Document:

<PAGE>
                                                                     EXHIBIT 4.2

                                                               EXECUTION VERSION

                        EXTENDICARE HEALTH SERVICES, INC.

                                  $150,000,000

                          9 1/2% SENIOR NOTES DUE 2010

                               PURCHASE AGREEMENT

                                                                   June 20, 2002

Lehman Brothers Inc.
U.S. Bancorp Piper Jaffray Inc.
ABN AMRO Incorporated

c/o Lehman Brothers Inc.
745 Seventh Avenue, 19th Floor
New York, New York 10019

Ladies and Gentlemen:

                  Extendicare Health Services, Inc., a Delaware corporation (the
"COMPANY"), proposes to issue and sell to the several Initial Purchasers named
in Schedule 1 hereto (the "INITIAL PURCHASERS") $150,000,000 aggregate principal
amount of its 9 1/2% Senior Notes due 2010 (the "NOTES") guaranteed (the
"GUARANTEES") by the Company's domestic subsidiaries signatory hereto
(collectively, the "SUBSIDIARY GUARANTORS") pursuant to the terms of an
indenture (the "INDENTURE"), to be dated June 28, 2002, between the Company, the
Subsidiary Guarantors and U.S. Bank, N.A., as trustee (the "TRUSTEE").

                  The Notes will be offered and sold to you pursuant to an
exemption from the registration requirements under the Securities Act of 1933,
as amended (the "SECURITIES ACT"). The Company has prepared a preliminary
offering memorandum, dated June 7, 2002 (as amended or supplemented, the
"PRELIMINARY OFFERING MEMORANDUM"), and will prepare a final offering memorandum
(as amended or supplemented, the "OFFERING MEMORANDUM"), to be dated June 20,
2002, relating to the Company, the Notes and the Guarantees.

                  Upon original issuance thereof, and until such time as the
same is no longer required under the applicable requirements of the Securities
Act, the Notes (and all securities issued in exchange therefor or in
substitution therefor) shall bear substantially the following legend:

         THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT
         BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, IN THE ABSENCE OF
         SUCH REGISTRATION UNLESS THE TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT
         TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF
         THIS NOTE BY ITS ACCEPTANCE HEREOF (1) REPRESENTS THAT (A) IT IS A
         "QUALIFIED

                                                                               1
<PAGE>

         INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT)
         OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN
         "OFFSHORE TRANSACTION" PURSUANT TO RULE 904 OF REGULATION S UNDER THE
         SECURITIES ACT, (2) AGREES THAT IT WILL NOT PRIOR TO (A) THE DATE WHICH
         IS TWO YEARS (OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE
         144(k) UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION THEREUNDER)
         AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR OF ANY
         PREDECESSOR OF THIS NOTE) OR THE LAST DAY ON WHICH THE COMPANY OR ANY
         AFFILIATE OF THE COMPANY WERE THE OWNERS OF THIS NOTE (OR ANY
         PREDECESSOR OF THIS NOTE) AND (B) SUCH LATER DATE, IF ANY, AS MAY BE
         REQUIRED BY APPLICABLE LAW (THE "RESALE RESTRICTION TERMINATION DATE"),
         OFFER, SELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (I) TO THE COMPANY,
         (II) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED
         EFFECTIVE UNDER THE SECURITIES ACT, (III) FOR SO LONG AS THE NOTES ARE
         ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY
         BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A
         UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
         ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT
         THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (IV) PURSUANT TO
         OFFERS AND SALES TO NON-U.S. PERSONS THAT OCCUR OUTSIDE THE UNITED
         STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR
         (V) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
         REQUIREMENTS OF THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO
         EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO
         THE EFFECT OF THIS LEGEND; PROVIDED THAT THE COMPANY, THE TRUSTEE, AND
         THE REGISTRAR SHALL HAVE THE RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
         TRANSFER PURSUANT TO CLAUSE (IV) OR (V) TO REQUIRE THAT AN OPINION OF
         COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO THE
         COMPANY, THE TRUSTEE AND THE REGISTRAR IS COMPLETED AND DELIVERED BY
         THE TRANSFEROR. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE
         HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. AS USED HEREIN,
         THE TERMS "OFFSHORE TRANSACTION," "UNITED STATES" AND "U.S. PERSON"
         HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES
         ACT.

                  You have advised the Company that you will make offers and
sales (the "EXEMPT RESALES") of the Notes purchased hereunder on the terms set
forth in the Offering Memorandum solely to (i) persons whom you reasonably
believe to be "qualified institutional buyers" as defined in Rule 144A under the
Securities Act ("QIBs") and (ii) outside the United States to

                                                                               2
<PAGE>

persons other than U.S. persons in offshore transactions meeting the
requirements of Regulation S under the Securities Act ("REGULATION S") (such
persons specified in clauses (i) and (ii) being referred to herein as the
"ELIGIBLE PURCHASERS"). As used herein, the terms "offshore transaction,"
"United States" and "U.S. person" have the respective meanings given to them in
Regulation S. You will offer the Notes to Eligible Purchasers initially at a
price equal to 99.75% of the principal amount thereof. Thereafter, the offering
price may be changed at any time without notice.

                  In connection with the offering of the Notes, the Company and
the Subsidiary Guarantors will enter into a new revolving credit facility in the
amount of up to $105.0 million pursuant to a credit agreement among Extendicare
Holdings, Inc., the Company, the Subsidiary Guarantors, Lehman Commercial Paper
Inc., as the administrative agent and the other lenders thereto (the "NEW CREDIT
FACILITY"). The net proceeds from the sale of the Notes will be used (i) to
refinance all of the Company's and the Subsidiary Guarantors' outstanding
obligations under their existing credit facility (the "EXISTING CREDIT
FACILITY"), (ii) to refinance an existing industrial development revenue bond,
(iii) to refinance a promissory note and (iv) for general corporate purposes,
all as described in the "Use of Proceeds" section of the Offering Memorandum. In
addition, the Company and the Subsidiary Guarantors intend to enter into a
five-year interest rate swap agreement with respect to the Company's outstanding
9.35% Senior Subordinated Notes due 2007 (the "SWAP AGREEMENT"). The entering
into of the New Credit Facility and the Swap Agreement, the offering of the
Notes and the use of the net proceeds from the sale of the Notes as provided in
the "Use of Proceeds" section of the Offering Memorandum are collectively
referred to herein as the "TRANSACTIONS."

                  Holders (including subsequent transferees) of the Notes will
have the registration rights set forth in the registration rights agreement (the
"REGISTRATION RIGHTS AGREEMENT") among the Company, the Subsidiary Guarantors
and the Initial Purchasers, to be dated as of the Closing Date (as defined
below), in the form of Exhibit A hereto, for so long as such Notes constitute
"TRANSFER RESTRICTED SECURITIES" (as defined in the Registration Rights
Agreement). Pursuant to the Registration Rights Agreement, the Company and the
Subsidiary Guarantors will agree to file with the Securities and Exchange
Commission (the "COMMISSION") under the circumstances set forth therein, (i) a
registration statement under the Securities Act (the "EXCHANGE OFFER
REGISTRATION STATEMENT") relating to a separate series of the Company's 9 1/2%
Senior Notes due 2010 (the "EXCHANGE NOTES") to be offered in exchange for the
Notes (such offer to exchange being referred to collectively as the "REGISTERED
EXCHANGE OFFER") and (ii) if required by the terms of the Registration Rights
Agreement, a shelf registration statement pursuant to Rule 415 under the
Securities Act (the "SHELF REGISTRATION STATEMENT") relating to the resale by
certain holders of the Notes, and to use their best efforts to cause such
Registration Statements to be declared effective. This Agreement, the Notes, the
Exchange Notes, the Guarantees, the Exchange Note Guarantees (as defined below),
the Indenture and Registration Rights Agreement are hereinafter referred to
collectively as the "OPERATIVE DOCUMENTS." This is to confirm the agreements
concerning the purchase of the Notes from the Company by the Initial Purchasers.

                  SECTION 1. Representations, Warranties and Agreements of the
Company and the Subsidiary Guarantors. The Company and the Subsidiary
Guarantors, jointly and severally, represent, warrant and agree that:

                                                                               3
<PAGE>

                  (a) The Preliminary Offering Memorandum and the Offering
         Memorandum have been or will be prepared by the Company and Subsidiary
         Guarantors for use by the Initial Purchasers in connection with the
         Exempt Resales. No order or decree preventing the use of the
         Preliminary Offering Memorandum or the Offering Memorandum, or any
         order asserting that the transactions contemplated by this Agreement
         are subject to the registration requirements of the Securities Act has
         been issued and no proceeding for that purpose has commenced or is
         pending or, to the knowledge of the Company and Subsidiary Guarantors,
         is contemplated.

                  (b) The Preliminary Offering Memorandum and the Offering
         Memorandum as of their respective dates did not, and the Offering
         Memorandum as of the Closing Date will not, contain an untrue statement
         of a material fact or omit to state a material fact necessary, in order
         to make the statements made therein, in the light of the circumstances
         under which they were made, not misleading, except that this
         representation and warranty does not apply to statements in or
         omissions from the Preliminary Offering Memorandum and the Offering
         Memorandum made in reliance upon and in conformity with information
         relating to the Initial Purchasers furnished to the Company in writing
         by or on behalf of the Initial Purchasers expressly for use therein, as
         specifically identified in Section 8(e) hereof.

                  (c) The Company and each of the Subsidiary Guarantors (i) have
         been duly organized or formed, are validly existing and are in good
         standing under the laws of their respective jurisdictions of
         organization, and (ii) are duly qualified to do business and are in
         good standing in each jurisdiction in which their respective ownership
         or lease of property or the conduct of their respective businesses
         requires such qualification, except where the failure to so qualify or
         to be in good standing would not have a material adverse effect on the
         general affairs, management, consolidated financial position,
         shareholders' equity, results of operations, business or prospects of
         the Company and its subsidiaries taken as a whole (a "MATERIAL ADVERSE
         EFFECT"). The Company and each of the Subsidiary Guarantors have all
         power and authority necessary to own or hold their respective
         properties and to conduct the businesses in which they are engaged, and
         none of the subsidiaries of the Company, other than Extendicare Homes,
         Inc., Northern Health Facilities, Inc. and Extendicare Health
         Facilities, Inc., is a "significant subsidiary," as such term is
         defined in Rule 405 under the Securities Act.

                  (d) The Subsidiary Guarantors constitute all of the active
         subsidiaries of the Company and each of the Company's other
         subsidiaries are individually and in the aggregate inactive and
         immaterial.

                  (e) The Company has an authorized capitalization as set forth
         in the Offering Memorandum. All of the issued shares of capital stock
         of the Company have been duly and validly authorized and issued and are
         fully paid and non-assessable; and all of the issued shares of capital
         stock and limited partner or limited liability company interests of
         each of the Subsidiary Guarantors have been duly and validly authorized
         and issued and are fully paid and non-assessable (except, in the case
         of such Subsidiary Guarantors that are Wisconsin corporations, for
         certain statutory liabilities that may be imposed by Section
         180.0622(2)(b) of the Wisconsin Business Corporation Law for unpaid
         employee

                                                                               4
<PAGE>

         wages) and are owned directly or indirectly by the Company, free and
         clear of all liens, encumbrances, equities or claims, other than liens,
         encumbrances, equities or claims under the Existing Credit Facility
         (which will be assigned to the lenders under the New Credit Facility on
         the Closing Date) and contemplated under the New Credit Facility or
         otherwise described in the Offering Memorandum, and none of such shares
         of capital stock, or limited partner or limited liability company
         interests were issued in violation of preemptive or other similar
         rights arising by operation of law, under the charter and bylaws of the
         Company or under any agreement to which the Company or any Subsidiary
         Guarantor is a party or otherwise.

                  (f) Each of the Company and the Subsidiary Guarantors has all
         requisite power and authority to execute, deliver and perform its
         respective obligations under this Agreement and each of the other
         Operative Documents to which it is a party.

                  (g) This Agreement has been duly and validly authorized,
         executed and delivered by the Company and the Subsidiary Guarantors.

                  (h) The Registration Rights Agreement has been duly and
         validly authorized by the Company and each of the Subsidiary
         Guarantors, and when duly executed by the proper officers of the
         Company and each of the Subsidiary Guarantors (assuming due
         authorization, execution and delivery by the Initial Purchasers) and
         delivered by the Company and each of the Subsidiary Guarantors, will
         constitute a legal, valid and binding agreement of the Company and each
         of the Subsidiary Guarantors, enforceable against the Company and each
         of the Subsidiary Guarantors in accordance with its terms, subject to
         applicable bankruptcy, insolvency, fraudulent conveyance,
         reorganization, moratorium and other similar laws relating to or
         affecting creditors' rights and remedies generally, and subject, as to
         enforceability, to general principles of equity, including principles
         of commercial reasonableness, good faith and fair dealing (regardless
         of whether enforcement is sought in a proceeding at law or in equity),
         and except that rights to indemnification and contribution thereunder
         may be limited by federal or state securities laws or public policy
         relating thereto.

                  (i) The Indenture has been duly and validly authorized by the
         Company and each of the Subsidiary Guarantors, and when duly executed
         by the proper officers of the Company and each of the Subsidiary
         Guarantors (assuming due authorization, execution and delivery by the
         Trustee) and delivered by the Company and each of the Subsidiary
         Guarantors, will constitute a legal, valid and binding agreement of the
         Company and each of the Subsidiary Guarantors enforceable against the
         Company and each of the Subsidiary Guarantors in accordance with its
         terms, subject to applicable bankruptcy, insolvency, fraudulent
         conveyance, reorganization, moratorium and other similar laws relating
         to or affecting creditors' rights and remedies generally, and subject,
         as to enforceability, to general principles of equity, including
         principles of commercial reasonableness, good faith and fair dealing
         (regardless of whether enforcement is sought in a proceeding at law or
         in equity). No qualification of the Indenture under the Trust Indenture
         Act of 1939, as amended (the "TRUST INDENTURE ACT"), is required in
         connection with the offer and sale of the Notes contemplated hereby or
         in connection with the Exempt Resales. The Indenture

                                                                               5
<PAGE>

         conforms to the requirements of the Trust Indenture Act and the rules
         and regulations thereunder applicable to an indenture that is qualified
         thereunder.

                  (j) The Notes have been duly and validly authorized by the
         Company and when duly issued by the Company in accordance with the
         terms of the Indenture and, assuming due authentication of the Notes by
         the Trustee, when delivered to the Initial Purchasers against payment
         therefor in accordance with the terms hereof, will have been validly
         issued and delivered, and will constitute legal, valid and binding
         obligations of the Company entitled to the benefits of the Indenture
         and enforceable against the Company in accordance with their terms,
         subject to applicable bankruptcy, insolvency, fraudulent conveyance,
         reorganization, moratorium and other similar laws relating to or
         affecting creditors' rights and remedies generally, and subject, as to
         enforceability, to general principles of equity, including principles
         of commercial reasonableness, good faith and fair dealing (regardless
         of whether enforcement is sought in a proceeding at law or in equity).

                  (k) The Guarantees have been duly and validly authorized by
         each of the Subsidiary Guarantors and when duly endorsed on the Notes
         in accordance with the terms of the Indenture and, assuming due
         authentication of the Notes by the Trustee, upon delivery to the
         Initial Purchasers against payment therefor in accordance with the
         terms hereof will constitute legal, valid and binding obligations of
         each of the Subsidiary Guarantors entitled to the benefits of the
         Indenture and enforceable against each of the Subsidiary Guarantors in
         accordance with their terms, subject to applicable bankruptcy,
         insolvency, fraudulent conveyance, reorganization, moratorium and other
         similar laws relating to or affecting creditors' rights and remedies
         generally, and subject, as to enforceability, to general principles of
         equity, including principles of commercial reasonableness, good faith
         and fair dealing (regardless of whether enforcement is sought in a
         proceeding at law or in equity).

                  (l) The Exchange Notes have been duly and validly authorized
         by the Company and if and when duly issued by the Company in accordance
         with the terms of the Indenture and, assuming due authentication of the
         Exchange Notes by the Trustee, if and when delivered in accordance with
         the Registered Exchange Offer contemplated by the Registration Rights
         Agreement, will constitute legal, valid and binding obligations of the
         Company entitled to the benefits of the Indenture and enforceable
         against the Company in accordance with their terms, subject to
         applicable bankruptcy, insolvency, fraudulent conveyance,
         reorganization, moratorium and other similar laws relating to or
         affecting creditors' rights and remedies generally, and subject, as to
         enforceability, to general principles of equity, including principles
         of commercial reasonableness, good faith and fair dealing (regardless
         of whether enforcement is sought in a proceeding at law or in equity).

                  (m) The guarantees of the Exchange Notes (the "EXCHANGE NOTE
         GUARANTEES") have been duly and validly authorized by each of the
         Subsidiary Guarantors and if and when duly endorsed on the Exchange
         Notes in accordance with the terms of the Indenture and, assuming due
         authentication of the Exchange Notes by the Trustee, if and when the
         Exchange Notes are delivered in accordance with the Registered

                                                                               6
<PAGE>

         Exchange Offer contemplated by the Registration Rights Agreement, will
         constitute legal, valid and binding obligations of each of the
         Subsidiary Guarantors entitled to the benefits of the Indenture and
         enforceable against each of the Subsidiary Guarantors in accordance
         with their terms, subject to applicable bankruptcy, insolvency,
         fraudulent conveyance, reorganization, moratorium and other similar
         laws relating to or affecting creditors' rights and remedies generally,
         and subject, as to enforceability, to general principles of equity,
         including principles of commercial reasonableness, good faith and fair
         dealing (regardless of whether enforcement is sought in a proceeding at
         law or in equity).

                  (n) The Company and the Subsidiary Guarantors have all
         requisite corporate power and authority to enter into (A) the New
         Credit Facility, (B) any and all other agreements and instruments
         ancillary to or entered into in connection with the transaction
         contemplated by the New Credit Facility (items (A) and (B) are referred
         to collectively as the "CREDIT DOCUMENTS") and (C) the Swap Agreement.

                  (o) Each of the New Credit Facility, the other Credit
         Documents and the Swap Agreement have been duly and validly authorized
         by the Company and the Subsidiary Guarantors, to the extent they are a
         party thereto, and when duly executed by the proper officers of the
         Company and each of the Subsidiary Guarantors (assuming due
         authorization, execution and delivery by the other parties thereto) and
         delivered by the Company and each of the Subsidiary Guarantors, to the
         extent they are a party thereto, will constitute a legal, valid and
         binding agreement of each of the Company and the Subsidiary Guarantors,
         enforceable against the Company and each of the Subsidiary Guarantors
         in accordance with its terms, subject to applicable bankruptcy,
         insolvency, fraudulent conveyance, reorganization, moratorium and other
         similar laws relating to or affecting creditors' rights and remedies
         generally, and subject, as to enforceability, to general principles of
         equity, including principles of commercial reasonableness, good faith
         and fair dealing (regardless of whether enforcement is sought in a
         proceeding at law or in equity). Prior to the issuance of letters of
         credit to replace existing letters of credit, the Company will have up
         to $105.0 million of borrowings available to it under the New Credit
         Facility after the Closing of the sale of the Notes, the receipt by the
         Company of the proceeds therefrom and the application of such proceeds
         as described under the caption "Use of Proceeds" in the Offering
         Memorandum. All representations and warranties made by the Company in
         the New Credit Facility and the other Credit Documents will be true and
         correct in all material respects as of the date thereof.

                  (p) The Indenture, the Notes, the Guarantees, the Registration
         Rights Agreement and the Credit Documents conform in all material
         respects to the descriptions thereof in the Offering Memorandum.

                  (q) The execution, delivery and performance of this Agreement,
         the other Operative Documents, the New Credit Facility and the other
         Credit Documents and the Swap Agreement by the Company and the
         Subsidiary Guarantors and the consummation of the Transactions will not
         conflict with or result in a breach or violation of any of the terms or
         provisions of, or constitute a default under, (i) any indenture,
         mortgage, deed of trust, loan agreement or other agreement, license or
         instrument to which the Company or

                                                                               7
<PAGE>

         any of the Subsidiary Guarantors is a party or by which the Company or
         any of the Subsidiary Guarantors is bound or to which any of the
         property or assets of the Company or any of the Subsidiary Guarantors
         is subject, (ii) the provisions of the charter or bylaws of the Company
         or the charter, bylaws or other organizational documents of any of the
         Subsidiary Guarantors or (iii) any statute or any order, rule or
         regulation of any court or governmental agency or body having
         jurisdiction over the Company or any of the Subsidiary Guarantors or
         any of their properties or assets, except, in the case of clauses (i)
         and (iii) for such conflicts, breaches, violations or defaults that
         would not have a Material Adverse Effect. Except as may be required in
         connection with (1) the registration of the Notes, the Exchange Notes,
         the Guarantees and/or the Exchange Note Guarantees under the Securities
         Act in accordance with the Registration Rights Agreement, (2)
         qualification of the Indenture under the Trust Indenture Act, (3)
         compliance with the securities or Blue Sky laws of various
         jurisdictions and (4) filings required by the terms of the Credit
         Documents, no consent, approval, authorization or order of, or filing
         or registration with, any such court or governmental agency or body is
         required for the execution, delivery and performance of this Agreement,
         any of the other Operative Documents, the New Credit Facility and the
         other Credit Documents or the Swap Agreement by the Company and the
         Subsidiary Guarantors and the consummation of the Transactions.

                  (r) The financial statements (including the related notes and
         supporting schedules) included in the Offering Memorandum comply as to
         form in all material respects with the requirements of Regulation S-X
         under the Securities Act and present fairly the financial condition and
         results of operations and cash flows of the entities purported to be
         shown thereby, at the dates and for the periods indicated, and have
         been prepared in conformity with generally accepted accounting
         principles applied on a consistent basis throughout the periods
         involved. The other financial data, selected pro forma ratios,
         operating data and statistical information and data, including Adjusted
         EBITDA and Adjusted EBITDAR (each as defined in the Offering
         Memorandum), included in the Offering Memorandum is presented fairly
         and has been prepared on a basis consistent with such financial
         statements and the books and records of the Company.

                  (s) Except as set forth in the Offering Memorandum, there are
         no legal or governmental proceedings pending to which the Company or
         any of the Subsidiary Guarantors is a party or of which any property or
         assets of the Company or any of the Subsidiary Guarantors is the
         subject which, if determined adversely to the Company or any of the
         Subsidiary Guarantors, would have a Material Adverse Effect, and to the
         Company's knowledge, no such proceedings are threatened or contemplated
         by governmental authorities or others.

                  (t) Except as set forth in the Offering Memorandum, there are
         no contracts, agreements or understandings between the Company and/or
         the Subsidiary Guarantors and any person granting such person the right
         to require the Company or the Subsidiary Guarantors to file a
         registration statement under the Securities Act with respect to any
         securities of the Company or the Subsidiary Guarantors owned or to be
         owned by such person or to require the Company or the Subsidiary
         Guarantors to include such securities

                                                                               8
<PAGE>

         in the securities to be registered pursuant to the Exchange Offer
         Registration Statement or the Shelf Registration Statement or in any
         securities registered or to be registered pursuant to any other
         registration statement filed by or required to be filed by the Company
         or the Subsidiary Guarantors under the Securities Act.

                  (u) Except as disclosed in the Offering Memorandum, since the
         date of the latest audited consolidated financial statements of the
         Company included in the Offering Memorandum, none of the Company or the
         Subsidiary Guarantors has incurred any liability or obligation, direct
         or contingent, or entered into any transaction, in each case not in the
         ordinary course of business, that is material to the Company or the
         Subsidiary Guarantors, taken as a whole, and there has not occurred, to
         the knowledge of the Company and the Subsidiary Guarantors, any
         development or event involving a Material Adverse Effect and, except as
         disclosed in or contemplated by the Offering Memorandum, there has been
         no (i) dividend or distribution of any kind declared, paid or made by
         the Company or its affiliates on any class of its respective capital
         stock, (ii) issuance of securities by the Company or its affiliates
         (other than the Notes and the Guarantees offered thereby or pursuant to
         an issuance by the Company or its affiliates of options to purchase the
         capital stock of the Company or its affiliates) or (iii) material
         increase in short-term or long-term debt of the Company or the
         Subsidiary Guarantors.

                  (v) The Company is in full compliance with the reporting
         requirements of Section 13 or 15(d) of the Exchange Act. All reports
         filed by the Company with the Commission pursuant to Section 13 or
         15(d) of the Exchange Act comply as to form with the Exchange Act and
         the rules and regulations of the Commission thereunder and when filed
         did not include any untrue statement of a material fact or omit to
         state any material fact necessary to make the statements therein not
         misleading.

                  (w) The Company and each Subsidiary Guarantor (i) makes and
         keeps accurate books and records and (ii) maintains a system of
         internal accounting controls sufficient to provide reasonable assurance
         that (A) transactions are executed in accordance with management's
         authorization, (B) transactions are recorded as necessary to permit
         preparation of its financial statements in conformity with generally
         accepted accounting principles and to maintain accountability for its
         assets, (C) access to its assets is permitted only in accordance with
         management's authorization and (D) the recorded accountability for its
         assets is compared with existing assets at reasonable intervals and
         appropriate action is taken with respect to any differences.

                  (x) KPMG LLP, who have certified certain financial statements
         of the Company, whose report appears in the Offering Memorandum and who
         have delivered the initial letter referred to in Section 7(j) hereof,
         are independent public accountants as required by the Securities Act
         and the rules and regulations promulgated thereunder.

                  (y) The statistical and market-related data included in the
         Offering Memorandum are based on or derived from sources that the
         Company and the subsidiaries believe to be reliable and accurate.

                                                                               9
<PAGE>

                  (z) Except as disclosed in or specifically contemplated by the
         Offering Memorandum, each of the Company and the Subsidiary Guarantors
         has such permits, licenses, patents, franchises, certificates of need
         and other approvals or authorizations of governmental or regulatory
         authorities ("PERMITS") as are necessary under applicable law to own
         its properties and to conduct its businesses in the manner described in
         the Offering Memorandum, except where the failure to have any such
         Permit would not, individually or in the aggregate, have a Material
         Adverse Effect; each of the Company and the Subsidiary Guarantors has
         fulfilled and performed all of its obligations with respect to the
         Permits, except where the failure to so fulfill and/or perform such
         obligations would not have a Material Adverse Effect; and, except as
         disclosed in or specifically contemplated by the Offering Memorandum,
         no event has occurred which allows, or after notice or lapse of time
         would allow, revocation or termination thereof or results in any other
         impairment of the rights of the holder of any such Permit, except where
         any such revocations, terminations or impairments would not,
         individually or in the aggregate, have a Material Adverse Effect.
         Except as disclosed in or specifically contemplated by the Offering
         Memorandum, none of the Permits contains any restriction that is
         materially burdensome (other than such burdens as are common or
         customary to such Permits) to any of the Company or the Subsidiary
         Guarantors.

                  (aa) The Company and each of the Subsidiary Guarantors carry,
         or are covered by, insurance in such amounts and covering such risks as
         is adequate for the conduct of their respective businesses and the
         value of their respective properties and as is customary for companies
         engaged in similar businesses in similar industries.

                  (bb) The Company and each of the Subsidiary Guarantors own or
         possess adequate rights to use all patents, patent applications,
         trademarks, service marks, trade names, trademark registrations,
         service mark registrations, copyrights and licenses necessary for the
         conduct of their respective businesses and have no reason to believe
         that the conduct of their respective businesses will conflict with, and
         have not received any notice of any claim of conflict with, any such
         rights of others, and the Company and the Subsidiary Guarantors are not
         aware of any pending or threatened claim to the contrary or any pending
         or threatened challenge by any other person to the rights of the
         Company and the Subsidiary Guarantors with respect to the foregoing
         which, if determined adversely to any of the Company or the Subsidiary
         Guarantors, would have a Material Adverse Effect.

                  (cc) There are no contracts or other documents which would be
         required to be described in a prospectus included in or filed as an
         exhibit to a registration statement on Form S-1 under the Securities
         Act that have not been described in the Offering Memorandum or filed
         with the Commission.

                  (dd) No relationship, direct or indirect, exists between or
         among the Company and the Subsidiary Guarantors, on the one hand, and
         the directors, officers, shareholders, customers or suppliers of the
         Company or the Subsidiary Guarantors, on the other hand, which would be
         required to be described in a prospectus included in a registration
         statement on Form S-1 under the Securities Act that is not described in
         the Offering Memorandum.

                                                                              10
<PAGE>

                  (ee) No labor disturbance by the employees of the Company or
         any of the Subsidiary Guarantors exists or, to the knowledge of the
         Company, is imminent which would have a Material Adverse Effect.

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

                  (gg) The Company and the Subsidiary Guarantors have filed all
         federal, state and local income and franchise tax returns required to
         be filed through the date hereof, other than those being contested in
         good faith, and paid all taxes due thereon, other than those being
         contested in good faith, and no tax deficiency has been determined
         adversely to the Company or any of the Subsidiary Guarantors, nor does
         the Company have any knowledge of any tax deficiency which, if
         determined adversely to the Company or any of the Subsidiary
         Guarantors, would have a Material Adverse Effect.

                  (hh) Neither the Company nor any of the Subsidiary Guarantors
         (i) is in violation of its charter, bylaws or other organizational
         documents, (ii) is in default, and no event has occurred which, with
         notice or lapse of time or both, would constitute such a default, in
         the due performance or observance of any term, covenant or condition
         contained in any material indenture, mortgage, deed of trust, loan
         agreement or other agreement or instrument to which it is a party or by
         which it is bound or to which any of its properties or assets is
         subject, except for such defaults that would not have a Material
         Adverse Effect, or (iii) is in violation of any law, ordinance,
         governmental rule, regulation or court decree to which it or its
         property or assets may be subject, except for such violations that
         would not have a Material Adverse Effect.

                  (ii) Neither the Company nor any of the Subsidiary Guarantors,
         nor any current director or officer, or to the Company's knowledge, any
         current agent, employee or other person associated with or acting on
         behalf of the Company or any of the Subsidiary Guarantors, has used any
         corporate funds for any unlawful contribution, gift, entertainment or
         other unlawful expense relating to political activity; made any direct
         or indirect unlawful payment to any foreign or domestic government
         official or employee from corporate funds; violated or is in violation
         of any provision of the Foreign Corrupt Practices Act of 1977; or made
         any bribe, rebate, payoff, influence payment, kickback or other
         unlawful payment.

                                                                              11
<PAGE>

                  (jj) Neither the Company nor the Subsidiary Guarantors has
         stored, disposed of, generated, manufactured, refined, transported,
         handled or treated toxic wastes, medical wastes, solid wastes,
         hazardous wastes or hazardous substances or other similar materials
         ("Hazardous Materials") and, to the knowledge of the Company, there has
         been no storage, disposal, generation, manufacture, refinement,
         transportation, handling or treatment of Hazardous Materials by any
         other person at, upon or from any of the properties now owned or leased
         by the Company or the Subsidiary Guarantors in violation of any
         applicable law, ordinance, rule, regulation, order, judgment, decree or
         permit which could reasonably be expected to have, individually or in
         the aggregate with all such violations, a Material Adverse Effect;
         there has been no material spill, discharge, leak, emission, injection,
         escape, dumping or release of any kind onto such property or into the
         environment surrounding such property of any toxic wastes, medical
         wastes, solid wastes, hazardous wastes or hazardous substances due to
         or caused by the Company or any of the Subsidiary Guarantors or with
         respect to which the Company or any of the Subsidiary Guarantors have
         knowledge, which could reasonably be expected to have, individually or
         in the aggregate with all such spills, discharges, leaks, emissions,
         injections, escapes, dumpings and releases, a Material Adverse Effect;
         and the terms "hazardous wastes," "toxic wastes," "hazardous
         substances," "solid wastes" and "medical wastes" shall have the
         meanings specified in any applicable local, state, federal and foreign
         laws or regulations with respect to environmental protection.

                  (kk) The Company and each of the Subsidiary Guarantors have
         good and marketable title in fee simple to all real property and good
         and marketable title to all personal property owned by them, in each
         case, free and clear of all liens, encumbrances and defects except such
         as are existing under the Existing Credit Facility (which will be
         assigned to the lenders under the New Credit Facility as of the Closing
         Date) and the other indebtedness of the Company described in the
         Offering Memorandum under "Description of Other Indebtedness" or such
         as do not materially affect the value of such property and do not
         materially interfere with the use made and proposed to be made of such
         property by the Company and the Subsidiary Guarantors; and all assets
         held under lease by the Company and the Subsidiary Guarantors are held
         by them under valid, subsisting and enforceable leases, with such
         exceptions as are not material and do not interfere with the use made
         and proposed to be made of such assets by the Company and the
         Subsidiary Guarantors.

                  (ll) Immediately after the consummation of the Transactions,
         the fair value and present fair saleable value of the assets of the
         Company and each of the Subsidiary Guarantors (each on a consolidated
         basis) will exceed the sum of its stated liabilities and identified
         contingent liabilities; none of the Company nor any of the Subsidiary
         Guarantors (each on a consolidated basis) is, nor will any of the
         Company or any of the Subsidiary Guarantors (each on a consolidated
         basis) be, after giving effect to the execution, delivery and
         performance of this Agreement and the other Operative Documents and the
         New Credit Facility and the other Credit Documents and the consummation
         of the Transactions, (A) left with unreasonably small capital with
         which to carry on its business as it is proposed to be conducted, (B)
         unable to pay its debts (contingent or otherwise) as they mature or (C)
         otherwise insolvent.

                                                                              12
<PAGE>

                  (mm) Neither the Company nor any Subsidiary Guarantor is, or,
         as of the Closing Date after giving effect to the Transactions and the
         application of the proceeds as described in the Offering Memorandum
         under the section entitled "Use of Proceeds," will be, an "investment
         company" within the meaning of such term under the Investment Company
         Act of 1940, as amended (the "INVESTMENT COMPANY ACT").

                  (nn) Except as set forth in the Offering Memorandum, neither
         the Company nor any of the Subsidiary Guarantors nor, to the knowledge
         of the Company, any other person who has a direct or indirect ownership
         or control interest in the Company or any of the Subsidiary Guarantors
         or who is an officer, director, agent or managing employee of the
         Company or any Subsidiary Guarantor: (1) has engaged in any activities
         which are prohibited, or are cause for criminal or civil penalties
         and/or mandatory or permissive exclusion from Medicare or Medicaid,
         under Section 1320a-7, 1320a-7a, 1320a-7b, or 1395nn of Title 42 of the
         United States Code, the federal TRICARE statute, the Federal False
         Claims Act 31 U.S.C.ss.3729-3733, or the regulations promulgated
         pursuant to such statutes or regulations or related state or local
         statutes or by generally recognized professional standards of care or
         conduct; (2) has had a civil monetary penalty assessed against it under
         Section 1128A of the Social Security Act ("SSA"); (3) is currently
         excluded from participation under the Medicare program or a Federal
         Health Care Program (as that term is defined in SSA Section
         1128(B)(f)); or (4) has been convicted (as that term is defined in 42
         C.F.R. ss.1001.2) of any of the categories of offenses described in SSA
         Section 1128(a) and (b)(1), (2) and (3).

                  (oo) Neither the Company nor any other affiliate (as defined
         in Rule 501(b) of Regulation D under the Securities Act ("REGULATION
         D")) of the Company has directly, or through any agent (provided that
         no representation is made as to the Initial Purchasers or any person
         acting on their behalf), (i) sold, offered for sale, solicited offers
         to buy or otherwise negotiated in respect of, any security (as defined
         in the Securities Act) which is or could be integrated with the
         offering and sale of the Notes and the Guarantees in a manner that
         would require the registration of the Notes and the Guarantees under
         the Securities Act or (ii) engaged in any form of general solicitation
         or general advertising (within the meaning of Regulation D, including,
         but not limited to, advertisements, articles, notices or other
         communications published in any newspaper, magazine, or similar medium
         or broadcast over television or radio, or any seminar or meeting whose
         attendees have been invited by any general solicitation or general
         advertising) in connection with the offering of the Notes and the
         Guarantees. Neither the Company nor any Subsidiary Guarantor has
         offered, sold or issued any securities, or securities that are
         convertible into other securities, with terms that are substantially
         similar to the Notes and the Guarantees during the six-month period
         preceding the date of the Offering Memorandum, including any sales
         pursuant to Section 4(2) of the Securities Act or Regulation D or
         Regulation S under the Securities Act.

                  (pp) Each of the Preliminary Offering Memorandum and the
         Offering Memorandum and each amendment or supplement thereto, as of its
         date, contains the information specified in, and meets the requirements
         of, Rule 144A(d)(4) under the Act.

                                                                              13
<PAGE>

                  (qq) Neither the Company nor any Subsidiary Guarantor has
         distributed and, prior to the later to occur of the Closing Date and
         completion of the distribution of the Notes and the Guarantees, will
         not distribute any offering material in connection with the offering
         and sale of the Notes other than the Preliminary Offering Memorandum
         and the Offering Memorandum.

                  (rr) When issued and delivered pursuant to this Agreement, the
         Notes will not be of the same class (within the meaning of Rule 144A
         under the Securities Act) as securities of the Company that are listed
         on a national securities exchange registered under Section 6 of the
         Exchange Act or that are quoted in a U.S. automated inter-dealer
         quotation system.

                  (ss) Assuming (i) that your representations and warranties in
         Section 2 of this Agreement are true, (ii) compliance by you with the
         covenants set forth herein and (iii) that each of the Eligible
         Purchasers is a QIB or a person who acquires the Notes and the
         Guarantees outside the United States in an "offshore transaction" and
         is not a "U.S. person" (within the meaning of Rule 904 of Regulation
         S), it is not necessary in connection with the purchase of the Notes
         and the Guarantees and the offer and initial resale of the Notes and
         the Guarantees by you in the manner contemplated by this Agreement and
         the Offering Memorandum, to register the Notes and the Guarantees under
         the Securities Act or to qualify the Indenture under the Trust
         Indenture Act.

                  (tt) None of the Company, any Subsidiary Guarantor or any of
         their affiliates or any person acting on their behalf (provided that no
         representation is made as to the Initial Purchasers or any person
         acting on their behalf) has engaged or will engage in any directed
         selling efforts within the meaning of Rule 902(c) of Regulation S with
         respect to the Notes, and the Company, the Subsidiary Guarantors and
         their other affiliates and all persons acting on their behalf (provided
         that no representation is made as to the Initial Purchasers or any
         person acting on their behalf) have complied with and will comply with
         the offering restrictions requirements of Regulation S in connection
         with the offering of the Notes outside of the United States and, in
         connection therewith, the Offering Memorandum will contain the
         disclosure required by Rule 902(g). The sales of the Notes pursuant to
         Regulation S are not part of a plan or scheme to evade the registration
         provision of the Securities Act.

                  (uu) The Notes sold in reliance on Regulation S will be
         represented upon issuance by a temporary global security that may not
         be exchanged for definitive securities until the expiration of the
         40-day restricted period referred to in Rule 903(b)(2) of the
         Securities Act and only upon certification of beneficial ownership of
         such Notes by non-U.S. persons or U.S. persons who purchased such Notes
         in transactions that were exempt from the registration requirements of
         the Securities Act.

                  (vv) In connection with the distribution of the Notes and the
         Guarantees, neither the Company nor any of its subsidiaries has taken
         or will take, directly or indirectly, any action designed to cause or
         result in, or which has constituted or which might reasonably be
         expected to constitute, the stabilization or manipulation of the price

                                                                              14
<PAGE>

         of the Notes and the Guarantees to facilitate the sale or resale of the
         Notes and the Guarantees.

                  (ww) No "nationally recognized statistical rating
         organization" as such term is defined for purposes of Rule 436(g)(2)
         under the Securities Act (i) has imposed (or has informed the Company
         that it is considering imposing) any condition (financial or otherwise)
         on the Company's retaining any rating assigned as of the date hereof to
         the Company or any of their respective securities or (ii) has indicated
         to the Company that it is considering (A) the downgrading, suspension
         or withdrawal of, or any review for a possible change that does not
         indicate the direction of the possible change in, any rating so
         assigned or (B) any negative change in the outlook for any rating of
         the Company.

                  (xx) The Company has not taken, and will not take, any action
         that might cause this Agreement or the issuance or sale of the Notes
         and the Guarantees to violate Regulation T (12 C.F.R. Part 220),
         Regulation U (12 C.F.R. Part 221) or Regulation X (12 C.F.R. Part 224)
         of the Board of Governors of the Federal Reserve System.

                  (yy) The Company and each Subsidiary Guarantor understands
         that the Initial Purchaser and, for purposes of the opinions to be
         delivered to the Initial Purchaser pursuant to Section 7 hereof,
         counsel to the Company and counsel to the Initial Purchasers will rely
         upon the accuracy and truth of the foregoing representations and hereby
         consents to such reliance.

                  SECTION 2. Representations, Warranties and Agreements of the
Initial Purchasers. Each of the Initial Purchasers, severally and not jointly,
represents and warrants to, and agrees with, the Company and the Subsidiary
Guarantors, that:

                  (a) Such Initial Purchaser is a QIB with such knowledge and
         experience in financial and business matters as are necessary in order
         to evaluate the merits and risks of an investment in the Notes and the
         Guarantees.

                  (b) Such Initial Purchaser (i) is not acquiring the Notes and
         the Guarantees with a view to any distribution thereof or with any
         present intention of offering or selling any of the Notes and the
         Guarantees in a transaction that would violate the Securities Act or
         any state securities laws or any other applicable jurisdiction; (ii) in
         connection with the Exempt Resales, will solicit offers to buy the
         Notes and the Guarantees only from, and will offer to sell the Notes
         and the Guarantees only to, the Eligible Purchasers in accordance with
         this Agreement and on the terms contemplated by the Offering
         Memorandum; and (iii) will not offer or sell the Notes and the
         Guarantees, nor has it offered or sold the Notes and the Guarantees by,
         or otherwise engaged in, any form of general solicitation in connection
         with the offering of the Notes and the Guarantees.

