by or incident to such performance), (vi) the fees and
expenses of any "qualified independent underwriter" or other independent
appraiser participating in an offering pursuant to the rules and regulations of
the NASD, (vii) rating agency fees, (viii) Securities Act liability insurance,
if the Issuers desires such insurance, (ix) fees and expenses of all other
Persons retained by the Issuers, (x) internal expenses of the Issuers
(including, without limitation, all salaries and expenses of officers and
employees of the Issuers performing legal or accounting duties), (xi) the
expense of any annual or special audit, (xii) the fees and expenses incurred in
connection with the listing of the securities to be registered on any securities
exchange and (xiii) the expenses relating to printing, word processing and
distributing all Registration Statements, underwriting agreements, securities
sales agreements, indentures and any other documents necessary in order to
comply with this Agreement.

                                       17

<PAGE>

     (b) In connection with any Shelf Registration Statement hereunder, the
Issuers shall, jointly and severally, reimburse the Holders of the Transfer
Restricted Securities being registered in such registration for the fees and
disbursements of the Holders Counsel (in addition to appropriate local counsel)
chosen by the Holders of a majority in aggregate principal amount of the
Transfer Restricted Securities to be included in such Registration Statement and
other out-of-pocket expenses of the Holders of Transfer Restricted Securities
incurred in connection with the registration of the Transfer Restricted
Securities.

7. INDEMNIFICATION
   ---------------

     (a) The Issuers will, jointly and severally, indemnify and hold harmless
each Holder of Transfer Restricted Securities and each Participating
Broker-Dealer selling Exchange Notes during the Applicable Period, the
directors, officers, employees and agents of each person, and each person, if
any, who controls any such person within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act (each a "Participant") from and
against any and all losses, claims, liabilities, expenses and damages (including
any and all investigative, legal and other expenses reasonably incurred in
connection with, and any amount paid in settlement of, any action, suit or
proceeding or any claim asserted), to which they, or any of them, may become
subject under the Securities Act, the Exchange Act or other Federal or state
statutory law or regulation, at common law or otherwise, insofar as such losses,
claims, liabilities, expenses or damages arise out of or are based on any untrue
statement or alleged untrue statement of a material fact contained in any
Registration Statement or Prospectus or any amendment or supplement thereto or
any preliminary prospectus or the omission or alleged omission to state in such
document a material fact required to be stated in it or necessary to make the
statements in it not misleading; provided, that a Participant will not be
entitled to any such indemnification hereunder to the extent that such loss,
claim, liability, expense or damage arises from and is based on an untrue
statement or omission or alleged untrue statement or omission made in reliance
on and in conformity with information relating to such Participant furnished in
writing to the Issuers by such Participant expressly for inclusion therein or in
the case of a Participating Broker-Dealer, if the person asserting any such
loss, claim, liability, expense or damage purchased the Exchange Notes from such
Participating Broker-Dealer but was not sent or given a copy of the Prospectus
at or prior to the written confirmation of the sale of Exchange Notes to such
person and such untrue statement or omission or alleged untrue statement or
omission was cured in the Prospectus.

     (b) Each Participant will indemnify and hold harmless each Issuer, each
person, if any, who controls such Issuer within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, each director or member of the
executive committee of such Issuer and each officer, employee and agent of such
Issuer to the same extent as the foregoing indemnity from the Issuers to each
Participant, but only insofar as losses, claims, liabilities, expenses or
damages arise out of or are based on any untrue statement or omission or alleged
untrue statement or omission made in reliance on and in conformity with
information relating to such Participant furnished in writing to the Issuers by
such Participant expressly for use in any Registration Statement or Prospectus
or any amendment or supplement thereto or any preliminary prospectus. The
liability of any Participant under this paragraph shall in no event exceed the
proceeds received by such Participant from sales of Transfer Restricted
Securities

                                       18

<PAGE>

giving rise to such obligations. Notwithstanding anything to the contrary
contained herein, the indemnification agreement contained in this Section 7(b)
with respect to any preliminary prospectus shall not inure to the benefit of any
Participant if the untrue statement or omission of material fact contained in
the preliminary prospectus was corrected on a timely basis in the Prospectus, as
then amended or supplemented, and the Issuers advised such Participant of such
untrue statement or omission of material fact and provided such Participant with
a corrected version of the Prospectus.

         (c) Any party that proposes to assert the right to be indemnified under
this Section 7 will, promptly after receipt of notice of commencement of any
action against such party in respect of which a claim is to be made against an
indemnifying party or parties under this Section 7, notify each such
indemnifying party of the commencement of such action, enclosing a copy of all
papers served, but the omission so to notify such indemnifying party will not
relieve it from any liability that it may have to any indemnified party under
the foregoing provisions of this Section 7 unless, and only to the extent that,
such omission results in the forfeiture of substantive rights or defenses by the
indemnifying party. If any such action is brought against any indemnified party
and it notifies the indemnifying party of its commencement, the indemnifying
party will be entitled to participate in and, to the extent that it elects by
delivering written notice to the indemnified party promptly after receiving
notice of the commencement of the action from the indemnified party, jointly
with any other indemnifying party similarly notified, to assume the defense of
the action, with counsel satisfactory to the indemnified party, and after notice
from the indemnifying party to the indemnified party of its election to assume
the defense, the indemnifying party will not be liable to the indemnified party
for any legal or other expenses except as provided below and except for the
reasonable costs of investigation subsequently incurred by the indemnified party
in connection with the defense. The indemnified party will have the right to
employ its own counsel in any such action, but the fees, expenses and other
charges of such counsel will be at the expense of such indemnified party unless
(1) the employment of counsel by the indemnified party has been authorized in
writing by the indemnifying party, (2) the indemnified party has reasonably
concluded (based on advice of counsel) that there may be legal defenses
available to it or other indemnified parties that are different from or in
addition to those available to the indemnifying party, (3) a conflict or
potential conflict exists (based on advice of counsel to the indemnified party)
between the indemnified party and the indemnifying party (in which case the
indemnifying party will not have the right to direct the defense of such action
on behalf of the indemnified party) or (4) the indemnifying party has not in
fact employed counsel to assume the defense of such action within a reasonable
time after receiving notice of the commencement of the action, in each of which
cases the reasonable fees, disbursements and other charges of counsel will be at
the expense of the indemnifying party or parties. It is understood that the
indemnifying party or parties shall not, in connection with any proceeding or
related proceedings in the same jurisdiction, be liable for the reasonable fees,
disbursements and other charges of more than one separate firm admitted to
practice in such jurisdiction at any one time for all such indemnified party or
parties. All such fees, disbursements and other charges will be reimbursed by
the indemnifying party promptly as they are incurred. An indemnifying party will
not be liable for any settlement of any action or claim effected without its
written consent (which consent will not be unreasonably withheld).

                                       19

<PAGE>

         (d) In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for in the foregoing
paragraphs of this Section 7 is applicable in accordance with its terms but for
any reason is held to be unavailable from either Issuer or any Participant, such
Issuer and each Participant will contribute to the total losses, claims,
liabilities, expenses and damages (including any investigative, legal and other
expenses reasonably incurred in connection with, and any amount paid in
settlement of, any action, suit or proceeding or any claim asserted, but after
deducting any contribution received by such Issuer from persons other than a
Participant, such as persons who control such Issuer within the meaning of the
Securities Act, officers of such Issuer and directors of such Issuer, who also
may be liable for contribution) to which such Issuer and each Participant may be
subject in such proportion as is appropriate to reflect the relative benefits
received by such Issuer on the one hand and each Participant on the other. The
relative benefits received by each Issuer on the one hand and each Participant
on the other shall be deemed to be equal to (i) with respect to such Issuer, the
total net proceeds from the initial offering (before deducting expenses)
received by such Issuer, (ii) with respect to the initial purchaser in such
offering, the total purchase discount and commissions, (iii) with respect to any
other Holder of Transfer Restricted Securities, the proceeds received upon the
sale of the Notes giving rise to the indemnification obligation and (iv) with
respect to any underwriter, the total underwriting discounts and commissions
with respect to such underwriting, in each case of clauses (i), (ii) or (iv), as
set forth on the cover page of the applicable offering memorandum or prospectus.
If, but only if, the allocation provided by the foregoing sentence is not
permitted by applicable law, the allocation of contribution shall be made in
such proportion as is appropriate to reflect not only the relative benefits
referred to in the foregoing sentence but also the relative fault of each Issuer
on the one hand and each Participant on the other, with respect to the
statements or omissions which resulted in such loss, claim, liability, expense
or damage, or action in respect thereof, as well as any other relevant equitable
considerations with respect to such offering. Such relative fault shall be
determined by reference to whether the untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates
to information supplied by either Issuer or a Participant, the intent of the
parties and their relative knowledge, access to information and opportunity to
correct or prevent such statement or omission. Each Issuer and each Participant
shall agree that it would not be just and equitable if contributions pursuant to
this Section 7(d) were to be determined by pro rata allocation or by any other
method of allocation which does not take into account the equitable
considerations referred to herein. The amount paid or payable by an indemnified
party as a result of the loss, claim, liability, expense or damage, or action in
respect thereof, referred to above in this Section 7(d) shall be deemed to
include, for purpose of this Section 7(d), any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending any such action or claim. Notwithstanding the provisions of this
Section 7(d), a Participant shall not be required to contribute any amount in
excess of the amount by which proceeds received by such Participant from sales
of Transfer Restricted Securities exceeds the amount of any damages that such
Participant has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission, and no person found
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) will be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. For purposes of this Section 7(d),
any person who controls a party to this Agreement within the meaning of the
Securities Act will have the same rights to contribution as that party, and each

                                       20

<PAGE>

director, executive committee member, officer, employee or agent of each Issuer
will have the same rights to contribution as such Issuer, subject in each case
to the provisions hereof. Any party entitled to contribution, promptly after
receipt of notice of commencement of any action against such party in respect of
which a claim for contribution may be made under this Section 7(d), will notify
any such party or parties from whom contribution may be sought, but the omission
so to notify will not relieve the party or parties from whom contribution may be
sought from any other obligation it or they may have under this Section 7(d). No
party will be liable for contribution with respect to any action or claim
settled without its written consent (which consent will not be unreasonably
withheld).