                  (c) The Notes and the Guarantees have not been and will not be
         registered under the Securities Act and may not be offered or sold
         within the United States or to, or for the account or benefit of, U.S.
         persons except in accordance with Regulation S under the Securities Act
         or pursuant to an exemption from the registration requirements of the
         Securities Act. Such Initial Purchaser represents that it has not
         offered, sold or delivered

                                                                              15
<PAGE>

         the Notes and the Guarantees, and will not offer, sell or deliver the
         Notes and the Guarantees (i) as part of their distribution at any time
         or (ii) otherwise until 40 days after the later of the commencement of
         the offering of the Notes and the Guarantees and the Closing Date (such
         period, the "DISTRIBUTION COMPLIANCE PERIOD"), within the United States
         or to, or for the account or benefit of U.S. persons, except in
         accordance with Rule 144A under the Securities Act. Accordingly, such
         Initial Purchaser represents and agrees that neither it, its affiliates
         nor any persons acting on its behalf have engaged or will engage in any
         directed selling efforts within the meaning of Rule 902(c) of
         Regulation S with respect to the Notes and the Guarantees, and its
         affiliates and all persons acting on its behalf have complied and will
         comply with the offering restrictions requirements of Regulation S.

                  (d) Such Initial Purchaser agrees that, at or prior to
         confirmation of a sale of Notes and Guarantees (other than a sale
         pursuant to Rule 144A), it will have sent to each distributor, dealer
         or person receiving a selling concession, fee or other remuneration
         that purchases Notes and Guarantees from them during the Distribution
         Compliance Period a confirmation or notice substantially to the
         following effect:

                  "The Notes covered hereby have not been registered under the
                  Securities Act of 1933 (the "Securities Act") and may not be
                  offered and sold within the United States or to, or for the
                  account or benefit of, U.S. persons (i) as part of their
                  distribution at any time or (ii) otherwise until 40 days after
                  the later of the commencement of the offering or the closing
                  date, except in either case in accordance with Regulation S
                  (or Rule 144A if available) under the Securities Act, and in
                  connection with any subsequent sale by you of the Notes
                  covered hereby in reliance on Regulation S during the period
                  referred to above to any distributor, dealer or person
                  receiving a selling concession, fee or other remuneration, you
                  must deliver a notice substantially to the foregoing effect.
                  Terms used above have the meanings assigned to them in
                  Regulation S."

                  (e) All offers and sales of the Notes and the Guarantees by
         such Initial Purchaser pursuant to Regulation S are and will be
         "offshore transactions" within the meaning of Regulation S and are not
         and will not be part of a plan or scheme to evade the registration
         provisions of the Securities Act.

                  (f) Such Initial Purchaser (i) has not offered or sold, and
         prior to the six months after the date of the issue of the Notes will
         not offer or sell, any Notes to persons in the United Kingdom except to
         persons whose ordinary activities involve them in acquiring, holding,
         managing or disposing of investments (as principal or agent) for
         purposes of their businesses or otherwise in circumstances which have
         not resulted and will not result in an offer to the public in the
         United Kingdom within the meaning of the Public Offers of Securities
         Regulations 1995, (ii) has complied with and will comply with all
         applicable provisions of the Financial Services and Markets Act 2000,
         or the FSMA, with respect to anything done by it in relation to the
         Notes in, from or otherwise involving the United Kingdom and (iii) has
         only communicated or caused to be communicated and will only
         communicate and cause to be communicated any invitation

                                                                              16
<PAGE>

         or inducement to engage in investment activity (within the meaning of
         Section 21 of the FSMA) received by it in connection with the issue or
         sale of any Notes in circumstances in which Section 21(1) of the FSMA
         would not apply to the Company.

                  (g) Such Initial Purchaser understands that the Company and,
         for purposes of the opinions to be delivered to you pursuant to Section
         7 hereof, counsel to the Company and counsel to the Initial Purchasers
         will rely upon the accuracy and truth of the foregoing representations
         and hereby consents to such reliance.

                  The terms used in this Section 2 that have meanings assigned
to them in Regulation S are used herein as so defined.

                  SECTION 3. Purchase of the Notes and the Guarantees by the
Initial Purchasers. On the basis of the representations and warranties contained
in, and subject to the terms and conditions of, this Agreement, the Company
agrees to sell the Notes (and cause the Subsidiary Guarantors to issue the
Guarantees) to the several Initial Purchasers and each of the Initial
Purchasers, severally and not jointly, agrees to purchase the amount of Notes
set opposite that Initial Purchaser's name in Schedule 1 hereto. Each Initial
Purchaser will purchase such aggregate principal amount of Notes at an aggregate
purchase price equal to 96.75% of the principal amount thereof (the "PURCHASE
PRICE").

                  The Company shall not be obligated to deliver any of the Notes
to be delivered on the Closing Date, except upon payment for all the Notes and
the Guarantees to be purchased on the Closing Date as provided herein.

                  SECTION 4. Delivery of and Payment for the Notes and the
Guarantees.

                  (a) Delivery of and payment for the Notes and the Guarantees
         shall be made at the offices of Weil, Gotshal & Manges LLP, 767 Fifth
         Avenue, New York, New York 10153, at 9:00 A.M., New York City time, on
         the sixth full business day following the date of this Agreement or at
         such other date or place as shall be determined by agreement between
         Lehman Brothers and the Company. This date and time are sometimes
         referred to as the "CLOSING DATE."

                  (b) On the Closing Date, one or more Notes in definitive form,
         registered in the name of Cede & Co., as nominee of The Depository
         Trust Company ("DTC"), having an aggregate principal amount
         corresponding to the aggregate principal amount of the Notes
         (collectively, the "GLOBAL NOTES"), shall be delivered by the Company
         to the Initial Purchasers against payment by the Initial Purchasers of
         the purchase price thereof by wire transfer of immediately available
         funds as the Company may direct by written notice delivered to you no
         later than two business days prior to the Closing Date. The Global
         Notes in definitive form shall be made available to the Initial
         Purchasers for inspection not later than 2:00 p.m. on the business day
         prior to the Closing Date.

                  SECTION 5. Further Agreements of the Company. The Company
agrees:

                  (a) To advise you promptly and, if requested by you, to
         confirm such advice in writing, (i) of the issuance by the Commission
         or any state securities commission of

                                                                              17
<PAGE>

         any stop order suspending the qualification or exemption from
         qualification of the Notes and the Guarantees for offering or sale in
         any jurisdiction, or the initiation or threatening of any proceeding
         for such purpose by the Commission or any state securities commission
         or other regulatory authority, and (ii) the happening of any event that
         makes any statement of a material fact made in the Preliminary Offering
         Memorandum or the Offering Memorandum untrue or which requires the
         making of any additions to or changes in the Preliminary Offering
         Memorandum or Offering Memorandum in order to make the statements
         therein, in the light of the circumstances under which they were made,
         not misleading. The Company shall use all reasonable efforts to prevent
         the issuance of any stop order or order suspending the qualification or
         exemption of the Notes and the Guarantees under any state securities or
         Blue Sky laws and, if at any time any state securities commission shall
         issue any stop order suspending the qualification or exemption of the
         Notes and the Guarantees under any state securities or Blue Sky laws,
         the Company shall use all reasonable efforts to obtain the withdrawal
         or lifting of such order at the earliest possible time.

                  (b) To furnish to you without charge, as many copies of the
         Preliminary Offering Memorandum and the Offering Memorandum, and any
         amendments or supplements thereto, as you may reasonably request. The
         Company consents to the use of the Preliminary Offering Memorandum and
         the Offering Memorandum, and any amendments and supplements thereto
         required pursuant to this Agreement, by you in connection with the
         Exempt Resales that are in compliance with this Agreement.

                  (c) Not to amend or supplement the Offering Memorandum prior
         to the Closing Date or during the period referred to in (d) below
         unless you shall previously have been advised of, and shall not have
         reasonably objected to, such amendment or supplement within a
         reasonable time, but in any event not longer than three days after
         being furnished a copy of such amendment or supplement. The Company
         shall promptly prepare, upon any reasonable request by you, any
         amendment or supplement to the Offering Memorandum that may be
         necessary or advisable in connection with Exempt Resales.

                  (d) If, in connection with any Exempt Resales or market making
         transactions after the date of this Agreement and prior to the
         consummation of the Registered Exchange Offer, any event shall occur
         that, in the judgment of the Company or in your judgment or the
         judgment of counsel to you, makes any statement of a material fact in
         the Offering Memorandum untrue or that requires the making of any
         additions to or changes in the Offering Memorandum in order to make the
         statements in the Offering Memorandum, in the light of the
         circumstances at the time that the Offering Memorandum is delivered to
         prospective Eligible Purchasers, not misleading, or if it is necessary
         to amend or supplement the Offering Memorandum to comply with
         applicable law, the Company will promptly notify you of such event and
         prepare an appropriate amendment or supplement to the Offering
         Memorandum so that, at the time that the Offering Memorandum is
         delivered to prospective Eligible Purchasers, (i) the statements in the
         Offering Memorandum as amended or supplemented, in the light of the
         circumstances under which they were made, will not be misleading and
         (ii) the Offering Memorandum will comply with applicable law.

                                                                              18
<PAGE>

                  (e) Promptly from time to time to take such action as you may
         reasonably request to qualify the Notes and the Guarantees for offering
         and sale under the state securities or Blue Sky laws of such
         jurisdictions as you may request (provided, however, that the Company
         shall not be obligated to qualify as a foreign corporation in any
         jurisdiction in which it is not now so qualified or to take any action
         that would subject it to general consent to service of process in any
         jurisdiction in which it is not now so subject) and to comply with such
         laws so as to permit the continuance of sales and dealings therein in
         such jurisdictions for as long as may be necessary to complete the
         distribution of the Notes and the Guarantees.

                  (f) To use all reasonable best efforts to do and perform all
         things required to be done and performed under this Agreement by it
         prior to or after the Closing Date and to satisfy all conditions
         precedent on its part to the delivery of the Notes and the Guarantees.

                  (g) Except as contemplated in the Registration Rights
         Agreement, not to sell, offer for sale or solicit offers to buy or
         otherwise negotiate in respect of any security (as defined in the
         Securities Act) that would be integrated with the sale of the Notes and
         the Guarantees in a manner that would require the registration under
         the Securities Act of the sale to you or the Eligible Purchasers of the
         Notes and the Guarantees.

                  (h) For so long as any Notes remain outstanding and are
         "restricted securities" within the meaning of Rule 144(a)(3) under the
         Securities Act and during any period in which the Company is not
         subject to Section 13 or 15(d) of the Exchange Act, to make available
         upon request to any registered holder or beneficial owner of Notes in
         connection with any sale thereof and any prospective purchaser of Notes
         from such registered holder or beneficial owner, the information
         required by Rule 144A(d)(4) under the Securities Act.

                  (i) To use its reasonable best efforts to cause the Notes to
         be eligible for trading in The PORTAL(SM) Market ("PORTAL"), a
         subsidiary of The Nasdaq Stock Market, Inc., and to permit the Notes to
         be eligible for clearance and settlement through DTC.

                  (j) To apply the net proceeds from the sale of the Notes as
         set forth in the Offering Memorandum under the section entitled "Use of
         Proceeds."

                  (k) To take such steps as shall be necessary to ensure that
         neither the Company nor any subsidiary of the Company shall become an
         "investment company" within the meaning of such term under the
         Investment Company Act and the rules and regulations of the Commission
         thereunder.

                  (l) Except for borrowings under the New Credit Facility, for a
         period of 180 days from the date of the Offering Memorandum, not to,
         directly or indirectly, sell, contract to sell, grant any option to
         purchase, issue any instrument convertible into or exchangeable for, or
         otherwise transfer or dispose of, any debt securities of the Company or
         any Subsidiary Guarantor in a public or private offering for cash
         having a maturity of

                                                                              19
<PAGE>

         more than one year from the date of issue of such securities, except
         (i) for the Exchange Notes and the Exchange Note Guarantees in
         connection with the Exchange Offer or (ii) with the prior consent of
         the Initial Purchasers, which consent shall not be unreasonably
         withheld.

                  (m) For a period of three years following the Closing Date, to
         furnish to you copies of all materials furnished by the Company to
         holders of Notes and all public reports and all reports and financial
         statements furnished by the Company to the principal national
         securities exchange upon which the Company's common stock or Notes may
         be listed pursuant to requirements of or agreements with such exchange
         or to the Commission pursuant to the Exchange Act or any rule or
         regulation of the Commission thereunder.

                  SECTION 6. Expenses. The Company agrees that, whether or not
the transactions contemplated by this Agreement are consummated or this
Agreement becomes effective or is terminated, to pay all costs, expenses, fees
and taxes incident to and in connection with: (i) the preparation, printing,
filing and distribution of the Preliminary Offering Memorandum and the Offering
Memorandum (including, without limitation, financial statements) and all
amendments and supplements thereto (but not, however, legal fees and expenses of
your counsel incurred in connection therewith), (ii) the preparation, printing
(including, without limitation, word processing and duplication costs) and
delivery of this Agreement, the Indenture, all Blue Sky Memoranda and all other
agreements, memoranda, correspondence and other documents printed and delivered
in connection herewith and with the Exempt Resales (but not, however, legal fees
and expenses of your counsel incurred in connection with any of the foregoing
other than fees of such counsel plus reasonable disbursements incurred in
connection with the preparation, printing and delivery of such Blue Sky
Memoranda), (iii) the issuance and delivery by the Company and the Subsidiary
Guarantors of the Notes and the Guarantees, (iv) the qualification of the Notes
for offer and sale under the securities or Blue Sky laws of the several states
(including, without limitation, the reasonable fees and disbursements of your
counsel relating to such registration or qualification), (v) furnishing such
copies of the Preliminary Offering Memorandum and the Offering Memorandum, and
all amendments and supplements thereto, as may be reasonably requested for use
in connection with the Exempt Resales, (vi) the preparation of certificates for
the Notes (including, without limitation, printing and engraving thereof), (vii)
the fees, disbursements and expenses of the Company's counsel and accountants,
(viii) all expenses and listing fees in connection with the application for
quotation of the Notes in PORTAL, (ix) the costs and expenses of the Company
relating to investor presentations on any road show undertaken in connection
with the offering of the Notes, including without limitation, expenses
associated with the production of road show slides and graphics, fees and
expenses of any consultants engaged in connection with the road show
presentations with the prior approval of the Company, travel and lodging
expenses of the representatives and officers of the Company and any such
consultants, and the cost of any aircraft chartered in connection with the road
show; (x) all fees and expenses (including fees and expenses of counsel) of the
Company in connection with approval of the Notes by DTC for "book-entry"
transfer and (xi) the performance by the Company and the Subsidiary Guarantors
of its other obligations under this Agreement.

                                                                              20
<PAGE>

                  SECTION 7. Conditions of Initial Purchasers' Obligations. The
respective obligations of the Initial Purchasers hereunder are subject to the
accuracy, when made and on the Closing Date, of the representations and
warranties of the Company contained herein, to the performance by the Company of
its obligations hereunder, and to each of the following additional terms and
conditions.

                  (a) The Offering Memorandum shall have been printed and copies
         distributed to you not later than 9:00 A.M., New York City time, on
         June 24, 2002, or at such later date and time as you may approve in
         writing, and no stop order suspending the qualification or exemption
         from qualification of the Notes in any jurisdiction shall have been
         issued and no proceeding for that purpose shall have been commenced or
         shall be pending or threatened.

                  (b) No Initial Purchaser shall have discovered and disclosed
         to the Company on or prior to such Closing Date that the Offering
         Memorandum or any amendment or supplement thereto contains an untrue
         statement of a fact which, in the opinion of Weil, Gotshal & Manges
         LLP, counsel for the Initial Purchasers, is material or omits to state
         a fact which, in the opinion of such counsel, is material and is
         required to be stated therein or is necessary to make the statements
         therein not misleading.

                  (c) All corporate proceedings and other legal matters incident
         to the authorization, form and validity of this Agreement, the other
         Operative Documents, the Credit Documents, the Swap Agreement and the
         Offering Memorandum, and all other legal matters relating to this
         Agreement and the Transactions shall be reasonably satisfactory in all
         material respects to counsel for the Initial Purchasers, and the
         Company shall have furnished to such counsel all documents and
         information that they may reasonably request to enable them to pass
         upon such matters.

                  (d) Foley & Lardner shall have furnished to the Initial
         Purchasers its written opinion, as counsel to the Company and the
         Subsidiary Guarantors, addressed to the Initial Purchasers and dated as
         of the Closing Date, in form and substance reasonably satisfactory to
         the Initial Purchasers and its counsel, substantially in the form
         attached hereto as Exhibit B.

                  (e) Roch Carter, Esq., General Counsel of the Company, shall
         have furnished to the Initial Purchasers his written opinion, as
         counsel to the Company and the Subsidiary Guarantors, addressed to the
         Initial Purchasers and dated as of the Closing Date, in form and
         substance reasonably satisfactory to the Initial Purchasers and its
         counsel, substantially in the form attached hereto as Exhibit C.

                  (f) The Initial Purchasers shall have received from Weil,
         Gotshal & Manges LLP, counsel for the Initial Purchasers, such opinion
         or opinions, dated as of the Closing Date, with respect to the issuance
         and sale of the Notes and the Guarantees, the Offering Memorandum and
         other related matters as the Initial Purchasers may reasonably require,
         and the Company shall have furnished to such counsel such documents as
         they reasonably request for the purpose of enabling them to pass upon
         such matters.

                                                                              21
<PAGE>

                  (g) Each of the Company, the Subsidiary Guarantors and the
         Trustee shall have entered into the Indenture and the Initial
         Purchasers shall have received counterparts, conformed as executed,
         thereof.

                  (h) Each of the Company, the Subsidiary Guarantors and the
         Initial Purchasers shall have entered into the Registration Rights
         Agreement and the Initial Purchasers shall have received counterparts,
         conformed as executed, thereof.

                  (i) The Notes shall have been approved for trading in PORTAL
         and shall be eligible for clearance and settlement through The
         Depository Trust Company.

                  (j) At the time of execution of this Agreement, the Initial
         Purchasers shall have received from KPMG LLP, a letter, in form and
         substance satisfactory to the Initial Purchasers, addressed to the
         Initial Purchasers and dated the date hereof (i) confirming that they
         are independent public accountants within the meaning of the Securities
         Act and are in compliance with the applicable requirements relating to
         the qualification of accountants under Rule 2-01 of Regulation S-X of
         the Commission, (ii) stating, as of the date hereof (or, with respect
         to matters involving changes or developments since the respective dates
         as of which specified financial information is given in the Offering
         Memorandum, as of a date not more than five days prior to the date
         hereof), the conclusions and findings of such firm with respect to the
         financial information and other matters ordinarily covered by
         accountants' "comfort letters" to initial purchasers.

                  (k) With respect to the letter of KPMG LLP, referred to in the
         preceding paragraph and delivered to the Initial Purchasers
         concurrently with the execution of this Agreement (the "INITIAL
         LETTER"), the Initial Purchasers shall have received a letter (the
         "BRING-DOWN LETTER") of such accountants, addressed to the Initial
         Purchasers and dated as of the Closing Date (i) confirming that they
         are independent public accountants within the meaning of the Securities
         Act and are in compliance with the applicable requirements relating to
         the qualification of accountants under Rule 2-01 of Regulation S-X of
         the Commission, (ii) stating, as of the date of the bring-down letter
         (or, with respect to matters involving changes or developments since
         the respective dates as of which specified financial information is
         given in the Offering Memorandum, as of a date not more than five days
         prior to the date of the bring-down letter), the conclusions and
         findings of such firm with respect to the financial information and
         other matters covered by the initial letter and (iii) confirming in all
         material respects the conclusions and findings set forth in the initial
         letter.

                  (l) The Initial Purchasers shall have received an executed
         copy of the Credit Documents, with all schedules, exhibits and
         amendments thereto.

                  (m) The Initial Purchasers shall have received an executed
         copy of the services agreement between the Company and Virtual Care
         Provider, Inc. relating to certain services provided by us and Virtual
         Care Provider, Inc. to each other.

                  (n) The Initial Purchasers shall have received (i) a
         certificate from the Company, dated the Closing Date, signed by its
         Chairman of the Board or Chief

                                                                              22
<PAGE>

         Executive Officer and its Chief Financial Officer or Treasurer and (ii)
         a certificate from each Subsidiary Guarantor, dated as of the Closing
         Date, signed by its President, other executive officer or authorized
         signatory stating, as applicable, that:

                                    (A) The representations and warranties of
                           the Company and the Subsidiary Guarantors, as
                           applicable, are true and correct as if made on and as
                           of the Closing Date (other than to the extent any
                           such representation or warranty is made expressly to
                           a certain date), and the Company and the Subsidiary
                           Guarantors, as applicable, have performed all
                           covenants and agreements and satisfied all conditions
                           on their part to be performed or satisfied hereunder,
                           to the extent a party hereto, at or prior to the
                           Closing Date;

                                    (B) At the Closing Date, since the date
                           hereof, except as described in the Offering
                           Memorandum, no event or events have occurred, nor has
                           any information become known that, individually or in
                           the aggregate, would have a Material Adverse Effect;

                                    (C) They have carefully examined the
                           Preliminary Offering Memorandum and the Offering
                           Memorandum and, in their opinion, the Preliminary
                           Offering Memorandum and Offering Memorandum, as of
                           their respective dates, did not, and the Offering
                           Memorandum, as of the Closing Date, does not include
                           any untrue statement of a material fact and did not
                           omit to state a material fact required to be stated
                           therein or necessary to make the statements therein
                           not misleading, and since the date of the Offering
                           Memorandum, no event has occurred which should have
                           been set forth in a supplement or amendment to
                           Offering Memorandum; and

                                    (D) The issuance and sale of the Notes and
                           Guarantees by the Company and the Subsidiary
                           Guarantors hereunder has not been enjoined
                           (temporarily or permanently) by any court or
                           governmental body or agency.

                  (o)      (i) Neither the Company nor any of the Subsidiary
         Guarantors shall have sustained since the date of the latest audited
         financial statements included in the Offering Memorandum (exclusive of
         any amendment or supplement thereto after the date hereof) any loss or
         interference with its business from fire, explosion, flood or other
         calamity, whether or not covered by insurance, or from any labor
         dispute or court or governmental action, order or decree, otherwise
         than as set forth or contemplated in the Offering Memorandum or (ii)
         since such date there shall not have been any change in the capital
         stock or long-term debt of the Company or any of the Subsidiary
         Guarantors or any change, or any development involving a prospective
         change, in or affecting the general affairs, management, financial
         position, shareholders' equity or results of operations of the Company
         and the Subsidiary Guarantors taken as a whole, otherwise than as set
         forth or contemplated in the Offering Memorandum, the effect of which,
         in any such case described in clause (i) or (ii), is, in the judgment
         of Lehman Brothers, so material and

                                                                              23
<PAGE>

         adverse as to make it impracticable or inadvisable to proceed with the
         offering or the delivery of the Notes and the Guarantees being
         delivered on such Closing Date on the terms and in the manner
         contemplated in the Offering Memorandum.

                  (p) Subsequent to the execution and delivery of this Agreement
         (i) no downgrading shall have occurred in the rating accorded the
         Company's debt securities by any "nationally recognized statistical
         rating organization," as that term is defined by the Commission for
         purposes of Rule 436(g)(2) of the Securities Act and (ii) no such
         organization shall have publicly announced or privately informed the
         Company that it has under surveillance or review, with possible
         negative implications, its rating of any of the Company's debt
         securities.

                  (q) Subsequent to the execution and delivery of this Agreement
         there shall not have occurred any of the following: (i) trading in
         securities generally on the New York Stock Exchange, the Toronto Stock
         Exchange or the Nasdaq National Market shall have been suspended or the
         settlement of such trading generally shall have been materially
         disrupted or minimum prices shall have been established on any such
         exchange or such market by the Commission, by such exchange or by any
         other regulatory body or governmental authority having jurisdiction,
         (ii) a general banking moratorium shall have been declared by Federal
         or state authorities, (iii) the United States shall have become engaged
         in hostilities, there shall have been an escalation in hostilities
         involving the United States or there shall have been a declaration of a
         national emergency or war by the United States or (iv) there shall have
         occurred such a material adverse change in general economic, political
         or financial conditions (or the effect of international conditions on
         the financial markets in the United States shall be such) or there
         shall have occurred any other calamity or crisis, including without
         limitation as a result of terrorist activities after the date hereof,
         as to make it, in the judgment of Lehman Brothers, impracticable or
         inadvisable to proceed with the offering or delivery of the Notes and
         the Guarantees being delivered on such Closing Date on the terms and in
         the manner contemplated in the Offering Memorandum.

                  All opinions, letters, evidence and certificates mentioned
above or elsewhere in this Agreement shall be deemed to be in compliance with
the provisions hereof only if they are in form and substance reasonably
satisfactory to counsel for the Initial Purchasers.

                  SECTION 8. Indemnification and Contribution.

                  (a) The Company and the Subsidiary Guarantors shall jointly
         and severally indemnify and hold harmless each Initial Purchaser, its
         directors, officers and employees and each person, if any, who controls
         any Initial Purchaser within the meaning of the Securities Act, from
         and against any loss, claim, damage or liability, joint or several, or
         any action in respect thereof (including, but not limited to, any loss,
         claim, damage, liability or action relating to purchases and sales of
         the Notes and the Guarantees), to which that Initial Purchaser,
         director, officer, employee or controlling person may become subject,
         under the Securities Act or otherwise, insofar as such loss, claim,
         damage, liability or action arises out of, or is based upon, (i) any
         untrue statement or alleged untrue statement of a material fact
         contained (A) in any Preliminary Offering

                                                                              24
<PAGE>

         Memorandum, the Offering Memorandum or in any amendment or supplement
         thereto or (B) in any Blue Sky application or other document prepared
         or executed by the Company or the Subsidiary Guarantors (or based upon
         any written information furnished by the Company or the Subsidiary
         Guarantors) specifically for the purpose of qualifying any or all of
         the Notes under the securities laws of any state or other jurisdiction
         (any such application, document or information being hereinafter called
         a "BLUE SKY APPLICATION") or (C) in any materials or information
         provided to investors by, or with the approval of, the Company in
         connection with the marketing of the offering of the Notes ("MARKETING
         MATERIALS"), including any roadshow or investor presentations made to
         investors by the Company (whether in person or electronically), (ii)
         the omission or alleged omission to state in any Preliminary Offering
         Memorandum, the Offering Memorandum or in any amendment or supplement
         thereto, or in any Blue Sky Application or Marketing Materials, any
         material fact required to be stated therein or necessary to make the
         statements therein not misleading or (iii) any act or failure to act or
         any alleged act or failure to act by any Initial Purchaser in
         connection with, or relating in any manner to, the Notes and the
         Guarantees or the offering contemplated hereby, and which is included
         as part of or referred to in any loss, claim, damage, liability or
         action arising out of or based upon matters covered by clause (i) or
         (ii) above (provided that the Company and the Subsidiary Guarantors
         shall not be liable under this clause (iii) to the extent that it is
         determined in a final judgment by a court of competent jurisdiction
         that such loss, claim, damage, liability or action resulted directly
         from any such acts or failures to act undertaken or omitted to be taken
         by such Initial Purchaser through its gross negligence or willful
         misconduct), and shall reimburse each Initial Purchaser and each such
         director, officer, employee or controlling person promptly upon demand
         for any legal or other expenses reasonably incurred by that Initial
         Purchaser, director, officer, employee or controlling person in
         connection with investigating or defending or preparing to defend
         against any such loss, claim, damage, liability or action as such
         expenses are incurred; provided, however that the Company and the
         Subsidiary Guarantors will not be liable in any such case to the extent
         that any such loss, claim, damage, liability or action arises out of or
         is based upon any such untrue statement or alleged untrue statement or
         omission or alleged omission made in reliance upon and in conformity
         with written information furnished to the Company through Lehman
         Brothers by or on behalf of such Initial Purchaser expressly for
         inclusion therein. The foregoing indemnity agreement is in addition to
         any liability which the Company and the Subsidiary Guarantors may
         otherwise have to any Initial Purchaser or to any director, officer,
         employee or controlling person of that Initial Purchaser.

                  (b) Each Initial Purchaser shall, severally and not jointly,
         indemnify and hold harmless the Company, the Subsidiary Guarantors,
         their officers, each of their directors, and each person, if any, who
         controls the Company within the meaning of the Securities Act, from and
         against any loss, claim, damage or liability, joint or several, or any
         action in respect thereof, to which the Company, the Subsidiary
         Guarantors or any such director, officer or controlling person may
         become subject, under the Securities Act or otherwise, insofar as such
         loss, claim, damage, liability or action arises out of, or is based
         upon, (i) any untrue statement or alleged untrue statement of a
         material fact contained in any Preliminary Offering Memorandum, the
         Offering Memorandum or in any amendment or supplement thereto, or in
         any Blue Sky Application or (ii) the omission or alleged

                                                                              25
<PAGE>

         omission to state in any Preliminary Offering Memorandum, the Offering
         Memorandum or in any amendment or supplement thereto, or in any Blue
         Sky Application any material fact required to be stated therein or
         necessary to make the statements therein not misleading, but in each
         case only to the extent that the untrue statement or alleged untrue
         statement or omission or alleged omission was made in reliance upon and
         in conformity with written information concerning such Initial
         Purchaser furnished to the Company through Lehman Brothers by or on
         behalf of that Initial Purchaser specifically for inclusion therein,
         and shall reimburse the Company, the Subsidiary Guarantors and any such
         director, officer or controlling person promptly upon demand for any
         legal or other expenses reasonably incurred by the Company or any such
         director, officer or controlling person in connection with
         investigating or defending or preparing to defend against any such
         loss, claim, damage, liability or action as such expenses are incurred.
         The foregoing indemnity agreement is in addition to any liability which
         any Initial Purchaser may otherwise have to the Company, the Subsidiary
         Guarantors or any such director, officer, employee or controlling
         person.

                  (c) Promptly after receipt by an indemnified party under this
         Section 8 of notice of any claim or the commencement of any action, the
         indemnified party shall, if a claim in respect thereof is to be made
         against the indemnifying party under this Section 8, notify the
         indemnifying party in writing of the claim or the commencement of that
         action; provided, however, that the failure to notify the indemnifying
         party shall not relieve it from any liability which it may have under
         this Section 8 except to the extent it has been materially prejudiced
         by such failure and, provided further, that the failure to notify the
         indemnifying party shall not relieve it from any liability which it may
         have to an indemnified party otherwise than under this Section 8. If
         any such claim or action shall be brought against an indemnified party,
         and it shall notify the indemnifying party thereof, the indemnifying
         party shall be entitled to participate therein and, to the extent that
         it wishes, jointly with any other similarly notified indemnifying
         party, to assume the defense thereof with counsel reasonably
         satisfactory to the indemnified party. After notice from the
         indemnifying party to the indemnified party of its election to assume
         the defense of such claim or action, the indemnifying party shall not
         be liable to the indemnified party under this Section 8 for any legal
         or other expenses subsequently incurred by the indemnified party in
         connection with the defense thereof other than reasonable costs of
         investigation; provided, however, that Lehman Brothers shall have the
         right to employ one counsel (and one local counsel) to represent
         jointly Lehman Brothers and those other Initial Purchasers and their
         respective directors, officers, employees and controlling persons who
         may be subject to liability arising out of any claim in respect of
         which indemnity may be sought by the Initial Purchasers against the
         Company under this Section 8 if, in the reasonable judgment of Lehman
         Brothers, it is advisable for Lehman Brothers and those Initial
         Purchasers, directors, officers, employees and controlling persons to
         be jointly represented by separate counsel, and in that event the fees
         and expenses of such separate counsel shall be paid by the Company. No
         indemnifying party shall (i) without the prior written consent of the
         indemnified parties (which consent shall not be unreasonably withheld),
         settle or compromise or consent to the entry of any judgment with
         respect to any pending or threatened claim, action, suit or proceeding
         in respect of which indemnification or contribution may be sought
         hereunder (whether or not the indemnified parties are actual or
         potential parties to such claim or action) unless

                                                                              26
<PAGE>

         such settlement, compromise or consent includes an unconditional
         release of each indemnified party from all liability arising out of
         such claim, action, suit or proceeding and does not include any
         findings of fact or admissions of fault or culpability as to the
         indemnified party or (ii) be liable for any settlement of any such
         action effected without its written consent (which consent shall not be
         unreasonably withheld), but if settled with the consent of the
         indemnifying party or if there be a final judgment of the plaintiff in
         any such action, the indemnifying party agrees to indemnify and hold
         harmless any indemnified party from and against any loss or liability
         by reason of such settlement or judgment.

                  (d) If the indemnification provided for in this Section 8
         shall for any reason be unavailable to or insufficient to hold harmless
         an indemnified party under Section 8(a) or 8(b) in respect of any loss,
         claim, damage or liability, or any action in respect thereof, referred
         to therein, then each indemnifying party shall, in lieu of indemnifying
         such indemnified party, contribute to the amount paid or payable by
         such indemnified party as a result of such loss, claim, damage or
         liability, or action in respect thereof, (i) in such proportion as
         shall be appropriate to reflect the relative benefits received by the
         Company on the one hand and the Initial Purchasers on the other from
         the offering of the Notes and the Guarantees or (ii) if the allocation
         provided by clause (i) above is not permitted by applicable law, in
         such proportion as is appropriate to reflect not only the relative
         benefits referred to in clause (i) above but also the relative fault of
         the Company, on the one hand, and the Initial Purchasers, on the other,
         with respect to the statements or omissions which resulted in such
         loss, claim, damage or liability, or action in respect thereof, as well
         as any other relevant equitable considerations. The relative benefits
         received by the Company, on the one hand, and the Initial Purchasers,
         on the other, with respect to such offering shall be deemed to be in
         the same proportion as the total net proceeds from the offering of the
         Notes and the Guarantees purchased under this Agreement (before
         deducting expenses) received by the Company, on the one hand, and the
         total discounts and commissions received by the Initial Purchasers with
         respect to the Notes and the Guarantees purchased under this Agreement,
         on the other hand, bear to the total gross proceeds from the offering
         of the Notes and the Guarantees under this Agreement. The 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 the Company or
         the Initial Purchasers, the intent of the parties and their relative
         knowledge, access to information and opportunity to correct or prevent
         such statement or omission. The Company, the Subsidiary Guarantors and
         the Initial Purchasers agree that it would not be just and equitable if
         contributions pursuant to this Section 8 were to be determined by pro
         rata allocation (even if the Initial Purchasers were treated as one
         entity for such purpose) 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, damage or liability, or action in respect thereof,
         referred to above in this Section 8 shall be deemed to include, for
         purposes of this Section 8(d), any legal or other expenses reasonably
         incurred by such indemnified party in connection with investigating or
         defending or preparing to defend any such action or claim.
         Notwithstanding the provisions of this Section 8(d), no Initial
         Purchaser shall be required to contribute any amount in excess of the
         amount by which the total price at which the Notes purchased by it was
         resold to Eligible Purchasers

                                                                              27
<PAGE>

         exceeds the amount of any damages which such Initial Purchaser has
         otherwise paid or become liable to pay by reason of any untrue or
         alleged untrue statement or omission or alleged omission. No person
         guilty of fraudulent misrepresentation (within the meaning of Section
         11(f) of the Securities Act) shall be entitled to contribution from any
         person who was not guilty of such fraudulent misrepresentation. The
         Initial Purchasers' obligations to contribute as provided in this
         Section 8(d) are several in proportion to their respective Purchase
         obligations and not joint.

                  (e) The Initial Purchasers severally confirm and the Company
         and the Subsidiary Guarantors acknowledge that the last sentence on the
         cover page of the Offering Memorandum, and the first sentence of the
         fifth, sixth, seventh and ninth paragraphs, the second sentence of the
         seventh paragraph, the sixth sentence of the tenth paragraph and the
         eleventh paragraph under the section entitled "Plan of Distribution" in
         the Offering Memorandum constitute the only information concerning the
         Initial Purchasers furnished in writing to the Company by or on behalf
         of the Initial Purchasers specifically for inclusion in the Offering
         Memorandum.

                  SECTION 9. Defaulting Initial Purchasers.

                  If, on the Closing Date, any Initial Purchaser defaults in the
performance of its obligations under this Agreement, the remaining
non-defaulting Initial Purchasers shall be obligated to purchase the Notes that
the defaulting Initial Purchaser agreed but failed to purchase on such Closing
Date in the respective proportions which the amount of the Notes set forth
opposite the name of each remaining non-defaulting Initial Purchaser in Schedule
1 hereto bears to the total amount of Notes set forth opposite the names of all
the remaining non-defaulting Initial Purchasers in Schedule 1 hereto; provided,
however, that the remaining non-defaulting Initial Purchasers shall not be
obligated to purchase any of the Notes on such Closing Date if the total amount
of the Notes which the defaulting Initial Purchaser or Initial Purchasers agreed
but failed to purchase on such date exceeds 10% of the total amount of Notes to
be purchased on such Closing Date, and any remaining non-defaulting Initial
Purchaser shall not be obligated to purchase more than 110% of the amount of
Notes which it agreed to purchase on such Closing Date pursuant to the terms of
Section 2. If the foregoing maximums are exceeded, the remaining non-defaulting
Initial Purchasers, or those other Initial Purchasers satisfactory to Lehman
Brothers who so agree, shall have the right, but shall not be obligated, to
purchase, in such proportion as may be agreed upon among them, all of the Notes
to be purchased on such Closing Date. If the remaining Initial Purchasers or
other Initial Purchasers satisfactory to Lehman Brothers do not elect to
purchase the Notes which the defaulting Initial Purchaser or Initial Purchasers
agreed but failed to purchase on such Closing Date, this Agreement shall
terminate without liability on the part of any non-defaulting Initial Purchaser
or the Company, except that the Company will continue to be liable for the
payment of expenses to the extent set forth in Sections 6 and 11. As used in
this Agreement, the term "INITIAL PURCHASER" includes, for all purposes of this
Agreement unless the context requires otherwise, any party not listed in
Schedule 1 hereto who, pursuant to this Section 9, purchases the Notes which a
defaulting Initial Purchaser agreed but failed to purchase.

                  Nothing contained herein shall relieve a defaulting Initial
Purchaser of any liability it may have to the Company and the Subsidiary
Guarantors for damages caused by its

                                                                              28
<PAGE>

default. If other Initial Purchasers are obligated or agree to purchase the
Notes of a defaulting or withdrawing Initial Purchaser, either the Lehman
Brothers or the Company may postpone the Closing Date for up to seven full
business days in order to effect any changes that in the opinion of counsel for
the Company or counsel for the Initial Purchasers may be necessary in the
Offering Memorandum or in any other document or arrangement.

                  SECTION 10. Termination. The obligations of the Initial
Purchasers hereunder may be terminated by Lehman Brothers by notice given to and
received by the Company prior to delivery of and payment for the Notes if, prior
to that time, any of the events described in Sections 7(o), 7(p) and 7(q) shall
have occurred or if the Initial Purchasers shall decline to purchase the Notes
for any reason permitted under this Agreement.

                  SECTION 11. Reimbursement of Initial Purchasers' Expenses. If
the Company and the Subsidiary Guarantors shall fail to deliver the Notes and
the Guarantees to the Initial Purchasers by reason of any failure, refusal or
inability on the part of the Company and the Subsidiary Guarantors to perform
any agreement on its part to be performed, or because any other condition of the
Initial Purchasers' obligations hereunder required to be fulfilled by the
Company and the Subsidiary Guarantors is not fulfilled, the Company and the
Subsidiary Guarantors will reimburse the Initial Purchasers for all reasonable
out-of-pocket expenses (including reasonable fees and disbursements of counsel)
incurred by the Initial Purchasers in connection with this Agreement and the
proposed purchase of the Notes and the Guarantees, and upon demand the Company
and the Subsidiary Guarantors shall pay the full amount thereof to Lehman
Brothers.

                  SECTION 12. Notices, etc. All statements, requests, notices
and agreements hereunder shall be in writing, and:

                  (a) if to the Initial Purchasers, shall be delivered or sent
         by mail, telex or facsimile transmission to the care of Lehman Brothers
         Inc., 745 Seventh Avenue, 19th Floor, Attention: Michael Konigsburg
         (Fax: (646) 758-4247), with a copy to Weil, Gotshal & Manges LLP, 767
         Fifth Avenue, New York, New York 10153, Attention: Rod Miller, Esq.
         (Fax: 212-310-8007) and, in the case of any notice pursuant to Section
         8(d), to the Director of Litigation, Office of the General Counsel,
         Lehman Brothers Inc., 399 Park Avenue, New York, New York (Fax: (212)
         526-2648);

                  (b) if to the Company and the Subsidiary Guarantors, shall be
         delivered or sent by mail, telex or facsimile transmission to the
         Company, 111 West Michigan Street, Milwaukee, Wisconsin 53203-290,
         Attention: Melvin A. Rhinelander, (Fax: (414) 908-8111), with a copy to
         Foley & Lardner, 777 East Wisconsin Avenue, Milwaukee, Wisconsin
         53202-5367, Attention: Russell E. Ryba, Esq. (Fax: (414) 297-4900);

provided, however, that any notice to an Initial Purchaser pursuant to Section
8(d) shall be delivered or sent by mail, telex or facsimile transmission to such
Initial Purchaser at its address set forth in its acceptance telex to Lehman
Brothers, which address will be supplied to any other party hereto by Lehman
Brothers upon request. Any such statements, requests, notices or agreements
shall take effect at the time of receipt thereof. The Company shall be entitled
to act

                                                                              29
<PAGE>

and rely upon any request, consent, notice or agreement given or made on behalf
of the Initial Purchasers by Lehman Brothers.

                  SECTION 13. Persons Entitled to Benefit of Agreement. This
Agreement shall inure to the benefit of and be binding upon the Initial
Purchasers, the Company, the Subsidiary Guarantors and their respective personal
representatives and successors. This Agreement and the terms and provisions
hereof are for the sole benefit of only those persons, except that (a) the
representations, warranties, indemnities and agreements of the Company and the
Subsidiary Guarantors contained in this Agreement shall also be deemed to be for
the benefit of the directors, officers, employees of the Initial Purchasers and
each person or persons, if any, who control any Initial Purchasers within the
meaning of Section 15 of the Securities Act and (b) the indemnity agreement of
the Initial Purchasers contained in Section 8(b) of this Agreement shall be
deemed to be for the benefit of directors, officers and any person controlling
the Company and the Subsidiary Guarantors within the meaning of Section 15 of
the Securities Act. Nothing in this Agreement is intended or shall be construed
to give any person, other than the persons referred to in this Section 13, any
legal or equitable right, remedy or claim under or in respect of this Agreement
or any provision contained herein.

                  SECTION 14. Survival. The respective indemnities,
representations, warranties and agreements of the Company, the Subsidiary
Guarantors and the Initial Purchasers contained in this Agreement or made by or
on behalf on them, respectively, pursuant to this Agreement, shall survive the
delivery of and payment for the Notes and the Guarantees and shall remain in
full force and effect, regardless of any investigation made by or on behalf of
any of them or any person controlling any of them.

                  SECTION 15. Definition of the Term "Business Day." For
purposes of this Agreement, "BUSINESS DAY" means each Monday, Tuesday,
Wednesday, Thursday or Friday which is not a day on which banking institutions
in New York are generally authorized or obligated by law or executive order to
close.

                  SECTION 16. Jurisdiction. Each of the parties hereto
irrevocably consents to the jurisdiction of the courts of the State of New York
and the courts of the United States of America located in the Borough of
Manhattan, City and State of New York, over any suit, action or proceeding with
respect to this Agreement or the transactions contemplated hereby. Each of the
parties hereto waives any objection that it may have to the venue of any suit,
action or proceeding with respect to this Agreement or the transactions
contemplated hereby in the courts of the State of New York or the courts of the
United States of America, in each case, located in the Borough of Manhattan,
City and State of New York or that such suit, action or proceeding brought in
the courts of the State of New York or United States of America, in each case,
located in the Borough of Manhattan, City and State of New York was brought in
an inconvenient court and agrees not to plead or claim the same.

                  SECTION 17. Governing Law. This Agreement shall be governed by
and construed in accordance with the internal laws of the State of New York.

                                                                              30
<PAGE>

                  SECTION 18. Counterparts. This Agreement may be executed in
multiple counterparts and, if executed in counterparts, the executed
counterparts shall each be deemed to be an original but all such counterparts
shall together constitute one and the same instrument.

                  SECTION 19. Headings. The headings herein are inserted for
convenience of reference only and are not intended to be part of, or to affect
the meaning or interpretation of, this Agreement.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                                                              31
<PAGE>

                  If the foregoing correctly sets forth the agreement among the
Company, the Subsidiary Guarantors and the Initial Purchasers, please indicate
your acceptance in the space provided for that purpose below.

                                    Very truly yours,

                                    EXTENDICARE HEALTH SERVICES, INC.

                                    By: /s/ Mark W. Durishan
                                       -----------------------------------------
                                    Name: Mark W. Durishan
                                    Title: Vice President - Finance

                                    EXTENDICARE HEALTH FACILITY HOLDINGS, INC.
                                    EXTENDICARE HEALTH FACILITIES, INC.
                                    COVENTRY CARE, INC.
                                    NORTHERN HEALTH FACILITIES, INC.
                                    EXTENDICARE HOMES, INC.
                                    EXTENDICARE HEALTH NETWORK, INC.
                                    THE PROGRESSIVE STEP CORPORATION
                                    EXTENDICARE OF INDIANA, INC.
                                    EDGEWOOD NURSING CENTER, INC.
                                    ELDER CREST, INC.
                                    HAVEN CREST, INC.
                                    MEADOW CREST, INC.
                                    OAK HILL HOME OF REST AND CARE, INC.
                                    EXTENDICARE GREAT TRAIL, INC.
                                    FIR LANE TERRACE CONVALESCENT CENTER, INC.
                                    ADULT SERVICES UNLIMITED, INC.
                                    ARBORS EAST, INC.
                                    ARBORS AT TOLEDO, INC.
                                    HEALTH POCONOS, INC.
                                    MARSHALL PROPERTIES, INC.
                                    COVENTRY CARE HOLDINGS, INC.
                                    UNITED PROFESSIONAL SERVICES, INC.

                                    By: /s/ Mark W. Durishan
                                       -----------------------------------------
                                    Name:  Mark W. Durishan
                                    Title: Vice President - Finance

                                            SIGNATURE PAGE TO PURCHASE AGREEMENT
<PAGE>

                                    INDIANA HEALTH AND REHABILITATION
                                        PARTNERSHIP

                                    BY: EXTENDICARE HOMES, INC., AS GENERAL
                                        PARTNER

                                    By: /s/ Mark W. Durishan
                                       -----------------------------------------
                                    Name:  Mark W. Durishan
                                    Title: Vice President - Finance

                                    BY: EXTENDICARE OF INDIANA, INC., AS
                                        GENERAL PARTNER

                                    By: /s/ Mark W. Durishan
                                       -----------------------------------------
                                    Name:  Mark W. Durishan
                                    Title: Vice President - Finance

                                    CONCORDIA MANOR, LLC
                                    FIRST COAST HEALTH AND REHABILITATION
                                        CENTER, LLC
                                    JACKSON HEIGHTS REHABILITATION CENTER, LLC
                                    TREASURE ISLE CARE CENTER, LLC

                                    BY: EXTENDICARE HOMES, INC., AS SOLE MEMBER

                                    By: /s/ Mark W. Durishan
                                       -----------------------------------------
                                    Name:  Mark W. Durishan
                                    Title: Vice President - Finance

                                    KAUFMAN STREET, WV, LLC
                                    NEW CASTLE CARE, LLC

                                    BY: FIR LANE TERRACE CONVALESCENT CENTER,
                                        INC., AS SOLE MEMBER

                                    By: /s/ Mark W. Durishan
                                       -----------------------------------------
                                    Name:  Mark W. Durishan
                                    Title: Vice President - Finance

                                            SIGNATURE PAGE TO PURCHASE AGREEMENT
<PAGE>

                                    ALPINE HEALTH AND REHABILITATION CENTER, LLC
                                    COLONIAL CARE, LLC
                                    GREENBRIAR CARE, LLC
                                    GREENBROOK CARE, LLC
                                    HERITAGE CARE, LLC
                                    LADY LAKE CARE, LLC
                                    NEW HORIZON CARE, LLC
                                    NORTH REHABILITATION CARE, LLC
                                    PALM COURT CARE, LLC
                                    RICHEY MANOR, LLC
                                    ROCKLEDGE CARE, LLC
                                    SOUTH HERITAGE HEALTH AND REHABILITATION
                                        CENTER, LLC
                                    THE OAKS RESIDENTIAL AND REHABILITATION
                                        CENTER, LLC
                                    WINTER HAVEN HEALTH AND REHABILITATION
                                        CENTER, LLC

                                    BY: EXTENDICARE HEALTH FACILITIES, INC., AS
                                        SOLE MEMBER

                                    By: /s/ Mark W. Durishan
                                       -----------------------------------------
                                    Name:  Mark W. Durishan
                                    Title: Vice President - Finance

                                    ARBORS AT TAMPA, LLC ARBORS
                                    AT BAYONET POINT, LLC
                                    ARBORS AT FAIRLAWN CARE, LLC
                                    ARBORS AT FAIRLAWN REALTY OH, LLC
                                    ARBORS AT SYLVANIA CARE, LLC
                                    ARBORS AT SYLVANIA REALTY OH, LLC
                                    ARBORS WEST CARE, LLC
                                    ARBORS WEST REALTY OH, LLC
                                    COLUMBUS REHABILITATION REALTY OH, LLC
                                    JACKSONVILLE CARE, LLC
                                    SAFETY HARBOR CARE, LLC
                                    KISSIMMEE CARE, LLC
                                    ORANGE PARK CARE, LLC
                                    OREGON CARE, LLC
                                    PORT CHARLOTTE CARE, LLC
                                    SARASOTA CARE, LLC
                                    SEMINOLE CARE, LLC
                                    WINTER HAVEN CARE, LLC

                                            SIGNATURE PAGE TO PURCHASE AGREEMENT
<PAGE>

                                    BLANCHESTER CARE, LLC
                                    CANTON CARE, LLC
                                    COLUMBUS REHABILITATION CARE, LLC
                                    DAYTON CARE, LLC
                                    DELAWARE CARE, LLC
                                    GALLIPOLIS CARE, LLC
                                    HILLIARD CARE, LLC
                                    LONDON CARE, LLC
                                    MARIETTA CARE, LLC
                                    ROCKMILL CARE, LLC
                                    ROCKSPRINGS CARE, LLC
                                    WATERVILLE CARE, LLC
                                    WOODSFIELD CARE, LLC

                                    BY: NORTHERN HEALTH FACILITIES, INC., AS
                                        SOLE MEMBER

                                    By: /s/ Mark W. Durishan
                                       -----------------------------------------
                                    Name:  Mark W. Durishan
                                    Title: Vice President - Finance

                                    STONEBRIDGE CARE, LP
                                    EDGEWOOD CARE, LP
                                    ELDERCREST CARE, LP
                                    HAVEN CARE, LP
                                    MEADOW CARE, LP
                                    OAK HILL CARE, LP

                                    BY: COVENTRY CARE HOLDINGS, INC., AS GENERAL
                                        PARTNER

                                    By: /s/ Mark W. Durishan
                                       -----------------------------------------
                                    Name:  Mark W. Durishan
                                    Title: Vice President - Finance

                                            SIGNATURE PAGE TO PURCHASE AGREEMENT
<PAGE>

                                    GREAT TRAIL CARE, LLC

                                    BY: EXTENDICARE GREAT TRAIL, INC., AS SOLE
                                        MEMBER

                                    By: /s/ Richard Bertrand
                                       -----------------------------------------
                                    Name:  Richard Bertrand
                                    Title: Senior Vice President - Development

                                    FISCAL SERVICES GROUP, LLC
                                    PARTNERS HEALTH GROUP, LLC

                                    BY: EXTENDICARE HEALTH NETWORK, INC., AS
                                        SOLE MEMBER

                                    By: /s/ Richard Bertrand
                                       -----------------------------------------
                                    Name:  Richard Bertrand
                                    Title: Senior Vice President - Development

                                    MILFORD CARE, LLC

                                    BY: MARSHALL PROPERTIES, INC., AS SOLE
                                        MEMBER

                                    By: /s/ Richard Bertrand
                                       -----------------------------------------
                                    Name:  Richard Bertrand
                                    Title: Senior Vice President - Development

                                            SIGNATURE PAGE TO PURCHASE AGREEMENT
<PAGE>

                                    PARTNERS HEALTH GROUP - FLORIDA, LLC
                                    PARTNERS HEALTH GROUP - LOUISIANA, LLC
                                    PARTNERS HEALTH GROUP - TEXAS, LLC

                                    BY: PARTNERS HEALTH GROUP, LLC

                                    BY: EXTENDICARE HEALTH NETWORK, INC., AS
                                        SOLE MEMBER

                                    By: /s/ Richard Bertrand
                                       -----------------------------------------
                                    Name:  Richard Bertrand
                                    Title: Senior Vice President - Development

                                            SIGNATURE PAGE TO PURCHASE AGREEMENT
<PAGE>

Accepted:

LEHMAN BROTHERS INC.

By: /s/ Mike Konigsberg
   ----------------------------------
     Authorized Representative

For itself and as representative
of the several Initial Purchasers named
in Schedule 1 hereto

                                            SIGNATURE PAGE TO PURCHASE AGREEMENT<PAGE>
                                                               EXECUTION VERSION

                                                                     EXHIBIT 4.3

================================================================================

                       EXTENDICARE HEALTH SERVICES, INC.,
                                    as Issuer

                          9 1/2% SENIOR NOTES DUE 2010

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

                                    INDENTURE

                            Dated as of June 28, 2002

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

                                U.S. BANK, N.A.,
                                   as Trustee

================================================================================

<PAGE>
                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                     PAGE

<S>                   <C>                                                                            <C>
ARTICLE 1.            DEFINITIONS AND INCORPORATION BY REFERENCE........................................1

         Section 1.01.     Definitions..................................................................1

         Section 1.02.     Other Definitions...........................................................17

         Section 1.03.     Incorporation by Reference of Trust Indenture Act...........................17

         Section 1.04.     Rules of Construction.......................................................18

ARTICLE 2.            THE NOTES........................................................................18

         Section 2.01.     Form and Dating.............................................................18

         Section 2.02.     Execution and Authentication................................................19

         Section 2.03.     Registrar and Paying Agent..................................................19

         Section 2.04.     Paying Agent to Hold Money in Trust.........................................20

         Section 2.05.     Holder Lists................................................................20

         Section 2.06.     Transfer and Exchange.......................................................20

         Section 2.07.     Replacement Notes...........................................................30

         Section 2.08.     Outstanding Notes...........................................................30

         Section 2.09.     Treasury Notes..............................................................30

         Section 2.10.     Temporary Notes.............................................................31

         Section 2.11.     Cancellation................................................................31

         Section 2.12.     Defaulted Interest..........................................................31

         Section 2.13.     CUSIP or ISIN Numbers.......................................................31

         Section 2.14.     Additional Interest.........................................................31

ARTICLE 3.            REDEMPTION AND PREPAYMENT........................................................32

         Section 3.01.     Notices to Trustee..........................................................32

         Section 3.02.     Selection of Notes to Be Redeemed...........................................32

         Section 3.03.     Notice of Redemption........................................................32

         Section 3.04.     Effect of Notice of Redemption..............................................33

         Section 3.05.     Deposit of Redemption Price.................................................33

         Section 3.06.     Notes Redeemed in Part......................................................33

         Section 3.07.     Optional Redemption.........................................................33

         Section 3.08.     Mandatory Redemption........................................................34

         Section 3.09.     Offer To Purchase by Application of Excess Proceeds.........................34

ARTICLE 4.            COVENANTS........................................................................35

         Section 4.01.     Payment of Notes............................................................35

         Section 4.02.     Maintenance of Office or Agency.............................................36

         Section 4.03.     Reports.....................................................................36

         Section 4.04.     Compliance Certificate......................................................37

         Section 4.05.     Taxes.......................................................................37
</TABLE>

                                       i
<PAGE>
                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                     PAGE

<S>                   <C>                                                                            <C>
         Section 4.06.     Stay, Extension and Usury Laws..............................................37

         Section 4.07.     Corporate Existence.........................................................38

         Section 4.08.     Payments for Consent........................................................38

         Section 4.09.     Incurrence of Indebtedness and Issuance of Preferred Stock..................38

         Section 4.10.     Restricted Payments.........................................................40

         Section 4.11.     Liens.......................................................................42

         Section 4.12.     Asset Sales.................................................................42

         Section 4.13.     Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries...43

         Section 4.14.     Transactions with Affiliates................................................44

         Section 4.15.     Sale and Leaseback Transactions.............................................45

         Section 4.16.     Issuances and Sales of Capital Stock of Restricted Subsidiaries.............46

         Section 4.17.     Designation of Restricted and Unrestricted Subsidiaries.....................46

         Section 4.18.     Repurchase at the Option of Holders Upon a Change of Control................46

         Section 4.19.     Additional Subsidiary Guarantees............................................48

         Section 4.20.     Designation as "Designated Senior Indebtedness".............................48

         Section 4.21.     Business Activities.........................................................48

ARTICLE 5.            SUCCESSORS.......................................................................48

         Section 5.01.     Merger, Consolidation, or Sale of Property..................................48

         Section 5.02.     Successor Corporation Substituted...........................................49

ARTICLE 6.            DEFAULTS AND REMEDIES............................................................49

         Section 6.01.     Events of Default...........................................................49

         Section 6.02.     Acceleration................................................................50

         Section 6.03.     Other Remedies..............................................................51

         Section 6.04.     Waiver of Past Defaults.....................................................51

         Section 6.05.     Control by Majority.........................................................51

         Section 6.06.     Limitation on Suits.........................................................52

         Section 6.07.     Rights of Holders to Receive Payment........................................52

         Section 6.08.     Collection Suit by Trustee..................................................52

         Section 6.09.     Trustee May File Proofs of Claim............................................52

         Section 6.10.     Priorities..................................................................53

         Section 6.11.     Undertaking for Costs.......................................................53

ARTICLE 7.            TRUSTEE..........................................................................53

         Section 7.01.     Duties of Trustee...........................................................53

         Section 7.02.     Rights of Trustee...........................................................54

         Section 7.03.     Individual Rights of Trustee................................................55
</TABLE>

                                       ii
<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                     PAGE

<S>                   <C>                                                                            <C>
         Section 7.04.     Trustee's Disclaimer........................................................55

         Section 7.05.     Notice of Defaults..........................................................55

         Section 7.06.     Reports by Trustee to Holders...............................................55

         Section 7.07.     Compensation and Indemnity..................................................56

         Section 7.08.     Replacement of Trustee......................................................56

         Section 7.09.     Successor Trustee by Merger, etc............................................57

         Section 7.10.     Eligibility; Disqualification...............................................57

         Section 7.11.     Preferential Collection of Claims Against Company...........................57

ARTICLE 8.            LEGAL DEFEASANCE AND COVENANT DEFEASANCE.........................................57

         Section 8.01.     Option to Effect Legal Defeasance or Covenant Defeasance....................57

         Section 8.02.     Legal Defeasance and Discharge..............................................58

         Section 8.03.     Covenant Defeasance.........................................................58

         Section 8.04.     Conditions to Legal or Covenant Defeasance..................................58

         Section 8.05.     Deposited Money and Government Securities to be Held in Trust;
                           Other Miscellaneous Provisions..............................................59

         Section 8.06.     Repayment to Company........................................................60

         Section 8.07.     Reinstatement...............................................................60

ARTICLE 9.            AMENDMENT, SUPPLEMENT AND WAIVER.................................................60

         Section 9.01.     Without Consent of Holders of Notes.........................................60

         Section 9.02.     With Consent of Holders of Notes............................................61

         Section 9.03.     Compliance with Trust Indenture Act.........................................62

         Section 9.04.     Revocation and Effect of Consents...........................................62

         Section 9.05.     Notation on or Exchange of Notes............................................62

         Section 9.06.     Trustee to Sign Amendments, etc.............................................62

ARTICLE 10.           SUBSIDIARY GUARANTEES............................................................63

         Section 10.01.    Guarantee...................................................................63

         Section 10.02.    Limitation on Subsidiary Guarantor Liability................................64

         Section 10.03.    Execution and Delivery of Subsidiary Guarantee..............................64

         Section 10.04.    Subsidiary Guarantors May Consolidate, etc., on Certain Terms...............65

         Section 10.05.    Releases Following Sale of Assets...........................................65

ARTICLE 11.           SATISFACTION AND DISCHARGE.......................................................66

         Section 11.01.    Satisfaction and Discharge..................................................66

         Section 11.02.    Deposited Money and Government Securities to be Held in Trust;
                           Other Miscellaneous Provisions..............................................66

         Section 11.03.    Repayment to Company........................................................66

ARTICLE 12.           MISCELLANEOUS....................................................................67

         Section 12.01.    Trust Indenture Act Controls................................................67
</TABLE>

                                      iii
<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                     PAGE

<S>                   <C>                                                                            <C>
         Section 12.02.    Notices.....................................................................67

         Section 12.03.    Communication by Holders of Notes with Other Holders of Notes...............68

         Section 12.04.    Certificate and Opinion as to Conditions Precedent..........................68

         Section 12.05.    Statements Required in Certificate or Opinion...............................68

         Section 12.06.    Rules by Trustee and Agents.................................................68

         Section 12.07.    No Personal Liability of Directors, Officers, Employees and Stockholders....69

         Section 12.08.    Governing Law...............................................................69

         Section 12.09.    No Adverse Interpretation of Other Agreements...............................69

         Section 12.10.    Successors..................................................................69

         Section 12.11.    Severability................................................................69

         Section 12.12.    Counterpart Originals.......................................................69

         Section 12.13.    Table of Contents, Headings, etc............................................69

</TABLE>

                                       iv
<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                     PAGE

<S>               <C>                                                                                <C>
EXHIBITS

                  Exhibit A         FORM OF NOTE......................................................A-1
                  Exhibit B         FORM OF CERTIFICATE OF TRANSFER...................................B-1
                  Exhibit C         FORM OF CERTIFICATE OF EXCHANGE...................................C-1
                  Exhibit D         FORM OF CERTIFICATE FROM ACQUIRING
                                    INSTITUTIONAL ACCREDITED INVESTOR.................................D-1
                  Exhibit E         FORM OF NOTATION OF GUARANTEE.....................................E-1
</TABLE>

                                       v

<PAGE>
                                                               EXECUTION VERSION

                  This INDENTURE dated as of June 28, 2002, is by and among
Extendicare Health Services, Inc., a Delaware corporation (the "Company"), the
Subsidiary Guarantors listed on the signature pages hereto, and U.S. Bank, N.A.,
as trustee (the "Trustee").

                  The Company, the Subsidiary Guarantors and the Trustee agree
as follows for the benefit of each other and for the equal and ratable benefit
of the Holders of the 9 1/2% Senior Notes due 2010 (the "Notes"):

                                   ARTICLE 1.

                   DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01.     DEFINITIONS.
                  -----------

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

                  "144A Global Note" means the global note in the form of
Exhibit A hereto bearing the Global Note Legend and the Private Placement Legend
and deposited with and registered in the name of the Depositary or its nominee
that will be issued in a denomination equal to the outstanding principal amount
of the Notes sold in reliance on Rule 144A.

                  "Acquired Debt" means, with respect to any specified Person:

                  (1) Indebtedness of any other Person existing at the time such
other Person is merged with or into or became a Subsidiary of such specified
Person, whether or not such Indebtedness is incurred in connection with, or in
contemplation of, such other Person merging with or into, or becoming a
Subsidiary of, such specified Person; and

                  (2) Indebtedness secured by a Lien encumbering any asset
acquired by such specified Person.

                  "Additional Interest" shall have the meaning set forth in the
Registration Rights Agreement.

                  "Additional Notes" means any Notes (other than Initial Notes
and Exchange Notes) issued under this Indenture in accordance with Sections 2.02
and 4.09 hereof, as part of the same series as the Initial Notes.

                  "Affiliate" of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition,
"control," as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting securities, by
agreement or otherwise; provided that beneficial ownership of 10% or more of the
Voting Stock of a Person will be deemed to be control. For purposes of this
definition, the terms "controlling," "controlled by" and "under common control
with" have correlative meanings.

                  "Agent" means any Registrar, co-registrar, Paying Agent or
additional paying agent.

                  "Applicable Procedures" means, with respect to any transfer,
redemption or exchange of or for beneficial interests in any Global Note, the
rules and procedures of the Depositary, Euroclear and Clearstream that apply to
such transfer, redemption or exchange.

                  "Asset Sale" means the sale, lease, conveyance or other
disposition of any assets or rights (including, without limitation, (x) a sale
and leaseback, (y) the issuance, sale or other transfer of any Equity Interests
in any of our Unrestricted Subsidiaries, and (z) the receipt of proceeds of
insurance paid on account of the loss of or damage to any asset and awards of
compensation for any asset taken by condemnation, eminent domain or similar
proceeding, and including the receipt of proceeds of business interruption
insurance) in each case, in one or a series of related transactions that have a
fair market value in excess of $1.0 million or for Net Proceeds in excess of
$1.0

<PAGE>

million; provided that the sale, conveyance or other disposition of all or
substantially all of the assets of the Company and its Restricted Subsidiaries
taken as a whole will be governed by Section 4.18 and/or Section 5.01 and not by
Section 4.12.

                  Notwithstanding the preceding, the following items will not be
deemed to be Asset Sales:

                  (1)     the sale, lease or other disposition of equipment,
inventory, accounts receivable or other assets or rights in the ordinary course
of business;

                  (2)     a transfer of assets or rights by the Company to a
Subsidiary Guarantor, or by a Subsidiary Guarantor to the Company or to another
Subsidiary Guarantor;

                  (3)     an issuance of Equity Interests by a Subsidiary
Guarantor to the Company or to another Subsidiary Guarantor;

                  (4)     a Restricted Payment or Permitted Investment that is
permitted by Section 4.10;

                  (5)     the sale of property or equipment that has become worn
out, obsolete or damaged;

                  (6)     the sale or other disposition of Cash Equivalents;

                  (7)     the sale of accounts receivable pursuant to a
Securitization Transaction; or

                  (8)     the designation of any Restricted Subsidiary as an
Unrestricted Subsidiary or the contribution to the capital of any Unrestricted
Subsidiary in accordance with the provisions described under Section 4.17.

                  "Attributable Debt" in respect of a sale and leaseback
transaction means, at the time of determination, the greater of (a) the fair
value of the property subject to such arrangement (as determined in good faith
by the Board of Directors of the Company) or (b) the present value (discounted
at the interest rate borne by the Notes, compounded annually) of the total
obligations of the lessee for rental payments during the remaining term of the
lease included in such sale and leaseback transaction, including any period for
which such lease has been extended or may, at the option of the lessor, be
extended.

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

                  "Board of Directors" means:

                  (1) with respect to a corporation, the board of directors of
the corporation;

                  (2) with respect to a partnership, the board of directors of
the general partner of the partnership; and

                  (3) with respect to any other Person, the board or committee
of such Person serving a similar function.

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

                  "Business Day" means any day other than a Legal Holiday.

                                        2
<PAGE>

                  "Capital Lease Obligation" means, at the time any
determination is to be made, the amount of the liability in respect of a capital
lease that would at that time be required to be capitalized on a balance sheet
in accordance with GAAP.

                  "Capital Stock" means:

                  (1) in the case of a corporation, any and all shares,
including common stock and preferred stock;

                  (2) in the case of an association or business entity, any and
all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock;

                  (3) in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited); and

                  (4) any other interest or participation that confers on a
Person the right to receive a share of the profits and losses of, or
distributions of assets of, the issuing Person.

                  "Cash Equivalents" means:

                  (1) United States dollars;

                  (2) securities issued or directly and fully guaranteed or
insured by the United States government or any agency or instrumentality of the
United States government (provided that the full faith and credit of the United
States is pledged in support of those securities) having maturities of not more
than six months from the date of acquisition;

                  (3) certificates of deposit and eurodollar time deposits with
maturities of six months or less from the date of acquisition, bankers'
acceptances with maturities not exceeding six months and overnight bank
deposits, in each case, with any lender party to the Credit Agreement or with
any domestic commercial bank having capital and surplus in excess of $500.0
million and a Thomson Bank Watch Rating of "B" or better;

                  (4) repurchase obligations with a term of not more than seven
days for underlying securities of the types described in clauses (2) and (3)
above entered into with any financial institution meeting the qualifications
specified in clause (3) above;

                  (5) commercial paper having the highest rating obtainable from
Moody's Investors Service, Inc. or Standard & Poor's Rating Services and in each
case maturing within six months after the date of acquisition; and

                  (6) money market funds at least 95% of the assets of which
constitute Cash Equivalents of the kinds described in clauses (1) through (5) of
this definition.

                  "Change of Control" means the occurrence of any of the
following:

                  (1) any sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) of all or substantially all of
the assets of the Company to any Person or group of related Persons for purposes
of Section 13(d) of the Exchange Act (a "Group"), together with any Affiliates
thereof (whether or not otherwise in compliance with the provisions of this
Indenture);

                  (2) the approval by the holders of Capital Stock of the
Company of any plan or proposal for the liquidation or dissolution of the
Company (whether or not otherwise in compliance with the provisions of this
Indenture);

                                       3
<PAGE>

                  (3) any Person or Group (other than Parent or any direct or
indirect wholly owned Subsidiary of Parent) becomes the owner, directly or
indirectly, beneficially or of record, of shares representing more than 35% of
the aggregate ordinary voting power represented by the issued and outstanding
Capital Stock of the Company on a fully-diluted basis;

                  (4) the replacement of a majority of the Board of Directors of
Parent or the Company over a two-year period from the directors who constituted
the Board of Directors of Parent or the Company, as applicable, at the beginning
of such period, and such replacement shall not have been approved by a vote of
at least a majority of the Board of Directors of Parent or the Company, as
applicable, then still in office who either were members of such Board of
Directors at the beginning of such period or whose election as a member of such
Board of Directors was previously so approved; or

                  (5) the Company consolidates with, or merges with or into, any
Person, or any Person consolidates with, or merges with or into, the Company, in
any such event pursuant to a transaction in which any of the Company's
outstanding Voting Stock or the outstanding Voting Stock of such other Person is
converted into or exchanged for cash, securities or other property, other than
any such transaction where the Company's Voting Stock outstanding immediately
prior to such transaction is converted into or exchanged for Voting Stock (other
than Disqualified Stock) of the surviving or transferee Person constituting a
majority of the outstanding shares of such Voting Stock of such surviving or
transferee Person (immediately after giving effect to such issuance).

                  "Clearstream" means Clearstream Banking S.A. and any successor
thereto.

                  "Code" means the Internal Revenue Code of 1986, as amended.

                  "Consolidated Cash Flow" means, with respect to any specified
Person for any period, the Consolidated Net Income of such Person for such
period plus:

                  (1) an amount equal to any extraordinary loss plus any net
loss realized by such Person or any of its Subsidiaries in connection with an
Asset Sale, to the extent such losses were deducted in computing such
Consolidated Net Income; plus

                  (2) provision for taxes based on income or profits of such
Person and its Restricted Subsidiaries for such period, to the extent that such
provision for taxes was deducted in computing such Consolidated Net Income; plus

                  (3) consolidated interest expense of such Person and its
Restricted Subsidiaries for such period, whether paid or accrued and whether or
not capitalized (including, without limitation, amortization of debt issuance
costs and original issue discount, non-cash interest payments, the interest
component of any deferred payment obligations, the interest component of all
payments associated with Capital Lease Obligations, imputed interest with
respect to Attributable Debt, commissions, discounts and other fees and charges
incurred in respect of letter of credit or bankers' acceptance financings, and
net of the effect of all payments made or received pursuant to Hedging
Obligations), to the extent that any such expense was deducted in computing such
Consolidated Net Income; plus

                  (4) depreciation, amortization (including amortization of
goodwill and other intangibles but excluding amortization of prepaid cash
expenses that were paid in a prior period) and other non-cash expenses
(excluding any such non-cash expense to the extent that it represents an accrual
of or reserve for cash expenses in any future period) of such Person and its
Restricted Subsidiaries for such period to the extent that such depreciation,
amortization and other non-cash expenses were deducted in computing such
Consolidated Net Income; minus

                  (5) non-cash items increasing such Consolidated Net Income for
such period, other than the accrual of revenue in the ordinary course of
business,

in each case, on a consolidated basis and determined in accordance with GAAP.

                                       4
<PAGE>

                  "Consolidated Net Income" means, with respect to any specified
Person for any period, the aggregate of the Net Income of such Person and its
Restricted Subsidiaries for such period, on a consolidated basis, determined in
accordance with GAAP; provided that:

                  (1) the Net Income (but not loss) of any Person that is not a
Restricted Subsidiary or that is accounted for by the equity method of
accounting will be included only to the extent of the amount of dividends or
distributions paid in cash to the specified Person or a Restricted Subsidiary of
the Person;

                  (2) the Net Income of any Restricted Subsidiary will be
excluded to the extent that the declaration or payment of dividends or similar
distributions by that Restricted Subsidiary of that Net Income is not at the
date of determination permitted without any prior governmental approval (that
has not been obtained) or, directly or indirectly, by operation of the terms of
its charter or any agreement, instrument, judgment, decree, order, statute, rule
or governmental regulation applicable to that Restricted Subsidiary or its
stockholders; and

                  (3) the cumulative effect of a change in accounting principles
will be excluded.

                  "Corporate Trust Office of the Trustee" shall be at the
address of the Trustee specified in Section 12.02 hereof or such other address
as to which the Trustee may give notice to the Company.

                  "Consolidated Senior Debt Leverage Ratio" means the ratio of
(1) consolidated Indebtedness of the Company and its Restricted Subsidiaries
(other than Subordinated Indebtedness) as of the date of the transaction giving
rise to the need to calculate such Consolidated Senior Debt Leverage Ratio to
(2) Consolidated Cash Flow for the four full fiscal quarters immediately
preceding the date of the transaction giving rise to the need to calculate such
Consolidated Senior Debt Leverage Ratio taken as one period.

                  "Consolidated Tangible Assets" means the total assets, less
goodwill and other intangibles, shown on the Company's most recent consolidated
balance sheet, determined on a consolidated basis in accordance with GAAP less
all write-ups (other than write-ups in connection with acquisitions) subsequent
to the date of this Indenture in the book value of any asset (except any such
intangible assets) owned by the Company or any of its Restricted Subsidiaries.

                  "Credit Agreement" means that certain Credit Agreement, dated
as of the date hereof, by and among Extendicare Holdings, Inc., the Company,
Lehman Commercial Paper Inc., as administrative agent, and the lenders party
thereto, including any related notes, guarantees, security and collateral
documents, instruments and agreements executed in connection therewith.

                  "Credit Facilities" means one or more debt facilities or
agreements (including, without limitation, the Credit Agreement) or commercial
paper facilities, in each case with banks or other lenders providing for
revolving credit loans, term loans, notes, receivables financing (including
through the sale of receivables to such lenders or to special purpose entities
formed to borrow from such lenders against such receivables) or letters of
credit, in each case, as amended, restated, modified, renewed, refunded,
replaced, restructured, restated or refinanced (including any agreement to
extend the maturity thereof and adding additional borrowers or guarantors) in
whole or in part from time to time under the same or any other agent, lender or
group of lenders and including increasing the amount of available borrowings
thereunder; provided that such increase is permitted by Section 4.09.

                  "Custodian" means, with respect to the Notes issuable or
issued in whole or in part in global form, the Person specified in Section 2.03
hereof as Custodian with respect to the Notes, any and all successors thereto
appointed as custodian hereunder and having become such pursuant to the
applicable provisions of this Indenture.

                  "Default" means any event that is, or with the passage of time
or the giving of notice or both would be, an Event of Default.

                  "Definitive Note" means a certificated Note registered in the
name of the Holder thereof and issued in accordance with Section 2.06 hereof, in
substantially the form of Exhibit A hereto except that such Note

                                       5
<PAGE>

shall not bear the Global Note Legend and shall not have the "Schedule of
Exchanges of Interests in the Global Note" attached thereto.

                  "Designated Non-Cash Consideration" means the fair market
value of total consideration received by the Company or any of its Restricted
Subsidiaries in connection with an Asset Sale that is so designated as
Designated Non-Cash Consideration pursuant to an Officers' Certificate, setting
forth the basis of such valuation, executed by the Company's principal executive
officer and principal financial officer, less the amount of cash or Cash
Equivalents received in connection with the Asset Sale; provided, however, that
the total amount of Designated Non-Cash Consideration outstanding at any one
time does not exceed the greater of $15.0 million and 2.5% of Consolidated
Tangible Assets.

                  "Depositary" means, with respect to the Notes issuable or
issued in whole or in part in global form, the Person specified in Section 2.03
hereof as the Depositary with respect to the Notes, and any and all successors
thereto appointed as depositary hereunder and having become such pursuant to the
applicable provisions of this Indenture.

                  "Disqualified Stock" means any Capital Stock that, by its
terms (or by the terms of any security into which it is convertible, or for
which it is exchangeable, in each case at the option of the holder of the
Capital Stock), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at
the option of the holder of the Capital Stock, in whole or in part, on or prior
to the date that is 91 days after the date on which the Notes mature.
Notwithstanding the preceding sentence, any Capital Stock that would constitute
Disqualified Stock solely because the holders of the Capital Stock have the
right to require the Company to repurchase such Capital Stock upon the
occurrence of a Change of Control or an Asset Sale will not constitute
Disqualified Stock if the terms of such Capital Stock provide that the Company
may not repurchase or redeem any such Capital Stock pursuant to such provisions
unless such repurchase or redemption complies with Section 4.10.

                  "Distribution Compliance Period" means the 40-day distribution
compliance period as defined in Regulation S.

                  "Domestic Subsidiary" means any Restricted Subsidiary of the
Company that was formed under the laws of the United States or any state of the
United States or the District of Columbia.

                  "Equity Interests" means Capital Stock and all warrants,
options or other rights to acquire Capital Stock (but excluding any debt
security that is convertible into, or exchangeable for, Capital Stock).

                  "Euroclear" means Euroclear Bank, S.A./N.V., as operator of
the Euroclear systems, and any successor thereto.

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

                  "Exchange Notes" means Notes issued in the Exchange Offer
pursuant to Section 2.06(f) hereof.

                  "Exchange Offer" has the meaning set forth in the Registration
Rights Agreement.

                  "Exchange Offer Registration Statement" has the meaning set
forth in the Registration Rights Agreement.

                  "Existing Indebtedness" means Indebtedness of the Company and
its Subsidiaries (other than Indebtedness under the Credit Agreement) in
existence on the date of this Indenture, until such amounts are repaid.

                  "Fixed Charge Coverage Ratio" means with respect to any
specified Person for any period, the ratio of the Consolidated Cash Flow of such
Person and its Restricted Subsidiaries for such period to the Fixed Charges of
such Person and its Restricted Subsidiaries for such period. In the event that
the specified Person or any of its Restricted Subsidiaries incurs, assumes,
Guarantees, repays, repurchases or redeems any Indebtedness (other

                                       6

<PAGE>

than ordinary working capital borrowings) or issues, repurchases or redeems
preferred stock subsequent to the commencement of the reference period for which
the Fixed Charge Coverage Ratio is being calculated and on or prior to the date
on which the event for which the calculation of the Fixed Charge Coverage Ratio
is made (the "Calculation Date"), then the Fixed Charge Coverage Ratio will be
calculated giving pro forma effect to such incurrence, assumption, Guarantee,
repayment, repurchase or redemption of Indebtedness, or such issuance,
repurchase or redemption of preferred stock and the use of the proceeds
therefrom, as if the same had occurred at the beginning of the applicable
four-quarter reference period; provided, however, that the Fixed Charges of such
Person attributable to interest on any Indebtedness under a revolving credit
facility computed on a pro forma basis will be computed based on the average
daily balance of such Indebtedness during the four-quarter reference period and
using the interest rate in effect at the end of such period.

                  In addition, for purposes of calculating the Fixed Charge
Coverage Ratio:

                  (1) acquisitions that have been made by the specified Person
or any of its Restricted Subsidiaries, including through mergers or
consolidations and including any related financing transactions, during the
four-quarter reference period or subsequent to such reference period and on or
prior to the Calculation Date will be given pro forma effect (calculated in
accordance with Regulation S-X) as if they had occurred on the first day of the
four-quarter reference period and Consolidated Cash Flow for such reference
period will be calculated without giving effect to clause (3) of the proviso set
forth in the definition of Consolidated Net Income;

                  (2) the Consolidated Cash Flow attributable to discontinued
operations, as determined in accordance with GAAP, and operations or businesses
disposed of prior to the Calculation Date, will be excluded; and

                  (3) the Fixed Charges attributable to discontinued operations,
as determined in accordance with GAAP, and operations or businesses disposed of
prior to the Calculation Date, will be excluded, but only to the extent that the
obligations giving rise to such Fixed Charges will not be obligations of the
specified Person or any of its Restricted Subsidiaries following the Calculation
Date.

                  "Fixed Charges" means, with respect to any specified Person
for any period, the sum, without duplication, of:

                  (1) the consolidated interest expense of such Person and its
Restricted Subsidiaries for such period, whether paid or accrued, including,
without limitation, amortization of debt issuance costs and original issue
discount, non-cash interest payments, the interest component of any deferred
payment obligations, the interest component of all payments associated with
Capital Lease Obligations, imputed interest with respect to Attributable Debt,
commissions, discounts and other fees and charges incurred in respect of letter
of credit or bankers' acceptance financings, and net of the effect of all
payments made or received pursuant to Hedging Obligations; plus

                  (2) the consolidated interest of such Person and its
Restricted Subsidiaries that was capitalized during such period; plus

                  (3) any interest expense on Indebtedness of another Person
that is Guaranteed by such Person or secured by a Lien on assets of such Person,
whether or not such Guarantee or Lien is called upon; plus

                  (4) the product of (a) all dividends, whether paid or accrued
and whether or not in cash, on any series of preferred stock of such Person or
any of its Restricted Subsidiaries other than dividends on Equity Interests
payable solely in Equity Interests of such Person (other than Disqualified
Stock) or to such Person or one of its Restricted Subsidiaries, times (b) a
fraction, the numerator of which is one and the denominator of which is one
minus the then current combined federal, state and local statutory tax rate of
such Person, expressed as a decimal, in each case, on a consolidated basis and
in accordance with GAAP.

                  "GAAP" means generally accepted accounting principles set
forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such

                                       7
<PAGE>

other entity as have been approved by a significant segment of the accounting
profession, which are in effect on the date of this Indenture.

                  "Global Note Legend" means the legend set forth in Section
2.06(g)(ii), which is required to be placed on all Global Notes issued under
this Indenture.

                  "Global Notes" means the global Notes in the form of Exhibit A
hereto issued in accordance with Article 2 hereof.

                  "Government Securities" means direct obligations (or
certificates representing an ownership interest in such obligations) of the
United States of America (including any agency or instrumentality thereof) for
the payment of which the full faith and credit of the United States of America
is pledged and which are not callable at the Company's option.

                  "Guarantee" means a guarantee other than by endorsement of
negotiable instruments for collection in the ordinary course of business, direct
or indirect, in any manner including, without limitation, by way of a pledge of
assets or through letters of credit or reimbursement agreements in respect
thereof, of all or any part of any Indebtedness.

                  "Hedging Obligations" means, with respect to any specified
Person, the obligations of such Person under:

                  (1) interest rate swap agreements, interest rate cap
agreements and interest rate collar agreements;

                  (2) other agreements or arrangements designed to protect such
Person against fluctuations in interest rates; and

                  (3) foreign exchange contracts, currency swap agreements or
other agreements or arrangements designed to protect such Person against
fluctuations in currency values.

                  "Holder" means a Person in whose name a Note is registered.

                  "IAI Global Note" means a global Note in the form of Exhibit A
hereto bearing the Global Note Legend and the Private Placement Legend and
deposited with and registered in the name of the Depositary or its nominee that
will be issued in a denomination equal to the outstanding principal amount of
the Notes sold to Institutional Accredited Investors, if any.

                  "Indebtedness" means, with respect to any specified Person,
any indebtedness of such Person, whether or not contingent:

                  (1) in respect of borrowed money;

                  (2) evidenced by bonds, notes, debentures or similar
instruments or letters of credit (or reimbursement agreements in respect
thereof);

                  (3) in respect of banker's acceptances;

                  (4) representing Capital Lease Obligations;

                  (5) representing the balance deferred and unpaid of the
purchase price of any property, except any such balance that constitutes an
accrued expense or trade payable; or

                  (6) representing any Hedging Obligations,

                                       8
<PAGE>

if and to the extent any of the preceding items (other than letters of credit
and Hedging Obligations) would appear as a liability upon a balance sheet of the
specified Person prepared in accordance with GAAP. In addition, the term
"Indebtedness" includes all Indebtedness of others secured by a Lien on any
asset of the specified Person (whether or not such Indebtedness is assumed by
the specified Person) and, to the extent not otherwise included, the Guarantee
by the specified Person of any Indebtedness of any other Person.