         (e) The indemnity and contribution agreements contained in this Section
7 will be in addition to any liability which the indemnifying persons may
otherwise have to the indemnified persons referred to above.

8. RULES 144 AND 144A
   ------------------

         Each Issuer covenants that it will file the reports required to be
filed by it under the Securities Act and the Exchange Act and the rules and
regulations adopted by the Commission thereunder in a timely manner and, if at
any time such Issuer is not required to file such reports, it will, upon the
request of any Holder of Transfer Restricted Securities, make publicly available
other information so long as necessary to permit sales pursuant to Rule 144 and
Rule 144A under the Securities Act. Such Issuer further covenants that it will
take such further action as any Holder of Transfer Restricted Securities may
reasonably request, all to the extent required from time to time to enable such
Holder to sell Transfer Restricted Securities without registration under the
Securities Act within the limitation of the exemptions provided by (a) Rule 144
and Rule 144A under the Securities Act, as such Rules may be amended from time
to time, or (b) any similar rule or regulation hereafter adopted by the
Commission.

9. UNDERWRITTEN REGISTRATIONS
   --------------------------

         If any of the Transfer Restricted Securities covered by any Shelf
Registration Statement are to be sold in an underwritten offering, the
investment banker or investment bankers and manager or managers that will manage
the offering will be selected by the Holders of a majority in aggregate
principal amount of such Transfer Restricted Securities included in such
offering and reasonably acceptable to the Issuers.

         No Holder of Transfer Restricted Securities may participate in any
underwritten registration hereunder unless such Holder (a) agrees to sell such
Holder's Transfer Restricted Securities on the basis provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve
such arrangements and (b) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents required
under the terms of such underwriting arrangements.

                                       21

<PAGE>

10. MISCELLANEOUS
    -------------

         (a) Remedies. In the event of a breach by either Issuer of any of its
             --------
obligations under this Agreement, each Holder of Transfer Restricted Securities,
in addition to being entitled to exercise all rights provided herein, in the
Indenture or, in the case of the Initial Purchasers, in the Purchase Agreement
or granted by law, including recovery of damages, will be entitled to specific
performance of its rights under this Agreement. Each Issuer agrees that monetary
damages would not be adequate compensation for any loss incurred by reason of a
breach by it of any of the provisions of this Agreement and hereby further
agrees that, in the event of any action for specific performance in respect of
such breach, it shall waive the defense that a remedy at law would be adequate.

         (b) No Inconsistent Agreements. Neither Issuer has, as of the date
             --------------------------
hereof, and neither Issuer shall, after the date of this Agreement, enter into
any agreement with respect to any of its securities that is inconsistent with
the rights granted to the Holders of Transfer Restricted Securities in this
Agreement or otherwise conflicts with the provisions hereof. Neither Issuer has
entered or will enter into any agreement with respect to any of its securities
which will grant to any Person piggy-back rights with respect to a Registration
Statement.

         (c) Adjustments Affecting Transfer Restricted Securities. Neither
             ----------------------------------------------------
Issuer shall, directly or indirectly, take any action with respect to the
Transfer Restricted Securities as a class that would adversely affect the
ability of the Holders of Transfer Restricted Securities to include such
Transfer Restricted Securities in a registration undertaken pursuant to this
Agreement.

         (d) Amendments and Waivers. The provisions of this Agreement, including
             ----------------------
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, unless the Issuers have obtained the written consent of Holders of at
least a majority of the then outstanding aggregate principal amount of Transfer
Restricted Securities. Notwithstanding the foregoing, a waiver or consent to
depart from the provisions hereof with respect to a matter that relates
exclusively to the rights of Holders of Transfer Restricted Securities whose
securities are being sold pursuant to a Registration Statement and that does not
directly or indirectly affect, impair, limit or compromise the rights of other
Holders of Transfer Restricted Securities may be given by Holders of at least a
majority in aggregate principal amount of the Transfer Restricted Securities
being sold by such Holders pursuant to such Registration Statement; provided,
that the provisions of this sentence may not be amended, modified or
supplemented except in accordance with the provisions of the immediately
preceding sentence.

         (e) Notices. All notices and other communications (including without
             -------
limitation any notices or other communications to the Trustee) provided for or
permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, next-day air courier or telecopier.

         (i)   if to a Holder of Transfer Restricted Securities, at the most
    current address given by the Trustee to the Issuers; and

                                       22

<PAGE>

              (ii)   if to the Issuers, at:

                     Circus and Eldorado Joint Venture
                     407 North Virginia Street
                     Reno, Nevada 89501
                     Telecopy No.: (775) 325-7330
                     Attention: Gary Carano

                     Silver Legacy Capital Corp.
                     407 North Virginia Street
                     Reno, Nevada 89501
                     Telecopy No.: (775) 325-7330
                     Attention: Gary Carano

                     with copies to:

                     Wolf, Block, Schorr and Solis-Cohen LLP
                     1650 Arch Street, 22nd Floor
                     Philadelphia, Pennsylvania 19103-2097
                     Telecopy No.: (215) 405-3834
                     Attention: Howell J. Reeves, Esq.

                     and

                     McDonald Carano Wilson McCune Bergin Frankovich & Hicks LLP
                     241 Ridge Street, 4th Floor
                     Reno, Nevada 89501
                     Telecopy No.: (775) 788-2020
                     Attention: John Frankovich, Esq.

              All such notices and communications shall be deemed to have
been duty given: when delivered by hand, if personally delivered; five business
days after being deposited in the postage prepaid, if mailed; one business day
after being timely delivered to a next-day air courier; and when receipt is
acknowledged by the addressee, if telecopied.

              Copies of all such notices, demands or other communications shall
be concurrently delivered by the Person giving the same to the Trustee at the
address specified in such Indenture.

              (f) Successors and Assigns. This Agreement shall inure to the
                  ----------------------
benefit of and be binding upon the successors and assigns of each of the
parties, including without limitation and without the need for an express
assignment, subsequent Holders of Transfer Restricted Securities; provided, that
with respect to the indemnity and contribution agreements in Section 7, each
Holder of Transfer Restricted Securities subsequent to the Initial Purchasers
shall be bound by the terms thereof if such Holder elects to include Transfer
Restricted Securities in a Shelf Registration Statement.

                                       23

<PAGE>

     (g) Counterparts. This Agreement may be executed in any number of
         ------------
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

     (h) Headings. The headings in this Agreement are for convenience of
         --------
reference only and shall not limit or otherwise affect the meaning hereof.

     (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
         -------------
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS (i) APPLIED TO CONTRACTS
MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT.

     (j) Severability. If any term, provision, covenant or restriction of this
         ------------
Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall in
no way be affected, impaired or invalidated, and the parties hereto shall use
their best efforts to find and employ alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may be
hereafter declared invalid, illegal, void or unenforceable.

     (k) Entire Agreement. This Agreement, together with the Purchase Agreement
         ----------------
and the Indenture, is intended by the parties as a final expression of their
agreement, and is intended to be a complete and exclusive statement of the
agreement and understanding of the parties hereto in respect of the subject
matter contained herein and therein.

     (l) Notes Held by the Issuers or Their Affiliates. Whenever the consent or
         ---------------------------------------------
approval of Holders of a specified percentage of Transfer Restricted Securities
is required hereunder, Transfer Restricted Securities held by the Issuers or
either Issuer's affiliates (as such term is defined in Rule 405 under the
Securities Act) shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage.

                                       24

<PAGE>

                  IN WITNESS WHEREOF, the parties have executed this Agreement
as of the date first written above.

                                      CIRCUS AND ELDORADO JOINT VENTURE

                                      By: /s/ Gary Carano
                                         ---------------------------------------
                                      Name:   Gary Carano
                                      Title:  Chief Executive Officer

                                      SILVER LEGACY CAPITAL CORP.