                  The amount of any Indebtedness outstanding as of any date will
be:

                  (1) the accreted value of the Indebtedness, in the case of any
Indebtedness issued with original issue discount; and

                  (2) the principal amount of the Indebtedness, together with
any interest on the Indebtedness that is more than 30 days past due, in the case
of any other Indebtedness.

                  "Indenture" means this instrument, as originally executed or
as it may from time to time be supplemented or amended in accordance with
Article 9 hereof.

                  "Indirect Participant" means a Person who holds a beneficial
interest in a Global Note through a Participant.

                  "Initial Notes" means $150,000,000 aggregate principal amount
of Notes issued under this Indenture on the date hereof.

                  "Institutional Accredited Investor" means an institution that
is an "accredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) under
the Securities Act.

                  "Investments" means, with respect to any Person, all direct or
indirect investments by such Person in other Persons (including Affiliates) in
the forms of loans (including Guarantees or other obligations), advances or
capital contributions (excluding commission, travel and similar advances to
officers and employees made in the ordinary course of business), purchases or
other acquisitions for consideration of Indebtedness, Equity Interests or other
securities, together with all items that are or would be classified as
investments on a balance sheet prepared in accordance with GAAP; provided that
Investments shall not be deemed to include extensions of trade credit by the
Company or any of its Restricted Subsidiaries on commercially reasonable terms
in accordance with normal trade practices. If the Company or any of its
Subsidiaries sells or otherwise disposes of any Equity Interests of any direct
or indirect Subsidiary of the Company such that, after giving effect to any such
sale or disposition, such Person is no longer a Subsidiary of the Company, the
Company will be deemed to have made an Investment on the date of any such sale
or disposition equal to the fair market value of the Equity Interests of such
Subsidiary not sold or disposed of in an amount determined as provided in the
final paragraph of Section 4.10. The acquisition by the Company or any of its
Subsidiaries of a Person that holds an Investment in a third Person will be
deemed to be an Investment by the Company or such Subsidiary in such third
Person in an amount equal to the fair market value of the Investment held by the
acquired Person in such third Person in an amount determined as provided in the
final paragraph of Section 4.10.

                  "Legal Holiday" means a Saturday, a Sunday or a day on which
banking institutions in the City of New York, the city in which the Corporate
Trust Office of the Trustee is located, or at a place of payment are authorized
by law, regulation or executive order to remain closed. If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding day that is not a Legal Holiday, and no interest shall accrue on
such payment for the intervening period.

                  "Letter of Transmittal" means the letter of transmittal to be
prepared by the Company and sent to all Holders of the Initial Notes for use by
such Holders in connection with the Exchange Offer.

                  "Lien" means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or encumbrance of any kind in respect of such
asset, whether or not filed, recorded or otherwise perfected under applicable
law, including any conditional sale or other title retention agreement, any
lease in the nature thereof, any

                                       9
<PAGE>

option or other agreement to sell or give a security interest in and any filing
of or agreement to give any financing statement under the Uniform Commercial
Code (or equivalent statutes) of any jurisdiction.

                  "Moody's" means Moody's Investors Service, Inc. or any
successor to the rating agency business thereof.

                  "Net Income" means, with respect to any specified Person, the
net income (loss) of such Person, determined in accordance with GAAP and before
any reduction in respect of preferred stock dividends, excluding, however:

                  (1) any gain (but not loss), together with any related
provision for taxes on such gain (but not loss), realized in connection with:
(a) any Asset Sale or (b) the disposition of any securities by such Person or
any of its Restricted Subsidiaries or the extinguishment of any Indebtedness of
such Person or any of its Restricted Subsidiaries; and

                  (2) any extraordinary gain (but not loss), together with any
related provision for taxes on such extraordinary gain (but not loss).

                  "Net Proceeds" means the aggregate cash proceeds received by
the Company or any of its Restricted Subsidiaries in respect of any Asset Sale
(including, without limitation, any cash received upon the sale or other
disposition of any non-cash consideration, including Designated Non-Cash
Consideration, deemed to be cash pursuant to Section 4.12, received in any Asset
Sale), net of the direct costs relating to such Asset Sale, including, without
limitation, legal, accounting and investment banking fees, and sales
commissions, and any relocation expenses incurred as a result of the Asset Sale,
taxes paid or payable as a result of the Asset Sale, in each case, after taking
into account any available tax credits or deductions and any tax sharing
arrangements, and amounts required to be applied to the repayment of
Indebtedness, other than Senior Debt, secured by a Lien on the asset or assets
that were the subject of such Asset Sale, and any reserve for adjustment in
respect of the sale price of such asset or assets established in accordance with
GAAP.

                  "Non-Recourse Debt" means Indebtedness:

                  (1) as to which neither the Company nor any of its Restricted
Subsidiaries (a) provides credit support of any kind (including any undertaking,
agreement or instrument that would constitute Indebtedness), (b) is directly or
indirectly liable as a guarantor or otherwise, or (c) constitutes the lender;

                  (2) no default with respect to which (including any rights
that the holders thereof may have to take enforcement action against an
Unrestricted Subsidiary) would permit upon notice, lapse of time or both any
holder of any other Indebtedness (other than the Notes) of the Company or any of
its Restricted Subsidiaries to declare a default on such other Indebtedness or
cause the payment thereof to be accelerated or payable prior to its stated
maturity; and

                  (3) as to which the lenders have been notified in writing that
they will not have any recourse to the Company's stock or assets or the stock or
assets of any of the Company's Restricted Subsidiaries.

                  "Obligations" means any principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
the documentation governing any Indebtedness.

                  "Officer" means the Chief Executive Officer, the President,
the Chief Financial Officer, or any Senior Vice President of the Company.

                  "Officers' Certificate" means a certificate, in form and
substance reasonably satisfactory to the Trustee, signed by two Officers of the
Company, at least one of whom shall be the principal executive officer or
principal financial officer of the Company, and delivered to the Trustee.

                                       10
<PAGE>

                  "Opinion of Counsel" means a written opinion, in form and
substance reasonably satisfactory to the Trustee, from legal counsel who is
acceptable to the Trustee and which meets the requirements of Section 12.05
hereof. The counsel may be an employee of or counsel to the Company or the
Trustee.

                  "Parent" means Extendicare, Inc., a corporation organized
under the laws of Canada.

                  "Participant" means, with respect to the Depositary, Euroclear
or Clearstream, a Person who has an account with the Depositary, Euroclear or
Clearstream, respectively, and, with respect to The Depository Trust Company,
shall include Euroclear and Clearstream.

                  "Permitted Business" means the lines of business conducted by
the Company and its Restricted Subsidiaries on the date hereof and the
businesses reasonably related thereto within the healthcare services sector.

                  "Permitted Investments" means:

                  (1) any Investment in the Company or in one of its Wholly
Owned Restricted Subsidiaries;

                  (2) any Investment outstanding as of the date hereof;

                  (3) any Investment in Cash Equivalents;

                  (4) loans and advances to employees and officers of the
Company and its Restricted Subsidiaries in the ordinary course of business for
bona fide business purposes not in excess of $1.0 million at any one time
outstanding;

                  (5) Investments in prepaid expenses, negotiable instruments
held for collection and lease, utility and workers' compensation, performance
and other similar deposits;

                  (6) any Investment by the Company or any of its Restricted
Subsidiaries in a Person engaged in a Permitted Business, if as a result of such
Investment:

                      (a) such Person becomes one of the Company's Wholly Owned
         Restricted Subsidiaries; or

                      (b) such Person is merged, consolidated or amalgamated
         with or into, or transfers or conveys substantially all of its assets
         to, or is liquidated into, the Company or one of its Wholly Owned
         Restricted Subsidiaries;

                  (7) any Investment made as a result of the receipt of non-cash
consideration (including Designated Non-Cash Consideration) from an Asset Sale
that was made pursuant to and in compliance with Section 4.12;

                  (8) any acquisition of assets, Equity Interests or other
securities solely in exchange for the issuance of Equity Interests (other than
Disqualified Stock) of the Company;

                  (9) any Investments received in compromise of obligations of
such Persons incurred in the ordinary course of trade creditors or customers
that were incurred in the ordinary course of business, including pursuant to any
plan of reorganization or similar arrangement upon the bankruptcy or insolvency
of any trade creditor or customer;

                  (10) Hedging Obligations;

                  (11) any Investment made in a Special Purpose Vehicle in
connection with a Securitization Transaction or to provide adequate capital to a
Special Purpose Vehicle in anticipation of one or more Securitization
Transactions; and

                                       11
<PAGE>

                  (12) other Investments in any Person having an aggregate fair
market value (measured on the date each such Investment was made and without
giving effect to subsequent changes in value), when taken together with all
other Investments made pursuant to this clause (12) that are at the time
outstanding, not to exceed $10.0 million.

                  "Permitted Liens" means:

                  (1) Liens securing Indebtedness under Credit Facilities,
including the Credit Agreement, where such Indebtedness was permitted by the
terms of this Indenture to be incurred;

                  (2) Liens in favor of the Company or the Subsidiary
Guarantors;

                  (3) Liens on property of a Person existing at the time such
Person is merged with or into or consolidated with the Company or any of the
Company's Restricted Subsidiaries; provided that such Liens were in existence
prior to the contemplation of such merger or consolidation and do not extend to
any assets other than those of the Person merged into or consolidated with the
Company or such Restricted Subsidiary;

                  (4) Liens on property existing at the time of acquisition of
the property by the Company or any of its Restricted Subsidiaries; provided that
such Liens were in existence prior to the contemplation of such acquisition;

                  (5) Liens to secure the performance of statutory obligations,
surety or appeal bonds, performance bonds or other obligations of a like nature;

                  (6) Liens to secure Indebtedness (including Capital Lease
Obligations) permitted by clause (iv) of the second paragraph of Section 4.09
covering only the assets acquired with such Indebtedness;

                  (7) Liens existing on the date of this Indenture;

                  (8) Liens for taxes, assessments or governmental charges or
claims that are not yet delinquent or that are being contested in good faith by
appropriate proceedings promptly instituted and diligently concluded; provided
that any reserve or other appropriate provision as is required in conformity
with GAAP has been made therefor;

                  (9) pledges or deposits in the ordinary course of business to
secure lease obligations or nondelinquent obligations under workers'
compensation, unemployment insurance or similar legislation;

                  (10) easements, rights-of-way, restrictions, minor defects or
irregularities in title and other similar charges or encumbrances not
interfering in any material respect with the business or assets of the Company
or any of its Subsidiaries incurred in the ordinary course of business;

                  (11) Liens to secure Hedging Obligations, including any
guarantees of such Hedging Obligations;

                  (12) Liens incurred in connection with a sale and leaseback
transaction permitted under Section 4.15 that do not exceed 5% of our
Consolidated Tangible Assets; and

                  (13) Liens incurred by the Company or any of its Restricted
Subsidiaries with respect to obligations that do not exceed $10.0 million at any
one time outstanding; provided that such amount shall be reduced by any amount
incurred under clause (12) above.

                  "Permitted Refinancing Indebtedness" means any Indebtedness of
the Company or any of its Restricted Subsidiaries issued in exchange for, or the
net proceeds of which are used to extend, refinance, renew, replace, defease or
refund other Indebtedness of the Company or any of its Restricted Subsidiaries
(other than intercompany Indebtedness); provided that:

                                       12
<PAGE>

                  (1) the principal amount (or accreted value, if applicable) of
such Permitted Refinancing Indebtedness does not exceed the principal amount (or
accreted value, if applicable) of the Indebtedness extended, refinanced,
renewed, replaced, defeased or refunded (plus all accrued interest on the
Indebtedness and the amount of all expenses and premiums incurred in connection
therewith);

                  (2) such Permitted Refinancing Indebtedness has a final
maturity date later than the final maturity date of, and has a Weighted Average
Life to Maturity equal to or greater than the Weighted Average Life to Maturity
of, the Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded;

                  (3) either

                      (a) if the Indebtedness being extended, refinanced,
         renewed, replaced, defeased or refunded is subordinated in right of
         payment to the Notes (including the Senior Subordinated Notes), such
         Permitted Refinancing Indebtedness has a final maturity date later than
         the final maturity date of, and is subordinated in right of payment to,
         the Notes on terms at least as favorable to the Holders of Notes as
         those contained in the documentation governing the Indebtedness being
         extended, refinanced, renewed, replaced, defeased or refunded; or

                      (b) with respect to only the Senior Subordinated Notes, at
         the time of such incurrence the Company's Consolidated Senior Debt
         Leverage Ratio would have been less than 2.75 to 1; provided that when
         calculating such ratio, pro forma effect will be given to (A) the
         incurrence of such Indebtedness and the application of the proceeds
         therefrom, including to refinance the Senior Subordinated Notes and (B)
         the acquisition (whether by purchase, merger or otherwise) or
         disposition (whether by sale, merger or otherwise) of any company,
         entity or business acquired or disposed of by the Company or any of its
         Restricted Subsidiaries, as the case may be, since the first day of the
         four-quarter period referred to in the definition of Consolidated
         Senior Debt Leverage Ratio as if such acquisition or disposition had
         occurred at the beginning of such four-quarter period; and

                  (4) such Indebtedness is incurred either by the Company or by
the Subsidiary who is the obligor on the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded.

                  "Person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization,
limited liability company or government or other entity.

                  "Private Placement Legend" means the legend set forth in
Section 2.06(g)(i) hereof to be placed on all Notes issued under this Indenture
except as otherwise permitted by the provisions of this Indenture.

                  "QIB" means a "qualified institutional buyer" as defined in
Rule 144A.

                  "Qualified Equity Offering" means any underwritten public or
any private offering of Capital Stock (excluding Disqualified Stock) of the
Company or any of Parent's Capital Stock (excluding Disqualified Stock), in the
latter case, only to the extent that the net cash proceeds therefrom are
contributed to the Company's common or non-redeemable preferred equity capital.

                  "Registration Rights Agreement" means the Registration Rights
Agreement dated as of the date hereof, among the Company, the Subsidiary
Guarantors and the initial purchasers named therein, as such agreement may be
amended, modified or supplemented from time to time and, with respect to any
Additional Notes, one or more registration rights agreements between the Company
and the other parties thereto, as such agreement(s) may be amended, modified or
supplemented from time to time, relating to rights given by the Company to the
purchasers of Additional Notes to register such Additional Notes under the
Securities Act.

                  "Regulation S" means Regulation S promulgated under the
Securities Act.

                  "Regulation S Global Note" means the global note in the form
of Exhibit A hereto bearing the Global Note Legend and the Private Placement
Legend and deposited with and registered in the name of the

                                       13
<PAGE>

Depositary or its nominee that will be issued in a denomination equal to the
outstanding principal amount of Notes sold in reliance on Regulation S.

                  "Replacement Assets" means any properties or assets used or
useful in a Permitted Business.

                  "Responsible Officer," when used with respect to the Trustee,
means any officer within the Corporate Trust Department of the Trustee (or any
successor group of the Trustee) with direct responsibility for the
administration of this Indenture and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of his or her knowledge of and familiarity with the particular subject.

                  "Restricted Definitive Note" means one or more Definitive
Notes bearing the Private Placement Legend.

                  "Restricted Global Notes" means the 144A Global Note, the IAI
Global Note and the Regulation S Global Note.

                  "Restricted Investment" means an Investment other than a
Permitted Investment.

                  "Restricted Subsidiary" of a Person means any Subsidiary of
the referent Person that is not an Unrestricted Subsidiary.

                  "Rule 144" means Rule 144 promulgated under the Securities
Act.

                  "Rule 144A" means Rule 144A promulgated under the Securities
Act.

                  "Rule 903" means Rule 903 promulgated under the Securities
Act.

                  "Rule 904" means Rule 904 promulgated under the Securities
Act.

                  "SEC" means the Securities and Exchange Commission.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Securitization Transaction" means any sale, conveyance or
other disposition by the Company or any of its Restricted Subsidiaries of any
accounts receivable or any interest therein to a Special Purpose Vehicle.

                  "Senior Debt" means:

                  (1) all Indebtedness of the Company or of any Subsidiary
Guarantor outstanding under Credit Facilities and all Hedging Obligations with
respect thereto;

                  (2) any other Indebtedness of the Company or of any Subsidiary
Guarantor permitted to be incurred under the terms of this Indenture, unless the
instrument under which such Indebtedness is incurred expressly provides that it
is on a parity with or subordinated in right of payment to the Notes or any
Subsidiary Guarantee; and

                  (3) all Obligations with respect to the items listed in the
preceding clauses (1) and (2).

                  Notwithstanding anything to the contrary in the preceding,
Senior Debt will not include:

                  (1) any liability for federal, state, local or other taxes
owed or owing by the Company;

                  (2) any Indebtedness of the Company to any of its Subsidiaries
or other Affiliates;

                  (3) any trade payables; or

                                       14
<PAGE>

                  (4) the portion of any Indebtedness that is incurred in
violation of this Indenture.

                  "Senior Subordinated Note Indenture" means the Indenture,
dated as of December 2, 1997, by and among the Company, the guarantors signatory
thereto and The Bank of Nova Scotia Trust Company of New York, as Trustee,
governing the Company's Senior Subordinated Notes.

                  "Senior Subordinated Notes" means the 9.35% Senior
Subordinated Notes due 2007 of the Company.

                  "Shelf Registration Statement" means the Shelf Registration
Statement as defined in the Registration Rights Agreement.

                  "Significant Subsidiary" means any Subsidiary that would be a
"significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act, as such Regulation is in effect on
the date hereof.

                  "Special Purpose Vehicle" means a bankruptcy-remote entity or
trust or other special purpose entity which is formed by the Company, any
Subsidiary of the Company or any other Person for the purpose of, and engages in
no material business other than, acting as a buyer in a Securitization
Transaction or other similar transactions of accounts receivable or other
similar assets, financing the purchases it makes as such a buyer and realizing,
directly or indirectly, on such accounts receivable or other similar assets.

                  "Stated Maturity" means, with respect to any installment of
interest or principal on any series of Indebtedness (including, without
limitation, a scheduled repayment or a scheduled sinking fund payment), the date
on which the payment of interest or principal was scheduled to be paid in the
original documentation governing such Indebtedness, and will not include any
contingent obligations to repay, redeem or repurchase any such interest or
principal prior to the date originally scheduled for the payment thereof.

                  "Subordinated Indebtedness" means any Indebtedness (whether
outstanding on the date hereof or thereafter incurred, including the Senior
Subordinated Notes) that is subordinated or junior in right of payment to the
Notes or the Subsidiary Guarantees pursuant to a written agreement, executed by
the Person to whom such Indebtedness is owed, to that effect.

                  "Subsidiary" means, with respect to any specified Person:

                  (1) any corporation, association or other business entity of
which more than 50% of the total voting power of shares of Capital Stock
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees of the corporation, association or
other business entity is at the time owned or controlled, directly or
indirectly, by that Person or one or more of the other Subsidiaries of that
Person (or a combination thereof); and

                  (2) any partnership (a) the sole general partner or the
managing general partner of which is such Person or a Subsidiary of such Person
or (b) the only general partners of which are that Person or one or more
Subsidiaries of that Person (or any combination thereof).

                  "Subsidiary Guarantee" means the Guarantee of the Notes by
each of the Subsidiary Guarantors pursuant to Article 10 and in the form of the
Guarantee attached as Exhibit E and any additional Guarantee of the Notes to be
executed by any Subsidiary of the Company pursuant to Section 4.19.

                  "Subsidiary Guarantors" means all of the Company's existing
and future domestic Significant Subsidiaries, all of the Company's existing and
future Domestic Subsidiaries that guarantee or incur any Indebtedness and any
other existing or future Significant Subsidiaries or Restricted Subsidiaries
that guarantee or otherwise provide direct credit support for Indebtedness of
the Company or any of its Domestic Subsidiaries.

                  "TIA" means the Trust Indenture Act of 1939, as amended.

                                       15
<PAGE>

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

                  "Unrestricted Definitive Notes" means one or more Definitive
Notes that do not and are not required to bear the Private Placement Legend.

                  "Unrestricted Global Notes" means one or more Global Notes, in
the form of Exhibit A attached hereto, that do not and are not required to bear
the Private Placement Legend and are deposited with and registered in the name
of the Depositary or its nominee.

                  "Unrestricted Subsidiary" means any Subsidiary of the Company
(or any successor to any of them) that is designated by the Board of Directors
of the Company as an Unrestricted Subsidiary pursuant to a Board Resolution, but
only to the extent that such Subsidiary:

                  (1) has no Indebtedness other than Non-Recourse Debt;

                  (2) is not party to any agreement, contract, arrangement or
understanding with the Company or any of its Restricted Subsidiaries unless the
terms of any such agreement, contract, arrangement or understanding are no less
favorable to the Company or such Restricted Subsidiary than those that might be
obtained at the time from Persons who are not Affiliates of the Company;

                  (3) is a Person with respect to which neither the Company nor
any of its Restricted Subsidiaries has any direct or indirect obligation (a) to
subscribe for additional Equity Interests or (b) to maintain or preserve such
Person's financial condition or to cause such Person to achieve any specified
levels of operating results;

                  (4) has not guaranteed or otherwise directly or indirectly
provided credit support for any Indebtedness of the Company or any of its
Restricted Subsidiaries; and

                  (5) has at least one director on its Board of Directors that
is not a director or executive officer of the Company or any of its Restricted
Subsidiaries and has at least one executive officer that is not a director or
executive officer of the Company or any of its Restricted Subsidiaries.

                  Any designation of a Subsidiary of the Company as an
Unrestricted Subsidiary will be evidenced to the Trustee by filing with the
Trustee a certified copy of the resolution of the Board of Directors of the
Company giving effect to such designation and an Officers' Certificate
certifying that such designation complied with the preceding conditions and was
permitted by Section 4.10 hereof. If, at any time, any Unrestricted Subsidiary
would fail to meet the preceding requirements as an Unrestricted Subsidiary, it
will thereafter cease to be an Unrestricted Subsidiary for purposes of this
Indenture and any Indebtedness of such Subsidiary will be deemed to be incurred
by a Restricted Subsidiary of the Company as of such date and, if such
Indebtedness is not permitted to be incurred as of such date under Section 4.09,
the Company will be in default of such covenant. The Board of Directors of the
Company may at any time designate any Unrestricted Subsidiary to be a Restricted
Subsidiary; provided that such designation will be deemed to be an incurrence of
Indebtedness by one of the Company's Restricted Subsidiaries of any outstanding
Indebtedness of such Unrestricted Subsidiary and such designation will only be
permitted if (1) such Indebtedness is permitted under Section 4.09, calculated
on a pro forma basis as if such designation had occurred at the beginning of the
four-quarter reference period; (2) no Default or Event of Default would be in
existence following such designation; and (3) such Subsidiary executes and
delivers to the Trustee a supplemental indenture providing for a Subsidiary
Guarantee.

                  "Voting Stock" of any Person as of any date means the Capital
Stock of such Person that is at the time entitled to vote in the election of the
Board of Directors of such Person.

                  "Weighted Average Life to Maturity" means, when applied to any
Indebtedness at any date, the number of years obtained by dividing:

                                       16
<PAGE>

                  (1) the sum of the products obtained by multiplying (a) the
amount of each then remaining installment, sinking fund, serial maturity or
other required payments of principal, including payment at final maturity, in
respect of the Indebtedness, by (b) the number of years (calculated to the
nearest one-twelfth) that will elapse between such date and the making of such
payment; by

                  (2) the then outstanding principal amount of such
Indebtedness.

Section 1.02.     OTHER DEFINITIONS.
                  -----------------

                                                                      Defined in
             Term                                                        Section
             ----                                                        -------
             "Affiliate Transaction".......................................4.14
             "Asset Sale Offer"............................................3.09
             "Authentication Order"........................................2.02
             "Benefited Party".............................................10.01
             "Change of Control Offer".....................................4.18
             "Change of Control Purchase Price"............................4.18
             "Covenant Defeasance".........................................8.03
             "DTC".........................................................2.03
             "Event of Default"............................................6.01
             "Excess Proceeds".............................................4.12
             "incur".......................................................4.09
             "Legal Defeasance"............................................8.02
             "losses"......................................................7.07
             "Offer Amount"................................................3.09
             "Offer Period"................................................3.09
             "Paying Agent"................................................2.03
             "Payment Default".............................................6.01
             "Permitted Debt"..............................................4.09
             "Purchase Date"...............................................3.09
             "Registrar"...................................................2.03
             "Restricted Payments".........................................4.10
             "Security Register"...........................................4.18

Section 1.03      INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.
                  -------------------------------------------------

                  (a) Whenever this Indenture refers to a provision of the TIA,
the provision is incorporated by reference in and made a part of this Indenture.

                  (b) The following TIA terms used in this Indenture have the
following meanings:

                  "indenture securities" means the Notes;

                  "indenture security holder" means a Holder of a Note;

                  "indenture to be qualified" means this Indenture;

                  "indenture trustee" or "institutional trustee" means the
Trustee; and

                  "obligor" on the Notes means the Company and any successor
obligor upon the Notes.

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

                                       17
<PAGE>

Section 1.04.     RULES OF CONSTRUCTION.
                  ---------------------

                  (a) Unless the context otherwise requires:

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

                       (ii) an accounting term not otherwise defined herein has
         the meaning assigned to it in accordance with GAAP;

                       (iii) "or" is not exclusive;

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

                       (v) all references in this instrument to designated
         "Articles," "Sections" and other subdivisions are to the designated
         Articles, Sections and subdivisions of this instrument as originally
         executed;

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

                       (vii) "including" means "including without limitation";

                       (viii) provisions apply to successive events and
         transactions; and

                       (ix) references to sections of or rules under the
         Securities Act shall be deemed to include substitute, replacement or
         successor sections or rules adopted by the SEC from time to time.

                                   ARTICLE 2.

                                    THE NOTES

Section 2.01.     FORM AND DATING.
                  ---------------

                  (a) GENERAL. The Notes and the Trustee's certificate of
authentication shall be substantially in the form of Exhibit A hereto, which is
hereby incorporated in and expressly made part of this Indenture. The Notes may
have notations, legends or endorsements required by law, stock exchange rule or
usage. Each Note shall be dated the date of its authentication. The Notes shall
be in denominations of $1,000 and integral multiples thereof. The terms and
provisions contained in the Notes shall constitute, and are hereby expressly
made, a part of this Indenture and the Company and the Trustee, by their
execution and delivery of this Indenture, expressly agree to such terms and
provisions and to be bound thereby. However, to the extent any provision of any
Note conflicts with the express provisions of this Indenture, the provisions of
this Indenture shall govern and be controlling.

                  (b) FORM OF NOTES. The Notes shall be issued initially in
global form and shall be substantially in the form of Exhibit A attached hereto
(including the Global Note Legend thereon and the "Schedule of Exchanges of
Interests in the Global Note" attached thereto). Notes issued in definitive form
shall be substantially in the form of Exhibit A attached hereto (but without the
Global Note Legend thereon and without the "Schedule of Exchanges of Interests
in the Global Note" attached thereto). Each Global Note shall represent such of
the outstanding Notes as shall be specified therein and each shall provide that
it shall represent the aggregate principal amount of outstanding Notes from time
to time endorsed thereon and that the aggregate principal amount of outstanding
Notes represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges and redemptions. Any endorsement of a Global
Note to reflect the amount of any increase or decrease in the aggregate
principal amount of outstanding Notes represented thereby shall be made by the
Trustee or the Custodian, at the direction of the Trustee, in accordance with
instructions given by the Holder thereof as required by Section 2.06 hereof.

                                       18
<PAGE>

                  (c) BOOK-ENTRY PROVISIONS. This Section 2.01(c) shall only
apply to Global Notes deposited with the Trustee, as custodian for the
Depositary. Participants and Indirect Participants shall have no rights under
this Indenture with respect to any Global Note held on their behalf by the
Depositary or by the Trustee as the custodian for the Depositary or under such
Global Note, and the Depositary shall be treated by the Company, the Trustee and
any agent of the Company or the Trustee as the absolute owner of such Global
Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein
shall prevent the Company, the Trustee or any agent of the Company or the
Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or impair, as between the Depositary
and its Participants or Indirect Participants, the Applicable Procedures or the
operation of customary practices of the Depositary governing the exercise of the
rights of a holder of a beneficial interest in any Global Note.

Section 2.02.     EXECUTION AND AUTHENTICATION.
                  ----------------------------

                  (a) One Officer shall sign the Notes for the Company by manual
or facsimile signature.

                  (b) If an Officer whose signature is on a Note no longer holds
that office at the time a Note is authenticated, the Note shall nevertheless be
valid.

                  (c) A Note shall not be valid until authenticated by the
manual signature of the Trustee. The signature shall be conclusive evidence that
the Note has been authenticated under this Indenture.

                  (d) The Trustee shall, upon a written order of the Company
signed by an Officer (an "AUTHENTICATION ORDER"), authenticate Notes for
original issue.

                  (e) The Trustee may appoint an authenticating agent acceptable
to the Company to authenticate Notes. An authenticating agent may authenticate
Notes whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with Holders or an
Affiliate of the Company.

                  (f) The Company may issue Additional Notes from time to time
after the offering of the Initial Notes. The Initial Notes, the Exchange Notes
and any Additional Notes subsequently issued under this Indenture shall be
treated as a single class for all purposes under this Indenture, including,
without limitation, waivers, amendments, redemptions and offers to purchase.

Section 2.03.     REGISTRAR AND PAYING AGENT.
                  --------------------------

                  (a) The Company shall maintain an office or agency where Notes
may be presented for registration of transfer or for exchange ("REGISTRAR") and
an office or agency where Notes may be presented for payment ("PAYING AGENT").
The Registrar shall keep a register of the Notes and of their transfer and
exchange. The Company may appoint one or more co-registrars and one or more
additional paying agents. The term "Registrar" includes any co-registrar and the
term "Paying Agent" includes any additional paying agent. The Company may change
any Paying Agent or Registrar without notice to any Holder. The Company shall
notify the Trustee in writing of the name and address of any Agent not a party
to this Indenture. If the Company fails to appoint or maintain another entity as
Registrar or Paying Agent, the Trustee shall act as such. The Company or any of
its Subsidiaries may act as Paying Agent or Registrar.

                  (b) The Company initially appoints The Depository Trust
Company ("DTC") to act as Depositary with respect to the Global Notes.

                  (c) The Company initially appoints the Trustee to act as the
Registrar and Paying Agent and to act as Custodian with respect to the Global
Notes.

                                       19
<PAGE>
Section 2.04.     PAYING AGENT TO HOLD MONEY IN TRUST.
                  -----------------------------------

                  The Company shall require each Paying Agent other than the
Trustee to agree in writing that the Paying Agent shall hold in trust for the
benefit of Holders or the Trustee all money held by the Paying Agent for the
payment of principal, premium, if any, or interest and Additional Interest, if
any, on the Notes, and shall notify the Trustee of any default by the Company in
making any such payment. While any such default continues, the Trustee may
require a Paying Agent to pay all money held by it to the Trustee. The Company
at any time may require a Paying Agent to pay all money held by it to the
Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the
Company or a Subsidiary) shall have no further liability for the money. If the
Company or a Subsidiary acts as Paying Agent, it shall segregate and hold in a
separate trust fund for the benefit of the Holders all money held by it as
Paying Agent. Upon any bankruptcy or reorganization proceedings relating to the
Company, the Trustee shall serve as Paying Agent for the Notes.

Section 2.05.     HOLDER LISTS.
                  ------------

                  The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of all Holders and shall otherwise comply with TIA ss. 312(a). If the
Trustee is not the Registrar, the Company shall furnish to the Trustee at least
seven Business Days before each Interest Payment Date and at such other times as
the Trustee may request in writing, a list in such form and as of such date or
such shorter time as the Trustee may allow, as the Trustee may reasonably
require of the names and addresses of the Holders and the Company shall
otherwise comply with TIA ss. 312(a).

Section 2.06.     TRANSFER AND EXCHANGE.
                  ---------------------

                  (a) TRANSFER AND EXCHANGE OF GLOBAL NOTES. A Global Note may
not be transferred as a whole except by the Depositary to a nominee of the
Depositary, by a nominee of the Depositary to the Depositary or to another
nominee of the Depositary, or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary. All Global Notes
will be exchanged by the Company for Definitive Notes if (1) the Company
delivers to the Trustee notice from the Depositary that it is unwilling or
unable to continue to act as Depositary or that it is no longer a clearing
agency registered under the Exchange Act and, in either case, a successor
Depositary is not appointed by the Company within 120 days after the date of
such notice from the Depositary or (2) the Company in its sole discretion
determines that the Global Notes (in whole but not in part) should be exchanged
for Definitive Notes and deliver a written notice to such effect to the Trustee;
or (3) an Event of Default shall have occurred and be continuing. Upon the
occurrence of any of the preceding events in (1), (2) or (3) above, Definitive
Notes shall be issued in denominations of $1,000 or integral multiples thereof
and in such names as the Depositary shall instruct the Trustee. Global Notes
also may be exchanged or replaced, in whole or in part, as provided in Sections
2.07 and 2.10 hereof. Every Note authenticated and delivered in exchange for, or
in lieu of, a Global Note or any portion thereof, pursuant to this Section 2.06
or Section 2.07 or 2.10 hereof, shall be authenticated and delivered in the form
of, and shall be, a Global Note. A Global Note may not be exchanged for another
Note other than as provided in this Section 2.06(a), however, beneficial
interests in a Global Note may be transferred and exchanged as provided in
Section 2.06(b), (c) or (f) hereof.

                  (b) TRANSFER AND EXCHANGE OF BENEFICIAL INTERESTS IN THE
GLOBAL NOTES. The transfer and exchange of beneficial interests in the Global
Notes shall be effected through the Depositary, in accordance with the
provisions of this Indenture and the Applicable Procedures. Beneficial interests
in the Restricted Global Notes shall be subject to restrictions on transfer
comparable to those set forth herein to the extent required by the Securities
Act. Transfers of beneficial interests in the Global Notes also shall require
compliance with either clause (i) or (ii) below, as applicable, as well as one
or more of the other following clauses, as applicable:

                (i) Transfer of Beneficial Interests in the Same Global Note.
          Beneficial interests in any Restricted Global Note may be transferred
          to Persons who take delivery thereof in the form of a beneficial
          interest in the same Restricted Global Note in accordance with the
          transfer restrictions set forth in the Private Placement Legend;
          provided, however, that prior to the expiration of the Distribution
          Compliance Period, transfers of beneficial interests in the Regulation
          S Global Note may not be made to a U.S. Person or for the account or
          benefit of a U.S. Person (other than an Initial Purchaser). Beneficial
          interests in any Unrestricted Global Note may be transferred to
          Persons who take delivery thereof in the form of a

                                       20
<PAGE>

          beneficial interest in an Unrestricted Global Note. No written orders
          or instructions shall be required to be delivered to the Registrar to
          effect the transfers described in this Section 2.06(b)(i).

                (ii) All Other Transfers and Exchanges of Beneficial Interests
          in Global Notes. In connection with all transfers and exchanges of
          beneficial interests that are not subject to Section 2.06(b)(i) above,
          the transferor of such beneficial interest must deliver to the
          Registrar either (A)(1) a written order from a Participant or an
          Indirect Participant given to the Depositary in accordance with the
          Applicable Procedures directing the Depositary to credit or cause to
          be credited a beneficial interest in another Global Note in an amount
          equal to the beneficial interest to be transferred or exchanged and
          (2) instructions given in accordance with the Applicable Procedures
          containing information regarding the Participant account to be
          credited with such increase or (B)(1) a written order from a
          Participant or an Indirect Participant given to the Depositary in
          accordance with the Applicable Procedures directing the Depositary to
          cause to be issued a Definitive Note in an amount equal to the
          beneficial interest to be transferred or exchanged and (2)
          instructions given by the Depositary to the Registrar containing
          information regarding the Person in whose name such Definitive Note
          shall be registered to effect the transfer or exchange referred to in
          (B)(1) above. Upon consummation of an Exchange Offer by the Company in
          accordance with Section 2.06(f) hereof, the requirements of this
          Section 2.06(b)(ii) shall be deemed to have been satisfied upon
          receipt by the Registrar of the instructions contained in the Letter
          of Transmittal delivered by the Holder of such beneficial interests in
          the Restricted Global Notes. Upon satisfaction of all of the
          requirements for transfer or exchange of beneficial interests in
          Global Notes contained in this Indenture and the Notes or otherwise
          applicable under the Securities Act, the Trustee shall adjust the
          principal amount of the relevant Global Note(s) pursuant to Section
          2.06(h) hereof.

                (iii) Transfer of Beneficial Interests in a Restricted Global
          Note to Another Restricted Global Note. A beneficial interest in any
          Restricted Global Note may be transferred to a Person who takes
          delivery thereof in the form of a beneficial interest in another
          Restricted Global Note if the transfer complies with the requirements
          of Section 2.06(b)(ii) above and the Registrar receives the following:

                    (A) if the transferee will take delivery in the form of a
                  beneficial interest in the 144A Global Note, then the
                  transferor must deliver a certificate in the form of Exhibit B
                  hereto, including the certifications in item (1) thereof;

                    (B) if the transferee will take delivery in the form of a
                  beneficial interest in the Regulation S Global Note, then the
                  transferor must deliver a certificate in the form of Exhibit B
                  hereto, including the certifications in item (2) thereof; and

                    (C) if the transferee will take delivery in the form of a
                  beneficial interest in the IAI Global Note, then the
                  transferor must deliver a certificate in the form of Exhibit B
                  hereto, including the certifications and certificates and
                  Opinion of Counsel required by item (3) thereof, if
                  applicable.

                (iv) Transfer and Exchange of Beneficial Interests in a
          Restricted Global Note for Beneficial Interests in an Unrestricted
          Global Note. A beneficial interest in any Restricted Global Note may
          be exchanged by any holder thereof for a beneficial interest in an
          Unrestricted Global Note or transferred to a Person who takes delivery
          thereof in the form of a beneficial interest in an Unrestricted Global
          Note if the exchange or transfer complies with the requirements of
          Section 2.06(b)(ii) above and:

                    (A) such exchange or transfer is effected pursuant to the
                  Exchange Offer in accordance with the Registration Rights
                  Agreement and the holder of the beneficial interest to be
                  transferred, in the case of an exchange, or the transferee, in
                  the case of a transfer, certifies in the applicable Letter of
                  Transmittal that it is not (1) a broker-dealer, (2) a Person
                  participating in the distribution of the Exchange Notes or (3)
                  a Person who is an affiliate (as defined in Rule 144) of the
                  Company;

                                       21
<PAGE>

                    (B) such transfer is effected pursuant to the Shelf
                  Registration Statement in accordance with the Registration
                  Rights Agreement;

                    (C) such transfer is effected by a broker-dealer pursuant to
                  the Exchange Offer Registration Statement in accordance with
                  the Registration Rights Agreement; or

                    (D) the Registrar receives the following:

                    (1) if the holder of such beneficial interest in a
                  Restricted Global Note proposes to exchange such beneficial
                  interest for a beneficial interest in an Unrestricted Global
                  Note, a certificate from such holder in the form of Exhibit C
                  hereto, including the certifications in item (1)(a) thereof;
                  or

                    (2) if the holder of such beneficial interest in a
                  Restricted Global Note proposes to transfer such beneficial
                  interest to a Person who shall take delivery thereof in the
                  form of a beneficial interest in an Unrestricted Global Note,
                  a certificate from such holder in the form of Exhibit B
                  hereto, including the certifications in item (4) thereof;

                  and, in each such case set forth in this clause (D), if the
                  Registrar and the Company so requests or if the Applicable
                  Procedures so require, an Opinion of Counsel in form
                  reasonably acceptable to the Registrar to the effect that such
                  exchange or transfer is in compliance with the Securities Act
                  and that the restrictions on transfer contained herein and in
                  the Private Placement Legend are no longer required in order
                  to maintain compliance with the Securities Act.

                  If any such transfer is effected pursuant to clause (B) or (D)
above at a time when an Unrestricted Global Note has not yet been issued, the
Company shall issue and, upon receipt of an Authentication Order in accordance
with Section 2.02 hereof, the Trustee shall authenticate one or more
Unrestricted Global Notes in an aggregate principal amount equal to the
aggregate principal amount of beneficial interests transferred pursuant to
clause (B) or (D) above.

                (v) Transfer or Exchange of Beneficial Interests in Unrestricted
          Global Notes for Beneficial Interests in Restricted Global Notes
          Prohibited. Beneficial interests in an Unrestricted Global Note cannot
          be exchanged for, or transferred to Persons who take delivery thereof
          in the form of, a beneficial interest in a Restricted Global Note.

                (c) TRANSFER OR EXCHANGE OF BENEFICIAL INTERESTS FOR DEFINITIVE
          NOTES.

                (i) Beneficial Interests in Restricted Global Notes to
          Restricted Definitive Notes. If any holder of a beneficial interest in
          a Restricted Global Note proposes to exchange such beneficial interest
          for a Restricted Definitive Note or to transfer such beneficial
          interest to a Person who takes delivery thereof in the form of a
          Restricted Definitive Note, then, upon receipt by the Registrar of the
          following documentation:

                    (A) if the holder of such beneficial interest in a
                  Restricted Global Note proposes to exchange such beneficial
                  interest for a Restricted Definitive Note, a certificate from
                  such holder in the form of Exhibit C hereto, including the
                  certifications in item (2)(a) thereof;

                    (B) if such beneficial interest is being transferred to a
                  QIB in accordance with Rule 144A, a certificate to the effect
                  set forth in Exhibit B hereto, including the certifications in
                  item (1) thereof;

                    (C) if such beneficial interest is being transferred to a
                  Non-U.S. Person in an offshore transaction in accordance with
                  Rule 903 or Rule 904, a certificate

                                       22
<PAGE>

                  to the effect set forth in Exhibit B hereto, including the
                  certifications in item (2) thereof;

                    (D) if such beneficial interest is being transferred
                  pursuant to an exemption from the registration requirements of
                  the Securities Act in accordance with Rule 144 under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (3)(a)
                  thereof;

                    (E) if such beneficial interest is being transferred to an
                  Institutional Accredited Investor in reliance on an exemption
                  from the registration requirements of the Securities Act other
                  than those listed in clauses (B) through (D) above, a
                  certificate to the effect set forth in Exhibit B hereto,
                  including the certifications, certificates and Opinion of
                  Counsel required by item (3)(d) thereof, if applicable;

                    (F) if such beneficial interest is being transferred to the
                  Company or any of its Subsidiaries, a certificate to the
                  effect set forth in Exhibit B hereto, including the
                  certifications in item (3)(b) thereof; or

                    (G) if such beneficial interest is being transferred
                  pursuant to an effective registration statement under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (3)(c)
                  thereof,

         the Trustee shall cause the aggregate principal amount of the
         applicable Global Note to be reduced accordingly pursuant to Section
         2.06(h) hereof, and the Company shall execute and the Trustee shall
         authenticate and deliver to the Person designated in the instructions a
         Definitive Note in the appropriate principal amount. Any Definitive
         Note issued in exchange for a beneficial interest in a Restricted
         Global Note pursuant to this Section 2.06(c) shall be registered in
         such name or names and in such authorized denomination or denominations
         as the holder of such beneficial interest shall instruct the Registrar
         through instructions from the Depositary and the Participant or
         Indirect Participant. The Trustee shall mail or deliver such Definitive
         Notes to the Persons in whose names such Notes are so registered. Any
         Definitive Note issued in exchange for a beneficial interest in a
         Restricted Global Note pursuant to this Section 2.06(c)(i) shall bear
         the Private Placement Legend and shall be subject to all restrictions
         on transfer contained therein.