                                      By: /s/ Gary Carano
                                         ---------------------------------------
                                      Name:   Gary Carano
                                      Title:  President and Chief
                                              Executive Officer

                                       25

<PAGE>

                                             BANC OF AMERICA SECURITIES LLC,
                                             on its own behalf and as
                                             representative of the Initial
                                             Purchasers

                                             By:  /s/ Bruce R. Thompson
                                                 -------------------------------
                                                  Bruce R. Thompson
                                                  Managing Director

                                       26<PAGE>

                         FIRST SUPPLEMENTAL INDENTURE

                           DATED AS OF APRIL 30, 2002

                                    BETWEEN

                                 SEMPRA ENERGY,

                                   AS ISSUER

                                      AND

                     U.S. BANK TRUST NATIONAL ASSOCIATION,

                                   AS TRUSTEE
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
<S>                                                                         <C>
                                   ARTICLE I
                                  DEFINITIONS

Section 1.01.  Definition Of Terms..........................................   1

                                   ARTICLE II
                   GENERAL TERMS AND CONDITIONS OF THE NOTES

Section 2.01.  Designation and Principal Amount.............................   5
Section 2.02.  Maturity.....................................................   6
Section 2.03.  Form, Payment and Appointment................................   6
Section 2.04.  Global Notes.................................................   6
Section 2.05.  Interest.....................................................   7

                                  ARTICLE III
                            REDEMPTION OF THE NOTES

Section 3.01.  Tax Event Redemption.........................................   8
Section 3.02.  Redemption Procedures For Notes..............................   8
Section 3.03.  No Sinking Fund..............................................   8

                                   ARTICLE IV
                                  FORM OF NOTE

Section 4.01.  Form Of Note.................................................   8

                                   ARTICLE V
                            ORIGINAL ISSUE OF NOTES

Section 5.01.  Original Issue Of Notes......................................   9

                                   ARTICLE VI
                            ORIGINAL ISSUE DISCOUNT

Section 6.01.  Original Issue Discount......................................   9

                                  ARTICLE VII
                                 MISCELLANEOUS

Section 7.01.  Ratification Of Indenture....................................   9
Section 7.02.  Trustee Not Responsible For Recitals.........................   9
Section 7.03.  New York Law To Govern.......................................   9
Section 7.04.  Separability.................................................  10
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                         <C>
Section 7.05.  Counterparts.................................................  10

                                  ARTICLE VIII
                                  REMARKETING

Section 8.01.  Initial Remarketing Procedures...............................  10
Section 8.02.  Secondary Remarketing Procedures.............................  12
Section 8.02.  Final Remarketing Procedures.................................  14

                                   ARTICLE IX
                               EXECUTION OF NOTES

Section 9.01.  Execution Of Notes...........................................  17
</TABLE>

                                      ii
<PAGE>

     FIRST SUPPLEMENTAL INDENTURE, dated as of April 30, 2002 (the "FIRST
SUPPLEMENTAL INDENTURE"), between Sempra Energy, a corporation duly organized
and existing under the laws of the State of California (the "CORPORATION"), and
U.S. Bank Trust National Association, as trustee (the "TRUSTEE").

     WHEREAS, the Corporation executed and delivered the Indenture dated as of
February 23, 2000 (the "BASE INDENTURE") to the Trustee to provide for the
issuance from time to time of the Corporation's senior, unsecured debentures,
notes, or other evidences of indebtedness (the "SECURITIES"), to be issued in
one or more series as might be determined by the Corporation under the Base
Indenture; and

     WHEREAS, pursuant to the terms of the Base Indenture, the Corporation
desires to provide for the establishment of a new series of its Securities to be
known as its 5.60% Senior Notes due 2007 (the "NOTES"), the form and terms of
such Notes and the terms, provisions and conditions thereof to be set forth as
provided in the Base Indenture and this First Supplemental Indenture (together,
the "INDENTURE"); and

     WHEREAS, the Corporation has requested that the Trustee execute and deliver
this First Supplemental Indenture and all requirements necessary to make this
First Supplemental Indenture a valid, binding and enforceable instrument in
accordance with its terms, and to make the Notes, when executed, authenticated
and delivered by the Corporation, the valid, binding and enforceable obligations
of the Corporation, have been done and performed, and the execution and delivery
of this First Supplemental Indenture has been duly authorized in all respects.

     NOW THEREFORE, in consideration of the purchase and acceptance of the Notes
by the Holders thereof, and for the purpose of setting forth, as provided in the
Base Indenture, the form and terms of the Notes, the Corporation covenants and
agrees with the Trustee as follows:

                                   ARTICLE I
                                  DEFINITIONS

     Section 1.01. Definition Of Terms. Unless the context otherwise requires:

          (a)  a term defined in the Base Indenture has the same meaning when
     used in this First Supplemental Indenture;

          (b)  a term defined anywhere in this First Supplemental Indenture has
     the same meaning throughout;

          (c)  the singular includes the plural and vice versa;

          (d)  headings are for convenience of reference only and do not affect
     interpretation;

          (e)  the following terms have the meanings given to them in the
     Purchase Contract Agreement: (i) Applicable Principal Amount; (ii) Cash
     Settlement; (iii) Depositary (as used in Article 9); (iv) Depositary
     Participant;
<PAGE>

     (v) Final Remarketing; (vi) Final Remarketing Date; (vii) Growth Equity
     Units; (viii) Income Equity Units; (ix) Initial Remarketing; (x) Initial
     Remarketing Date; (xi) Purchase Agreement; (xii) Purchase Contract Agent;
     (xiii) Quotation Agent; (xiv) Remarketing Agent; (xv) Remarketing
     Agreement; (xvi) Reset Agent; (xvii) Secondary Remarketing; (xviii)
     Secondary Remarketing Date; (xix) Tax Event; (xx) Treasury Portfolio; and
     (xxi) Treasury Portfolio Purchase Price; and

          (f)  the following terms have the meanings given to them in this
     Section 1.01(f):

          "COUPON RATE" shall have the meaning set forth in Section 2.05.

          "CUSTODIAL RATE" shall have the meaning set forth in Section 2.05.

          "CUSTODIAL AGENT" shall have the meaning set forth in the Pledge
     Agreement.

          "FAILED FINAL REMARKETING" shall have the meaning set forth in Section
     8.03(h).

          "FAILED INITIAL REMARKETING" shall have the meaning set forth in
     Section 8.01(g).

          "FAILED SECONDARY REMARKETING" shall have the meaning set forth in
     Section 8.02(g).

          "GLOBAL NOTES" shall have the meaning set forth in Section 2.04.

          "MATURITY DATE" shall have the meaning specified in Section 2.02.

          "NOTES" shall have the meaning specified in Section 2.01.

          "PLEDGE AGREEMENT" means the Pledge Agreement, dated as of April 30,
     2002, among the Corporation, U.S. Bank Trust National Association, as
     collateral agent (the "COLLATERAL AGENT"), custodial agent and securities
     intermediary (the "SECURITIES INTERMEDIARY") and U.S. Bank Trust National
     Association, as purchase contract agent and attorney-in-fact.

          "PURCHASE CONTRACT" shall have the meaning set forth in the Purchase
     Contract Agreement.

          "PURCHASE CONTRACT AGREEMENT" means the Purchase Contract Agreement,
     dated as of April 30, 2002, between the Corporation and U.S. Bank Trust
     National Association, as purchase contract agent.
<PAGE>

          "PURCHASE CONTRACT SETTLEMENT DATE" means May 17, 2005.

          "REDEMPTION AMOUNT" shall mean, for each Note, the product of the
     principal amount of such Note and a fraction, the numerator of which shall
     be the Treasury Portfolio Purchase Price and the denominator of which shall
     be the principal amount of such Note.

          "REDEMPTION PRICE" means the redemption price per Note equal to the
     Redemption Amount plus any accrued and unpaid interest on such Note to the
     date of redemption.

          "REGULAR RECORD DATE" means, with respect to any Interest Payment Date
     for the Notes, the close of business on the first day of the month in which
     such Interest Payment Date falls.

          "RESET ANNOUNCEMENT DATE" means, in the case of the Reset Rate to be
     determined on the Initial Remarketing Date, the seventh Business Day
     immediately preceding February 17, 2005, in the case of the Reset Rate to
     be determined on the Secondary Remarketing Date, the seventh Business Day
     immediately preceding April 17, 2005 and, in the case of the Reset Rate to
     be determined on the Final Remarketing Date, the seventh Business Day
     immediately preceding the Purchase Contract Settlement Date.

          "RESET EFFECTIVE DATE" means (i) February 17, 2005, in case the
     interest rate is reset on the Initial Remarketing Date, (ii) April 17,
     2005, in case the interest rate is reset on the Secondary Remarketing Date,
     or (ii) the Purchase Contract Settlement Date, in case the interest rate is
     reset on the Final Remarketing Date.

          "RESET RATE" means the interest rate per year (to be determined by the
     Reset Agent), equal to the sum of (x) the Reset Spread and (y) the rate of
     interest on (1) in the case of the Reset Rate to be determined on the
     Initial Remarketing Date, the Two and One-Quarter Year Benchmark Treasury
     in effect on the Initial Remarketing Date, (2) in the case of the Reset
     Rate to be determined on the Secondary Remarketing Date, the Two-Year and
     One-Month Benchmark Treasury in effect on the Secondary Remarketing Date,
     or (3) in the case of the Reset Rate to be determined on the Final
     Remarketing Date, the Two-Year Benchmark Treasury in effect on the Final
     Remarketing Date.

          "RESET SPREAD" means (a) in the case of the Reset Rate to be
     determined on the Initial Remarketing Date or the Secondary Remarketing
     Date, a spread amount to be determined by the Reset Agent on the applicable
     Reset Announcement Date as the appropriate spread so that the Reset Rate
     will be the interest rate that the Notes should bear in order for the
     Applicable Principal Amount of Notes to have an approximate aggregate
     market value of 100.5% of the Treasury Portfolio Purchase Price on the
     Initial Remarketing Date or the Secondary Remarketing Date, as the case may
     be, and (b) in the case of the Reset
<PAGE>

     Rate to be determined on the Final Remarketing Date, a spread amount to be
     determined by the Reset Agent on the applicable Reset Announcement Date as
     the appropriate spread so that the Reset Rate will be the interest rate
     that the Notes should bear in order for the Applicable Principal Amount of
     Notes to have an approximate aggregate market value of 100.5% of the
     Applicable Principal Amount of Notes on the Final Remarketing Date.

          "SECURITY REGISTER" means the Register in which the Corporation
     provides for the registration of the Registered Securities of the series of
     Notes issued pursuant to this First Supplemental Indenture and the
     registration of transfer of such series pursuant to Section 2.8 of the Base
     Indenture.

          "TAX EVENT REDEMPTION DATE" shall have the meaning set forth in
     Section 3.01.

          "TWO-YEAR BENCHMARK TREASURY" means direct obligations of the United
     States (which may be obligations traded on a when-issued basis only) having
     a maturity comparable to the remaining term to maturity of the Notes, as
     agreed upon by the Corporation and the Reset Agent. The rate for the Two-
     Year Benchmark Treasury will be the bid side rate displayed at 10:00 A.M.,
     New York City time, on the third Business Day immediately preceding the
     Purchase Contract Settlement Date in the Telerate system (or if the
     Telerate system is (a) no longer available on the Final Remarketing Date or
     (b) in the opinion of the Reset Agent (after consultation with the
     Corporation) no longer an appropriate system from which to obtain such
     rate, such other nationally recognized quotation system as, in the opinion
     of the Reset Agent (after consultation with the Corporation), is
     appropriate). If such rate is not so displayed, the rate for the Two-Year
     Benchmark Treasury shall be, as calculated by the Reset Agent, the yield to
     maturity for the Two-Year Benchmark Treasury, expressed as a bond
     equivalent on the basis of a year of 365 or 366 days, as applicable, and
     applied on a daily basis, and computed by taking the arithmetic mean of the
     secondary market bid rates, as of 10:30 A.M., New York City time, on the
     Final Remarketing Date of three leading United States government securities
     dealers selected by the Reset Agent (after consultation with the
     Corporation) (which may include the Reset Agent or an Affiliate thereof).

          "TWO AND ONE-QUARTER YEAR BENCHMARK TREASURY" means direct obligations
     of the United States (which may be obligations traded on a when-issued
     basis only) having a maturity comparable to the remaining term to maturity
     of the Notes, as agreed upon by the Corporation and the Reset Agent. The
     rate for the Two and One-Quarter Year Benchmark Treasury will be the bid
     side rate displayed at 10:00 A.M., New York City time, on the Initial
     Remarketing Date in the Telerate system (or if the Telerate system is (a)
     no longer available on the Initial Remarketing Date or (b) in the opinion
     of the Reset Agent (after consultation with the Corporation) no longer an
     appropriate system from which to obtain such rate, such other nationally
     recognized quotation system as, in the opinion of the Reset Agent (after
     consultation with a the Corporation) is
<PAGE>

     appropriate). If such rate is not so displayed, the rate for the Two and
     One-Quarter Year Benchmark Treasury shall be, as calculated by the Reset
     Agent, the yield to maturity for the Two and One-Quarter Year Benchmark
     Treasury, expressed as a bond equivalent on the basis of a year of 365 or
     366 days, as applicable, and applied on a daily basis, and computed by
     taking the arithmetic mean of the secondary market bid rates, as of 10:30
     A.M., New York City time, on the Initial Remarketing Date of three leading
     United States government securities dealers selected by the Reset Agent
     (after consultation with the Corporation) (which may include the Reset
     Agent or an Affiliate thereof).

          "TWO-YEAR AND ONE-MONTH BENCHMARK TREASURY" means direct obligations
     of the United States (which may be obligations traded on a when-issued
     basis only) having a maturity comparable to the remaining term to maturity
     of the Notes, as agreed upon by the Corporation and the Reset Agent. The
     rate for the Two-Year and One-Month Benchmark Treasury will be the bid side
     rate displayed at 10:00 A.M., New York City time, on the Secondary
     Remarketing Date in the Telerate system (or if the Telerate system is (a)
     no longer available on the Secondary Remarketing Date or (b) in the opinion
     of the Reset Agent (after consultation with the Corporation) no longer an
     appropriate system from which to obtain such rate, such other nationally
     recognized quotation system as, in the opinion of the Reset Agent (after
     consultation with a the Corporation) is appropriate). If such rate is not
     so displayed, the rate for the Two-Year and One-Month Benchmark Treasury
     shall be, as calculated by the Reset Agent, the yield to maturity for the
     Two-Year and One-Month Benchmark Treasury, expressed as a bond equivalent
     on the basis of a year of 365 or 366 days, as applicable, and applied on a
     daily basis, and computed by taking the arithmetic mean of the secondary
     market bid rates, as of 10:30 A.M., New York City time, on the Secondary
     Remarketing Date of three leading United States government securities
     dealers selected by the Reset Agent (after consultation with the
     Corporation) (which may include the Reset Agent or an Affiliate thereof).

     The terms "INDENTURE," "BASE INDENTURE," and "NOTES" shall have the
respective meanings set forth in the recitals to this First Supplemental
Indenture and the paragraph preceding such recitals.

                                  ARTICLE II
                   GENERAL TERMS AND CONDITIONS OF THE NOTES

     Section 2.01. Designation and Principal Amount. There is hereby authorized
a series of Securities designated as the 5.60% Senior Notes due 2007 (the
"NOTES") limited (except as otherwise provided in Article II of the Indenture)
in aggregate principal amount to $550,000,000 (or, $600,000,000, if the
underwriters' over-allotment option pursuant to the Purchase Agreement is
exercised in full) . The Notes may be issued from time to time upon written
order of the Corporation for the authentication and delivery of Notes pursuant
to Section 303 of the Base Indenture.
<PAGE>

     Section 2.02. Maturity. The date upon which the Notes shall become due and
payable at final maturity, together with any accrued and unpaid interest, is May
17, 2007 (the "MATURITY DATE").

     Section 2.03. Form, Payment and Appointment. Except as provided in Section
2.04, the Notes shall be issued in fully registered, certificated form, bearing
identical terms. Principal of and premium, if any, and interest on the Notes
will be payable, the transfer of such Notes will be registrable and such Notes
will be exchangeable for Notes bearing identical terms and provisions at the
office or agency of the Corporation maintained for such purpose in the Borough
of Manhattan, The City of New York; provided, however, that payment of interest
may be made at the option of the Corporation by check mailed to the Holder at
such address as shall appear in the Security Register or by wire transfer to an
account appropriately designated by the Holder entitled to payment.

     The registrar for the Notes, transfer agent and Paying Agent for the Notes
shall be the Trustee.

     The Notes shall be issuable in denominations of $25 and integral multiples
of $25 in excess thereof.

     The Notes may be issued, in whole or in part, in permanent global form and,
if issued in permanent global form, the Depositary shall be The Depository Trust
Company or such other depositary as any officer of the Corporation may from time
to time designate.

     Section 2.04. Global Notes.

     (a)  Unless and until it is exchanged for the Notes in registered form, one
or more global Notes in principal amount equal to the aggregate principal amount
of all outstanding Notes ("GLOBAL NOTES") may be transferred, in whole but not
in part, only to the Depositary or a nominee of the Depositary, or to a
successor Depositary selected or approved by the Corporation or to a nominee of
such successor Depositary.

     (b)  If at any time (i) the Depositary notifies the Corporation that it is
unwilling or unable to continue as a Depositary for the Global Notes and no
successor Depositary shall have been appointed within 90 days after such
notification, (ii) the Depositary ceases to be a clearing agency registered
under the Securities Exchange Act of 1934 at any time the Depositary is required
to be so registered to act as such Depositary and no successor Depositary shall
have been appointed within 90 days after the Corporation's becoming aware of the
Depositary's ceasing to be so registered, (iii) the Corporation, in its sole
discretion, determines that the Global Notes shall be exchangeable for Notes in
definitive registered form or (iv) there shall have occurred and be continuing
an Event of Default, the Corporation will execute, and subject to Article Five
of the Base Indenture, the Trustee, upon written notice from the Corporation,
will authenticate and deliver the Notes in definitive registered form without
coupons, in authorized denominations, and in an aggregate principal amount equal
to the principal amount of the Global Note in exchange for such Global Note.

     Upon exchange of the Global Note for such Notes in definitive registered
form without coupons, in authorized denominations, the Global Note shall be
cancelled by the Trustee.  Such
<PAGE>

Notes in definitive registered form issued in exchange for the Global Note 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.

     Section 2.05. Interest.

     (a)  The Note will bear interest initially at the rate of 5.60% per year
(the "COUPON RATE") from the original date of issuance through and including the
day immediately preceding the Reset Effective Date and at the Reset Rate
thereafter until the principal thereof is paid or duly made available for
payment and shall bear interest, to the extent permitted by law, compounded
quarterly, on any overdue principal and premium, if any, and on any overdue
installment of interest at the Coupon Rate through and including the day
immediately preceding the Reset Effective Date and at the Reset Rate thereafter,
payable quarterly in arrears on February 17, May 17, August 17 and November 17
of each year (each, an "INTEREST PAYMENT DATE") commencing on August 17, 2002,
to the Person in whose name such Note, or any predecessor Note, is registered at
the close of business on the Regular Record Date for such interest installment.