                (ii) Beneficial Interests in Restricted Global Notes to
          Unrestricted Definitive Notes. A holder of a beneficial interest in a
          Restricted Global Note may exchange such beneficial interest for an
          Unrestricted Definitive Note or may transfer such beneficial interest
          to a Person who takes delivery thereof in the form of an Unrestricted
          Definitive Note only if:

                    (A) such exchange or transfer is effected pursuant to the
                  Exchange Offer in accordance with the Registration Rights
                  Agreement and the holder of such beneficial interest, in the
                  case of an exchange, or the transferee, in the case of a
                  transfer, certifies in the applicable Letter of Transmittal
                  that it is not (1) a broker-dealer, (2) a Person participating
                  in the distribution of the Exchange Notes or (3) a Person who
                  is an affiliate (as defined in Rule 144) of the Company;

                    (B) such transfer is effected pursuant to the Shelf
                  Registration Statement in accordance with the Registration
                  Rights Agreement;

                    (C) such transfer is effected by a broker-dealer pursuant to
                  the Exchange Offer Registration Statement in accordance with
                  the Registration Rights Agreement; or

                                       23
<PAGE>

                    (D) the Registrar receives the following:

                    (1) if the holder of such beneficial interest in a
                  Restricted Global Note proposes to exchange such beneficial
                  interest for an Unrestricted Definitive Note, a certificate
                  from such holder in the form of Exhibit C hereto, including
                  the certifications in item (1)(b) thereof; or

                    (2) if the holder of such beneficial interest in a
                  Restricted Global Note proposes to transfer such beneficial
                  interest to a Person who shall take delivery thereof in the
                  form of an Unrestricted Definitive Note, a certificate from
                  such holder in the form of Exhibit B hereto, including the
                  certifications in item (4) thereof;

                  and, in each such case set forth in this clause (D), if the
                  Registrar so requests or if the Applicable Procedures so
                  require, an Opinion of Counsel in form reasonably acceptable
                  to the Registrar to the effect that such exchange or transfer
                  is in compliance with the Securities Act and that the
                  restrictions on transfer contained herein and in the Private
                  Placement Legend are no longer required in order to maintain
                  compliance with the Securities Act.

                (iii) Beneficial Interests in Unrestricted Global Notes to
          Unrestricted Definitive Notes. If any holder of a beneficial interest
          in an Unrestricted Global Note proposes to exchange such beneficial
          interest for a Definitive Note or to transfer such beneficial interest
          to a Person who takes delivery thereof in the form of a Definitive
          Note, then, upon satisfaction of the conditions set forth in Section
          2.06(b)(ii) hereof, the Trustee shall cause the aggregate principal
          amount of the applicable Global Note to be reduced accordingly
          pursuant to Section 2.06(h) hereof, and the Company shall execute and
          the Trustee shall authenticate and mail or deliver to the Person
          designated in the instructions a Definitive Note in the appropriate
          principal amount. Any Definitive Note issued in exchange for a
          beneficial interest pursuant to this Section 2.06(c)(iii) shall be
          registered in such name or names and in such authorized denomination
          or denominations as the holder of such beneficial interest shall
          instruct the Registrar through instructions from the Depositary and
          the Participant or Indirect Participant. The Trustee shall mail or
          deliver such Definitive Notes to the Persons in whose names such Notes
          are so registered. Any Definitive Note issued in exchange for a
          beneficial interest pursuant to this Section 2.06(c)(iii) shall not
          bear the Private Placement Legend.

                    (d) TRANSFER AND EXCHANGE OF DEFINITIVE NOTES FOR BENEFICIAL
                  INTERESTS.

                (i) Restricted Definitive Notes to Beneficial Interests in
          Restricted Global Notes. If any Holder of a Restricted Definitive Note
          proposes to exchange such Note for a beneficial interest in a
          Restricted Global Note or to transfer such Restricted Definitive Notes
          to a Person who takes delivery thereof in the form of a beneficial
          interest in a Restricted Global Note, then, upon receipt by the
          Registrar of the following documentation:

                    (A) if the Holder of such Restricted Definitive Note
                  proposes to exchange such Note for a beneficial interest in a
                  Restricted Global Note, a certificate from such Holder in the
                  form of Exhibit C hereto, including the certifications in item
                  (2)(b) thereof;

                    (B) if such Restricted Definitive Note is being transferred
                  to a QIB in accordance with Rule 144A, a certificate to the
                  effect set forth in Exhibit B hereto, including the
                  certifications in item (1) thereof;

                    (C) if such Restricted Definitive Note is being transferred
                  to a Non-U.S. Person in an offshore transaction in accordance
                  with Rule 903 or Rule 904, a certificate to the effect set
                  forth in Exhibit B hereto, including the certifications in
                  item (2) thereof;

                                       24
<PAGE>

                    (D) if such Restricted Definitive Note is being transferred
                  pursuant to an exemption from the registration requirements of
                  the Securities Act in accordance with Rule 144, a certificate
                  to the effect set forth in Exhibit B hereto, including the
                  certifications in item (3)(a) thereof;

                    (E) if such Restricted Definitive Note is being transferred
                  to an Institutional Accredited Investor in reliance on an
                  exemption from the registration requirements of the Securities
                  Act other than those listed in clauses (B) through (D) above,
                  a certificate to the effect set forth in Exhibit B hereto,
                  including the certifications, certificates and Opinion of
                  Counsel required by item (3)(d) thereof, if applicable;

                    (F) if such Restricted Definitive Note is being transferred
                  to the Company or any of its Subsidiaries, a certificate to
                  the effect set forth in Exhibit B hereto, including the
                  certifications in item (3)(b) thereof; or

                    (G) if such Restricted Definitive Note is being transferred
                  pursuant to an effective registration statement under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (3)(c)
                  thereof,

         the Trustee shall cancel the Restricted Definitive Note, increase or
         cause to be increased the aggregate principal amount of, in the case of
         clause (A) above, the appropriate Restricted Global Note, in the case
         of clause (B) above, the 144A Global Note, in the case of clause (C)
         above, the Regulation S Global Note, and in all other cases, the IAI
         Global Note.

                (ii) Restricted Definitive Notes to Beneficial Interests in
          Unrestricted Global Notes. A Holder of a Restricted Definitive Note
          may exchange such Note for a beneficial interest in an Unrestricted
          Global Note or transfer such Restricted Definitive Note to a Person
          who takes delivery thereof in the form of a beneficial interest in an
          Unrestricted Global Note only if:

                    (A) such exchange or transfer is effected pursuant to the
                  Exchange Offer in accordance with the Registration Rights
                  Agreement and the Holder, in the case of an exchange, or the
                  transferee, in the case of a transfer, certifies in the
                  applicable Letter of Transmittal that it is not (1) a
                  broker-dealer, (2) a Person participating in the distribution
                  of the Exchange Notes or (3) a Person who is an affiliate (as
                  defined in Rule 144) of the Company;

                    (B) such transfer is effected pursuant to the Shelf
                  Registration Statement in accordance with the Registration
                  Rights Agreement;

                    (C) such transfer is effected by a broker-dealer pursuant to
                  the Exchange Offer Registration Statement in accordance with
                  the Registration Rights Agreement; or

                    (D) the Registrar receives the following:

                    (1) if the Holder of such Definitive Notes proposes to
                  exchange such Notes for a beneficial interest in the
                  Unrestricted Global Note, a certificate from such Holder in
                  the form of Exhibit C hereto, including the certifications in
                  item (1)(c) thereof; or

                    (2) if the Holder of such Definitive Notes proposes to
                  transfer such Notes to a Person who shall take delivery
                  thereof in the form of a beneficial interest in the
                  Unrestricted Global Note, a certificate from such Holder in
                  the form of Exhibit B hereto, including the certifications in
                  item (4) thereof;

                                       25
<PAGE>

                  and, in each such case set forth in this clause (D), if the
                  Registrar so requests or if the Applicable Procedures so
                  require, an Opinion of Counsel in form reasonably acceptable
                  to the Registrar to the effect that such exchange or transfer
                  is in compliance with the Securities Act and that the
                  restrictions on transfer contained herein and in the Private
                  Placement Legend are no longer required in order to maintain
                  compliance with the Securities Act.

                  Upon satisfaction of the conditions of any of the clauses in
         this Section 2.06(d)(ii), the Trustee shall cancel the Definitive Notes
         and increase or cause to be increased the aggregate principal amount of
         the Unrestricted Global Note.

                (iii) Unrestricted Definitive Notes to Beneficial Interests in
          Unrestricted Global Notes. A Holder of an Unrestricted Definitive Note
          may exchange such Note for a beneficial interest in an Unrestricted
          Global Note or transfer such Unrestricted Definitive Note to a Person
          who takes delivery thereof in the form of a beneficial interest in an
          Unrestricted Global Note at any time. Upon receipt of a request for
          such an exchange or transfer, the Trustee shall cancel the applicable
          Unrestricted Definitive Note and increase or cause to be increased the
          aggregate principal amount of one of the Unrestricted Global Notes.

                (iv) Transfer or Exchange of Unrestricted Definitive Notes to
          Beneficial Interests in Restricted Global Notes Prohibited. An
          Unrestricted Definitive Note cannot be exchanged for, or transferred
          to Persons who take delivery thereof in the form of, beneficial
          interests in a Restricted Global Note.

                (v) Issuance of Unrestricted Global Notes. If any such exchange
          or transfer from a Definitive Note to a beneficial interest is
          effected pursuant to clauses (ii)(B), (ii)(D) or (iii) above at a time
          when an Unrestricted Global Note has not yet been issued, the Company
          shall issue and, upon receipt of an Authentication Order in accordance
          with Section 2.02 hereof, the Trustee shall authenticate one or more
          Unrestricted Global Notes in an aggregate principal amount equal to
          the principal amount of Definitive Notes so transferred.

                  (e) TRANSFER AND EXCHANGE OF DEFINITIVE NOTES FOR DEFINITIVE
NOTES. Upon request by a Holder of Definitive Notes and such Holder's compliance
with the provisions of this Section 2.06(e), the Registrar shall register the
transfer or exchange of Definitive Notes. Prior to such registration of transfer
or exchange, the requesting Holder shall present or surrender to the Registrar
the Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by its attorney, duly authorized in writing. In addition, the requesting Holder
shall provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section
2.06(e).

                (i) Restricted Definitive Notes to Restricted Definitive Notes.
          Any Restricted Definitive Note may be transferred to and registered in
          the name of Persons who take delivery thereof in the form of a
          Restricted Definitive Note if the Registrar receives the following:

                    (A) if the transfer will be made pursuant to Rule 144A, then
                  the transferor must deliver a certificate in the form of
                  Exhibit B hereto, including the certifications in item (1)
                  thereof;

                    (B) if the transfer will be made pursuant to Rule 903 or
                  Rule 904, then the transferor must deliver a certificate in
                  the form of Exhibit B hereto, including the certifications in
                  item (2) thereof; and

                    (C) if the transfer will be made pursuant to any other
                  exemption from the registration requirements of the Securities
                  Act, then the transferor must deliver a certificate in the
                  form of Exhibit B hereto, including the certifications,
                  certificates and Opinion of Counsel required by item (3)
                  thereof, if applicable.

                                       26
<PAGE>

                (ii) Restricted Definitive Notes to Unrestricted Definitive
          Notes. Any Restricted Definitive Note may be exchanged by the Holder
          thereof for an Unrestricted Definitive Note or transferred to a Person
          or Persons who take delivery thereof in the form of an Unrestricted
          Definitive Note if:

                    (A) such exchange or transfer is effected pursuant to the
                  Exchange Offer in accordance with the Registration Rights
                  Agreement and the Holder, in the case of an exchange, or the
                  transferee, in the case of a transfer, certifies in the
                  applicable Letter of Transmittal that it is not (1) a
                  broker-dealer, (2) a Person participating in the distribution
                  of the Exchange Notes or (3) a Person who is an affiliate (as
                  defined in Rule 144) of the Company;

                    (B) any such transfer is effected pursuant to the Shelf
                  Registration Statement in accordance with the Registration
                  Rights Agreement;

                    (C) any such transfer is effected by a broker-dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                    (D) the Registrar receives the following:

                    (1) if the Holder of such Restricted Definitive Notes
                  proposes to exchange such Notes for an Unrestricted Definitive
                  Note, a certificate from such Holder in the form of Exhibit C
                  hereto, including the certifications in item (1)(d) thereof;
                  or

                    (2) if the Holder of such Restricted Definitive Notes
                  proposes to transfer such Notes to a Person who shall take
                  delivery thereof in the form of an Unrestricted Definitive
                  Note, a certificate from such Holder in the form of Exhibit B
                  hereto, including the certifications in item (4) thereof;

                  and, in each such case set forth in this clause (D), if the
                  Registrar so requests, an Opinion of Counsel in form
                  reasonably acceptable to the Registrar and the Company to the
                  effect that such exchange or transfer is in compliance with
                  the Securities Act and that the restrictions on transfer
                  contained herein and in the Private Placement Legend are no
                  longer required in order to maintain compliance with the
                  Securities Act.

                (iii) Unrestricted Definitive Notes to Unrestricted Definitive
          Notes. A Holder of Unrestricted Definitive Notes may transfer such
          Notes to a Person who takes delivery thereof in the form of an
          Unrestricted Definitive Note. Upon receipt of a request to register
          such a transfer, the Registrar shall register the Unrestricted
          Definitive Notes pursuant to the instructions from the Holder thereof.

                  (f) EXCHANGE OFFER. Upon the occurrence of the Exchange Offer
in accordance with the Registration Rights Agreement, the Company shall issue
and, upon receipt of an Authentication Order in accordance with Section 2.02,
the Trustee shall authenticate (A) one or more Unrestricted Global Notes in an
aggregate principal amount equal to the principal amount of the beneficial
interests in the Restricted Global Notes tendered for acceptance by Persons that
certify in the applicable Letters of Transmittal that (x) they are not
broker-dealers, (y) they are not participating in a distribution of the Exchange
Notes and (z) they are not affiliates (as defined in Rule 144) of the Company,
and accepted for exchange in the Exchange Offer and (B) Unrestricted Definitive
Notes in an aggregate principal amount equal to the principal amount of the
Restricted Definitive Notes tendered for acceptance by Persons who made the
foregoing certification and accepted for exchange in the Exchange Offer.
Concurrently with the issuance of such Notes, the Trustee shall cause the
aggregate principal amount of the applicable Restricted Global Notes to be
reduced accordingly, and the Company shall execute and the Trustee shall
authenticate and mail or deliver to the Persons designated by the Holders of
Restricted Definitive Notes so accepted Unrestricted Definitive Notes in the
appropriate principal amount.

                                       27
<PAGE>

                  (g) LEGENDS. The following legends shall appear on the face of
all Global Notes and Definitive Notes issued under this Indenture unless
specifically stated otherwise in the applicable provisions of this Indenture.

                (i) Private Placement Legend.

                    (A) Except as permitted by clause (B) below, each Global
                  Note and each Definitive Note (and all Notes issued in
                  exchange therefor or substitution thereof) shall bear the
                  legend in substantially the following form:

                  THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, IN THE ABSENCE OF SUCH
REGISTRATION UNLESS THE TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS NOTE BY ITS
ACCEPTANCE HEREOF (1) REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL
BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS NOT A
U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN "OFFSHORE TRANSACTION" PURSUANT TO
RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (2) AGREES THAT IT WILL NOT
PRIOR TO (A) THE DATE WHICH IS TWO YEARS (OR SUCH SHORTER PERIOD OF TIME AS
PERMITTED BY RULE 144(k) UNDER THE SECURITIES ACT OR ANY SUCCESSOR PROVISION
THEREUNDER) AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF (OR OF ANY
PREDECESSOR OF THIS NOTE) OR THE LAST DAY ON WHICH THE COMPANY OR ANY AFFILIATE
OF THE COMPANY WERE THE OWNERS OF THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE)
AND (B) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY APPLICABLE LAW (THE
"RESALE RESTRICTION TERMINATION DATE"), OFFER, SELL OR OTHERWISE TRANSFER THIS
NOTE EXCEPT (I) TO THE COMPANY, (II) PURSUANT TO A REGISTRATION STATEMENT WHICH
HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (III) FOR SO LONG AS THE
NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY
BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A, (IV) PURSUANT TO OFFERS AND SALES TO NON-U.S.
PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S
UNDER THE SECURITIES ACT OR (V) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND (3) AGREES THAT IT WILL
GIVE TO EACH PERSON TO WHOM THIS NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO
THE EFFECT OF THIS LEGEND; PROVIDED THAT THE COMPANY, THE TRUSTEE, AND THE
REGISTRAR SHALL HAVE THE RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSE (IV) OR (V) TO REQUIRE THAT AN OPINION OF COUNSEL,
CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO THE COMPANY, THE TRUSTEE
AND THE REGISTRAR IS COMPLETED AND DELIVERED BY THE TRANSFEROR. THIS LEGEND WILL
BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION
TERMINATION DATE. AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION," "UNITED
STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER
THE SECURITIES ACT.

                    (B) Notwithstanding the foregoing, any Global Note or
                  Definitive Note issued pursuant to clauses (b)(iv), (c)(ii),
                  (c)(iii), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f) to this
                  Section 2.06 (and all Notes issued in exchange therefor or
                  substitution thereof) shall not bear the Private Placement
                  Legend.

                (ii) Global Note Legend. Each Global Note shall bear a legend in
          substantially the following form:

                  "THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY
CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY

                                       28
<PAGE>

BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY
BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE
INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE
MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF
THE COMPANY.

                  UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE COMPANY
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN."

                  (h) CANCELLATION AND/OR ADJUSTMENT OF GLOBAL NOTES. At such
time as all beneficial interests in a particular Global Note have been exchanged
for Definitive Notes or a particular Global Note has been redeemed, repurchased
or cancelled in whole and not in part, each such Global Note shall be returned
to or retained and cancelled by the Trustee in accordance with Section 2.11
hereof. At any time prior to such cancellation, if any beneficial interest in a
Global Note is exchanged for or transferred to a Person who will take delivery
thereof in the form of a beneficial interest in another Global Note or for
Definitive Notes, the principal amount of Notes represented by such Global Note
shall be reduced accordingly and an endorsement shall be made on such Global
Note by the Trustee or by the Depositary at the direction of the Trustee to
reflect such reduction; and if the beneficial interest is being exchanged for or
transferred to a Person who will take delivery thereof in the form of a
beneficial interest in another Global Note, such other Global Note shall be
increased accordingly and an endorsement shall be made on such Global Note by
the Trustee or by the Depositary at the direction of the Trustee to reflect such
increase.

                (i) GENERAL PROVISIONS RELATING TO TRANSFERS AND EXCHANGES.

                (i) To permit registrations of transfers and exchanges, the
          Company shall execute and, upon receipt of an Authentication Order in
          accordance with Section 2.02, the Trustee shall authenticate Global
          Notes and Definitive Notes upon the Company's order or at the
          Registrar's request.

                (ii) No service charge shall be made to a Holder of a beneficial
          interest in a Global Note or to a Holder of a Definitive Note for any
          registration of transfer or exchange, but the Company may require
          payment of a sum sufficient to cover any transfer tax or similar
          governmental charge payable in connection therewith (other than any
          such transfer taxes or similar governmental charge payable upon
          exchange or transfer pursuant to Sections 2.10, 3.06, 4.12, 4.18 and
          9.05 hereof).

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

                (iv) Neither the Registrar nor the Company shall be required (A)
          to issue, to register the transfer of or to exchange any Notes during
          a period beginning at the opening of business 15 days before the day
          of any selection of Notes for redemption under Section 3.02 hereof and
          ending at the close of business on the day of selection, (B) to
          register the transfer of or to exchange any Note so selected for
          redemption in whole or in part, except the unredeemed portion of any
          Note being redeemed in part or (C) to register the transfer of or to
          exchange a Note between a record date and the next succeeding Interest
          Payment Date.

                (v) Prior to due presentment for the registration of a transfer
          of any Note, the Trustee, any Agent and the Company may deem and treat
          the Person in whose name any Note is registered as the absolute owner
          of such Note for the purpose of receiving payment of principal of and
          interest on such Notes and for

                                       29
<PAGE>

          all other purposes, and none of the Trustee, any Agent or the Company
          shall be affected by notice to the contrary.

                (vi) The Trustee shall authenticate Global Notes and Definitive
          Notes in accordance with the provisions of Section 2.02 hereof.

                (vii) All certifications, certificates and Opinions of Counsel
          required to be submitted to the Registrar pursuant to this Section
          2.06 to effect a registration of transfer or exchange may be submitted
          by facsimile.

                (viii) The Trustee is hereby authorized to enter into a letter
          of representation with the Depositary in the form provided by the
          Company and to act in accordance with such letter.

Section 2.07.     REPLACEMENT NOTES.
                  -----------------

                  If any mutilated Note is surrendered to the Trustee or the
Company and the Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Note, the Company shall issue and the Trustee,
upon receipt of an Authentication Order, shall authenticate a replacement Note
if the Trustee's requirements are met. If required by the Trustee or the
Company, an indemnity bond must be supplied by the Holder that is sufficient in
the judgment of the Trustee and the Company to protect the Company, the Trustee,
any Agent and any authenticating agent from any loss that any of them may suffer
if a Note is replaced. The Company may charge for its expenses in replacing a
Note.

                  Every replacement Note is an additional obligation of the
Company and shall be entitled to all of the benefits of this Indenture equally
and proportionately with all other Notes duly issued hereunder.

Section 2.08.     OUTSTANDING NOTES.
                  -----------------

                  (a) The Notes outstanding at any time are all the Notes
authenticated by the Trustee except for those cancelled by it, those delivered
to it for cancellation, those reductions in the interest in a Global Note
effected by the Trustee in accordance with the provisions hereof, and those
described in this Section 2.08 as not outstanding. Except as set forth in
Section 2.09 hereof, a Note does not cease to be outstanding because the Company
or an Affiliate of the Company holds the Note; however, Notes held by the
Company or a Subsidiary of the Company shall not be deemed to be outstanding for
purposes of Section 3.07(b) hereof.

                  (b) If a Note is replaced pursuant to Section 2.07 hereof, it
ceases to be outstanding unless the Trustee receives proof satisfactory to it
that the replaced note is held by a bona fide purchaser.

                  (c) If the principal amount of any Note is considered paid
under Section 4.01 hereof, it ceases to be outstanding and interest on it ceases
to accrue.

                  (d) If the Paying Agent (other than the Company, a Subsidiary
or an Affiliate of any thereof) holds, on a redemption date or maturity date,
money sufficient to pay Notes payable on that date, then on and after that date
such Notes shall be deemed to be no longer outstanding and shall cease to accrue
interest.

Section 2.09.     TREASURY NOTES.
                  --------------

                  In determining whether the Holders of the required principal
amount of Notes have concurred in any direction, waiver or consent, Notes owned
by the Company, or by any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company, shall
be considered as though not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Notes that the Trustee knows are so owned
shall be so disregarded.

                                       30
<PAGE>

Section 2.10.     TEMPORARY NOTES.
                  ---------------

                  Until certificates representing Notes are ready for delivery,
the Company may prepare and the Trustee, upon receipt of an Authentication
Order, shall authenticate temporary Notes. Temporary Notes shall be
substantially in the form of certificated Notes but may have variations that the
Company considers appropriate for temporary Notes and as shall be reasonably
acceptable to the Trustee. Without unreasonable delay, the Company shall prepare
and the Trustee shall authenticate Definitive Notes in exchange for temporary
Notes.

                  Holders of temporary Notes shall be entitled to all of the
benefits of this Indenture.

Section 2.11.     CANCELLATION.
                  ------------

                  The Company at any time may deliver Notes to the Trustee for
cancellation. The Registrar and Paying Agent shall forward to the Trustee any
Notes surrendered to them for registration of transfer, exchange or payment. The
Trustee upon direction by the Company and no one else shall cancel all Notes
surrendered for registration of transfer, exchange, payment, replacement or
cancellation and shall destroy cancelled Notes (subject to the record retention
requirements of the Exchange Act). Certification of the destruction of all
cancelled Notes shall be delivered to the Company. The Company may not issue new
Notes to replace Notes that it has paid or that have been delivered to the
Trustee for cancellation.

Section 2.12.     DEFAULTED INTEREST.
                  ------------------

                  If the Company defaults in a payment of interest or Additional
Interest, if any, on the Notes, it shall pay the defaulted interest in any
lawful manner plus, to the extent lawful, interest payable on the defaulted
interest, to the Persons who are Holders on a subsequent special record date, in
each case at the rate provided in the Notes and in Section 4.01 hereof. The
Company shall notify the Trustee in writing of the amount of defaulted interest
proposed to be paid on each Note and the date of the proposed payment. The
Company shall fix or cause to be fixed each such special record date and payment
date, provided that no such special record date shall be less than 10 days prior
to the related payment date for such defaulted interest. At least 15 days before
the special record date, the Company (or, upon the written request of the
Company, the Trustee in the name and at the expense of the Company) shall mail
or cause to be mailed to Holders a notice that states the special record date,
the related payment date and the amount of such interest to be paid.

Section 2.13.     CUSIP OR ISIN NUMBERS.
                  ---------------------

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

Section 2.14.     ADDITIONAL INTEREST.
                  -------------------

                  If Additional Interest is payable by the Company pursuant to
the Registration Rights Agreement and paragraph 1 of the Notes, the Company
shall deliver to the Trustee a certificate to that effect stating (i) the amount
of such Additional Interest that is payable and (ii) the date on which such
interest is payable. Unless and until a Responsible Officer of the Trustee
receives such a certificate or instruction or direction from the Holders in
accordance with the terms of the Indenture, the Trustee may assume without
inquiry that no Additional Interest is payable. The foregoing shall not
prejudice the rights of the Holders with respect to their entitlement to
Additional Interest as otherwise set forth in this Indenture or the Notes and
pursuing any action against the Company directly or otherwise directing the
Trustee to take any such action in accordance with the terms of this Indenture
and the Notes. If the Company has paid Additional Interest directly to the
persons entitled to it, the Company shall deliver to the Trustee a certificate
setting forth the particulars of such payment.

                                       31
<PAGE>

                                   ARTICLE 3.

                            REDEMPTION AND PREPAYMENT

Section 3.01.     NOTICES TO TRUSTEE.
                  ------------------

                  If the Company elects to redeem Notes pursuant to the optional
redemption provisions of Section 3.07 hereof, it shall furnish to the Trustee,
at least 45 days but not more than 60 days before a redemption date, an
Officers' Certificate setting forth (i) the clause of this Indenture pursuant to
which the redemption shall occur, (ii) the redemption date, (iii) the principal
amount of Notes to be redeemed and (iv) the redemption price.

Section 3.02.     SELECTION OF NOTES TO BE REDEEMED.
                  ---------------------------------

                  If less than all of the Notes are to be redeemed at any time,
the Trustee shall select the Notes to be redeemed among the Holders of the Notes
in compliance with the requirements of the principal national securities
exchange, if any, on which the Notes are listed or, if the Notes are not so
listed, on a pro rata basis, by lot or in accordance with any other method the
Trustee considers fair and appropriate. In the event of partial redemption by
lot, the particular Notes to be redeemed shall be selected, unless otherwise
provided herein, not less than 30 nor more than 60 days prior to the redemption
date by the Trustee from the outstanding Notes not previously called for
redemption.

                  The Trustee shall promptly notify the Company in writing of
the Notes selected for redemption and, in the case of any Note selected for
partial redemption, the principal amount thereof to be redeemed. Notes and
portions of Notes selected shall be in amounts of $1,000 or whole multiples of
$1,000; except that if all of the Notes of a Holder are to be redeemed, the
entire outstanding amount of Notes held by such Holder, even if not a multiple
of $1,000, shall be redeemed. Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption also
apply to portions of Notes called for redemption.

Section 3.03.     NOTICE OF REDEMPTION.
                  --------------------

                  At least 30 days but not more than 60 days before a redemption
date, the Company shall mail or cause to be mailed, by first class mail, a
notice of redemption to each Holder whose Notes are to be redeemed at its
registered address, except that redemption notices may be mailed more than 60
days prior to a redemption date if the notice is issued in connection with a
defeasance of the Notes pursuant to Article 8 hereof or a satisfaction and
discharge of this Indenture pursuant to Article 11.

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

                  (a) the redemption date;

                  (b) the redemption price or if the redemption is made pursuant
to Section 3.07(b) a calculation of the redemption price;

                  (c) if any Note is being redeemed in part, the portion of the
principal amount of such Note to be redeemed and that, after the redemption date
upon surrender of such Note, a new Note or Notes in principal amount equal to
the unredeemed portion shall be issued upon cancellation of the original Note;

                  (d) the name and address of the Paying Agent;

                  (e) that Notes called for redemption must be surrendered to
the Paying Agent to collect the redemption price;

                  (f) that, unless the Company defaults in making such
redemption payment, interest and Additional Interest, if any, on Notes called
for redemption ceases to accrue on and after the redemption date;

                                       32
<PAGE>

                  (g) the paragraph of the Notes or Section of this Indenture
pursuant to which the Notes called for redemption are being redeemed; and

                  (h) that no representation is made as to the correctness or
accuracy of the CUSIP number, if any, listed in such notice or printed on the
Notes.

                  At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at its expense; provided, however, that the
Company shall have delivered to the Trustee, at least 45 days, or such shorter
period allowed by the Trustee, prior to the redemption date, an Officers'
Certificate requesting that the Trustee give such notice and setting forth the
information to be stated in such notice as provided in this Section 3.03.

Section 3.04.     EFFECT OF NOTICE OF REDEMPTION.
                  ------------------------------

                  Once notice of redemption is mailed in accordance with Section
3.03 hereof, Notes called for redemption become irrevocably due and payable on
the redemption date at the redemption price. A notice of redemption may not be
conditional.

Section 3.05.     DEPOSIT OF REDEMPTION PRICE.
                  ---------------------------

                  On or before 11:00 a.m. on any redemption date, the Company
shall deposit with the Trustee or with the Paying Agent money sufficient to pay
the redemption price of and accrued interest and Additional Interest, if any, on
all Notes to be redeemed on that date. The Trustee or the Paying Agent shall
promptly return to the Company any money deposited with the Trustee or the
Paying Agent by the Company in excess of the amounts necessary to pay the
redemption price of, and accrued interest and Additional Interest, if any, on,
all Notes to be redeemed.

                  If the Company complies with the provisions of the preceding
paragraph, on and after the redemption date, interest and Additional Interest,
if any, shall cease to accrue on the Notes or the portions of Notes called for
redemption. If a Note is redeemed on or after an interest record date but on or
prior to the related Interest Payment Date, then any accrued and unpaid interest
shall be paid to the Person in whose name such Note was registered at the close
of business on such record date. If any Note called for redemption shall not be
so paid upon surrender for redemption because of the failure of the Company to
comply with the preceding paragraph, interest and Additional Interest, if any,
shall be paid on the unpaid principal from the redemption date until such
principal is paid, and to the extent lawful on any interest not paid on such
unpaid principal, in each case at the rate provided in the Notes and in Section
4.01 hereof.

Section 3.06.     NOTES REDEEMED IN PART.
                  ----------------------

                  Upon surrender of a Note that is redeemed in part, the Company
shall issue and, upon the Company's written request, the Trustee shall
authenticate for the Holder at the expense of the Company a new Note equal in
principal amount to the unredeemed portion of the Note surrendered.

Section 3.07.     OPTIONAL REDEMPTION.
                  -------------------

                  (a) Except as set forth in clause (b) of this Section 3.07,
the Notes will not be redeemable at the option of the Company prior to July 1,
2006. Starting on July 1, 2006, the Company may redeem all or a part of the
Notes after giving the required notice under this Indenture. The Notes may be
redeemed at the redemption prices (expressed as percentages of principal amount)
set forth below, plus accrued and unpaid interest and Additional Interest, if
any, on the Notes redeemed, to the applicable redemption date (subject to the
right of Holders on the relevant record date to receive interest due on the
relevant Interest Payment Date), if redeemed during the twelve-month period
beginning on July 1 of the years indicated below:

                                       33
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                <C>
         Year                                                       Percentage
         ----                                                       ----------
         2006.......................................................104.750%
         2007.......................................................102.375%
         2008 and thereafter........................................100.000%
</TABLE>

                  (b) At any time and from time to time prior to July 1, 2005,
the Company may redeem up to 35% of the aggregate principal amount of the Notes
issued under this Indenture at a redemption price equal to 109.500% of the
principal amount thereof, plus accrued and unpaid interest and Additional
Interest, if any, to the redemption date (subject to the right of Holders of
record on the relevant record date to receive interest due on the relevant
Interest Payment Date) with the net cash proceeds of any Qualified Equity
Offering of the Company's common stock; provided, however, that after giving
effect to any such redemption, at least 65% of the aggregate principal amount of
the Notes issued under this Indenture (excluding Notes held by the Company and
its Subsidiaries) remains outstanding immediately after the occurrence of such
redemption. Any such redemption shall be made within 90 days of the closing of
such Qualified Equity Offering.

                  (c) Any prepayment pursuant to this Section 3.07 shall be made
pursuant to the provisions of Sections 3.01 through 3.06 hereof.

Section 3.08.     MANDATORY REDEMPTION.
                  --------------------

                  The Company shall not be required to make mandatory redemption
or sinking fund payments with respect to the Notes.

Section 3.09.     OFFER TO PURCHASE BY APPLICATION OF EXCESS PROCEEDS

                  (a) In the event that, pursuant to Section 4.12 hereof, the
Issuer shall be required to commence an offer to all Holders to purchase Notes
(an "ASSET SALE OFFER"), it shall follow the procedures specified below.

                  (b) The Asset Sale Offer shall remain open for a period of 20
Business Days following its commencement and no longer, except to the extent
that a longer period is required by applicable law (the "OFFER PERIOD"). No
later than five Business Days after the termination of the Offer Period (the
"PURCHASE DATE"), the Issuer shall purchase the principal amount of Notes
required to be purchased pursuant to Section 4.12 hereof (the "OFFER AMOUNT")
or, if less than the Offer Amount has been tendered, all Notes tendered in
response to the Asset Sale Offer. Payment for any Notes so purchased shall be
made in the same manner as interest payments are made.

                  If the Purchase Date is on or after an interest record date
and on or before the related Interest Payment Date, any accrued and unpaid
interest shall be paid to the Person in whose name a Note is registered at the
close of business on such record date, and no additional interest shall be
payable to Holders who tender Notes pursuant to the Asset Sale Offer.

                  Upon the commencement of the Asset Sale Offer, the Issuer
shall send, by first class mail, a notice to the Trustee and each of the
Holders, with a copy to the Trustee. The notice shall contain all instructions
and materials necessary to enable such Holders to tender Notes pursuant to the
Asset Sale Offer. The Asset Offer shall be made to all Holders. The notice,
which shall govern the terms of the Asset Sale Offer, shall state:

                (i) that the Asset Sale Offer is being made pursuant to this
          Section 3.09 and Section 4.12 hereof and the length of time the Asset
          Sale Offer shall remain open;

                (ii) the Offer Amount, the purchase price and the Purchase Date;

                (iii) that any Note not tendered or accepted for payment shall
          continue to accrue interest;

                (iv) that, unless the Issuer defaults in making such payment,
          any Note accepted for payment pursuant to the Asset Sale Offer shall
          cease to accrue interest and Additional Interest, if any, after the
          Purchase Date;

                                       34
<PAGE>

                (v) that Holders electing to have a Note purchased pursuant to
          an Asset Sale Offer may elect to have Notes purchased in integral
          multiples of $1,000 only;

                (vi) that Holders electing to have a Note purchased pursuant to
          any Asset Sale Offer shall be required to surrender the Note, with the
          form entitled "Option of Holder to Elect Purchase" on the reverse of
          the Note completed, or transfer by book-entry transfer, to the Issuer,
          a depositary, if appointed by the Issuer, or a Paying Agent at the
          address specified in the notice at least three days before the
          Purchase Date;

                (vii) that Holders shall be entitled to withdraw their election
          if the Issuer, the depositary or the Paying Agent, as the case may be,
          receives, not later than the expiration of the Offer Period, a
          telegram, facsimile transmission or letter setting forth the name of
          the Holder, the principal amount of the Note the Holder delivered for
          purchase and a statement that such Holder is withdrawing his election
          to have such Note purchased;

                (viii) that, if the aggregate principal amount of Notes
          surrendered by Holders exceeds the Offer Amount, the Issuer shall
          select the Notes to be purchased on a pro rata basis (with such
          adjustments as may be deemed appropriate by the Issuer so that only
          Notes in denominations of $1,000 or integral multiples thereof shall
          be purchased); and

                (ix) that Holders whose Notes were purchased only in part shall
          be issued new Notes equal in principal amount to the unpurchased
          portion of the Notes surrendered (or transferred by book-entry
          transfer).

                  On or before the Purchase Date, the Issuer shall, to the
extent lawful, accept for payment, on a pro rata basis to the extent necessary,
the Offer Amount of Notes or portions thereof tendered pursuant to the Asset
Sale Offer, or if less than the Offer Amount has been tendered, all Notes
tendered, and shall deliver to the Trustee an Officers' Certificate stating that
such Notes or portions thereof were accepted for payment by the Issuer in
accordance with the terms of this Section 3.09. The Issuer, the Depositary or
the Paying Agent, as the case may be, shall promptly (but in any case not later
than five Business Days after the Purchase Date) mail or deliver to each
tendering Holder an amount equal to the purchase price of the Notes tendered by
such Holder and accepted by the Issuer for purchase, and the Issuer shall
promptly issue a new Note, and the Trustee, upon written request from the Issuer
shall authenticate and mail or deliver such new Note to such Holder, in a
principal amount equal to any unpurchased portion of the Note surrendered. Any
Note not so accepted shall be promptly mailed or delivered by the Issuer to the
Holder thereof. The Issuer shall publicly announce the results of the Asset Sale
Offer on the Purchase Date.

                  Other than as specifically provided in this Section 3.09, any
purchase pursuant to this Section 3.09 shall be made pursuant to the provisions
of Section 3.01 through 3.06 hereof.

                                   ARTICLE 4.

                                   COVENANTS

Section 4.01.     PAYMENT OF NOTES.
                  ----------------

                  The Company shall pay or cause to be paid the principal of,
premium, if any, and interest on the Notes on the dates and in the manner
provided in the Notes. Principal, premium, if any, and interest and Additional
Interest, if any, shall be considered paid on the date due if the Paying Agent,
if other than the Company or a Subsidiary thereof, holds as of 11:00 a.m.
Eastern Time on the due date money deposited by the Company in immediately
available funds and designated for and sufficient to pay all principal, premium,
if any, and interest and Additional Interest, if any, then due. The Company
shall pay Additional Interest, if any, in the same manner, on the dates and in
the amounts set forth in the Registration Rights Agreement.

                  The Company shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal and
premium, if any, from time to time on demand at a rate that is 1% per

                                       35
<PAGE>

annum in excess of the rate then in effect; it shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and Additional Interest, if any, (without regard to any
applicable grace periods) from time to time on demand at the same rate to the
extent lawful.

                  Interest shall be computed on the basis of a 360-day year of
twelve 30-day months.

Section 4.02.     MAINTENANCE OF OFFICE OR AGENCY.
                  -------------------------------

                  (a) The Company shall maintain an office or agency (which may
be an office or drop facility of the Trustee or an affiliate of the Trustee,
Registrar or co-registrar) where Notes may be presented or surrendered for
registration of transfer or for exchange and where notices and demands to or
upon the Company in respect of the Notes and this Indenture may be served. The
Company shall give prompt written notice to the Trustee of the location, and any
change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee, and the Company hereby appoints the Trustee as its agent to receive all
such presentations, surrenders, notices and demands.

                  (b) The Company may also from time to time designate one or
more other offices or agencies where the Notes may be presented or surrendered
for any or all such purposes and may from time to time rescind such
designations. The Company shall give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such
other office or agency.

                  (c) The Company hereby designates the Corporate Trust Office
of the Trustee, as one such office, drop facility or agency of the Company in
accordance with Section 2.03.

Section 4.03.     REPORTS.
                  -------

                  (a) Notwithstanding that the Company may not be subject to the
reporting requirements of Section 13 or 15(d) of the Exchange Act, so long as
any Notes are outstanding the Company shall furnish to the Holders of the Notes,
within the time periods specified in the SEC's rules and regulations:

                (i) all quarterly and annual financial information that would be
          required to be contained in a filing with the SEC on Forms 10-Q and
          10-K if the Company were required to file such Forms, including a
          "Management's Discussion and Analysis of Financial Condition and
          Results of Operations" and, with respect to the annual information
          only, a report on the annual financial statements by the Company's
          certified independent accountants; and

                (ii) all current reports that would be required to be filed with
          the SEC on Form 8-K if the Company were required to file such reports.