     (b)  The interest rate on the Notes will be reset on the Initial
Remarketing Date to the applicable Reset Rate (which Reset Rate will be
effective on and after February 17, 2005), except in the event of a Failed
Initial Remarketing. In the event of a Failed Initial Remarketing, the interest
rate on the Notes will be reset on the Secondary Remarketing Date to the
applicable Reset Rate (which Reset Rate will be effective on and after April 17,
2005), except in the event of a Failed Secondary Remarketing. In the event of a
Failed Secondary Remarketing, the interest rate on the Notes will be reset on
the Final Remarketing Date to the applicable Reset Rate (which Reset Rate will
be effective on and after the Purchase Contract Settlement Date), except that in
the event of a Failed Final Remarketing, the interest rate on the Notes will not
be reset. On the applicable Reset Announcement Date, the applicable Reset Spread
and the Two-Year Benchmark Treasury, Two and One-Quarter Year Benchmark Treasury
or Two-Year and One-Month Benchmark Treasury, as applicable, will be announced
by the Corporation. On the Business Day immediately following such Reset
Announcement Date, the Holders of Notes will be notified of such Reset Spread
and Two-Year Benchmark Treasury, Two and One-Quarter Year Benchmark Treasury or
Two-Year and One-Month Benchmark Treasury, as applicable, by the Corporation.
Such notice shall be sufficiently given to such Holders of Notes if published
in a daily newspaper in the English Language of general circulation in New York
City.

     (c)  Not later than seven calendar days nor more than 15 calendar days
immediately preceding the applicable Reset Announcement Date, the Corporation
will request that the Depositary or its nominee (or any successor Depositary or
its nominee) notify the Holders of Notes of such Reset Announcement Date and, in
the case of a Final Remarketing, the procedures to be followed by such holders
of Notes wishing to settle the related Purchase Contracts with separate cash on
the Business Day immediately preceding the Purchase Contract Settlement Date.
<PAGE>

     (d)  The amount of interest payable for any period will be computed on the
basis of a 360-day year consisting of twelve 30-day months.  The amount of
interest payable for any period shorter than a full quarterly period for which
interest is computed will be computed on the basis of the actual number of days
elapsed in the 90-day period.  In the event that any date on which interest is
payable on the Notes is not a Business Day, then payment of interest payable on
such date will be made on the next succeeding day which is a Business Day (and
without any interest or other payment in respect of any such delay).

                                  ARTICLE III
                            REDEMPTION OF THE NOTES

     Section 3.01. Tax Event Redemption. If a Tax Event shall occur and be
continuing, the Corporation may, at its option, redeem the Notes in whole (but
not in part) at any time at a price per Note equal to the Redemption Price.
Installments of interest on Notes which are due and payable on or prior to the
date of redemption (the "TAX EVENT REDEMPTION DATE") will be payable to the
Holders of the Notes registered as such at the close of business on the Regular
Record Date. If, following the occurrence of a Tax Event prior to (1) February
17, 2005, (2) in the case of a Failed Initial Remarketing, April 17, 2005, or
(3) in the case of a failed Secondary Remarketing, the Purchase Contract
Settlement Date, the Corporation exercises its option to redeem the Notes, the
Corporation shall appoint the Quotation Agent to assemble the Treasury Portfolio
in consultation with the Corporation. Notice of any redemption will be mailed at
least 30 days but not more than 60 days before the Tax Event Redemption Date to
each registered Holder of the Notes at its registered address. Unless the
Corporation defaults in payment of the Redemption Price, on and after the Tax
Event Redemption Date interest shall cease to accrue on the Notes.

     Section 3.02. Redemption Procedures For Notes. Payment of the Redemption
Price to each Holder of Notes shall be made by the Corporation, no later than
12:00 noon, New York City time, on the Tax Event Redemption Date, by check or
wire transfer in immediately available funds at such place and to such account
as may be designated by each such Holder of Notes, including the Trustee or the
Collateral Agent, as the case maybe. If the Trustee holds immediately available
funds sufficient to pay the Redemption Price of the Notes, then, on such Tax
Event Redemption Date, such Notes will cease to be outstanding and interest
thereon will cease to accrue, whether or not such Notes have been received by
the Corporation, and all other rights of the Holder in respect of the Notes
shall terminate and lapse (other than the right to receive the Redemption Price
upon delivery of such Notes but without interest on such Redemption Price).

     Section 3.03. No Sinking Fund. The Notes are not entitled to the benefit of
any sinking fund.

                                  ARTICLE IV
                                 FORM OF NOTE

     Section 4.01. Form Of Note. The Notes and the Trustee's Certificate of
Authentication to be endorsed thereon are to be substantially in the forms
attached as Exhibit A hereto, with
<PAGE>

such changes therein as the officers of the Corporation executing the Notes (by
manual or facsimile signature) may approve, such approval to be conclusively
evidenced by their execution thereof.

                                   ARTICLE V
                            ORIGINAL ISSUE OF NOTES

     Section 5.01. Original Issue Of Notes. Notes in the aggregate principal
amount of $550,000,000 (or, $600,000,000, if the underwriters' over-allotment
option pursuant to the Purchase Agreement is exercised in full) may from time to
time, upon execution of this First Supplemental Indenture, be executed by the
Corporation and delivered to the Trustee for authentication, and the Trustee
shall thereupon authenticate and deliver said Notes to or upon the written order
of the Corporation pursuant to Section 303 of the Base Indenture without any
further action by the Corporation.

                                  ARTICLE VI
                            ORIGINAL ISSUE DISCOUNT

     Section 6.01. Original Issue Discount. The Corporation shall file with the
Trustee promptly at the end of each calendar year (i) a written notice
specifying the amount of original issue discount (including daily rates and
accrual periods) accrued on Notes that are Outstanding as of the end of the year
and (ii) such other specific information relating to such original issue
discount as may then be relevant under the Internal Revenue Code of 1986, as
amended from time to time.

                                  ARTICLE VII
                                 MISCELLANEOUS

     Section 7.01. Ratification Of Indenture. The Indenture, as supplemented by
this First Supplemental Indenture, is in all respects ratified and confirmed,
and this First Supplemental Indenture shall be deemed part of the Indenture in
the manner and to the extent herein and therein provided.

     Section 7.02. Trustee Not Responsible For Recitals. The recitals herein
contained are made by the Corporation and not by the Trustee, and the Trustee
assumes no responsibility for the correctness thereof. The Trustee makes no
representation as to the validity or sufficiency of this First Supplemental
Indenture.

     Section 7.03. New York Law To Govern. THIS FIRST SUPPLEMENTAL INDENTURE,
EACH NOTE AND EACH COUPON SHALL BE DEEMED TO BE NEW YORK CONTRACTS, AND FOR ALL
PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF SAID STATE (WITHOUT
REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW).
<PAGE>

     Section 7.04. Separability. In case any one or more of the provisions
contained in this First Supplemental Indenture or in the Notes shall for any
reason be held to be invalid, illegal or unenforceable in any respect, then, to
the extent permitted by law, such invalidity, illegality or unenforceability
shall not affect any other provisions of this First Supplemental Indenture or of
the Notes, but this First Supplemental Indenture and the Notes shall be
construed as if such invalid or illegal or unenforceable provision had never
been contained herein or therein.

     Section 7.05. Counterparts. This First Supplemental 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.

                                 ARTICLE VIII
                                  REMARKETING

     Section 8.01. Initial Remarketing Procedures.

     (a)  The Corporation will request, not later than seven nor more than 15
calendar days prior to the Initial Remarketing Date that the Depositary notify
the Holders of the Notes and the Holders of Income Equity Units and Growth
Equity Units of the Initial Remarketing.

     (b)  Not later than the second Business Day immediately preceding the
Initial Remarketing Date, each Holder of the Notes not constituting components
of Income Equity Units may elect to have Notes held by such Holder remarketed.
Holders of Notes that are not a component of Income Equity Units shall give
notice of their election to have such Notes remarketed to the Custodial Agent
and deliver such Notes to the Custodial Agent pursuant to the Pledge Agreement.
Any such notice and delivery shall be irrevocable after the second Business Day
immediately preceding the Initial Remarketing Date and may not be conditioned
upon the level at which the Reset Rate is established. Promptly after 11:30
A.M., New York City time, on the Business Day immediately preceding the initial
Remarketing Date, the Trustee, based on the notices received by it prior to such
time, shall notify the Corporation and the Remarketing Agent of the principal
amount of Notes to be tendered for remarketing. Under Section 5.02 of the
Purchase Contract Agreement, Notes that constitute components of Income Equity
Units will be remarketed as provided therein and in this Section 8.01. The Notes
constituting components of Income Equity Units shall be deemed tendered,
notwithstanding any failure by the Holder of such Income Equity Units to deliver
or properly deliver such Notes to the Remarketing Agent for purchase.

     (c)  The right of each Holder to have Notes (including any Notes that
constitute components of Income Equity Units) tendered for purchase shall be
limited to the extent that (i) the Remarketing Agent conducts a remarketing
pursuant to the terms of the Remarketing Agreement, (ii) Notes tendered have not
been called for redemption, (iii) the Remarketing Agent is able to find a
purchaser or purchasers for tendered Notes at a price per Note such that the
aggregate price for the Applicable Principal Amount of Notes is not less than
100% of the Treasury Portfolio Purchase Price, and (iv) such purchaser or
purchasers deliver the purchase price therefor to the Remarketing Agent as and
when required.
<PAGE>

     (d)  On the Initial Remarketing Date, the Remarketing Agent shall use
reasonable efforts to remarket, at a price per Note such that the aggregate
price for the Applicable Principal Amount of Notes is equal to approximately
100.5% of the Treasury Portfolio Purchase Price, Notes tendered or deemed
tendered for purchase.

     (e)  If there are no Income Equity Units outstanding and none of the
Holders elect to have Notes held by them remarketed, the Reset Rate shall be the
rate determined by the Reset Agent, subject to the terms of the Remarketing
Agreement, as the rate that would have been established had a remarketing been
held on the Initial Remarketing Date.

     (f)  If the Remarketing Agent has determined that it will be able to
remarket all Notes tendered or deemed tendered prior to 4:00 P.M., New York City
time, on the Initial Remarketing Date, the Reset Agent, subject to the terms of
the Remarketing Agreement, shall determine the Reset Rate.

     (g)  If, by 4:00 P.M., New York City time, on the Initial Remarketing Date,
the Remarketing Agent is unable to remarket all Notes tendered or deemed
tendered for purchase or if the Initial Remarketing shall not have occurred
because a condition precedent to the Remarketing shall not have been fulfilled,
a failed remarketing ("FAILED INITIAL REMARKETING") shall be deemed to have
occurred and the Remarketing Agent shall so advise by telephone the Collateral
Agent, Corporation, Trustee, and Depositary.

     (h)  By approximately 4:30 P.M., New York City time, on the Initial
Remarketing Date, provided that there has not been a Failed Initial Remarketing,
the Remarketing Agent shall advise, by telephone (i) the Collateral Agent, the
Corporation, Trustee, and Depositary of the Reset Rate determined in the Initial
Remarketing and the aggregate principal amount of Notes sold in the Initial
Remarketing, (ii) each purchaser (or the Depositary Participant thereof) of the
Reset Rate and the aggregate principal amount of Notes such purchaser is to
purchase and (iii) each purchaser to give instructions to its Depositary
Participant to pay the purchase price on February 17, 2005 in same day funds
against delivery of the Notes purchased through the facilities of the
Depositary.

     (i)  In accordance with the Depositary's normal procedures, on February 17,
2005, the transactions described above with respect to each Note tendered for
purchase and sold in the Initial Remarketing shall be executed through the
Depositary, and the accounts of the respective Depositary Participants shall be
debited and credited and such Notes delivered by book entry as necessary to
effect purchases and sales of such Notes.  The Depositary shall make payment in
accordance with its normal procedures.

     (j)  If any Holder selling Notes in the Initial Remarketing fails to
deliver such Notes, the Depositary Participant of such selling Holder and of any
other Person that was to have purchased Notes in the Initial Remarketing may
deliver to any such other Person an aggregate principal amount of Notes that is
less than the aggregate principal amount of Notes that otherwise was to be
purchased by such Person. In such event, the aggregate principal amount of Notes
to be so delivered shall be determined by such Depositary Participant, and
delivery of such lesser aggregate principal amount of Notes shall constitute
good delivery.
<PAGE>

     (k)  The Remarketing Agent is not obligated to purchase any Notes in the
Initial Remarketing or otherwise. Neither the Trustee, the Corporation nor the
Remarketing Agent shall be obligated in any case to provide funds to make
payment upon tender of Notes for remarketing.

     (l)  The tender and settlement procedures set forth in this Section 8.01,
including provisions for payment by purchasers of Notes in the Initial
Remarketing, shall be subject to modification, notwithstanding any provision to
the contrary set forth herein, to the extent required by the Depositary or if
the book-entry system is no longer available for the Notes at the time of the
Initial Remarketing, to facilitate the tendering and remarketing of Notes in
certificated form.  In addition, the Remarketing Agent may, notwithstanding any
provision to the contrary set forth herein, modify the settlement procedures set
forth herein in order to facilitate the settlement process.

     (m)  Anything herein to the contrary notwithstanding, the Reset Rate shall
in no event exceed the maximum rate permitted by applicable law and, as provided
in the Remarketing Agreement, neither the Remarketing Agent nor the Reset Agent
shall have any obligation to determine whether there is any limitation under
applicable law on the Reset Rate or, if there is any such limitation, the
maximum permissible Reset Rate on the Notes and they shall rely solely upon
written notice from the Corporation (which the Corporation agrees to provide
prior to the tenth Business Day before February 17, 2005) as to whether or not
there is any such limitation and, if so, the maximum permissible Reset Rate.

     Section 8.02. Secondary Remarketing Procedures.

     (a)  If a Failed Initial Remarketing has occurred, the Corporation will
request, not later than seven nor more than 15 calendar days prior to the
Secondary Remarketing Date that the Depositary notify the Holders of the Notes
and the Holders of Income Equity Units and Growth Equity Units of the Secondary
Remarketing.

     (b)  Not later than the second Business Day immediately preceding the
Secondary Remarketing Date, each Holder of the Notes not constituting components
of Income Equity Units may elect to have Notes held by such Holder remarketed.
Holders of Notes that are not a component of Income Equity Units shall give
notice of their election to have such Notes remarketed to the Custodial Agent
and deliver such Notes to the Custodial Agent pursuant to the Pledge Agreement.
Any such notice and delivery shall be irrevocable after the second Business Day
immediately preceding the Secondary Remarketing Date and may not be conditioned
upon the level at which the Reset Rate is established. Promptly after 11:30
A.M., New York City time, on the Business Day immediately preceding the
Secondary Remarketing Date, the Trustee, based on the notices received by it
prior to such time, shall notify the Corporation and the Remarketing Agent of
the principal amount of Notes to be tendered for remarketing. Under Section 5.02
of the Purchase Contract Agreement, Notes that constitute components of Income
Equity Units will be remarketed as provided therein and in this Section 8.02.
The Notes constituting components of Income Equity Units shall be deemed
tendered, notwithstanding any failure by the Holder of such Income Equity Units
to deliver or properly deliver such Notes to the Remarketing Agent for purchase.
<PAGE>

     (c)  The right of each Holder to have Notes (including any Notes that
constitute components of Income Equity Units) tendered for purchase shall be
limited to the extent that (i) the Remarketing Agent conducts a remarketing
pursuant to the terms of the Remarketing Agreement, (ii) Notes tendered have not
been called for redemption, (iii) the Remarketing Agent is able to find a
purchaser or purchasers for tendered Notes at a price per Note such that the
aggregate price for the Applicable Principal Amount of Notes is not less than
100% of the Treasury Portfolio Purchase Price, and (iv) such purchaser or
purchasers deliver the purchase price therefor to the Remarketing Agent as and
when required.

     (d)  On the Secondary Remarketing Date, the Remarketing Agent shall use
reasonable efforts to remarket, at a price per Note such that the aggregate
price for the Applicable Principal Amount of Notes is equal to approximately
100.5% of the Treasury Portfolio Purchase Price, Notes tendered or deemed
tendered for purchase.

     (e)  If there are no Income Equity Units outstanding and none of the
Holders elect to have Notes held by them remarketed, the Reset Rate shall be the
rate determined by the Reset Agent, subject to the terms of the Remarketing
Agreement, as the rate that would have been established had a remarketing been
held on the Secondary Remarketing Date.

     (f)  If the Remarketing Agent has determined that it will be able to
remarket all Notes tendered or deemed tendered prior to 4:00 P.M., New York City
time, on the Secondary Remarketing Date, the Reset Agent, subject to the terms
of the Remarketing Agreement, shall determine the Reset Rate.

     (g)  If, by 4:00 P.M., New York City time, on the Secondary Remarketing
Date, the Remarketing Agent is unable to remarket all Notes tendered or deemed
tendered for purchase or if the Secondary Remarketing shall not have occurred
because a condition precedent to the Remarketing shall not have been fulfilled,
a failed remarketing ("FAILED SECONDARY REMARKETING") shall be deemed to have
occurred and the Remarketing Agent shall so advise by telephone the Collateral
Agent, Corporation, Trustee, and Depositary.

     (h)  By approximately 4:30 P.M., New York City time, on the Secondary
Remarketing Date, provided that there has not been a Failed Secondary
Remarketing, the Remarketing Agent shall advise, by telephone (i) the Collateral
Agent, the Corporation, Trustee, and Depositary of the Reset Rate determined in
the Secondary Remarketing and the aggregate principal amount of Notes sold in
the Secondary Remarketing, (ii) each purchaser (or the Depositary Participant
thereof) of the Reset Rate and the aggregate principal amount of Notes such
purchaser is to purchase and (iii) each purchaser to give instructions to its
Depositary Participant to pay the purchase price on April 17, 2005 in same day
funds against delivery of the Notes purchased through the facilities of the
Depositary.