                  (b) If the Company has designated any of its Subsidiaries as
Unrestricted Subsidiaries, then the quarterly and annual financial information
required by the preceding clause (a) will include a reasonably detailed
presentation, either on the face of the financial statements or in the footnotes
thereto, and in Management's Discussion and Analysis of Financial Condition and
Results of Operations, of the financial condition and results of operations of
the Company and its Restricted Subsidiaries separate from the financial
condition and results of operations of the Company's Unrestricted Subsidiaries.

                  (c) In addition, following the consummation of the Exchange
Offer contemplated by the Registration Rights Agreement, whether or not required
by the SEC, the Company shall file a copy of all of the information and reports
referred to in clauses (a)(i) and (a)(ii) above with the SEC for public
availability within the time periods specified in the SEC's rules and
regulations (unless the SEC will not accept such a filing) and make such
information available to securities analysts and prospective investors upon
request.

                                       36
<PAGE>

                  (d) For so long as any Notes remain outstanding, the Company
shall furnish to the Holders and to securities analysts and prospective
investors, upon their request, the information required to be delivered pursuant
to Rule 144A(d)(4) under the Securities Act.

Section 4.04.     COMPLIANCE CERTIFICATE.
                  ----------------------

                  (a) The Company shall deliver to the Trustee, within 90 days
after the end of each fiscal year, an Officers' Certificate stating that a
review of the activities of the Company and its Subsidiaries during the
preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture, and further
stating, as to each such Officer signing such certificate, that to the best of
his or her knowledge the Company has kept, observed, performed and fulfilled
each and every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions and conditions of this
Indenture (or, if a Default or Event of Default shall have occurred, describing
all such Defaults or Events of Default of which he or she may have knowledge and
what action the Company is taking or proposes to take with respect thereto) and
that to the best of his or her knowledge no event has occurred and remains in
existence by reason of which payments on account of the principal of or
interest, if any, on the Notes is prohibited or if such event has occurred, a
description of the event and what action the Company is taking or proposes to
take with respect thereto.

                  (b) So long as not contrary to the then current
recommendations of the American Institute of Certified Public Accountants, the
year-end financial statements delivered to the Trustee pursuant to Section 4.03
above shall be accompanied by a written statement of the Company's independent
public accountants (who shall be a firm of established national reputation) that
in making the examination necessary for certification of such financial
statements, nothing has come to their attention that would lead them to believe
that the Company has violated any provisions of Articles 4 or 5 hereof or, if
any such violation has occurred, specifying the nature and period of existence
thereof, it being understood that such accountants shall not be liable directly
or indirectly to any Person for any failure to obtain knowledge of any such
violation.

                  (c) The Company shall deliver to the Trustee, within 30 days
after the occurrence thereof, written notice in the form of an Officers'
Certificate of any event that with the giving of notice and the lapse of time
would become an Event of Default, its status and what action the Company is
taking or proposes to take with respect thereto.

Section 4.05.     TAXES.
                  -----

                  The Company shall pay, and shall cause each of its Restricted
Subsidiaries to pay, prior to delinquency, all material taxes, assessments, and
governmental levies except such as are contested in good faith and by
appropriate proceedings or where the failure to effect such payment is not
adverse in any material respect to the Holders of the Notes; provided that
neither the Company nor any such Restricted Subsidiary shall be required to pay
or discharge, or cause to be paid or discharged, any such tax, assessment,
charge or claim the amount, applicability or validity of which is being
contested in good faith by appropriate proceedings and for which adequate
reserves have been established in accordance with GAAP.

Section 4.06.     STAY, EXTENSION AND USURY LAWS.
                  ------------------------------

                  The Company covenants (to the extent that it may lawfully do
so) that it shall not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay, extension or
usury law wherever enacted, now or at any time hereafter in force, that may
affect the covenants or the performance of this Indenture; and the Company (to
the extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law, and covenants that it shall not, by resort to any
such law, hinder, delay or impede the execution of any power herein granted to
the Trustee, but shall suffer and permit the execution of every such power as
though no such law has been enacted.

                                       37
<PAGE>

Section 4.07.     CORPORATE EXISTENCE.
                  -------------------

                  Subject to Article 5 hereof, the Company shall do or cause to
be done all things necessary to preserve and keep in full force and effect (i)
its corporate existence, and the corporate, partnership or other existence of
each of its Restricted Subsidiaries, in accordance with the respective
organizational documents (as the same may be amended from time to time) of the
Company or any such Restricted Subsidiary and (ii) the rights (charter and
statutory), licenses and franchises of the Company and its Restricted
Subsidiaries; provided, however, that the Company shall not be required to
preserve any such right, license or franchise, or the corporate, partnership or
other existence of any of its Restricted Subsidiaries, if the Board of Directors
shall determine that the preservation thereof is no longer desirable in the
conduct of the business of the Company and its Restricted Subsidiaries, taken as
a whole, and that the loss thereof is not adverse in any material respect to the
Holders of the Notes.

Section 4.08.     PAYMENTS FOR CONSENT.
                  --------------------

                  The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, pay or cause to be paid any
consideration, whether by way of interest, fee or otherwise, to or for the
benefit of any Holder for or as an inducement to any consent, waiver or
amendment of any of the terms or provisions of this Indenture or the Notes
unless such consideration is offered to be paid or is paid to all Holders that
consent, waive or agree to amend in the time frame set forth in the solicitation
documents relating to such consent, waiver or agreement.

Section 4.09.     INCURRENCE OF INDEBTEDNESS AND ISSUANCE OF PREFERRED STOCK.
                  ----------------------------------------------------------

                  (a) The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly, create, incur, issue,
assume, guarantee or otherwise become directly or indirectly liable,
contingently or otherwise, with respect to (collectively, "INCUR") any
Indebtedness (including any Acquired Debt), and the Company shall not issue any
Disqualified Stock and shall not permit any of its Restricted Subsidiaries to
issue any shares of preferred stock; provided, however, that the Company may
incur Indebtedness (including Acquired Debt) or issue Disqualified Stock, and
any of the Subsidiary Guarantors may incur Indebtedness, if the Fixed Charge
Coverage Ratio for the Company's most recently ended four full fiscal quarters
for which internal financial statements are available immediately preceding the
date on which such additional Indebtedness is incurred or such Disqualified
Stock is issued would have been at least 2.00 to 1, determined on a pro forma
basis (including a pro forma application of the net proceeds therefrom), as if
the additional Indebtedness had been incurred or the preferred stock or
Disqualified Stock had been issued, as the case may be, at the beginning of such
four-quarter period.

                  (b) Paragraph (a) of this Section 4.09 will not prohibit the
incurrence of any of the following items of Indebtedness (collectively,
"PERMITTED DEBT"):

                (i) the incurrence by the Company of additional Indebtedness and
          letters of credit under one or more Credit Facilities and Guarantees
          thereof by the Subsidiary Guarantors; provided that the aggregate
          principal amount of all Indebtedness of the Company and its Restricted
          Subsidiaries incurred pursuant to this clause (i) (with letters of
          credit being deemed to have a principal amount equal to the maximum
          potential liability of the Company and the Subsidiary Guarantors
          thereunder) does not exceed an amount equal to $105.0 million less (A)
          50% of all proceeds received from Securitization Transactions and (B)
          the aggregate amount of Net Proceeds from an Asset Sale applied by the
          Company and its Restricted Subsidiaries since the date hereof to repay
          Indebtedness thereunder or to permanently reduce the availability of
          revolving credit Indebtedness pursuant to Section 4.12;

                (ii) the incurrence by the Company and its Restricted
          Subsidiaries of the Existing Indebtedness;

                (iii) the incurrence by the Company of Indebtedness represented
          by the Notes to be issued on the date hereof (and the related Exchange
          Notes to be issued pursuant to the Registration Rights Agreement) and
          the incurrence by the Subsidiary Guarantors of the Subsidiary
          Guarantees of the Notes (and the related Exchange Notes);

                                       38
<PAGE>

                (iv) the incurrence by the Company or any of the Subsidiary
          Guarantors of Indebtedness represented by Capital Lease Obligations,
          mortgage financings or purchase money obligations, in each case
          incurred for the purpose of financing all or any part of the purchase
          price or cost of construction or improvement of property, plant or
          equipment used in the Company's business or the business of such
          Subsidiary Guarantor, in an aggregate principal amount, including all
          Permitted Refinancing Indebtedness incurred to refund, refinance or
          replace any Indebtedness incurred pursuant to this clause (iv), not to
          exceed 3.5% of Consolidated Tangible Assets at any time outstanding;

                (v) the incurrence by the Company or any of its Restricted
          Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or
          the net proceeds of which are used to refund, refinance or replace
          Indebtedness (other than intercompany Indebtedness) that was incurred
          under clause (a) of this Section 4.09 or clauses (ii), (iii), (iv) or
          (x) of this Section 4.09(b);

                (vi) the incurrence by the Company or any of its Restricted
          Subsidiaries of intercompany Indebtedness owed to the Company or any
          of the Subsidiary Guarantors; provided, however, that:

                    (A) if the Company is the obligor on such Indebtedness, such
                  Indebtedness must be expressly subordinated to the prior
                  payment in full in cash of all Obligations with respect to the
                  Notes;

                    (B) if a Subsidiary Guarantor is the obligor on such
                  Indebtedness, such Indebtedness is expressly subordinated to
                  the prior payment in full in cash of such Subsidiary
                  Guarantor's Subsidiary Guarantee; and

                    (C) (1) any subsequent issuance or transfer of Equity
                  Interests that results in any such Indebtedness being held by
                  a Person other than the Company or a Subsidiary Guarantor and
                  (2) any sale or other transfer of any such Indebtedness to a
                  Person that is not either the Company or a Subsidiary
                  Guarantor shall be deemed, in each case, to constitute an
                  incurrence of such Indebtedness by the Company or such
                  Subsidiary Guarantor, as the case may be, that was not
                  permitted by this clause (vi);

                (vii) the incurrence by the Company or any of its Restricted
          Subsidiaries of Hedging Obligations that are incurred in the normal
          course of business for the purpose of fixing or hedging currency,
          commodity or interest rate risk (including with respect to any
          floating rate Indebtedness that is permitted by the terms hereof to be
          outstanding in connection with the conduct of the Company's respective
          businesses and not for speculative purposes);

                (viii) the guarantee by the Company or any of the Subsidiary
          Guarantors of Indebtedness of the Company or of one of its Restricted
          Subsidiaries that was permitted to be incurred by another provision of
          this covenant;

                (ix) the incurrence by the Company's Unrestricted Subsidiaries
          of Non-recourse Debt; provided, however, that if any such Indebtedness
          ceases to be Non-recourse Debt of an Unrestricted Subsidiary, such
          event shall be deemed to be an incurrence of Indebtedness by a
          Restricted Subsidiary of the Company that was not permitted by this
          clause (ix); and

                (x) the incurrence by the Company or any of its Restricted
          Subsidiaries of additional Indebtedness in an aggregate principal
          amount (or accreted value, as applicable) at any time outstanding,
          including all Permitted Refinancing Indebtedness incurred to refund,
          refinance or replace any Indebtedness incurred pursuant to this clause
          (x), not to exceed $25.0 million (which amount may be incurred, in
          whole or in part, under any of the Credit Facilities); provided that
          no more than $10.0 million of such additional Indebtedness shall be
          incurred by Restricted Subsidiaries that are not Subsidiary
          Guarantors.

                                       39
<PAGE>

                  (c) For purposes of determining compliance with this Section
4.09, in the event that an item of proposed Indebtedness meets the criteria of
more than one of the categories of Permitted Debt described in clauses (i)
through (x) of Section 4.09(b) as of the date of incurrence thereof or is
entitled to be incurred pursuant to clause (a) of this Section 4.09, the Company
shall, in its sole discretion, at the time the proposed Indebtedness is
incurred, (x) classify all or a portion of that item of Indebtedness on the date
of its incurrence under either the clause (a) of this Section 4.09 or under any
category of Permitted Debt, (y) reclassify at a later date all or a portion of
that or any other item of Indebtedness as being or having been incurred in any
manner that complies with this Section 4.09 and (z) elect to comply with this
Section 4.09 and the applicable definitions in any order.

                  (d) The Company shall not incur, create, issue, assume,
guarantee or otherwise become liable for any Indebtedness that is subordinate or
junior in right of payment to any Senior Debt of the Company and not subordinate
or junior in right of payment to the Notes; provided, however, that no
Indebtedness of the Company will be deemed to be contractually subordinated in
right of payment solely by virtue of being unsecured. No Subsidiary Guarantor
will incur, create, issue, assume, guarantee or otherwise become liable for any
Indebtedness that is subordinate or junior in right of payment to the Senior
Debt of such Subsidiary Guarantor and not subordinate or junior in right of
payment to such Subsidiary Guarantor's Subsidiary Guarantee; provided, however,
that no Indebtedness of a Subsidiary Guarantor will be deemed to be
contractually subordinated in right of payment solely by virtue of being
unsecured.

                  (e) Indebtedness shall be deemed to have been incurred by the
survivor of a merger, at the time of such merger and, with respect to an
acquired Subsidiary, at the time of such acquisition.

Section 4.10.     RESTRICTED PAYMENTS.
                  -------------------

                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly:

                  (a) declare or pay any dividend or make any other payment or
distribution on account of the Company's Equity Interests (including, without
limitation, any payment in connection with any merger or consolidation involving
the Company) or to the direct or indirect holders of the Company's Equity
Interests in their capacity as such (other than dividends or distributions
payable solely in the Company's Equity Interests (other than Disqualified Stock)
or to the Company);

                  (b) purchase, redeem or otherwise acquire or retire for value
(including, without limitation, in connection with any merger or consolidation
involving the Company) any of the Company's Equity Interests;

                  (c) make any payment on or with respect to, or purchase,
redeem, defease or otherwise acquire or retire for value any Subordinated
Indebtedness, except (i) a payment of interest or principal at the Stated
Maturity thereof or (ii) Subordinated Indebtedness acquired in anticipation of
satisfying a sinking fund obligation, principal installment or payment of
principal upon final maturity of such Subordinated Indebtedness, in each case
acquired within one year of the date of the sinking fund obligation, principal
installment or payment of principal upon maturity; or

                  (d) make any Restricted Investment,

(all such payments and other actions set forth in these clauses (a) through (d)
above being collectively referred to as "RESTRICTED PAYMENTS"), unless, at the
time of and after giving effect to such Restricted Payment:

                  (a) no Default or Event of Default has occurred and is
continuing or would occur as a consequence of such Restricted Payment; and

                  (b) the Company would, at the time of such Restricted Payment
and after giving pro forma effect thereto as if such Restricted Payment had been
made at the beginning of the applicable four-quarter period, have been permitted
to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge
Coverage Ratio test set forth in Section 4.09(a); and

                                       40
<PAGE>

                  (c) such Restricted Payment, together with the aggregate
amount of all other Restricted Payments made by the Company and its Restricted
Subsidiaries after the date hereof (excluding Restricted Payments permitted by
clauses (2) and (3) of the next paragraph), is less than the sum, without
duplication, of:

                (i) 50% of the Company's Consolidated Net Income for the period
          (taken as one accounting period) from April 1, 2002 to the end of the
          Company's most recently ended fiscal quarter for which internal
          financial statements are available at the time of such Restricted
          Payment (or, if such Consolidated Net Income for such period is a
          deficit, less 100% of such deficit), plus

                (ii) 100% of the aggregate net cash proceeds received by the
          Company since the date hereof from the issue or sale of its Equity
          Interests (other than Disqualified Stock) or Equity Interests of any
          of the Company's parent entities (which proceeds are received as a
          contribution to the Company's common or non-redeemable preferred
          equity capital) or from the issue or sale of convertible or
          exchangeable Disqualified Stock or convertible or exchangeable debt
          securities of the Company that have been converted into or exchanged
          for such Equity Interests (other than Equity Interests or Disqualified
          Stock or debt securities sold to a Subsidiary of the Company), plus

                (iii) to the extent that any Restricted Investment that was made
          after the date hereof is sold for cash or otherwise liquidated or
          repaid for cash, the lesser of (1) the cash return of capital with
          respect to such Restricted Investment (less the cost of disposition,
          if any) and (2) the initial amount of such Restricted Investment.

                  So long as no Default has occurred and is continuing or would
be caused thereby, the preceding provisions will not prohibit:

                  (1) the payment of any dividend within 60 days after the date
of declaration of the dividend, if at the date of declaration the dividend
payment would have complied with the provisions hereof;

                  (2) the redemption, repurchase, retirement, defeasance or
other acquisition of any Subordinated Indebtedness or of any of the Company's
Equity Interests by conversion into, or by an exchange for, shares of the
Company's Equity Interests (other than Disqualified Stock), or in exchange for,
or out of the net cash proceeds of the substantially concurrent sale (other than
to any of the Company's Restricted Subsidiaries) of, the Company's Equity
Interests (other than Disqualified Stock); provided that the amount of any such
net cash proceeds that are utilized for any such redemption, repurchase,
retirement, defeasance or other acquisition will be excluded from clause (c)(ii)
of the preceding paragraph;

                  (3) the repurchase, retirement or redemption of any
Subordinated Indebtedness with the proceeds from an Asset Sale to the extent
required by the agreement governing such Subordinated Indebtedness, but only (x)
if the Company has complied with Section 4.12 and (y) to the extent of the
Excess Proceeds remaining after the offer made to Holders of the Notes pursuant
to the Asset Sale;

                  (4) the defeasance, redemption, repurchase or other
acquisition of Subordinated Indebtedness with the net cash proceeds from an
incurrence of Permitted Refinancing Indebtedness; and

                  (5) other Restricted Payments in an aggregate amount since
June 28, 2002 not to exceed $10.0 million.

                  The amount of all Restricted Payments (other than cash) will
be the fair market value on the date of the Restricted Payment of the asset(s)
or securities proposed to be transferred or issued by the Company or such
Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment.
The fair market value of any assets or securities that are required to be valued
by this Section 4.10 will be determined by the Board of Directors of the Company
whose resolutions with respect thereto will be delivered to the Trustee. The
Board of Directors' determination must be based upon an opinion or appraisal
issued by an accounting, appraisal or investment banking firm of national
standing if the fair market value exceeds $5.0 million. Not later than the date
of making any Restricted Payment, the Company shall deliver to the Trustee an
Officers' Certificate stating that such Restricted

                                       41
<PAGE>

Payment is permitted and setting forth the basis upon which the calculations
required by this Section 4.10 were computed, together with a copy of any
fairness opinion or appraisal required by this Indenture.

Section 4.11.     LIENS.
                  -----

                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly, create, incur, assume or
suffer to exist any Lien of any kind securing Indebtedness, Attributable Debt or
trade payables on any asset now owned or hereafter acquired or any proceeds
therefrom, or assign or convey any right to receive income therefrom, except
Permitted Liens.

Section 4.12.     ASSET SALES.
                  -----------

                  (a) The Company shall not, and shall not permit any of its
Restricted Subsidiaries to consummate an Asset Sale unless:

                (i) the Company or such Restricted Subsidiary, as the case may
          be, receives consideration at the time of such Asset Sale at least
          equal to the fair market value of the assets sold or otherwise
          disposed of (evidenced by a Board Resolution of the Board of Directors
          of the Company set forth in an Officers' Certificate delivered to the
          Trustee);

                (ii) if the Company or such Restricted Subsidiary, as the case
          may be, receives consideration at the time of such Asset Sale greater
          than $7.5 million, the fair market value of the assets sold or
          otherwise disposed of is determined by Parent's Board of Directors
          (such determination to be evidenced by a Board Resolution of Parent's
          Board of Directors set forth in an Officers' Certificate delivered to
          the Trustee) or in a written opinion issued by an independent
          appraisal firm or financial advisor of national standing; and

                (iii) at least 75% of the consideration received in the Asset
          Sale by the Company or such Restricted Subsidiary is in the form of
          cash, Cash Equivalents or Replacement Assets.

                  (b) For purposes of Section 4.12(a) only, each of the
following will be deemed to be cash:

                (i) any liabilities of the Company or any of its Restricted
          Subsidiaries, as shown on the Company's or such Restricted
          Subsidiary's most recent balance sheet (other than contingent
          liabilities and liabilities that are by their terms subordinated to
          the Notes or any Restricted Subsidiary's Subsidiary Guarantee) that
          are assumed by the transferee of any such assets pursuant to a
          customary novation agreement that releases the Company or such
          Restricted Subsidiary from further liability; and

                (ii) any securities, notes or other obligations received by the
          Company or any such Restricted Subsidiary from such transferee that
          are contemporaneously, subject to ordinary settlement periods,
          converted by the Company or such Restricted Subsidiary into cash, to
          the extent of the cash received in that conversion;

                (iii) any Designated Non-Cash Consideration received by the
          Company or any of its Restricted Subsidiaries in the Asset Sale.

                  (c) Within 365 days after the receipt of any Net Proceeds from
an Asset Sale, the Company and its Restricted Subsidiaries may apply those Net
Proceeds at their option:

                (i) to repay Senior Debt and, if the Senior Debt repaid is
          revolving credit Indebtedness, to correspondingly permanently reduce
          commitments with respect thereto;

                (ii) to acquire all or substantially all of the assets of, or a
          majority of the Voting Stock of, another Permitted Business; or

                (iii) to acquire other long-term assets that are used or useful
          in a Permitted Business.

                                       42
<PAGE>

                  Pending the final application of any Net Proceeds, the Company
may temporarily reduce revolving credit borrowings or otherwise invest the Net
Proceeds in any manner that is not prohibited by this Indenture.

                  (d) Any Net Proceeds from Asset Sales that are not applied or
invested within such 365-day period as provided in Section 4.12(c) will
constitute "EXCESS PROCEEDS." When the aggregate amount of Excess Proceeds
exceeds $15.0 million, the Company shall make an Asset Sale Offer (which offer
may be made at any time within such 365-day period) to all Holders of Notes and
Additional Notes, if any, and all holders of other Indebtedness that is pari
passu with the Notes containing provisions similar to those set forth herein
with respect to offers to purchase or redeem with the proceeds of sales of
assets to purchase, on a pro rata basis, the maximum principal amount of Notes
and Additional Notes, if any, and such other pari passu Indebtedness equal in
amount to the Excess Proceeds (and not just the amount thereof that exceeds
$15.0 million). The offer price in any Asset Sale Offer will be equal to 100% of
the principal amount thereof plus accrued and unpaid interest and Additional
Interest, if any, to the date of purchase, in accordance with the procedures set
forth herein, and shall be payable in cash. If any Excess Proceeds remain after
consummation of an Asset Sale Offer, the Company may use those Excess Proceeds
for any purpose not otherwise prohibited by this Indenture. If the aggregate
principal amount of Notes and Additional Notes, if any, and other pari passu
Indebtedness surrendered by holders thereof exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes and Additional Notes and other pari
passu Indebtedness to be purchased as described in Article 3 hereof. Upon
completion of each Asset Sale Offer, the amount of Excess Proceeds will be reset
at zero.

                  (e) The Company shall comply with the requirements of Rule
14e-1 under the Exchange Act and any other securities laws and regulations
thereunder to the extent those laws and regulations are applicable in connection
with each repurchase of Notes pursuant to an Asset Sale Offer. To the extent
that the provisions of any securities laws or regulations conflict with the
Asset Sale provisions of this Indenture, the Company shall comply with the
applicable securities laws and regulations and will not be deemed to have
breached its obligations under this Section 4.12 by virtue of such conflict.

Section 4.13.     DIVIDEND AND OTHER PAYMENT RESTRICTIONS AFFECTING RESTRICTED
                  SUBSIDIARIES.
                  ------------------------------------------------------------

                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly, create or permit to exist or
become effective any consensual encumbrance or restriction on the ability of any
Restricted Subsidiary to:

                  (a) pay dividends or make any other distributions on or in
respect of its Capital Stock to the Company or any of its Restricted
Subsidiaries, or with respect to any other interest or participation in, or
measured by, its profits, or pay any Indebtedness owed to the Company or any
other of its Restricted Subsidiaries;

                  (b) make any loans or advances to the Company or any other of
its Restricted Subsidiaries;

                  (c) sell, lease or transfer any of its properties or assets to
the Company or any other of its Restricted Subsidiaries; or

                  (d) guarantee the Company's obligations.

                  However, the preceding restrictions will not apply to
encumbrances or restrictions existing under or by reason of:

                (i) agreements as in effect on the date hereof or subsequent
          agreements relating to our Indebtedness or Indebtedness of any
          Subsidiary Guarantor and any amendments, modifications, restatements,
          renewals, increases, supplements, refundings, replacements or
          refinancings of those agreements; provided that the amendments,
          modifications, restatements, renewals, increases, supplements,
          refundings, replacement or refinancings are not materially more
          restrictive, taken as a whole, with respect to such dividend and other
          payment restrictions than those contained in those agreements on the
          date hereof;

                                       43
<PAGE>

                (ii) this Indenture, the Notes and the Subsidiary Guarantees;

                (iii) applicable law;

                (iv) any instrument governing Indebtedness or Capital Stock of a
          Person acquired by the Company or any of its Restricted Subsidiaries
          as in effect at the time of such acquisition (except to the extent
          such Indebtedness or Capital Stock was incurred in connection with or
          in contemplation of such acquisition), which encumbrance or
          restriction is not applicable to any Person, or the properties or
          assets of any Person, other than the Person, or the property or assets
          of the Person, so acquired; provided that, in the case of
          Indebtedness, such Indebtedness was permitted by the terms of this
          Indenture to be incurred;

                (v) customary non-assignment provisions in leases entered into
          in the ordinary course of business;

                (vi) purchase money obligations for property acquired in the
          ordinary course of business that impose restrictions on that property
          of the nature described in clause (c) of the preceding paragraph;

                (vii) any agreement for the sale or other disposition of a
          Restricted Subsidiary that restricts distributions by that Restricted
          Subsidiary pending its sale or other disposition;

                (viii) Permitted Refinancing Indebtedness; provided that the
          restrictions contained in the agreements governing such Permitted
          Refinancing Indebtedness are not materially more restrictive, taken as
          a whole, than those contained in the agreements governing the
          Indebtedness being refinanced;

                (ix) Liens securing Indebtedness otherwise permitted to be
          incurred under Section 4.11 that limit the right of the debtor to
          dispose of the assets subject to such Liens; and

                (x) provisions with respect to the disposition or distribution
          of assets or property in joint venture agreements, asset sale
          agreements, stock sale agreements and other similar agreements entered
          into in the ordinary course of business.

Section 4.14.     TRANSACTIONS WITH AFFILIATES.
                  ----------------------------

                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, make any payment to, or sell, lease, transfer or
otherwise dispose of any of their respective properties or assets to, or
purchase any property or assets from, or enter into or make or amend any
transaction, contract, agreement, understanding, loan, advance or guarantee
with, or for the benefit of, any Affiliate (each, an "AFFILIATE TRANSACTION"),
unless:

                  (a) the Affiliate Transaction is on terms that are no less
favorable to the Company or the relevant Restricted Subsidiary than those that
would have been obtained in a comparable transaction by the Company or such
Restricted Subsidiary with a Person that is not an Affiliate; and

                  (b) the Company delivers to the trustee:

                (i) with respect to any Affiliate Transaction or series of
          related Affiliate Transactions involving aggregate consideration in
          excess of $5.0 million, a resolution of the Board of Directors of the
          Company set forth in an Officers' Certificate certifying that such
          Affiliate Transaction complies with this covenant and that such
          Affiliate Transaction has been approved by a majority of the
          disinterested members of the Board of Directors of the Company or
          Parent's Board of Directors, or, if there are no disinterested members
          of the approving Board of Directors at the time, a written opinion
          issued by an independent appraisal firm or financial advisor of
          national standing that such Affiliate Transaction is fair to the
          Company or such Restricted Subsidiary, as the case may be, from a
          financial point of view; and

                (ii) with respect to any Affiliate Transaction or series of
          related Affiliate Transactions involving aggregate consideration in
          excess of $10.0 million, a written opinion issued by an independent
          financial

                                       44
<PAGE>

          advisor of national standing that such Affiliate Transaction is fair
          to the Company or such Restricted Subsidiary, as the case may be,
          from a financial point of view.

                  The following items will not be deemed to be Affiliate
Transactions and, therefore, will not be subject to the provisions of the prior
paragraph:

                  (a) transactions between or among the Company and/or its
Restricted Subsidiaries;

                  (b) transactions with a Person that is an Affiliate of the
Company solely because the Company owns an Equity Interest in such Person;

                  (c) advances to officers of the Company or any of the
Company's Restricted Subsidiaries in the ordinary course of business to provide
for the payment of reasonable expenses incurred by such persons in the
performance of their responsibilities to the Company or such Restricted
Subsidiary or in connection with any relocation;

                  (d) sales of Equity Interests (other than Disqualified Stock)
to Affiliates of the Company;

                  (e) fees and compensation paid to and indemnity provided on
behalf of directors, officers or employees of the Company or any Restricted
Subsidiary of the Company in the ordinary course of business;

                  (f) any employment agreement that is in effect on the date
hereof and any such employment agreement entered into by the Company or any of
its Restricted Subsidiaries after the date hereof in the ordinary course of
business;

                  (g) any Restricted Payment that is not prohibited by Section
4.10;

                  (h) any sale, conveyance or other transfer of accounts
receivable and other related assets customarily transferred in a Securitization
Transaction;

                  (i) payment of premiums to, and the receipt of proceeds of
insurance from, Laurier Indemnity Company and Laurier Indemnity Company, Ltd.;

                  (j) payments to or receipts from Extendicare Holdings, Inc.
pursuant to any tax sharing agreement entered into for the purpose of preparing
a consolidated tax return of Extendicare Holdings, Inc.;

                  (k) payments to or receipts from Virtual Care Provider, Inc.
in connection with the provision of technology services to third parties
pursuant to the terms of management, consulting or other similar agreements; and

                  (l) transactions pursuant to the services agreement between
the Company and Virtual Care Provider, Inc. relating to certain services
provided by the Company and Virtual Care Provider, Inc. to each other as in
effect on the date hereof.

Section 4.15.     SALE AND LEASEBACK TRANSACTIONS.
                  -------------------------------

                  The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, enter into any sale and leaseback transaction;
provided that the Company or any Subsidiary Guarantor may enter into a sale and
leaseback transaction if:

                  (a) the Company or that Subsidiary Guarantor could have (a)
incurred Indebtedness in an amount equal to the Attributable Debt relating to
such sale and leaseback transaction under the Fixed Charge Coverage Ratio test
in the first paragraph of Section 4.09 and (b) incurred a Lien to secure such
Indebtedness pursuant to Section 4.11;

                                       45

<PAGE>

                  (b) the gross cash proceeds of that sale and leaseback
transaction are at least equal to the fair market value, as determined in good
faith by the Board of Directors of the Company and set forth in an Officers'
Certificate delivered to the Trustee, of the property that is the subject of
that sale and leaseback transaction; and

                  (c) the transfer of assets in that sale and leaseback
transaction is permitted by, and the Company applies the proceeds of such
transaction in compliance with, Section 4.12.

Section 4.16.     ISSUANCES AND SALES OF CAPITAL STOCK OF RESTRICTED
                  SUBSIDIARIES
                  ---------------------------------------------------

                  The Company (a) shall not, and shall not permit any of its
Restricted Subsidiaries to, transfer, convey, sell, lease or otherwise dispose
of any Capital Stock of any of its Restricted Subsidiaries to any Person (other
than to the Company or another one of its Restricted Subsidiaries), unless (i)
such transfer, conveyance, sale, lease or other disposition is of all the
Capital Stock of such Restricted Subsidiary and (ii) the Net Proceeds from such
transfer, conveyance, sale, lease or other disposition are applied in accordance
with Section 4.12; provided that this clause (a) shall not apply to any pledge
of Capital Stock of any Restricted Subsidiary of the Company securing
Indebtedness under Credit Facilities, including the Credit Agreement, or any
exercise of remedies in connection therewith, and (b) shall not permit any
Restricted Subsidiary of the Company to issue any of its Equity Interests (other
than, if necessary, shares of its Capital Stock constituting directors'
qualifying shares or ownership by foreign nationals) to any Person other than
the Company or another one of its Restricted Subsidiaries.

Section 4.17.     DESIGNATION OF RESTRICTED AND UNRESTRICTED SUBSIDIARIES.
                  -------------------------------------------------------

                  The Board of Directors of the Company may designate any
Restricted Subsidiary to be an Unrestricted Subsidiary if that designation would
not cause a Default. If a Restricted Subsidiary is designated as an Unrestricted
Subsidiary, the aggregate fair market value of all outstanding Investments owned
by the Company and its Restricted Subsidiaries in the Subsidiary properly
designated will be deemed to be an Investment made as of the time of the
designation and will reduce the amount available for Restricted Payments under
the first paragraph of Section 4.10 or Permitted Investments, as determined by
the Company. That designation will only be permitted if the Investment would be
permitted at that time and if the Restricted Subsidiary otherwise meets the
definition of an Unrestricted Subsidiary. The Board of Directors of the Company
may redesignate any Unrestricted Subsidiary to be a Restricted Subsidiary if the
redesignation would not cause a Default.

Section 4.18.     REPURCHASE AT THE OPTION OF HOLDERS UPON A CHANGE OF CONTROL.
                  ------------------------------------------------------------

                  (a) Upon the occurrence of a Change of Control, each Holder
shall have the right to require the Company to repurchase all or any part (equal
to $1,000 or an integral multiple of $1,000) of such Holder's Notes pursuant to
the offer described below (the "CHANGE OF CONTROL OFFER") at a purchase price
(the "CHANGE OF CONTROL PURCHASE PRICE") equal to 101% of the aggregate
principal amount of Notes repurchased, plus accrued and unpaid interest and
Additional Interest if any, on the Notes repurchased, to the purchase date
(subject to the right of Holders on the relevant record date to receive interest
due on the relevant Interest Payment Date).

                  Subject to clause (c) below, within 30 days following any
Change of Control, the Company shall mail a notice to the Trustee and each
Holder:

                (i) send, by first-class mail, with a copy to the Trustee, to
          each Holder, at such Holder's address appearing in the securities
          register maintained in respect of the Notes by the Registrar (the
          "SECURITY REGISTER"):

                    (A) that a Change of Control has occurred and a Change of
                  Control Offer is being made pursuant to Section 4.18 and that
                  all Notes timely tendered will be accepted for payment;

                    (B) the Change of Control Purchase Price and the purchase
                  date, which shall be, subject to any contrary requirements of
                  applicable law, a business day

                                       46
<PAGE>
                  no earlier than 30 days and no later than 60 days from the
                  date such notice is mailed;

                    (C) the circumstances and relevant facts regarding the
                  Change of Control (including information with respect to pro
                  forma historical income, cash flow and capitalization after
                  giving effect to the Change of Control); and

                    (D) the procedures that Holders must follow in order to
                  tender their Notes (or portions thereof) for payment, and the
                  procedures that Holders must follow in order to withdraw an
                  election to tender Notes (or portions thereof) for payment.

                  The Company will comply, to the extent applicable, with the
requirements of Rule 14(e)-1 under the Exchange Act and any other securities
laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the Notes as a result of a
Change of Control. To the extent that the provisions of any securities laws or
regulations conflict with the Change of Control provisions of the covenant
described hereunder, the Company will comply with the applicable securities laws
and regulations and will not be deemed to have breached its obligations under
the covenant described hereunder by virtue of such conflict.

                    (b) On the Change of Control Payment Date, the Company
                  shall, to the extent lawful:

                (i) accept for payment all Notes or portions of Notes properly
          tendered pursuant to the Change of Control Offer;

                (ii) deposit with the Paying Agent an amount equal to the Change
          of Control Payment in respect of all Notes or portions of Notes
          properly tendered; and

                (iii) deliver or cause to be delivered to the Trustee the Notes
          properly accepted together with an Officers' Certificate stating the
          aggregate principal amount of Notes or portions of Notes being
          purchased by the Company.

                  The Paying Agent shall promptly mail to each Holder of Notes
properly tendered the Change of Control Payment for such Notes, and the Trustee
will promptly authenticate and mail (or cause to be transferred by book-entry)
to each Holder a new note equal in principal amount to any unpurchased portion
of the Notes surrendered, if any; provided that each new note will be in a
principal amount of $1,000 or an integral multiple of $1,000.

                  (c) Prior to complying with any of the provisions of this
Section 4.18, but in any event within 90 days following a Change of Control, the
Company shall either repay all outstanding Senior Debt or obtain the requisite
consents, if any, under all agreements governing outstanding Senior Debt to
permit the repurchase of Notes required by this covenant. The Company shall
publicly announce the results of the Change of Control Offer on or as soon as
practicable after the Change of Control Payment Date.

                  (d) The provisions described above that require us to make a
Change of Control Offer following a Change of Control will be applicable whether
or not any other provisions of the indenture are applicable. Except as described
above with respect to a Change of Control, this Indenture does not contain
provisions that permit the Holders of the Notes to require that the Company
repurchase or redeem the Notes in the event of a takeover, recapitalization or
similar transaction.

                  (e) The Company will not be required to make a Change of
Control Offer upon a Change of Control if a third party makes a Change of
Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Indenture applicable to a Change of Control Offer
made by the Company and purchases all Notes properly tendered and not withdrawn
under the Change of Control Offer.

                                       47
<PAGE>

Section 4.19.     ADDITIONAL SUBSIDIARY GUARANTEES

                  If the Company or any of its Restricted Subsidiaries acquires
or creates another domestic Significant Subsidiary or any other Domestic
Subsidiary that guarantees or incurs any Indebtedness or any other Significant
Subsidiary or Restricted Subsidiary that guarantees or otherwise provides direct
credit support for Indebtedness of the Company or any of the Company's Domestic
Subsidiaries after the date hereof, then that newly acquired or created
Significant Subsidiary, Domestic Subsidiary or other Restricted Subsidiary will
execute and deliver to the Trustee a supplemental indenture providing for a
Subsidiary Guarantee and deliver an Opinion of Counsel satisfactory to the
Trustee within 10 Business Days of the date on which it was acquired or created;
provided, however, that the foregoing shall not apply to Subsidiaries that have
properly been designated as Unrestricted Subsidiaries in accordance with this
Indenture for so long as they continue to constitute Unrestricted Subsidiaries.

Section 4.20.     DESIGNATION AS "DESIGNATED SENIOR INDEBTEDNESS"

                  The Company hereby designates the Notes as "Designated Senior
Indebtedness" as that term is defined in the Senior Subordinated Note Indenture.

Section 4.21.     BUSINESS ACTIVITIES.
                  -------------------

                  The Company shall not, and shall not permit any Restricted
Subsidiary to, engage in any business other than Permitted Businesses, except to
such extent as would not be material to the Company and its Subsidiaries taken
as a whole.

                                   ARTICLE 5.

                                   SUCCESSORS

Section 5.01.     MERGER, CONSOLIDATION, OR SALE OF PROPERTY.
                  ------------------------------------------

                  The Company shall not, directly or indirectly (a) consolidate
or merge with or into another Person (whether or not the Company is the
surviving corporation) or (b) sell, assign, transfer, convey or otherwise
dispose of all or substantially all of the properties or assets of the Company
and its Restricted Subsidiaries taken as a whole, in one or more related
transactions, to another Person; unless:

                  (a) either: (x) the Company is the surviving corporation; or
(y) the Person formed by or surviving any such consolidation or merger (if other
than the Company) or to which such sale, assignment, transfer, conveyance or
other disposition has been made is a corporation organized or existing under the
laws of the United States, any state of the United States or the District of
Columbia;

                  (b) the Person formed by or surviving any such consolidation
or merger (if other than the Company) or the Person to which such sale,
assignment, transfer, conveyance or other disposition has been made assumes all
of the Company's obligations under the Notes, this Indenture and the
Registration Rights Agreement pursuant to a supplemental indenture reasonably
satisfactory to the Trustee;

                  (c) immediately after such transaction no Default or Event of
Default exists;

                  (d) the Company or the Person formed by or surviving any such
consolidation or merger (if other than the Company), or to which such sale,
assignment, transfer, conveyance or other disposition has been made shall, on
the date of such transaction after giving pro forma effect thereto and any
related financing transactions as if the same had occurred at the beginning of
the applicable four-quarter period, be permitted to incur at least $1.00 of
additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set
forth in Section 4.09.

                  (e) the Company, or the Person formed by or surviving any such
consolidation or merger (if other than the Company), or to which such sale,
assignment, transfer, conveyance or other disposition has been made,

                                       48
<PAGE>
shall have delivered to the Trustee an Officers' Certificate and an Opinion of
Counsel, each stating that such transaction and any supplemental indenture
entered into in connection therewith complies with all of the terms of this
Section 5.01 and that all conditions precedent provided for in this Indenture
relating to such transaction or series of transactions have been complied with.

                  In addition, the Company may not, directly or indirectly,
lease all or substantially all of its properties or assets, in one or more
related transactions, to any other Person. The Person formed by or surviving any
consolidation or merger (if other than the Company) will succeed to, and be
substituted for, and may exercise every right and power of the Company under
this Indenture, but, in the case of a lease of all or substantially all the
assets of the Company, the Company will not be released from the obligation to
pay the principal of and interest on the Notes.

Section 5.02.     SUCCESSOR CORPORATION SUBSTITUTED.
                  ---------------------------------

                  The Surviving Person shall succeed to, and be substituted for,
and may exercise every right and power of the Company under this Indenture, but
the predecessor Company in the case of:

                  (a) a sale, transfer, assignment, conveyance or other
disposition (unless such sale, transfer, assignment, conveyance or other
disposition is of all the assets of the Company as an entirety or virtually as
an entirety), or

                  (b) a lease,

shall not be released from any of the obligations or covenants under this
Indenture, including with respect to the payment of the Notes.

                                   ARTICLE 6.

                              DEFAULTS AND REMEDIES

Section 6.01.     EVENTS OF DEFAULT.
                  -----------------

Each of the following is an "Event of Default:"

                (i) default for 30 days in the payment when due of interest on,
          or Additional Interest with respect to, the Notes;

                (ii) default in payment when due of the principal of or premium,
          if any, on the Notes;

                (iii) failure by the Company or any of its Restricted
          Subsidiaries to comply with Section 4.09, Section 4.10 or Article 5;

                (iv) failure by the Company or any of its Restricted
          Subsidiaries for 30 days after notice to comply with Sections 4.12 or
          4.18;

                (v) failure by the Company or any of its Restricted Subsidiaries
          for 60 days after notice to comply with any other covenant or
          agreement in the Notes or in this Indenture;

                (vi) default under any mortgage, indenture or instrument under
          which there may be issued or by which there may be secured or
          evidenced any Indebtedness for money borrowed by the Company or any of
          its Restricted Subsidiaries (or the payment of which is guaranteed by
          the Company or any of its Restricted Subsidiaries) whether such
          Indebtedness or guarantee now exists, or is created after the date
          hereof, if that default:

                                       49
<PAGE>

                    (A) is caused by a failure to pay principal of, or interest
                  or premium, if any, on such Indebtedness prior to the
                  expiration of the grace period provided in such Indebtedness
                  on the date of such default (a "PAYMENT DEFAULT"); or

                    (B) results in the acceleration of such Indebtedness prior
                  to its express maturity,

                  and, in each case, the principal amount of any such
Indebtedness, together with the principal amount of any other such Indebtedness
under which there has been a Payment Default or the maturity of which has been
so accelerated, aggregates $20.0 million or more;

                (vii) failure by the Company or any of its Restricted
          Subsidiaries to pay final judgments (to the extent not fully covered
          by insurance) aggregating in excess of $20.0 million, which judgments
          are not paid, discharged or stayed for a period of 60 consecutive
          days;

                (viii) except as permitted by this Indenture, any Subsidiary
          Guarantee shall be held in any judicial proceeding to be unenforceable
          or invalid or shall cease for any reason to be in full force and
          effect or any Subsidiary Guarantor, or any Person acting on behalf of
          any Subsidiary Guarantor, shall deny or disaffirm its obligations
          under its Subsidiary Guarantee; and

                (ix) the Company or any of its Significant Subsidiaries pursuant
          to or within the meaning of Bankruptcy Law:

                    (A) commences a voluntary case,

                    (B) consents to the entry of an order for relief against it
                  in an involuntary case,

                    (C) consents to the appointment of a custodian of it or for
                  all or substantially all of its property,

                    (D) makes a general assignment for the benefit of its
                  creditors, or

                    (E) generally is not paying its debts as they become due;
                  and

                (x) a court of competent jurisdiction enters an order or decree
          under any Bankruptcy Law that:

                    (A) is for relief against the Company or any of its
                  Significant Subsidiaries in an involuntary case; or

                    (B) appoints a Custodian of the Company or any of its
                  Significant Subsidiaries or for all or substantially all of
                  the property of the Company or any of its Significant
                  Subsidiaries; or

                    (C) orders the liquidation of the Company or any of its
                  Significant Subsidiaries;

                  and the order or decree remains unstayed and in effect for 60
                  consecutive days.

Section 6.02.     ACCELERATION.
                  ------------

                  If an Event of Default (other than an Event of Default
specified in clauses (ix) or (x) of Section 6.01 hereof, with respect to the
Company, any Subsidiary that is a Significant Subsidiary or any group of
Subsidiaries that, taken together would constitute a Significant Subsidiary),
shall have occurred and be continuing, the Trustee or the Holders of not less
than 25% in aggregate principal amount of the Notes then outstanding may

                                       50
<PAGE>

declare to be immediately due and payable the principal amount of all the Notes
then outstanding, plus accrued but unpaid interest and Additional Interest, if
any, to the date of acceleration. In the case of an Event of Default specified
in clauses (ix) or (x) of Section 6.01 hereof, with respect to the Company, any
Subsidiary that is a Significant Subsidiary or any group of Subsidiaries that,
taken together would constitute a Significant Subsidiary shall occur, such
amount with respect to all the Notes will become due and payable immediately
without any declaration or other act on the part of the Trustee or the Holders.
Holders may not enforce this Indenture or the Notes except as provided in this
Indenture. Subject to the limitations described in this Article 6, Holders of a
majority in aggregate principal amount of the then outstanding Notes may direct
the Trustee in its exercise of any trust or power. The Trustee may withhold from
Holders notice of any continuing Default or Event of Default (except a Default
or Event of Default relating to the payment of principal, premium, if any, or
interest or Additional Interest, if any) if it determines that withholding
notice is in their interest.

                  In the case of an Event of Default occurring by reason of any
willful action or inaction taken or not taken by the Company or on the Company's
behalf with the intention of avoiding payment of the premium that the Company
would have been required to pay if the Company had then elected to redeem the
Notes pursuant to Section 3.07 hereof, an equivalent premium will also become
and be immediately due and payable to the extent permitted by law upon the
acceleration of the Notes. If an Event of Default occurs prior to July 1, 2006,
by reason of any willful action or inaction taken or not taken by the Company or
on the Company's behalf with the intention of avoiding the prohibition on
redemption of the Notes prior to July 1, 2006, then the premium specified in
Section 3.07 will also become immediately due and payable to the extent
permitted by law upon acceleration of the Notes.

Section 6.03.     OTHER REMEDIES.
                  --------------

                  If an Event of Default occurs and is continuing, the Trustee
may pursue any available remedy to collect the payment of principal, premium, if
any, and interest and Additional Interest, if any, on the Notes or to enforce
the performance of any provision of the Notes or this Indenture.

                  The Trustee may maintain a proceeding even if it does not
possess any of the Notes or does not produce any of them in the proceeding. A
delay or omission by the Trustee or any Holder in exercising any right or remedy
accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

Section 6.04.     WAIVER OF PAST DEFAULTS.
                  -----------------------

                  Holders of not less than a majority in aggregate principal
amount of the then outstanding Notes by notice to the Trustee may on behalf of
the Holders of all of the Notes waive an existing Default or Event of Default
and its consequences hereunder, except a continuing Default or Event of Default
in the payment of the principal of, premium, if any, or interest or Additional
Interest on, the Notes; provided, however, that after any acceleration, but
before a judgment or decree based on acceleration is obtained by the Trustee,
the Holders of a majority in aggregate principal amount of the Notes then
outstanding may rescind and annul such acceleration if all Events of Default,
other than the nonpayment of accelerated principal, premium or interest or
Additional Interest, have been cured or waived as provided in this Indenture.
Upon any such waiver, such Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other
Default or impair any right consequent thereon.

Section 6.05.     CONTROL BY MAJORITY.
                  -------------------

                  Subject to Section 7.01, in case an Event of Default shall
occur and be continuing, the Trustee will be under no obligation to exercise any
of its rights or powers under this Indenture at the request or direction of any
of the Holders, unless such Holders shall have offered to the Trustee reasonable
indemnity. Subject to Section 7.07, the Holders of a majority in aggregate
principal amount of the Notes then outstanding will have the right to direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee or exercising any trust or power conferred on the Trustee with
respect to the Notes.

                                       51
<PAGE>

Section 6.06.     LIMITATION ON SUITS.
                  -------------------

                  No Holder will have any right to institute any proceeding with
respect to this Indenture, or for the appointment of a receiver or trustee, or
for any remedy thereunder, unless:

                  (a) such Holder has previously given to the Trustee written
notice of a continuing Event of Default,

                  (b) Holders of at least 25% in aggregate principal amount of
the Notes then outstanding have made written request and offered reasonable
indemnity to the Trustee to institute such proceeding as trustee, and

                  (c) the Trustee shall not have received from the Holders of a
majority in aggregate principal amount of the Notes then outstanding a direction
inconsistent with such request and shall have failed to institute such
proceeding within 60 days.

                  The preceding limitations do not apply to a suit instituted by
a Holder for enforcement of payment of the principal of, and premium, if any, or
interest or Additional Interest on, a Note on or after the respective due dates
expressed in such Note.

                  A Holder may not use this Indenture to affect, disturb or
prejudice the rights of another Holder or to obtain a preference or priority
over another Holder.

Section 6.07.     RIGHTS OF HOLDERS TO RECEIVE PAYMENT.
                  ------------------------------------

                  Notwithstanding any other provision of this Indenture, the
right of any Holder to receive payment of principal, premium, if any, and
interest and Additional Interest, if any, on the Note, on or after the
respective due dates expressed in the Note (including in connection with an
offer to purchase), or to bring suit for the enforcement of any such payment on
or after such respective dates, shall not be impaired or affected without the
consent of such Holder.

Section 6.08.     COLLECTION SUIT BY TRUSTEE.
                  --------------------------

                  If an Event of Default specified in clauses (i) or (ii) of
Section 6.01 occurs and is continuing, the Trustee is authorized to recover
judgment in its own name and as trustee of an express trust against the Company
for the whole amount of principal of, premium, if any, and interest and
Additional Interest, if any, remaining unpaid on the Notes and interest on
overdue principal and, to the extent lawful, interest and such further amount as
shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

Section 6.09.     TRUSTEE MAY FILE PROOFS OF CLAIM.
                  --------------------------------

                  The Trustee is authorized to file such proofs of claim and
other papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel) and
the Holders allowed in any judicial proceedings relative to the Company (or any
other obligor upon the Notes), its creditors or its property and shall be
entitled and empowered to participate as a member, voting or otherwise, of any
official committee of creditors appointed in such matter and shall be entitled
and empowered to collect, receive and distribute any money or other property
payable or deliverable on any such claims and any custodian in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee, and in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due to it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07 hereof. To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 7.07 hereof out of the estate in
any such proceeding, shall be denied for any reason, payment of the same shall
be secured by a Lien on, and shall be paid out of, any and all distributions,

                                       52
<PAGE>

dividends, money, securities and other properties that the Holders may be
entitled to receive in such proceeding whether in liquidation or under any plan
of reorganization or arrangement or otherwise. Nothing herein contained shall be
deemed to authorize the Trustee to authorize or consent to or accept or adopt on
behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder, or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding.

Section 6.10.     PRIORITIES.
                  ----------

                  If the Trustee collects any money pursuant to this Article 6,
it shall pay out the money in the following order:

                  First: to the Trustee, its agents and attorneys for amounts
due under Section 7.07 hereof, including payment of all compensation, expenses
and liabilities incurred, and all advances made, by the Trustee and the costs
and expenses of collection;

                  Second: to Holders for amounts due and unpaid on the Notes for
principal, premium, if any, and interest and Additional Interest, if any,
ratably, without preference or priority of any kind, according to the amounts
due and payable on the Notes for principal, premium, if any, and interest and
Additional Interest, if any,, respectively; and

                  Third: to the Company or to such party as a court of competent
jurisdiction shall direct.

                  The Trustee may fix a record date and payment date for any
payment to Holders pursuant to this Section 6.10.

Section 6.11.     UNDERTAKING FOR COSTS.
                  ---------------------

                  In any suit for the enforcement of any right or remedy under
this Indenture or in any suit against the Trustee for any action taken or
omitted by it as a Trustee, a court in its discretion may require the filing by
any party litigant in the suit of an undertaking to pay the costs of the suit,
and the court in its discretion may assess reasonable costs, including
reasonable attorneys' fees, against any party litigant in the suit, having due
regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a
Holder pursuant to Section 6.07 hereof, or a suit by Holders of more than 10% in
principal amount of the then outstanding Notes.

                                   ARTICLE 7.

                                     TRUSTEE

Section 7.01.     DUTIES OF TRUSTEE.
                  -----------------

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

                  (b) Except during the continuance of an Event of Default:

                         (1) the duties of the Trustee shall be determined
                  solely by the express provisions of this Indenture and the
                  Trustee need perform only those duties that are specifically
                  set forth in this Indenture and no others, and no implied
                  covenants or obligations shall be read into this Indenture
                  against the Trustee; and

                         (2) in the absence of bad faith on its part, the
                  Trustee may conclusively rely, as to the truth of the
                  statements and the correctness of the opinions expressed
                  therein, upon certificates or opinions furnished to the
                  Trustee and conforming to the requirements of

                                       53
<PAGE>
          this Indenture. However, the Trustee shall examine the certificates
          and opinions to determine whether or not they conform to the
          requirements of this Indenture (but need not confirm or investigate
          the accuracy of mathematical calculations or other facts stated
          therein or otherwise verify the contents thereof).

                  (c) The Trustee may not be relieved from liabilities for its
own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

                         (1) this paragraph does not limit the effect of
                  paragraph (b) of this Section;

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

                         (3) the Trustee shall not be liable with respect to any
                  action it takes or omits to take in good faith in accordance
                  with a direction received by it pursuant to Section 6.05
                  hereof.

                  (d) Whether or not therein expressly so provided, every
provision of this Indenture that in any way relates to the Trustee is subject to
paragraphs (a), (b) and (c) of this Section.

                  (e) No provision of this Indenture shall require the Trustee
to expend or risk its own funds or incur any liability. The Trustee shall be
under no obligation to exercise any of its rights and powers under this
Indenture at the request of any Holders, unless such Holder shall have offered
to the Trustee security and indemnity satisfactory to it against any loss,
liability or expense.

                  (f) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Company.
Money held in trust by the Trustee need not be segregated from other funds
except to the extent required by law.

Section 7.02.     RIGHTS OF TRUSTEE.
                  -----------------

                  (a) The Trustee may conclusively rely upon any document
believed by it to be genuine and to have been signed or presented by the proper
Person. The Trustee need not investigate any fact or matter stated in the
document.

                  (b) Before the Trustee acts or refrains from acting, it may
require an Officers' Certificate or an Opinion of Counsel or both. The Trustee
shall not be liable for any action it takes or omits to take in good faith in
reliance on such Officers' Certificate or Opinion of Counsel. The Trustee may
consult with counsel and the written advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection from liability
in respect of any action taken, suffered or omitted by it hereunder in good
faith and in reliance thereon.

                  (c) The Trustee may act through its attorneys and agents and
shall not be responsible for the misconduct or negligence of any agent appointed
with due care.

                  (d) The Trustee shall not be liable for any action it takes or
omits to take in good faith that it believes to be authorized or within the
rights or powers conferred upon it by this Indenture.

                  (e) Unless otherwise specifically provided in this Indenture,
any demand, request, direction or notice from the Company shall be sufficient if
signed by an Officer of the Company.

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

                                       54
<PAGE>

                  (g) The Trustee shall not be deemed to have notice of any
Default or Event of Default unless a Responsible Officer of the Trustee has
actual knowledge thereof or unless written notice of any event which is in fact
such a Default or Event of Default is received by a Responsible Officer of the
Trustee at the Corporate Trust Office of the Trustee, and such notice references
the specific Default or Event of Default, the Notes and this Indenture.

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

                  (i) The Trustee shall not be required to give any bond or
surety in respect of the performance of its power and duties hereunder.

                  (j) The Trustee shall have no duty to inquire as to the
performance of the Company's covenants herein.

Section 7.03.     INDIVIDUAL RIGHTS OF TRUSTEE.
                  ----------------------------

                  The Trustee in its individual or any other capacity may become
the owner or pledgee of Notes and may otherwise deal with the Company or any
Affiliate of the Company with the same rights it would have if it were not
Trustee. However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the SEC for
permission to continue as Trustee or resign. Any Agent may do the same with like
rights and duties. The Trustee is also subject to Section 7.10 and 7.11 hereof.

Section 7.04.     TRUSTEE'S DISCLAIMER.
                  --------------------

                  The Trustee shall not be responsible for and makes no
representation as to the validity or adequacy of this Indenture or the Notes, it
shall not be accountable for the Company's use of the proceeds from the Notes or
any money paid to the Company or upon the Company's direction under any
provision of this Indenture, it shall not be responsible for the use or
application of any money received by any Paying Agent other than the Trustee,
and it shall not be responsible for any statement or recital herein or any
statement in the Notes or any other document in connection with the sale of the
Notes or pursuant to this Indenture other than its certificate of
authentication.

Section 7.05.     NOTICE OF DEFAULTS.
                  ------------------

                  If a Default or Event of Default occurs and is continuing and
if it is known to the Trustee, the Trustee shall mail to Holders a notice of the
Default or Event of Default within 90 days after it occurs unless such Default
or Event of Default has since been cured. Except in the case of a Default or
Event of Default in payment of principal of, premium, if any, or interest or
Additional Interest, if any, on any Note, the Trustee may withhold the notice if
and so long as a committee of its Responsible Officers in good faith determines
that withholding the notice is in the interests of the Holders.

Section 7.06.     REPORTS BY TRUSTEE TO HOLDERS.
                  -----------------------------

                  Within 60 days after each May 15 beginning with May 15, 2002,
and for so long as Notes remain outstanding, the Trustee shall mail to the
Holders a brief report dated as of such reporting date that complies with TIA
ss. 313(a) (but if no event described in TIA ss. 313(a) has occurred within the
twelve months preceding the reporting date, no report need be transmitted). The
Trustee also shall comply with TIA ss. 313(b)(2). The Trustee shall also
transmit by mail all reports as required by TIA ss. 313(c).

                  A copy of each report at the time of its mailing to the
Holders shall be mailed to the Company and filed with the SEC and each stock
exchange on which the Notes are listed in accordance with TIA ss. 313(d). The
Company shall promptly notify the Trustee when the Notes are listed on any stock
exchange.

                                       55
<PAGE>

Section 7.07.     COMPENSATION AND INDEMNITY.
                  --------------------------

                  The Company shall pay to the Trustee from time to time
reasonable compensation for its acceptance of this Indenture and services
hereunder as agreed to in writing. The Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Company
shall reimburse the Trustee promptly upon request for all reasonable
disbursements, advances and expenses incurred or made by it in addition to the
compensation for its services. Such expenses shall include the reasonable
compensation, disbursements and expenses of the Trustee's agents and counsel.

                  The Company shall indemnify the Trustee or any predecessor
Trustee against any and all losses, claims, damages, penalties, fines,
liabilities or expenses, including incidental and out-of-pocket expenses and
reasonable attorneys fees ("LOSSES") incurred by it arising out of or in
connection with the acceptance or administration of its duties under this
Indenture, including the costs and expenses of enforcing this Indenture against
the Company (including this Section 7.07) and defending itself against any claim
(whether asserted by the Company or any Holder or any other person) or liability
in connection with the exercise or performance of any of its powers or duties
hereunder, except to the extent any such losses may be attributable to its gross
negligence or bad faith. The Trustee shall notify the Company promptly of any
claim for which it may seek indemnity. Failure by the Trustee to so notify the
Company shall not relieve the Company of its obligations hereunder. The Company
shall defend the claim, and the Trustee shall cooperate in the defense. The
Trustee may have separate counsel and the Company shall pay the reasonable fees
and expenses of such counsel. The Company need not pay for any settlement made
without its consent, which consent shall not be unreasonably withheld. The
Company need not reimburse any expense or indemnify against any loss liability
or expense incurred by the Trustee through the Trustee's own willful misconduct,
gross negligence or bad faith.

                  The obligations of the Company under this Section 7.07 shall
survive the satisfaction and discharge of this Indenture.

                  To secure the Company's payment obligations in this Section,
the Trustee shall have a Lien prior to the Notes on all money or property held
or collected by the Trustee, except that held in trust to pay principal,
premium, if any, and interest and Additional Interest, if any, on particular
Notes. Such Lien shall survive the satisfaction and discharge of this Indenture.

                  When the Trustee incurs expenses or renders services after an
Event of Default specified in clauses (ix) or (x) of Section 6.01 hereof occurs,
the expenses and the compensation for the services (including the fees and
expenses of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

                  The Trustee shall comply with the provisions of TIA ss.
313(b)(2) to the extent applicable.

Section 7.08.     REPLACEMENT OF TRUSTEE.
                  ----------------------

                  A resignation or removal of the Trustee and appointment of a
successor Trustee shall become effective only upon the successor Trustee's
acceptance of appointment as provided in this Section.

                  The Trustee may resign in writing at any time upon 30 days
prior notice to the Company and be discharged from the trust hereby created by
so notifying the Company. The Holders of a majority in principal amount of the
then outstanding Notes may remove the Trustee by so notifying the Trustee and
the Company in writing. The Company may remove the Trustee if:

                  (a) the Trustee fails to comply with Section 7.10 hereof;

                  (b) the Trustee is adjudged a bankrupt or an insolvent or an
order for relief is entered with respect to the Trustee under any Bankruptcy
Law;

                  (c) a custodian or public officer takes charge of the Trustee
or its property; or

                                       56
<PAGE>

                  (d) the Trustee becomes incapable of acting.

                  If the Trustee resigns or is removed or if a vacancy exists in
the office of Trustee for any reason, the Company shall promptly appoint a
successor Trustee. Within one year after the successor Trustee takes office, the
Holders of a majority in principal amount of the then outstanding Notes may
appoint a successor Trustee to replace the successor Trustee appointed by the
Company.

                  If a successor Trustee does not take office within 30 days
after the retiring Trustee resigns or is removed, the retiring Trustee, the
Company, or the Holders of at least 10% in principal amount of the then
outstanding Notes may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

                  If the Trustee, after written request by any Holder who has
been a Holder for at least six months, fails to comply with Section 7.10, such
Holder may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee.

                  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders. Subject to the Lien provided for in Section 7.07 hereof,
the retiring Trustee shall promptly transfer all property held by it as Trustee
to the successor Trustee; provided, however, that all sums owing to the Trustee
hereunder shall have been paid. Notwithstanding replacement of the Trustee
pursuant to this Section 7.08, the Company's obligations under Section 7.07
hereof shall continue for the benefit of the retiring Trustee.

Section 7.09.     SUCCESSOR TRUSTEE BY MERGER, ETC.

                  If the Trustee consolidates, merges or converts into, or
transfers all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act shall be the
successor Trustee.

Section 7.10.     ELIGIBILITY; DISQUALIFICATION.
                  -----------------------------

                  There shall at all times be a Trustee hereunder that is a
Person organized and doing business under the laws of the United States of
America or of any state thereof that is authorized under such laws to exercise
corporate trustee power, that is subject to supervision or examination by
federal or state authorities and that has a combined capital and surplus of at
least $50,000,000 as set forth in its most recent published annual report of
condition.

                  This Indenture shall always have a Trustee who satisfies the
requirements of TIA ss. 310(a)(1), (2) and (5). The Trustee is subject to TIA
ss. 310(b).

Section 7.11.     PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.
                  -------------------------------------------------

                  The Trustee is subject to TIA ss. 311(a), excluding any
creditor relationship listed in TIA ss. 311(b). A Trustee who has resigned or
been removed shall be subject to TIA ss. 311(a) to the extent indicated therein.

                                   ARTICLE 8.

                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01.     OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT DEFEASANCE.
                  --------------------------------------------------------

                  The Company may, at its option and at any time, elect to have
either Section 8.02 or 8.03 hereof be applied to all outstanding Notes upon
compliance with the conditions set forth below in this Article 8.

                                       57
<PAGE>

Section 8.02.     LEGAL DEFEASANCE AND DISCHARGE.
                  ------------------------------

                  Upon the Company's exercise under Section 8.01 hereof of the
option applicable to this Section 8.02, the Company shall, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, be deemed to
have been discharged from its obligations with respect to all outstanding Notes
on the date the conditions set forth below are satisfied (hereinafter, "LEGAL
DEFEASANCE"). For this purpose, Legal Defeasance means that the Company shall be
deemed to have paid and discharged the entire Debt represented by the
outstanding Notes, which shall thereafter be deemed to be "outstanding" only for
the purposes of Section 8.05 hereof and the other Sections of this Indenture
referred to in (a) and (b) below, and to have satisfied all its other
obligations under such Notes and this Indenture (and the Trustee, on demand of
and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following provisions which shall survive
until otherwise terminated or discharged hereunder: (a) the rights of Holders of
outstanding Notes to receive solely from the trust fund described in Section
8.04 hereof, and as more fully set forth in such Section, payments in respect of
the principal of, premium, if any, and interest and Additional Interest, if any,
on such Notes when such payments are due, (b) the Company's obligations with
respect to such Notes under Article 2 and Section 4.02 hereof, (c) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and the
obligations of the Company and each of the Subsidiary Guarantors in connection
therewith and (d) this Article 8. If the Company exercises under Section 8.01
hereof the option applicable to this Section 8.02, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, payment of the Notes may not
be accelerated because of an Event of Default. Subject to compliance with this
Article 8, the Company may exercise its option under this Section 8.02
notwithstanding the prior exercise of its option under Section 8.03 hereof.

Section 8.03.     COVENANT DEFEASANCE.
                  -------------------

                  Upon the Company's exercise under Section 8.01 hereof of the
option applicable to this Section 8.03, the Company shall, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, be released
from its obligations under the covenants contained in Sections 4.05, 4.06 and
4.08 through 4.18 hereof, and the operation of Section 5.01(d) hereof, with
respect to the outstanding Notes on and after the date the conditions set forth
in Section 8.04 are satisfied (hereinafter, "COVENANT DEFEASANCE"), and the
Notes shall thereafter be deemed not "outstanding" for the purposes of any
direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed "outstanding" for all other purposes hereunder (it being
understood that such Notes shall not be deemed outstanding for accounting
purposes). For this purpose, Covenant Defeasance means that, with respect to the
outstanding Notes, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and such omission to
comply shall not constitute a Default or an Event of Default under Section 6.01
hereof, but, except as specified above, the remainder of this Indenture and such
Notes shall be unaffected thereby. If the Company exercises under Section 8.01
hereof the option applicable to this Section 8.03, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, payment of the Notes may not
be accelerated because of an Event of Default specified in clauses (iii) and
(iv) (with respect to the covenants contained in Sections 4.05, 4.06 and 4.08
through 4.18 hereof), (v), (vi), (vii) and (viii) (but in the case of clauses
(ix) and (x) of Section 6.01 hereof, with respect to Significant Subsidiaries
only).

Section 8.04.     CONDITIONS TO LEGAL OR COVENANT DEFEASANCE.
                  ------------------------------------------

                  The following shall be the conditions to the application of
either Section 8.02 or 8.03 hereof to the outstanding Notes.

                  The Legal Defeasance or Covenant Defeasance may be exercised
only if:

                  (a) the Company irrevocably deposits with the Trustee, in
trust, for the benefit of the Holders of the Notes, cash in U.S. dollars,
non-callable Government Securities, or a combination of cash in U.S. dollars and
non-callable Government Securities, in amounts as will be sufficient, in the
opinion of a nationally recognized firm of independent public accountants, to
pay the principal of, or interest and premium and Additional Interest, if any,

                                       58
<PAGE>

on the outstanding Notes on the Stated Maturity or on the applicable redemption
date, as the case may be, and the Company must specify whether the Notes are
being defeased to maturity or to a particular redemption date;

                  (b) in the case of Legal Defeasance, the Company delivers to
the Trustee an Opinion of Counsel reasonably acceptable to the Trustee
confirming that (a) the Company has received from, or there has been published
by, the Internal Revenue Service a ruling or (b) since the date hereof, there
has been a change in the applicable federal income tax law, in either case to
the effect that, and based thereon such Opinion of Counsel will confirm that,
the Holders of the outstanding Notes will not recognize income, gain or loss for
federal income tax purposes as a result of such Legal Defeasance and will be
subject to federal income tax on the same amounts, in the same manner and at the
same times as would have been the case if such Legal Defeasance had not
occurred;

                  (c) in the case of Covenant Defeasance, the Company delivers
to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee
confirming that the Holders of the outstanding Notes will not recognize income,
gain or loss for federal income tax purposes as a result of such Covenant
Defeasance and will be subject to federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such Covenant
Defeasance had not occurred;

                  (d) no Default or Event of Default has occurred and is
continuing on the date of such deposit (other than a Default or Event of Default
resulting from the borrowing of funds to be applied to such deposit);

                  (e) such Legal Defeasance or Covenant Defeasance will not
result in a breach or violation of, or constitute a default under any material
agreement or instrument (including, without limitation, the Credit Agreement,
but excluding the indenture) to which the Company or any of its Subsidiaries is
a party or by which the Company or any of its Subsidiaries may is bound;

                  (f) the Company delivers to the Trustee an Officers'
Certificate stating that the deposit was not made by the Company with the intent
of preferring the Holders of Notes over the Company's other creditors with the
intent of defeating, hindering, delaying or defrauding the Company's creditors
or others; and

                  (g) the Company delivers to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent relating to the Legal Defeasance or the Covenant Defeasance have been
complied with.

Section 8.05.     DEPOSITED MONEY AND GOVERNMENT SECURITIES TO BE HELD IN TRUST;
                  OTHER MISCELLANEOUS PROVISIONS.
                  --------------------------------------------------------------

                  Subject to Section 8.06 hereof, all money and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee (or
other qualifying trustee, collectively for purposes of this Section 8.05, the
"Trustee") pursuant to Section 8.04 hereof in respect of the outstanding Notes
shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as Paying Agent) as the
Trustee may determine, to the Holders of all sums due and to become due thereon
in respect of principal, premium, if any, and interest and Additional Interest,
if any,, but such money need not be segregated from other funds except to the
extent required by law.

                  The Company shall pay and indemnify the Trustee against any
tax, fee or other charge imposed on or assessed against the cash or U.S.
Government Obligations deposited pursuant to Section 8.04 hereof or the
principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the
outstanding Notes.

                  Anything in this Article 8 to the contrary notwithstanding,
the Trustee shall deliver or pay to the Company from time to time upon the
request of the Company any money or U.S. Government Obligations held by it as
provided in Section 8.04 hereof which, in the opinion of a nationally recognized
firm of independent certified public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the

                                       59
<PAGE>

certification delivered under Section 8.04(b) hereof), are in excess of the
amount thereof that would then be required to be deposited to effect an
equivalent Legal Defeasance or Covenant Defeasance.

Section 8.06.     REPAYMENT TO COMPANY.
                  --------------------

                  Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of, premium,
if any, or interest or Additional Interest on any Note and remaining unclaimed
for two years after such principal, and premium, if any, or interest or
Additional Interest has become due and payable shall be paid to the Company on
its request or (if then held by the Company) shall be discharged from such
trust; and the Holder shall thereafter, as an unsecured creditor, look only to
the Company for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease; provided, however, that the Trustee or
such Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in The New York Times and The
Wall Street Journal (national edition), notice that such money remains unclaimed
and that, after a date specified therein, which shall not be less than 30 days
from the date of such notification or publication, any unclaimed balance of such
money then remaining shall be repaid to the Company.

Section 8.07.     REINSTATEMENT.
                  -------------

                  If the Trustee or Paying Agent is unable to apply any United
States dollars or U.S. Government Obligations in accordance with Section 8.02 or
8.03 hereof, as the case may be, by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting such
application, then the Company's obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 8.02 or 8.03 hereof until such time as the Trustee or Paying Agent is
permitted to apply all such money in accordance with Section 8.02 or 8.03
hereof, as the case may be; provided, however, that, if the Company makes any
payment of principal of, premium, if any, or interest or Additional Interest on
any Note following the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders to receive such payment from the money
held by the Trustee or Paying Agent.

                                   ARTICLE 9.

                        AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01.     WITHOUT CONSENT OF HOLDERS OF NOTES.
                  -----------------------------------

                  Notwithstanding Section 9.02 of this Indenture, the Company
and the Trustee may amend or supplement this Indenture or the Notes without the
consent of any Holder to:

                  (a) cure any ambiguity, defect or inconsistency;

                  (b) provide for the assumption by a successor corporation of
the obligations of the Company under this Indenture in the case of a merger or
consolidation or sale of all or substantially all of the Company's assets;

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

                  (d) make any change that would provide any additional rights
or benefits to the Holders of the Notes or that does not adversely affect the
legal rights hereunder of any such Holder; or

                  (e) make any change to comply with any requirement of the SEC
in order to effect or maintain the qualification of this Indenture under the
TIA.

                  Upon the request of the Company accompanied by a Board
Resolution of the Board of Directors authorizing the execution of any such
amended or supplemental Indenture, and upon receipt by the Trustee of the
documents described in Section 7.02 hereof, the Trustee shall join with the
Company in the execution of any

                                       60
<PAGE>

amended or supplemental Indenture authorized or permitted by the terms of this
Indenture and to make any further appropriate agreements and stipulations that
may be therein contained, but the Trustee shall not be obligated to enter into
such amended or supplemental Indenture that affects its own rights, duties or
immunities under this Indenture or otherwise.

Section 9.02.     WITH CONSENT OF HOLDERS OF NOTES.
                  --------------------------------

                  Except as provided below in this Section 9.02, the Company and
the Trustee may amend or supplement this Indenture and the Notes may be amended
or supplemented with the consent of the Holders of at least a majority in
principal amount of the Notes, including Additional Notes, if any, then
outstanding voting as a single class (including consents obtained in connection
with a tender offer or exchange offer for, or purchase of, the Notes), and,
subject to Sections 6.04 and 6.07 hereof, any existing Default or Event of
Default (except a continuing Default or Event of Default in the payment of
interest or Additional Interest on, or the principal of, the Notes) or
compliance with any provision of this Indenture or the Notes may be waived with
the consent of the Holders of a majority in principal amount of the Notes,
including Additional Notes, if any, then outstanding voting as a single class
(including consents obtained in connection with a tender offer or exchange offer
for, or purchase of, the Notes).

                  Upon the request of the Company accompanied by a Board
Resolution of the Board of Directors authorizing the execution of any such
amended or supplemental Indenture, and upon the filing with the Trustee of
evidence satisfactory to the Trustee of the consent of the Holders of Notes as
aforesaid, and upon receipt by the Trustee of the documents described in Section
7.02 hereof, the Trustee shall join with the Company in the execution of such
amended or supplemental Indenture unless such amended or supplemental Indenture
directly affects the Trustee's own rights, duties or immunities under this
Indenture or otherwise, in which case the Trustee may in its discretion, but
shall not be obligated to, enter into such amended or supplemental Indenture.

                  The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Persons entitled to consent to any
indenture supplemental hereto. If a record date is fixed, the Holders on such
record date, or their duly designated proxies, and only such Persons, shall be
entitled to consent to such supplemental indenture, whether or not such Holders
remain Holders after such record date; provided, that unless such consent shall
have become effective by virtue of the requisite percentage having been obtained
prior to the date which is 90 days after such record date, any such consent
previously given shall automatically and without further action by any Holder be
cancelled and of no further effect.

                  It shall not be necessary for the consent of the Holders under
this Section 9.02 to approve the particular form of any proposed amendment or
waiver, but it shall be sufficient if such consent approves the substance
thereof.

                  After an amendment, supplement or waiver under this Section
becomes effective, the Company shall mail to the Holders to such Holder's
address appearing in the Security Register a notice briefly describing the
amendment, supplement or waiver. Any failure of the Company to mail such notice,
or any defect therein, shall not, however, in any way impair or affect the
validity of any such amended or supplemental Indenture or waiver. Subject to
Sections 6.04 and 6.07 hereof, the Holders of a majority in aggregate principal
amount of the Notes, including Additional Notes, if any, then outstanding voting
as a single class may waive compliance in a particular instance by the Company
with any provision of this Indenture or the Notes. Without the consent of each
Holder, an amendment or waiver under this Section 9.02 may not (with respect to
any Notes held by a non-consenting Holder):

                  (a) reduce the principal amount of Notes whose Holders must
consent to an amendment, supplement or waiver;

                  (b) reduce the principal of or change the fixed maturity of
any Note or alter the provisions with respect to the redemption of the Notes;

                  (c) make any change in the provisions of Sections 4.12 or
4.18;

                                       61
<PAGE>

                  (d) reduce the rate of or change the time for payment of
interest on any note,

                  (e) waive a Default or Event of Default in the payment of
principal of, or interest or premium, or Additional Interest, if any, on the
Notes (except a rescission of acceleration of the Notes by the Holders of at
least a majority in aggregate principal amount of the Notes and a waiver of the
payment default that resulted from such acceleration);

                  (f) make any Note payable in money other than that stated in
the Note,

                  (g) make any change in the provisions of this Indenture
relating to waivers of past Defaults or the rights of Holders of Notes to
receive payments of principal of, or interest or premium or Additional Interest,
if any, on the Notes;

                  (h) waive a redemption payment with respect to any Note;

                  (i) release any Subsidiary Guarantor from any of its
obligations under its Subsidiary Guarantee or this Indenture, except in
accordance with the terms hereof; or

                  (j) make any change in the preceding amendment and waiver
provisions.

Section 9.03.     COMPLIANCE WITH TRUST INDENTURE ACT.
                  -----------------------------------

                  Every amendment or supplement to this Indenture or the Notes
shall be set forth in a amended or supplemental Indenture that complies with the
TIA as then in effect.

Section 9.04.     REVOCATION AND EFFECT OF CONSENTS.
                  ---------------------------------

                  Until an amendment, supplement or waiver becomes effective, a
consent to it by a Holder is a continuing consent by the Holder of a Note and
every subsequent Holder that evidences the same debt as the consenting Holder's
Note, even if notation of the consent is not made on any Note. However, any such
Holder or subsequent Holder may revoke the consent as to its Note if the Trustee
receives written notice of revocation before the date the waiver, supplement or
amendment becomes effective. An amendment, supplement or waiver becomes
effective in accordance with its terms and thereafter binds every Holder.

Section 9.05.     NOTATION ON OR EXCHANGE OF NOTES.
                  --------------------------------

                  The Trustee may place an appropriate notation about an
amendment, supplement or waiver on any Note thereafter authenticated. The
Company in exchange for all Notes may issue and the Trustee shall, upon receipt
of an Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

                  Failure to make the appropriate notation or issue a new Note
shall not affect the validity and effect of such amendment, supplement or
waiver.

Section 9.06.     TRUSTEE TO SIGN AMENDMENTS, ETC.

                  The Trustee shall sign any amended or supplemental Indenture
authorized pursuant to this Article 9 if the amendment or supplement does not
adversely affect the rights, duties, liabilities or immunities of the Trustee.
The Company may not sign an amendment or supplemental Indenture until the Board
of Directors approves it. In executing any amended or supplemental indenture,
the Trustee shall be entitled to receive and (subject to Section 7.01 hereof)
shall be fully protected in relying upon an Officer's Certificate and an Opinion
of Counsel stating that the execution of such amended or supplemental indenture
is authorized or permitted by this Indenture and that such amended or
supplemental indenture is the legal, valid and binding obligations of the
Company enforceable against it in accordance with its terms, subject to
customary exceptions and that such amended or supplemental indenture complies
with the provisions hereof (including Section 9.03).

                                       62
<PAGE>

                                  ARTICLE 10.

                              SUBSIDIARY GUARANTEES

Section 10.01.    GUARANTEE.
                  ---------

                  Subject to this Article 10, each of the Subsidiary Guarantors
hereby, jointly and severally, unconditionally guarantees to each Holder of a
Note authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, irrespective of the validity and enforceability of this
Indenture, the Notes or the obligations of the Company hereunder or thereunder,
that: (a) the principal of, premium, if any, and interest on the Notes shall be
promptly paid in full when due, whether at maturity, by acceleration, redemption
or otherwise, and interest on the overdue principal of and interest on the
Notes, if any, if lawful, and all other obligations of the Company to the
Holders or the Trustee hereunder or thereunder shall be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and (b) in case
of any extension of time of payment or renewal of any Notes or any of such other
obligations, that same shall be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration pursuant to Section 6.02 hereof or otherwise. Failing
payment when due of any amount so guaranteed or any performance so guaranteed
for whatever reason, the Subsidiary Guarantors shall be jointly and severally
obligated to pay the same immediately. Each Subsidiary Guarantor agrees that
this is a guarantee of payment and not a guarantee of collection.

                  Each Subsidiary Guarantor hereby agrees that its obligations
with regard to this Subsidiary Guarantee shall be joint and several,
unconditional, irrespective of the validity or enforceability of the Notes or
the obligations of the Company under this Indenture, the absence of any action
to enforce the same, the recovery of any judgment against the Company or any
other obligor with respect to this Indenture, the Notes or the Obligations of
the Company under this Indenture or the Notes, any action to enforce the same or
any other circumstances (other than complete performance) which might otherwise
constitute a legal or equitable discharge or defense of a Subsidiary Guarantor.
Each Subsidiary Guarantor further, to the extent permitted by law, waives and
relinquishes all claims, rights and remedies accorded by applicable law to
guarantors and agrees not to assert or take advantage of any such claims, rights
or remedies, including but not limited to: (a) any right to require any of the
Trustee, the Holders or the Company (each a "BENEFITED PARTY"), as a condition
of payment or performance by such Subsidiary Guarantor, to (1) proceed against
the Company, any other guarantor (including any other Subsidiary Guarantor) of
the Obligations under the Subsidiary Guarantees or any other Person, (2) proceed
against or exhaust any security held from the Company, any such other guarantor
or any other Person, (3) proceed against or have resort to any balance of any
deposit account or credit on the books of any Benefited Party in favor of the
Company or any other Person, or (4) pursue any other remedy in the power of any
Benefited Party whatsoever; (b) any defense arising by reason of the incapacity,
lack of authority or any disability or other defense of the Company including
any defense based on or arising out of the lack of validity or the
unenforceability of the Obligations under the Subsidiary Guarantees or any
agreement or instrument relating thereto or by reason of the cessation of the
liability of the Company from any cause other than payment in full of the
Obligations under the Subsidiary Guarantees; (c) any defense based upon any
statute or rule of law which provides that the obligation of a surety must be
neither larger in amount nor in other respects more burdensome than that of the
principal; (d) any defense based upon any Benefited Party's errors or omissions
in the administration of the Obligations under the Subsidiary Guarantees, except
behavior which amounts to bad faith; (e)(1) any principles or provisions of law,
statutory or otherwise, which are or might be in conflict with the terms of the
Subsidiary Guarantees and any legal or equitable discharge of such Subsidiary
Guarantor's obligations hereunder, (2) the benefit of any statute of limitations
affecting such Subsidiary Guarantor's liability hereunder or the enforcement
hereof, (3) any rights to set-offs, recoupments and counterclaims and (4)
promptness, diligence and any requirement that any Benefited Party protect,
secure, perfect or insure any security interest or lien or any property subject
thereto; (f) notices, demands, presentations, protests, notices of protest,
notices of dishonor and notices of any action or inaction, including acceptance
of the Subsidiary Guarantees, notices of default under the Notes or any
agreement or instrument related thereto, notices of any renewal, extension or
modification of the Obligations under the Subsidiary Guarantees or any agreement
related thereto, and notices of any extension of credit to the Company and any
right to consent to any thereof; (g) to the extent permitted under applicable
law, the benefits of any "One Action" rule and (h) any defenses or benefits that
may be derived from or afforded by law which limit the liability of or exonerate
guarantors or sureties, or which may conflict with the terms of the Subsidiary
Guarantees. Each Subsidiary Guarantor hereby covenants that its Subsidiary
Guarantee shall not

                                       63
<PAGE>

be discharged except by complete performance of the obligations contained in its
Subsidiary Guarantee and this Indenture.