     (i)  In accordance with the Depositary's normal procedures, on April 17,
2005, the transactions described above with respect to each Note tendered for
purchase and sold in the Secondary Remarketing shall be executed through the
Depositary, and the accounts of the respective Depositary Participants shall be
debited and credited and such Notes delivered by book entry as necessary to
effect purchases and sales of such Notes.  The Depositary shall make payment in
accordance with its normal procedures.
<PAGE>

     (j)  If any Holder selling Notes in the Secondary Remarketing fails to
deliver such Notes, the Depositary Participant of such selling Holder and of any
other Person that was to have purchased Notes in the Secondary Remarketing may
deliver to any such other Person an aggregate principal amount of Notes that is
less than the aggregate principal amount of Notes that otherwise was to be
purchased by such Person.  In such event, the aggregate principal amount of
Notes to be so delivered shall be determined by such Depositary Participant, and
delivery of such lesser aggregate principal amount of Notes shall constitute
good delivery.

     (k)  The Remarketing Agent is not obligated to purchase any Notes in the
Secondary Remarketing or otherwise. Neither the Trust, any Trustee, the
Corporation nor the Remarketing Agent shall be obligated in any case to provide
funds to make payment upon tender of Notes for remarketing.

     (l)  The tender and settlement procedures set forth in this Section 8.02,
including provisions for payment by purchasers of Notes in the Secondary
Remarketing, shall be subject to modification, notwithstanding any provision to
the contrary set forth herein, to the extent required by the Depositary or if
the book-entry system is no longer available for the Notes at the time of the
Secondary Remarketing, to facilitate the tendering and remarketing of Notes in
certificated form.  In addition, the Remarketing Agent may, notwithstanding any
provision to the contrary set forth herein, modify the settlement procedures set
forth herein in order to facilitate the settlement process.

     Anything herein to the contrary notwithstanding, the Reset Rate shall in no
event exceed the maximum rate permitted by applicable law and, as provided in
the Remarketing Agreement, neither the Remarketing Agent nor the Reset Agent
shall have any obligation to determine whether there is any limitation under
applicable law on the Reset Rate or, if there is any such limitation, the
maximum permissible Reset Rate on the Notes and they shall rely solely upon
written notice from the Corporation (which the Corporation agrees to provide
prior to the tenth Business Day before April 17, 2005) as to whether or not
there is any such limitation and, if so, the maximum permissible Reset Rate.

     Section 8.03. Final Remarketing Procedures.

     (a)  If a Failed Secondary Remarketing has occurred, the Corporation will
request, not later than seven nor more than 15 calendar days prior to the Final
Remarketing Date that the Depositary notify the Holders of the Notes and the
Holders of Income Equity Units and Growth Equity Units of the Final Remarketing.

     (b)  Not later than 5:00 P.M., New York City time, on the second Business
Day immediately preceding the Final Remarketing Date, each Holder of the Notes
may elect to have Notes held by such Holder remarketed. Under Section 5.02 of
the Purchase Contract Agreement, (i) Holders of Income Equity Units that do not
give notice of intention to make a Cash Settlement of their related Purchase
Contracts shall be deemed to have consented to the disposition of the Notes
constituting a component of such Income Equity Units in accordance with Section
5.02(b)(iii) of the Purchase Contract Agreement, and (ii) Holders of Income
Equity Units who give such notice but fail to pay the Purchase Price in cash as
required by Section 5.02(b)(ii) of the Purchase Contract Agreement shall be
deemed to have consented to the
<PAGE>

disposition of the Notes constituting a component of such Income Equity Units in
accordance with Section 5.02(d) of the Purchase Contract Agreement. Holders of
Notes that are not a component of Income Equity Units shall give notice of their
election to have such Notes remarketed to the Custodial Agent and deliver such
Notes to the Custodial Agent pursuant to the Pledge Agreement. Any such notice
and delivery shall be irrevocable after 5:00 P.M., New York City time, on the
second Business Day immediately preceding the Final Remarketing Date and may not
be conditioned upon the level at which the Reset Rate is established. Promptly
after 5:30 P.M., New York City time, on such second Business Day, the Trustee,
based on the notices received by it prior to such time (including notices from
the Purchase Contract Agent as to Purchase Contracts for which Cash Settlement
has been elected), shall notify the Corporation and the Remarketing Agent of the
principal amount of Notes to be tendered for remarketing.

     (c)  If any Holder of Income Equity Units does not give a notice of its
intention to make a Cash Settlement or gives a notice of election to tender
Notes as described in Section 8.03(b), the Notes of such Holder shall be deemed
tendered, notwithstanding any failure by such Holder to deliver or properly
deliver such Notes to the Remarketing Agent for purchase.

     (d)  The right of each Holder to have Notes (including any Notes that
constitute components of Income Equity Units) tendered for purchase shall be
limited to the extent that (i) the Remarketing Agent conducts a remarketing
pursuant to the terms of the Remarketing Agreement, (ii) Notes tendered have not
been called for redemption, (iii) the Remarketing Agent is able to find a
purchaser or purchasers for tendered Notes at a price of not less than 100% of
the principal amount thereof, and (iv) such purchaser or purchasers deliver the
purchase price therefor to the Remarketing Agent as and when required.

     (e)  If a Failed Secondary Remarketing has occurred, on the Final
Remarketing Date, the Remarketing Agent shall use reasonable efforts to
remarket, at a price equal to approximately 100.5% of the aggregate principal
amount thereof, Notes tendered or deemed tendered for purchase.

     (f)  If none of the Holders elect or are deemed to have elected to have
Notes held by them remarketed, the Reset Rate shall be the rate determined by
the Reset Agent, subject to the terms of the Remarketing Agreement, as the rate
that would have been established had a remarketing been held on the Final
Remarketing Date.

     (g)  If the Remarketing Agent has determined that it will be able to
remarket all Notes tendered or deemed tendered prior to 4:00 P.M., New York City
time, on the Final Remarketing Date, the Reset Agent shall, subject to the terms
of the Remarketing Agreement, determine the Reset Rate.

     (h)  If, by 4:00 P.M., New York City time, on the Final Remarketing Date,
the Remarketing Agent is unable to remarket all Notes tendered or deemed
tendered for purchase or if the Final Remarketing shall not have occurred
because a condition precedent to the Final Remarketing shall not have been
fulfilled, a failed remarketing ("FAILED FINAL REMARKETING") shall be deemed to
have occurred, the interest rate on the Notes shall not be reset and the
Remarketing Agent shall so advise by telephone the Collateral Agent,
Corporation, Trustee, and Depositary.
<PAGE>

     (i)  By approximately 4:30 P.M., New York City time, on the Final
Remarketing Date, provided that there has not been a Failed Final Remarketing,
the Remarketing Agent shall advise, by telephone (i) the Collateral Agent, the
Corporation, Trustee, and Depositary of the Reset Rate determined in the Final
Remarketing and the aggregate principal amount of Notes sold in the Final
Remarketing, (ii) each purchaser (or the Depositary Participant thereof) of the
Reset Rate and the aggregate principal amount of Notes such purchaser is to
purchase and (iii) each purchaser to give instructions to its Depositary
Participant to pay the purchase price on the Purchase Contract Settlement Date
in same day funds against delivery of the Notes purchased through the facilities
of the Depositary.

     (j)  In accordance with the Depositary's normal procedures, on the Purchase
Contract Settlement Date, the transactions described above with respect to each
Note tendered for purchase and sold in the Final Remarketing shall be executed
through the Depositary, and the accounts of the respective Depositary
Participants shall be debited and credited and such Notes delivered by book
entry as necessary to effect purchases and sales of such Notes.  The Depositary
shall make payment in accordance with its normal procedures.

     (k)  If any Holder selling Notes in the Final Remarketing fails to de1iver
such Notes, the Depositary Participant of such selling Holder and of any other
Person that was to have purchased Notes in the Final Remarketing may deliver to
any such other Person an aggregate principal amount of Notes that is less than
the aggregate principal amount of Notes that otherwise was to be purchased by
such Person.  In such event, the aggregate principal amount of Notes to be so
delivered shall be determined by such Depositary Participant, and delivery of
such lesser aggregate principal amount of Notes shall constitute good delivery.

     (l)  The Remarketing Agent is not obligated to purchase any Notes in the
Final Remarketing or otherwise. Neither the Trust, any Trustee, the Corporation
nor the Remarketing Agent shall be obligated in any case to provide funds to
make payment upon tender of Notes for remarketing.

     (m)  The tender and settlement procedures set forth in this Section 8.03,
including provisions for payment by purchasers of Notes in the Final
Remarketing, shall be subject to modification, notwithstanding any provision to
the contrary set forth herein, to the extent required by the Depositary or if
the book-entry system is no longer available for the Notes at the time of the
Final Remarketing, to facilitate the tendering and remarketing of Notes in
certificated form.  In addition, the Remarketing Agent may, notwithstanding any
provision to the contrary set forth herein, modify the settlement procedures set
forth herein in order to facilitate the settlement process.