                  If any Holder or the Trustee is required by any court or
otherwise to return to the Company, the Subsidiary Guarantors or any custodian,
trustee, liquidator or other similar official acting in relation to either the
Company or the Subsidiary Guarantors, any amount paid by either to the Trustee
or such Holder, this Subsidiary Guarantee, to the extent theretofore discharged,
shall be reinstated in full force and effect.

                  Each Subsidiary Guarantor agrees that it shall not be entitled
to any right of subrogation in relation to the Holders in respect of any
obligations guaranteed hereby until payment in full of all obligations
guaranteed hereby. Each Subsidiary Guarantor further agrees that, as between the
Subsidiary Guarantors, on the one hand, and the Holders and the Trustee, on the
other hand, (x) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Section 6.02 hereof for the purposes of this
Subsidiary Guarantee, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the obligations guaranteed hereby and
(y) in the event of any declaration of acceleration of such obligations as
provided in Section 6.02 hereof, such obligations (whether or not due and
payable) shall forthwith become due and payable by the Subsidiary Guarantors for
the purpose of this Subsidiary Guarantee. The Subsidiary Guarantors shall have
the right to seek contribution from any non-paying Subsidiary Guarantor so long
as the exercise of such right does not impair the rights of the Holders under
the Subsidiary Guarantee.

Section 10.02.    LIMITATION ON SUBSIDIARY GUARANTOR LIABILITY.
                  --------------------------------------------

                  Each Subsidiary Guarantor, and by its acceptance of Notes,
each Holder, hereby confirms that it is the intention of all such parties that
the Subsidiary Guarantee of such Subsidiary Guarantor not constitute a
fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar
federal or state law to the extent applicable to any Subsidiary Guarantee. To
effectuate the foregoing intention, the Trustee, the Holders and the Subsidiary
Guarantors hereby irrevocably agree that the obligations of such Subsidiary
Guarantor under this Article 10 shall be limited to the maximum amount as shall,
after giving effect to such maximum amount and all other contingent and fixed
liabilities of such Subsidiary Guarantor that are relevant under such laws,
including, if applicable, its guarantee of all obligations under the Credit
Agreement, and after giving effect to any collections from, rights to receive
contribution from or payments made by or on behalf of any other Subsidiary
Guarantor in respect of the obligations of such other Subsidiary Guarantor under
this Article 10, result in the obligations of such Subsidiary Guarantor under
its Subsidiary Guarantee not constituting a fraudulent transfer or conveyance.

Section 10.03.    EXECUTION AND DELIVERY OF SUBSIDIARY GUARANTEE.
                  ----------------------------------------------

                  To evidence its Subsidiary Guarantee set forth in Section
10.01 hereof, each Subsidiary Guarantor hereby agrees that a notation of such
Subsidiary Guarantee in substantially the form included in Exhibit E shall be
endorsed by an Officer of such Subsidiary Guarantor on each Note authenticated
and delivered by the Trustee and that this Indenture shall be executed on behalf
of such Subsidiary Guarantor by its President or one of its Vice Presidents.

                  Each Subsidiary Guarantor hereby agrees that its Subsidiary
Guarantee set forth in Section 10.01 hereof shall remain in full force and
effect notwithstanding any failure to endorse on each Note a notation of such
Subsidiary Guarantee.

                  If an Officer whose signature is on this Indenture or on the
Subsidiary Guarantee no longer holds that office at the time the Trustee
authenticates the Note on which a Subsidiary Guarantee is endorsed, the
Subsidiary Guarantee shall be valid nevertheless.

                  The delivery of any Note by the Trustee, after the
authentication thereof hereunder, shall constitute due delivery of the
Subsidiary Guarantee set forth in this Indenture on behalf of the Subsidiary
Guarantors.

                                       64
<PAGE>

Section 10.04.    SUBSIDIARY GUARANTORS MAY CONSOLIDATE, ETC., ON CERTAIN TERMS.
                  -------------------------------------------------------------

                  Except as otherwise provided in Section 10.05 hereof, no
Subsidiary Guarantor may consolidate with or merge with or into (whether or not
such Subsidiary Guarantor is the surviving Person) another Person whether or not
affiliated with such Subsidiary Guarantor unless:

                  (a) subject to Section 10.05 hereof, the Person formed by or
surviving any such consolidation or merger (if other than a Subsidiary Guarantor
or the Company) unconditionally assumes all the obligations of such Subsidiary
Guarantor, pursuant to a supplemental indenture in form and substance reasonably
satisfactory to the Trustee, under this Indenture, the Subsidiary Guarantee and
the Registration Rights Agreement on the terms set forth herein or therein; and

                  (b) the Subsidiary Guarantor complies with the requirements of
Article 5 hereof.

                  In case of any such consolidation, merger, sale or conveyance
and upon the assumption by the successor Person, by supplemental indenture,
executed and delivered to the Trustee and satisfactory in form to the Trustee,
of the Subsidiary Guarantee endorsed upon the Notes and the due and punctual
performance of all of the covenants and conditions of this Indenture to be
performed by the Subsidiary Guarantor, such successor Person shall succeed to
and be substituted for the Subsidiary Guarantor with the same effect as if it
had been named herein as a Subsidiary Guarantor. Such successor Person thereupon
may cause to be signed any or all of the Subsidiary Guarantees to be endorsed
upon all of the Notes issuable hereunder which theretofore shall not have been
signed by the Company and delivered to the Trustee. All the Subsidiary
Guarantees so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Subsidiary Guarantees theretofore and thereafter
issued in accordance with the terms of this Indenture as though all of such
Subsidiary Guarantees had been issued at the date of the execution hereof.

                  Except as set forth in Articles 4 and 5 hereof, and
notwithstanding clauses (a) and (b) above, nothing contained in this Indenture
or in any of the Notes shall prevent any consolidation or merger of a Subsidiary
Guarantor with or into the Company or another Subsidiary Guarantor, or shall
prevent any sale or conveyance of the property of a Subsidiary Guarantor as an
entirety or substantially as an entirety to the Company or another Subsidiary
Guarantor.

Section 10.05.    RELEASES FOLLOWING SALE OF ASSETS.
                  ---------------------------------

                  In the event of a sale or other disposition of all of the
assets of any Subsidiary Guarantor, by way of merger, consolidation or
otherwise, or a sale or other disposition of all to the capital stock of any
Subsidiary Guarantor, in each case to a Person that is not (either before or
after giving effect to such transactions) a Subsidiary of the Company, then such
Subsidiary Guarantor (in the event of a sale or other disposition, by way of
merger, consolidation or otherwise, of all of the capital stock of such
Subsidiary Guarantor) or the corporation acquiring the property (in the event of
a sale or other disposition of all or substantially all of the assets of such
Subsidiary Guarantor) shall be released and relieved of any obligations under
its Subsidiary Guarantee; provided that the net proceeds of such sale or other
disposition are applied in accordance with the applicable provisions of this
Indenture, including without limitation Section 4.12 hereof. Upon delivery by
the Company to the Trustee of an Officers' Certificate and an Opinion of Counsel
to the effect that such sale or other disposition was made by the Company in
accordance with the provisions of this Indenture, including without limitation
Section 4.12 hereof, the Trustee shall execute any documents reasonably required
in order to evidence the release of any Subsidiary Guarantor from its
obligations under its Subsidiary Guarantee.

                  Any Subsidiary Guarantor not released from its obligations
under its Subsidiary Guarantee shall remain liable for the full amount of
principal of and interest on the Notes and for the other obligations of any
Subsidiary Guarantor under this Indenture as provided in this Article 10.

                                       65
<PAGE>

                                  ARTICLE 11.

                           SATISFACTION AND DISCHARGE

Section 11.01.    SATISFACTION AND DISCHARGE.
                  --------------------------

                  This Indenture will be discharged and will cease to be of
further effect as to all Notes issued hereunder, when:

                  (a) either:

                (i) all Notes that have been authenticated (except lost, stolen
          or destroyed Notes that have been replaced or paid and Notes for whose
          payment money has theretofore been deposited in trust and thereafter
          repaid to the Company) have been delivered to the Trustee for
          cancellation; or

                (ii) all Notes that have not been delivered to the Trustee for
          cancellation have become due and payable by reason of the making of a
          notice of redemption or otherwise or will become due and payable
          within one year and the Company has irrevocably deposited or caused to
          be deposited with the Trustee as trust funds in trust solely for the
          benefit of the Holders, cash in U.S. dollars and non-callable
          Government Securities, or a combination thereof, in such amounts as
          will be sufficient without consideration of any reinvestment of
          interest, to pay and discharge the entire indebtedness on the Notes
          not delivered to the Trustee for cancellation for principal, premium,
          if any, and accrued interest and Additional Interest, if any, to the
          date of maturity or redemption;

                  (b) no Default or Event of Default shall have occurred and be
continuing on the date of such deposit or shall occur as a result of such
deposit and such deposit will not result in a breach or violation of, or
constitute a default under, any other instrument to which the Company or any
Subsidiary Guarantor is a party or by which the Company or any Subsidiary
Guarantor is bound;

                  (c) the Company has paid or caused to be paid all sums payable
by it under this Indenture; and

                  (d) the Company has delivered irrevocable instructions to the
Trustee under this Indenture to apply the deposited money and/or non-callable
Government Securities toward the payment of the Notes at maturity or the
redemption date, as the case may be.

                  The Company shall deliver an Officers' Certificate and an
Opinion of Counsel to the Trustee stating that all conditions precedent to
satisfaction and discharge have been satisfied.

Section 11.02.    DEPOSITED MONEY AND GOVERNMENT SECURITIES TO BE HELD IN
                  TRUST; OTHER MISCELLANEOUS PROVISIONS.
                  -------------------------------------------------------

                  Subject to Section 11.03 hereof, all money and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee (or
other qualifying trustee, collectively for purposes of this Section 11.02, the
"Trustee") pursuant to Section 11.01 hereof in respect of the outstanding Notes
shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as Paying Agent) as the
Trustee may determine, to the Holders of such Notes of all sums due and to
become due thereon in respect of principal, premium, if any, and interest and
Additional Interest, if any,, but such money need not be segregated from other
funds except to the extent required by law.

Section 11.03.    REPAYMENT TO COMPANY.
                  --------------------

                  Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of, premium,
if any, or interest or Additional Interest on any Note and remaining unclaimed
for two years after such principal, and premium, if any, or interest has become
due and payable shall be

                                       66
<PAGE>

paid to the Company on its request or (if then held by the Company) shall be
discharged from such trust; and the Holder shall thereafter look only to the
Company for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease; provided, however, that the Trustee or
such Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in The New York Times and The
Wall Street Journal (national edition), notice that such money remains unclaimed
and that, after a date specified therein, which shall not be less than 30 days
from the date of such notification or publication, any unclaimed balance of such
money then remaining will be repaid to the Company.

                                  ARTICLE 12.

                                  MISCELLANEOUS

Section 12.01.    TRUST INDENTURE ACT CONTROLS.
                  ----------------------------

                  If any provision of this Indenture limits, qualifies or
conflicts with the duties imposed by TIA ss. 318(c), the imposed duties shall
control.

Section 12.02.    NOTICES.
                  -------

                  Any notice or communication by the Company or the Trustee to
the others is duly given if in writing and delivered in Person or mailed by
first class mail (registered or certified, return receipt requested), telecopier
or overnight air courier guaranteeing next-day delivery, to the other's address:

                  If to the Company:

                  Extendicare Health Services, Inc.
                  111 West Michigan Street
                  Milwaukee, WI  53203
                  Attention:  Chief Financial Officer
                  Telecopier No.:  (414) 908-8111

                  With a copy to:
                  Foley & Lardner
                  777 East Wisconsin Avenue
                  Milwaukee, WI  53202-5367
                  Attention:  Russell E. Ryba
                  Telecopier No.:  (414) 297-4900

                  If to the Trustee:

                  U.S. Bank, N.A.
                  1555 North RiverCenter Drive, Suite 301
                  Milwaukee, WI  53212
                  Attention:  Steven J. Peterson
                  Telecopier No.:  (414) 905-5049

                  The Company or the Trustee, by notice to the others, may
designate additional or different addresses for subsequent notices or
communications.

                  All notices and communications (other than those sent to
Holders and the Trustee) shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if
telecopied; and the next Business Day after timely delivery to the courier, if
sent by overnight air courier guaranteeing next-day delivery. All notices and
communications to the Trustee shall be deemed duly given and effective only upon
receipt.

                                       67
<PAGE>

                  Any notice or communication to a Holder shall be mailed by
first class mail, certified or registered, return receipt requested, or by
overnight air courier guaranteeing next-day delivery to its address shown on the
Security Register. Any notice or communication shall also be so mailed to any
Person described in TIA ss. 313(c), to the extent required by the TIA. Failure
to mail a notice or communication to a Holder or any defect in it shall not
affect its sufficiency with respect to other Holders.

                  If a notice or communication is mailed in the manner provided
above within the time prescribed, it is duly given, whether or not the addressee
receives it.

                  If the Company mails a notice or communication to Holders, it
shall mail a copy to the Trustee and each Agent at the same time.

Section 12.03.    COMMUNICATION BY HOLDERS OF NOTES WITH OTHER HOLDERS OF NOTES.
                  -------------------------------------------------------------

                  Holders may communicate pursuant to TIA ss. 312(b) with other
Holders with respect to their rights under this Indenture or the Notes. The
Company, the Trustee, the Registrar and anyone else shall have the protection of
TIA ss. 312(c).

Section 12.04.    CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.
                  --------------------------------------------------

                  Upon any request or application by the Company to the Trustee
to take any action under any provision of this Indenture, the Company shall
furnish to the Trustee:

                  (a) an Officers' Certificate in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth in
Section 12.05 hereof) stating that, in the opinion of the signers, all
conditions precedent and covenants, if any, provided for in this Indenture
relating to the proposed action have been complied with; and

                  (b) an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth in
Section 12.05 hereof) stating that, in the opinion of such counsel, all such
conditions precedent and covenants have been complied with.

Section 12.05.    STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.
                  ---------------------------------------------

                  Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (other than a certificate
provided pursuant to TIA ss. 314(a)(4)) shall comply with the provisions of TIA
ss. 314(e) and shall include:

                  (a) a statement that the Person making such certificate or
opinion has read such covenant or condition;

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

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

                  (d) a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been complied with.

Section 12.06.    RULES BY TRUSTEE AND AGENTS.
                  ---------------------------

                  The Trustee may make reasonable rules for action by or at a
meeting of Holders. The Registrar or Paying Agent may make reasonable rules and
set reasonable requirements for its functions.

                                       68
<PAGE>

Section 12.07.    NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES AND
                  STOCKHOLDERS.
                  -----------------------------------------------------------

                  No past, present or future director, officer, employee,
incorporator or stockholder of the Company or any Subsidiary Guarantor, as such,
shall have any liability for any obligations of the Company or of the Subsidiary
Guarantors under the Notes, this Indenture, the Subsidiary Guarantees or for any
claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder of Notes by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for issuance of
the Notes. Such waiver may not be effective to waive liabilities under the
federal securities laws and it is the view of the SEC that such a waiver is
against public policy.

Section 12.08.    GOVERNING LAW.
                  -------------

                  THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE
USED TO CONSTRUE THIS INDENTURE AND THE NOTES WITHOUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF
THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

Section 12.09.    NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.
                  ---------------------------------------------

                  This Indenture may not be used to interpret any other
indenture, loan or debt agreement of the Company or its Subsidiaries or of any
other Person. Any such indenture, loan or debt agreement may not be used to
interpret this Indenture.

Section 12.10.    SUCCESSORS.
                  ----------

                  All covenants and agreements of the Company in this Indenture
and the Notes shall bind its successors. All covenants and agreements of the
Trustee in this Indenture shall bind its successors.

Section 12.11.    SEVERABILITY.
                  ------------

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

Section 12.12.    COUNTERPART ORIGINALS.
                  ---------------------
                  The parties may sign any number of copies of this Indenture.
Each signed copy shall be an original, but all of them together represent the
same agreement.

Section 12.13.    TABLE OF CONTENTS, HEADINGS, ETC.

                  The Table of Contents, Cross-Reference Table and Headings in
this Indenture have been inserted for convenience of reference only, are not to
be considered a part of this Indenture and shall in no way modify or restrict
any of the terms or provisions hereof.

                         [Signatures on following page]

<PAGE>

                                                     SIGNATURE PAGE TO INDENTURE

                                                     SIGNATURE PAGE TO INDENTURE

                                       69
<PAGE>

                                   SIGNATURES

Dated as of June 28, 2002

                       ISSUER:

                       EXTENDICARE HEALTH SERVICES, INC.

                       By: /s/  Mark W. Durishan
                           ----------------------------------------
                           Name:        Mark W. Durishan
                           Title:       Vice President, Chief Financial Officer
                                        and Treasurer

                     GUARANTORS:

                     EXTENDICARE HEALTH FACILITY HOLDINGS, INC.
                     EXTENDICARE HEALTH FACILITIES, INC.
                     COVENTRY CARE, INC.
                     NORTHERN HEALTH FACILITIES, INC.
                     EXTENDICARE HOMES, INC.
                     EXTENDICARE HEALTH NETWORK, INC.
                     THE PROGRESSIVE STEP CORPORATION
                     EXTENDICARE OF INDIANA, INC.
                     EDGEWOOD NURSING CENTER, INC.
                     ELDER CREST, INC.
                     HAVEN CREST, INC.
                     MEADOW CREST, INC.
                     OAK HILL HOME OF REST AND CARE, INC.
                     EXTENDICARE GREAT TRAIL, INC.
                     FIR LANE TERRACE CONVALESCENT CENTER, INC.
                     ADULT SERVICES UNLIMITED, INC.
                     ARBORS EAST, INC.
                     ARBORS AT TOLEDO, INC.
                     HEALTH POCONOS, INC.
                     MARSHALL PROPERTIES, INC.
                     COVENTRY CARE HOLDINGS, INC.
                     UNITED PROFESSIONAL SERVICES, INC.

                     By: /s/  Mark W. Durishan
                        --------------------------------------------------

                     Name:    Mark W. Durishan
                     Title:   Vice President, Chief Financial Officer and
                              Treasurer

                                       70
<PAGE>

                     INDIANA HEALTH AND REHABILITATION PARTNERSHIP

                     BY:  EXTENDICARE HOMES, INC., AS GENERAL PARTNER

                     By: /s/  Mark W. Durishan
                       --------------------------------------------------

                     Name:    Mark W. Durishan
                     Title:   Vice President, Chief Financial Officer and
                              Treasurer

                     BY:  EXTENDICARE OF INDIANA, INC., AS GENERAL PARTNER

                     By: /s/  Mark W. Durishan
                        --------------------------------------------------

                     Name:    Mark W. Durishan
                     Title:   Vice President, Chief Financial Officer and
                              Treasurer

                     CONCORDIA MANOR, LLC
                     FIRST COAST HEALTH AND REHABILITATION CENTER, LLC
                     JACKSON HEIGHTS REHABILITATION CENTER, LLC
                     TREASURE ISLE CARE CENTER, LLC

                     BY:  EXTENDICARE HOMES, INC., AS SOLE MEMBER

                     By: /s/  Mark W. Durishan
                        --------------------------------------------------

                     Name:    Mark W. Durishan
                     Title:   Vice President, Chief Financial Officer and
                              Treasurer

                     KAUFMAN STREET, WV, LLC
                     NEW CASTLE CARE, LLC

                     BY:  FIR LANE TERRACE CONVALESCENT CENTER, INC., AS SOLE
                          MEMBER

                     By: /s/  Mark W. Durishan
                        --------------------------------------------------

                     Name:    Mark W. Durishan
                     Title:   Vice President, Chief Financial Officer and
                              Treasurer

                                       71
<PAGE>

                     ALPINE HEALTH AND REHABILITATION CENTER, LLC
                     COLONIAL CARE, LLC
                     GREENBRIAR CARE, LLC
                     GREENBROOK CARE, LLC
                     HERITAGE CARE, LLC LADY
                     LAKE CARE, LLC
                     NEW HORIZON CARE, LLC
                     NORTH REHABILITATION CARE, LLC
                     PALM COURT CARE, LLC
                     RICHEY MANOR, LLC
                     ROCKLEDGE CARE, LLC
                     SOUTH HERITAGE HEALTH AND REHABILITATION CENTER, LLC
                     THE OAKS RESIDENTIAL AND REHABILITATION CENTER, LLC
                     WINTER HAVEN HEALTH AND REHABILITATION CENTER, LLC

                     BY:  EXTENDICARE HEALTH FACILITIES, INC., AS SOLE MEMBER

                     By: /s/ Mark W. Durishan
                        --------------------------------------------------

                     Name:    Mark W. Durishan
                     Title:   Vice President, Chief Financial Officer and
                              Treasurer

                                       72
<PAGE>

                     ARBORS AT TAMPA, LLC
                     ARBORS AT BAYONET POINT, LLC
                     ARBORS AT FAIRLAWN CARE, LLC
                     ARBORS AT FAIRLAWN REALTY OH, LLC
                     ARBORS AT SYLVANIA CARE, LLC
                     ARBORS AT SYLVANIA REALTY OH, LLC
                     ARBORS WEST CARE, LLC
                     ARBORS WEST REALTY OH, LLC
                     COLUMBUS REHABILITATION REALTY OH, LLC
                     JACKSONVILLE CARE, LLC
                     SAFETY HARBOR CARE, LLC
                     KISSIMMEE CARE, LLC
                     ORANGE PARK CARE, LLC
                     OREGON CARE, LLC
                     PORT CHARLOTTE CARE, LLC
                     SARASOTA CARE, LLC
                     SEMINOLE CARE, LLC
                     WINTER HAVEN CARE, LLC
                     BLANCHESTER CARE, LLC
                     CANTON CARE, LLC
                     COLUMBUS REHABILITATION CARE, LLC
                     DAYTON CARE, LLC
                     DELAWARE CARE, LLC
                     GALLIPOLIS CARE, LLC
                     HILLIARD CARE, LLC
                     LONDON CARE, LLC
                     MARIETTA CARE, LLC
                     ROCKMILL CARE, LLC
                     ROCKSPRINGS CARE, LLC
                     WATERVILLE CARE, LLC
                     WOODSFIELD CARE, LLC

                     BY:  NORTHERN HEALTH FACILITIES, INC., AS SOLE MEMBER

                     By:  /s/ Mark W. Durishan
                        --------------------------------------------------

                     Name:    Mark W. Durishan
                     Title:   Vice President, Chief Financial Officer and
                              Treasurer

                                       73
<PAGE>

                     STONEBRIDGE CARE, LP
                     EDGEWOOD CARE, LP
                     ELDERCREST CARE, LP
                     HAVEN CARE, LP
                     MEADOW CARE, LP
                     OAK HILL CARE, LP

                     BY:  COVENTRY CARE HOLDINGS, INC., AS GENERAL PARTNER

                     By: /s/ Mark W. Durishan
                        --------------------------------------------------

                     Name:    Mark W. Durishan
                     Title:   Vice President, Chief Financial Officer and
                              Treasurer

                     GREAT TRAIL CARE, LLC

                     BY:  EXTENDICARE GREAT TRAIL, INC., AS SOLE MEMBER

                     By: /s/ Richard Bertrand
                        --------------------------------------------------

                     Name:    Richard Bertrand
                     Title:   Senior Vice President - Development

                     FISCAL SERVICES GROUP, LLC
                     PARTNERS HEALTH GROUP, LLC

                     BY:  EXTENDICARE HEALTH NETWORK, INC., AS SOLE MEMBER

                     By: /s/ Richard Bertrand
                        --------------------------------------------------

                     Name:    Richard Bertrand
                     Title:   Senior Vice President - Development

                     MILFORD CARE, LLC

                     BY:  MARSHALL PROPERTIES, INC., AS SOLE MEMBER

                     By: /s/ Richard Bertrand
                        --------------------------------------------------

                     Name:    Richard Bertrand
                     Title:   Senior Vice President - Development

                                       74
<PAGE>

                     PARTNERS HEALTH GROUP - FLORIDA, LLC
                     PARTNERS HEALTH GROUP - LOUISIANA, LLC
                     PARTNERS HEALTH GROUP - TEXAS, LLC

                     BY:  PARTNERS HEALTH GROUP, LLC

                     BY:  EXTENDICARE HEALTH NETWORK, INC., AS SOLE MEMBER

                     By:  /s/ Richard Bertrand
                        --------------------------------------------------

                     Name:    Richard Bertrand
                     Title:   Senior Vice President - Development

                                       75
<PAGE>

                      TRUSTEE:

                      U.S. BANK, N.A.

                      By: /s/ Steven J. Peterson
                          ----------------------------------------
                           Name:        Steven J. Peterson
                           Title:       Trust Officer

                                       76
<PAGE>

                                                                       EXHIBIT A

                                 (Face of Note)

                          9 1/2% SENIOR NOTES DUE 2010

                                                          CUSIP  _____________
NO. _____                                                       $_____________

                        EXTENDICARE HEALTH SERVICES, INC.

promises to pay to CEDE & CO., INC. or registered assigns, the principal sum of
_________________ Dollars ($______________) on July, 2010.

Interest Payment Dates:  January 1 and July 1, commencing January 1, 2003.

Record Dates:  December 15 and June 15.

Dated:  ______________, 20__.

                                      A-1
<PAGE>

                  IN WITNESS WHEREOF, the Issuer has caused this Note to be
signed manually or by facsimile by its duly authorized officer.

                        EXTENDICARE HEALTH SERVICES, INC.

                        By:
                           --------------------------------------------------
                           Name:   Mark W. Durishan
                           Title:  Vice President, Chief Financial Officer and
                                   Treasurer

This is one of the [Global]
Notes referred to in the
within-mentioned Indenture:

[                                ]
as Trustee

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

Dated _____________, 20__

                                      A-2
<PAGE>

                                 (Back of Note)

                          9 1/2% Senior Notes due 2010

[Insert the Global Note Legend, if applicable pursuant to the terms of the
Indenture]

[Insert the Private Placement Legend, if applicable pursuant to the terms of the
Indenture]

                  Capitalized terms used herein shall have the meanings assigned
to them in the Indenture referred to below unless otherwise indicated.

         1. INTEREST. Extendicare Health Services, Inc., a Delaware corporation
(the "ISSUER"), promises to pay interest on the principal amount of this Note at
9 1/2% per annum until maturity and shall pay Additional Interest, if any, as
provided in Section 5 of the Registration Rights Agreement. The Issuer shall pay
interest semi-annually on January 1 and July 1 of each year, or if any such day
is not a Business Day, on the next succeeding Business Day (each an "INTEREST
PAYMENT DATE"). Interest on the Notes shall accrue from the most recent date to
which interest has been paid or, if no interest has been paid, from the date of
issuance; provided, however, that if there is no existing Default in the payment
of interest, and if this Note is authenticated between a record date referred to
on the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date; provided, further, that
the first Interest Payment Date shall be the first of January 1 or July 1 to
occur after the date of issuance, unless such January 1 or July 1 occurs within
one calendar month of such date of issuance, in which case the first Interest
Payment Date shall be the second of January 1 and July 1 to occur after the date
of issuance. The Issuer shall pay interest (including post-petition interest in
any proceeding under any Bankruptcy Law) on overdue principal and premium, if
any, from time to time on demand at a rate that is 1% per annum in excess of the
interest rate then in effect under the Indenture and this Note; it shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest (without regard to any
applicable grace periods) from time to time on demand at the same rate to the
extent lawful. Interest shall be computed on the basis of a 360-day year of
twelve 30-day months.

         2. METHOD OF PAYMENT. The Issuer shall pay interest on the Notes
(except defaulted interest) to the Persons who are Holders at the close of
business on the December 15 or June 15 next preceding the Interest Payment Date,
even if such Notes are cancelled after such record date and on or before such
Interest Payment Date, except as provided in Section 2.12 of the Indenture with
respect to defaulted interest. The Notes shall be payable as to principal,
premium, if any, and interest and Additional Interest, if any, at the office or
agency of the Issuer maintained for such purpose, or, at the option of the
Issuer, payment of interest may be made by check mailed to the Holders at their
addresses set forth in the Security Register; provided, however, that payment by
wire transfer of immediately available funds shall be required with respect to
principal of and interest and Additional Interest, if any, and premium, if any,
on, all Global Notes and all other Notes the Holders of which shall have
provided wire transfer instructions to the Issuer or the Paying Agent. Such
payment shall be 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.

         3. PAYING AGENT AND REGISTRAR. Initially, U.S. Bank, N.A., the Trustee
under the Indenture, shall act as Paying Agent and Registrar. The Issuer may
change any Paying Agent or Registrar without notice to any Holder. The Issuer or
any of its Subsidiaries may act in any such capacity.

         4. INDENTURE. The Issuer issued the Notes under an Indenture dated as
of June 28, 2002 ("INDENTURE") among the Issuer, the guarantors party thereto
(the "GUARANTORS") and the Trustee. The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S. Code ss.ss. 77aaa-77bbbb). The Notes
are subject to all such terms, and Holders are referred to the Indenture and
such Act for a statement of such terms. To the extent any provision of this Note
conflicts with the express provisions of the Indenture, the provisions of the
Indenture shall govern and be controlling. The Notes are obligations of the
Issuer unlimited in aggregate principal amount.

                                      A-3
<PAGE>

         5. MATURITY. The principal on the Notes shall be due and payable on
July 1, 2010.

         6. OPTIONAL REDEMPTION.

                  (a) Except as set forth in clause (b) of this Paragraph 6, the
Notes will not be redeemable at the option of the Issuer prior to July 1, 2006.
Starting on that date, the Issuer may redeem all or any portion of the Notes, at
once or over time, after giving the required notice under the Indenture. The
Notes may be redeemed at the redemption prices (expressed as percentages of
principal amount) set forth below, plus accrued and unpaid interest and
Additional Interest, if any, to the redemption date (subject to the right of
Holders on the relevant record date to receive interest due on the relevant
Interest Payment Date), if redeemed during the twelve-month period commencing on
July 1 of the years indicated below:

<TABLE>
<CAPTION>
Year                                                            Percentage
----                                                            ----------
<S>                                                               <C>
2006........................................................      104.750%
2007........................................................      102.375%
2008 and thereafter.........................................      100.000%
</TABLE>

                  (b) At any time and from time to time, prior to July 1, 2005,
the Issuer may redeem up to 35% of the aggregate principal amount of the Notes
issued under the Indenture at a redemption price equal to 109.500% of the
principal amount thereof, plus accrued and unpaid interest and Additional
Interest, if any, to the redemption date (subject to the right of Holders on the
relevant record date to receive interest due on the relevant Interest Payment
Date) with the net cash proceeds of any Qualified Equity Offering of the
Issuer's common stock; provided, however, that after giving effect to any such
redemption, at least 65% of the aggregate principal amount of the Notes issued
under the Indenture remains outstanding. Any such redemption shall be made
within 90 days of the closing of such Qualified Equity Offering upon not less
than 30 nor more than 60 days' prior notice.

                  (c) Any prepayment pursuant to this paragraph shall be made
pursuant to the provisions of Sections 3.01 through 3.06 of the Indenture.

         7. MANDATORY REDEMPTION. The Issuer shall not be required to make
mandatory redemption or sinking fund payments with respect to the Notes.

         8. REPURCHASE AT OPTION OF HOLDER.

         (a) Upon the occurrence of a Change of Control, each Holder shall have
the right to require the Issuer to repurchase all or any part (equal to $1,000
or an integral multiple of $1,000) of such Holder's Notes (a "CHANGE OF CONTROL
OFFER") at a purchase price equal to 101% of the principal amount thereof, plus
accrued and unpaid interest and Additional Interest, if any, to the purchase
date (subject to the right of Holders on the relevant record date to receive
interest due on the relevant Interest Payment Date).

         (b) If the Issuer or one of its Restricted Subsidiaries consummates any
Asset Sales, when the aggregate amount of Excess Proceeds exceeds $15.0 million,
the Issuer shall commence an offer to all Holders of Notes (an "ASSET SALE
OFFER") pursuant to Section 3.09 of the Indenture to purchase the maximum
principal amount of Notes (including any Additional Notes) that may be purchased
out of the Excess Proceeds at an offer price in cash equal to 100% of the
principal amount thereof plus accrued and unpaid interest and Additional
Interest thereon, if any, to the date fixed for the closing of such offer in
accordance with the procedures set forth in the Indenture. To the extent that
the aggregate amount of Notes (including Additional Notes) tendered pursuant to
an Asset Sale Offer is less than the Excess Proceeds, the Issuer (or such
Restricted Subsidiary) may use such deficiency for any purpose not otherwise
restricted by the Indenture. If the aggregate principal amount of Notes
surrendered by Holders thereof exceeds the amount of Excess Proceeds, the
Trustee shall select the Notes to be purchased on a pro rata basis. Holders of
Notes that are the subject of an offer to purchase will receive an Asset Sale
Offer from the Issuer prior to any related purchase date and may elect to have
such Notes purchased by completing the form entitled "Option of Holder to Elect
Purchase" on the reverse of the Notes.

                                      A-4
<PAGE>

         8. NOTICE OF REDEMPTION. Notice of redemption shall be mailed at least
30 days but not more than 60 days before the redemption date to each Holder
whose Notes are to be redeemed at its registered address. Notes in denominations
larger than $1,000 may be redeemed in part but only in whole multiples of
$1,000, unless all of the Notes held by a Holder are to be redeemed. On and
after the redemption date interest ceases to accrue on Notes or portions thereof
called for redemption.

         9. DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000. The
transfer of Notes may be registered and Notes may be exchanged as provided in
the Indenture. The Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and the
Issuer may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Issuer need not exchange or register the
transfer of any Note or portion of a Note selected for redemption, except for
the unredeemed portion of any Note being redeemed in part. Also, the Issuer need
not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a record
date and the corresponding Interest Payment Date.

         10. PERSONS DEEMED OWNERS. The registered holder of a Note may be
treated as its owner for all purposes.

         11. AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions,
the Issuer and the Trustee may amend or supplement the Indenture or the Notes
with the consent of the Holders of at least a majority in principal amount of
the then outstanding Notes voting as a single class, and any existing default or
compliance with any provision of the Indenture or the Notes may be waived with
the consent of the Holders of a majority in principal amount of the then
outstanding Notes voting as a single class. Without the consent of any Holder,
the Issuer and the Trustee may amend or supplement the Indenture or the Notes to
cure any ambiguity, defect or inconsistency, to provide for the assumption by a
successor corporation of the obligations of the Issuer under the Indenture in
the case of a merger or consolidation or sale of all or substantially all of the
assets of the Issuer, provide for uncertificated Notes in addition to or in
place of certificated Notes, to make any change that would provide any
additional rights or benefits to the Holders of Notes or that does not adversely
affect the legal rights under the Indenture of any such Holder, or to make any
change to comply with any requirement of the SEC in order to effect or maintain
the qualification of the Indenture under the TIA.

         12. DEFEASANCE PRIOR TO MATURITY. Subject to certain conditions, the
Issuer at any time may terminate some or all of its obligations under the Notes
and the Indenture if the Issuer deposits with the Trustee for the benefit of the
Holders of the Notes, cash in U.S. dollars, non-callable Government Securities
or a combination of cash in U.S. dollars and non-callable Government Securities,
in amounts as will be sufficient, in the opinion of a nationally recognized firm
of independent public accountants, to pay the principal of, and interest and
premium and Additional Interest, if any, on the Notes on the Stated Maturity or
on the applicable redemption date, as the case may be.

         13. DEFAULTS AND REMEDIES. Each of the following is an Event of Default
under the Indenture: (1) default for 30 days in the payment when due of interest
on, or Additional Interest with respect to, the Notes; (2) default in payment
when due of principal of, or premium, if any, on the Notes; (3) failure by the
Issuer or any of its Restricted Subsidiaries to comply with Sections 4.09 or
4.10 or Article 5 of the Indenture; (4) failure by the Issuer or any of its
Restricted Subsidiaries for 30 days after notice to comply with Sections 4.12
and 4.18; (5) failure by the Issuer or any of its Restricted Subsidiaries for 60
days after notice to comply with any of its other agreements or covenants in the
Indenture or in the Notes; (6) default under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Issuer or any of its
Restricted Subsidiaries (or the payment of which is guaranteed by the Issuer or
any of its Restricted Subsidiaries) whether such Indebtedness or guarantee now
exists, or is created after the date of the Indenture, if that default (A) is
caused by a failure to pay principal of, or interest or premium, if any, on such
Indebtedness prior to the expiration of the grace period provided in such
Indebtedness on the date of such default (a "PAYMENT DEFAULT"); or (B) results
in the acceleration of such Indebtedness prior to its express maturity; and in
each such case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a
Payment Default or the maturity of which has been so accelerated, aggregates
$20.0 million or more; (7) failure by the Issuer or any of its Restricted
Subsidiaries to pay final judgments (to the extent not fully covered by
insurance) aggregating in excess of $20.0 million, which judgments

                                      A-5
<PAGE>

are not paid, discharged or stayed for a period of 60 consecutive days; (8)
except as permitted by the Indenture, any Subsidiary Guarantee shall be held in
any judicial proceeding to be unenforceable or invalid or shall cease for any
reason to be in full force and effect or any Subsidiary Guarantor, or any Person
acting on behalf of any Subsidiary Guarantor, shall deny or disaffirm its
obligations under its Subsidiary Guarantee or (9) certain events of bankruptcy
or insolvency described in the Indenture with respect to the Issuer or any of
its Restricted Subsidiaries. If any Event of Default occurs and is continuing,
the Trustee or the Holders of at least 25% in principal amount of the then
outstanding Notes may declare all the Notes to be due and payable.
Notwithstanding the foregoing, in the case of an Event of Default arising from
certain events of bankruptcy or insolvency described in the Indenture, all
outstanding Notes shall become due and payable without further action or notice.
Holders may not enforce the Indenture or the Notes except as provided in the
Indenture. Subject to certain limitations, Holders of a majority in aggregate
principal amount of the then outstanding Notes may direct the Trustee in its
exercise of any trust or power. The Trustee may withhold from Holders notice of
any continuing Default or Event of Default (except a Default or Event of Default
relating to the payment of principal or interest or Additional Interest) if it
determines that withholding notice is in their interest. The Holders of a
majority in aggregate principal amount of the Notes then outstanding by notice
to the Trustee may on behalf of the Holders of all of the Notes waive any
existing Default or Event of Default and its consequences under the Indenture
except a continuing Default or Event of Default in the payment of interest or
Additional Interest on, or the principal of, the Notes. The Issuer is required
to deliver to the Trustee annually a statement regarding compliance with the
Indenture, and the Issuer is required upon becoming aware of any Default or
Event of Default, to deliver to the Trustee a statement specifying such Default
or Event of Default.

         14. TRUSTEE DEALINGS WITH ISSUER. The Trustee, in its individual or any
other capacity, may make loans to, accept deposits from, and perform services
for the Issuer or its Affiliates, and may otherwise deal with the Issuer or its
Affiliates, as if it were not the Trustee.

         15. DESIGNATED SENIOR DEBT. The Issuer hereby designates the Notes as
"Designated Senior Debt" as that term is defined in the Senior Subordinated Note
Indenture.

         16. NO RECOURSE AGAINST OTHERS. No director, officer, employee,
incorporator or stockholder of the Issuer or of any Subsidiary Guarantor, as
such, shall have any liability for any obligations of the Issuer or any
Subsidiary Guarantor under the Indenture, the Notes, the Subsidiary Guarantees
or for any claim based on, in respect of, or by reason of, such obligations or
their creation. Each Holder by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for the issuance
of the Notes; such waiver may not be effective to waive liabilities under the
federal securities laws and it is the view of the SEC that such a waiver is
against public policy.

         17. AUTHENTICATION. This Note shall not be valid until authenticated by
the manual signature of the Trustee or an authenticating agent.

         18. ABBREVIATIONS. Customary abbreviations may be used in the name of a
Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).

         19. CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Issuer has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption as a convenience to Holders. No representation is made
as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

                  The Issuer shall furnish to any Holder upon written request
and without charge a copy of the Indenture. Requests may be made to:

                  Extendicare Health Services, Inc.
                  111 West Michigan Street
                  Milwaukee, WI  53203
                  Attention:  Chief Financial Officer

                                      A-6
<PAGE>

                       Option of Holder to Elect Purchase

If you want to elect to have this Note purchased by the Issuer pursuant to
Section 4.12 or 4.18 of the Indenture, check the box below:

[ ]         Section 4.12

[ ]         Section 4.18

If you want to elect to have only part of the Note purchased by the Issuer
pursuant to Section 4.12 or Section 4.18 of the Indenture, state the amount you
elect to have purchased: $_____________________

Date:___________________       Your Signature:________________________________
                               (Sign exactly as your name appears on the Note)

                               Tax Identification No.:

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

                               SIGNATURE GUARANTEE:

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

                               Signatures must be guaranteed by an "eligible
                               guarantor institution" meeting the requirements
                               of the Registrar, which requirements include
                               membership or participation in the Security
                               Transfer Agent Medallion Program ("STAMP") or
                               such other "signature guarantee program" as may
                               be determined by the Registrar in addition to, or
                               in substitution for, STAMP, all in accordance
                               with the Securities Exchange Act of 1934, as
                               amended.

                                      A-7
<PAGE>

                                 ASSIGNMENT FORM

To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to

------------------------------------------------------------------------------
               (Insert assignee's soc. sec. or other tax I.D. no.)

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

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

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

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

------------------------------------------------------------------------------
             (Print or type assignee's name, address and zip code)
and irrevocably appoint
                       -------------------------------------------------------
as agent to transfer this Note on the books of the Issuer.  The agent may
substitute another to act for him.

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

Date: ______________
                             Your Signature:
                                            ----------------------------------
                             (Sign exactly as your name appears on the face of
                             this Note)

                             Signature Guarantee:
                                                  ----------------------------

                                      A-8
<PAGE>

              SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

                  The following exchanges of a part of this Global Note for an
interest in another Global Note or for a Definitive Note, or exchanges of a part
of another Global Note or Definitive Note for an interest in this Global Note,
have been made:

<TABLE>
<CAPTION>
                                                                           Principal Amount
                                Amount of                                 of this Global Note       Signature of
                               decrease in         Amount of increase       following such      authorized signatory
                            Principal Amount      in Principal Amount        decrease (or           of Trustee or
    Date of Exchange       of this Global Note    of this Global Note          increase)           Note Custodian
    ----------------       -------------------    -------------------          ---------           --------------
<S>                        <C>                    <C>                     <C>                   <C>

</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]