     (n)  Anything herein to the contrary notwithstanding, the Reset Rate shall
in no event exceed the maximum rate permitted by applicable law and, as provided
in the Remarketing Agreement, neither the Remarketing Agent nor the Reset Agent
shall have any obligation to determine whether there is any limitation under
applicable law on the Reset Rate or, if there is any such limitation, the
maximum permissible Reset Rate on the Notes and they shall rely solely upon
written notice from the Corporation (which the Corporation agrees to provide
prior to the 10th Business Day before the Purchase Contract Settlement Date) as
to whether or not there is any such limitation and, if so, the maximum
permissible Reset Rate.
<PAGE>

                                  ARTICLE IX
                              EXECUTION OF NOTES

     Section 9.01.  Execution Of Notes. The Notes shall be executed as
follows:

     The Notes shall be signed on behalf of the Corporation by its Chairman of
the Board, its Vice Chairman of the Board, its Chief Executive Officer, its
President or one of its Vice Presidents and attested by its Secretary or any of
its Assistant Secretaries.  Such signatures may be the manual or facsimile
signatures of the present or any future such officers.  Typographical and other
minor errors or defects in any such signature shall not affect the validity or
enforceability of any Note that has been duly authenticated and delivered by the
Trustee.

     In case any officer of the Corporation who shall have signed any of the
Notes shall cease to be such officer before the Note so signed shall be
authenticated and delivered by the Trustee or disposed of by the Corporation,
such Note nevertheless may be authenticated and delivered or disposed of as
though the person who signed such Note had not ceased to be such officer of the
Corporation; and any Note may be signed on behalf of the Corporation by such
persons as, at the actual date of the execution of such Note, shall be the
proper officers of the Corporation, although at the date of the execution and
delivery of this First Supplemental Indenture any such person was not such an
officer.
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental
Indenture to be duly executed by their respective officers thereunto duly
authorized, on the date or dates indicated in the acknowledgments and as of the
day and year first above written.

                                       SEMPRA ENERGY,
                                          as Issuer

                                       By: /s/ Charles A. McMonagle
                                          -----------------------------
                                          Name: Charles A. McMonagle
                                          Title: Vice President and Treasurer

Attest:

By: [ILLEGIBLE]
   -------------------------
    Name:
    Title:

                                             U.S. BANK TRUST NATIONAL
                                                ASSOCIATION,
                                                as Trustee

                                             By: /s/ Marlene J. Fahey
                                                --------------------------
                                                Name: Marlene J. Fahey
                                                Title: Vice President
<PAGE>

                                                                       EXHIBIT A

[IF THE NOTE IS TO BE A GLOBAL NOTE, INSERT:] THIS SECURITY IS A GLOBAL SECURITY
WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN
THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.  THIS SECURITY MAY NOT BE
EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS
SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER
THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE.

                                 SEMPRA ENERGY

                          5.60% SENIOR NOTE DUE 2007

                                                                           $

No. ____                                                 CUSIP No. _________

     Sempra Energy, a corporation duly organized and existing under the laws of
the State of California (herein called the "Corporation," which term includes
any successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to ______________________, or registered
assigns, the principal sum of _________________ ($__________) or such other
principal amount as shall be set forth in the Schedule of Increases or Decreases
attached hereto, on May 17, 2007, and to pay interest thereon from April 30,
2002 or from the most recent date to which interest has been paid or duly
provided for, quarterly, in arrears, on February 17, May 17, August 17 and
November 17 in each year (each, an "Interest Payment Date"), commencing August
17, 2002 initially at the rate of 5.60% per annum through and including the day
immediately preceding the Reset Effective Date and at the Reset Rate thereafter
until the principal hereof shall have been paid or duly made available for
payment and, to the extent permitted by law, to pay interest, compounded
quarterly, on any overdue principal and premium, if any, and on any overdue
installment of interest at the rate per year of 5.60% through and including the
day immediately preceding the Reset Effective Date and at the Reset Rate
thereafter. Interest on this Note shall be calculated on the basis of a 360-day
year consisting of twelve 30-day months. In the event that any date on which
interest is payable on this Note is not a Business Day, then payment of interest
payable on such date will be made on the next succeeding day that is a Business
Day (and without any interest or other payment in respect of any such delay).
The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in such Indenture, be paid to the Person
in whose name this Note (or one or more Predecessor Notes is registered at the
close of business on the Regular Record Date for such interest, which shall be
the close of business on the first day of the month in which such Interest
Payment Date falls (whether or not a Business Day). Any such interest not so
punctually paid or duly provided for on any Interest Payment Date will forthwith
cease to be payable to the Holder on such Regular Record Date by virtue of
having been such Holder and may either be paid to the Person in whose name this
Note (or one or more Predecessor Notes is registered at the close of business on
a Special Record Date for

<PAGE>

the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Notes not less than 10 days prior to such
Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Notes
may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in said Indenture.

     Payment of the principal of (and premium, if any) and interest on this Note
will be made at the office or agency of the Corporation maintained for that
purpose in New York City, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts; provided, however, that at the option of the Corporation payment
of interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register or by wire
transfer at such place and to such account at a banking institution in the
United States as may be designated in writing to the Trustee at least fifteen
(15) days prior to the date for payment by the Person entitled thereto.
Notwithstanding the foregoing, so long as the Holder of this Note is the
Depositary or its nominee, payment of the principal of (and premium, if any) and
interest on this Note will be made by wire transfer of immediately available
funds.

     This Note and all the obligations of the Corporation hereunder are direct,
unsecured obligations of the Corporation, and rank without preference or
priority among themselves and pari passu with all other existing and future
unsecured and unsubordinated indebtedness of the Corporation.

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

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

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

Dated as of Date of Authentication:          SEMPRA ENERGY

                                             By ________________________________
                                                Name:
                                                Title:

Attest:

________________________________
Name:
Title:
<PAGE>

                           (FORM OF REVERSE OF NOTE)

     This Note is one of a duly authorized issue of securities of the
Corporation (herein called the "Securities"), issued and to be issued in one or
more series under an Indenture, dated as of February 23, 2000 (the "Base
Indenture") between the Corporation and U.S. Bank Trust National Association, as
Trustee (the "Trustee," which term includes any successor trustee under the
Indenture), as supplemented by a First Supplemental Indenture, dated as of April
30, 2002 (the "First Supplemental Indenture") between the Corporation and the
Trustee (the Base Indenture as so supplemented, the "Indenture"), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Corporation and the Holders of this
Note. By the terms of the Indenture, the Securities are issuable in series
that may vary as to amount, date of maturity, rate of interest  and in other
respects as provided in the Indenture.  This series of Securities is limited in
aggregate principal amount as specified in said First Supplemental Indenture.

     If a Tax Event shall occur and be continuing, the Corporation may, at its
option, redeem the Notes in whole (but not in part) at any time at a price
per Note equal to the Redemption Price.  The Redemption Price shall be paid
to each Holder of the Notes by the Corporation, no later than 12:00 noon,
New York City time, on the Tax Event Redemption Date, by check or wire transfer
in immediately available funds, at such place and to such account as may be
designated by each such Holder.

     The Notes are not entitled to the benefit of any sinking fund.

     The Notes are subject to the provisions relating to remarketing set
forth in the Indenture.

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

     If an Event of Default with respect to the Notes of this series shall occur
and be continuing, the principal of the Notes may be declared due and payable in
the manner and with the effect provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Corporation and the rights of the Holders of the Note of each series
affected under the Indenture at any time by the Corporation and the Trustee with
the consent of the Holders of a majority in principal amount of the Securities
of each series at the time Outstanding affected thereby. The Indenture contains
provisions permitting the Holders of not less than a majority in principal
amount of the Securities of any series at the time Outstanding with respect to
which a default under the Indenture shall have occurred and be continuing, on
behalf of the Holders of all Securities of such series, to waive, with certain
exceptions, such past default with respect to such series and its consequences.
The Indenture also permits the Holders of not less than a majority in principal
amount of the Securities of any series at the time Outstanding, on behalf of the
Holders of all
<PAGE>

Securities of such series, to waive compliance by the Corporation with certain
provisions of the Indenture. Any such consent or waiver by the Holder of this
Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of
transfer hereof or in exchange therefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Note.

     As provided in and subject to the provisions of the Indenture, the Holder
of this Note shall not have the right to institute any proceeding with respect
to the Indenture or for the appointment of a receiver or trustee or for any
other remedy thereunder unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Notes, the Holders of not less than 25% in principal amount of the Notes at the
time Outstanding shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default as Trustee, such Holder or
Holders shall have offered the Trustee reasonable indemnity, and the Trustee,
for 60 days after its receipt of such notice, shall not have received from the
Holders of a majority in principal amount of Notes at the time Outstanding a
direction inconsistent with such request, and the Trustee shall have failed to
institute any such proceeding, for 60 days after receipt of such notice, request
and offer of indemnity. The foregoing shall not apply to any suit instituted by
the Holder of this Note for the enforcement of any payment of principal hereof
or any premium or interest hereon on or after the respective due dates expressed
herein.

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

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

     The Notes are issuable only in registered form without coupons in
denominations of $25 and any integral multiple thereof. As provided in the
Indenture and subject to certain limitations therein set forth, the Notes are
exchangeable for a like aggregate principal amount of Notes and of like tenor of
a different authorized denomination, as requested by the Holder surrendering the
same.

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

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

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

     All terms used in this Note which are defined in the Indenture and not
defined herein shall have the meanings assigned to them in the Indenture.

     No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Corporation, which
is absolute and unconditional, to pay the principal of and premium, if any, and
interest on this Note at the time and place and at the rate and in the money
herein prescribed.
<PAGE>

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

                                           U.S. Bank Trust National Association,

                                           As Trustee

                                           By:________________________________
                                                    Authorized Signatory

Dated: April 30, 2002

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