Document:

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                                                                   EXHIBIT 10.10

                                 LEASE AGREEMENT

                                 BY AND BETWEEN

                          RICHMOND REALTY COMPANY, LLC

                                      AND

                          C. C. GRIMES, JR. AS TRUSTEE

                                      AND

                              SUN BANCSHARES, INC.

                             Dated: April 28, 2000

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                                TABLE OF CONTENTS

<TABLE>
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                                                       PAGE
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<S>                                                    <C>
1.       DEMISED PREMISES..............................   3
2.       TERM..........................................   3
3.       OPTION TO RENEW...............................   3
4.       RENTAL........................................   4
5.       QUIET ENJOYMENT...............................   5
6.       IMPROVEMENTS..................................   5
7.       IMPROVEMENT AND FIXTURES......................   6
8.       USE OF PREMISES...............................   6
9.       ASSIGNMENT AND SUBLETTING.....................   6
10.      MORTGAGES.....................................   7
11.      REGISTERED MORTGAGEE'S RIGHT TO CURE DEFAULT..   9
12.      MAINTENANCE/APPEARANCE........................  10
13.      DAMAGE OR DESTRUCTION.........................  10
14.      PAYMENT OF TAXES..............................  11
15.      UTILITIES.....................................  11
16.      APPRAISAL PROCEDURE...........................  11
17.      CONDEMNATION..................................  12
18.      INDEMNIFICATION...............................  13
19.      DEFAULT.......................................  14
20.      NOTICES.......................................  16
21.      LIABILITY INSURANCE...........................  16
22.      LESSOR'S WARRANTY.............................  17
23.      LESSEE'S WARRANTY.............................  18
24.      BINDING AGREEMENT.............................  18
25.      EXPIRATION....................................  18
26.      INSOLVENCY, ETC. OF LESSEE....................  18
27.      RICHMOND PLACE ROAD MAINTENANCE...............  19
28.      BROKERAGE.....................................  19
29.      LESSOR AND LESSEE NOT PARTNERS................  19
30.      LITIGATION....................................  19
31.      HOLDOVERS.....................................  19
32.      ASSIGNMENT BY LESSOR..........................  20
33.      ENTRY ON PREMISES BY LESSOR...................  20
34.      FEDERAL DEPOSIT INSURANCE CORPORATION.........  20
35.      MISCELLANEOUS.................................  20
         (a)  Authorization to Enter into this Lease...  20
         (b)  Waiver...................................  20
         (c)  Integration..............................  21
         (d)  Time of Essence..........................  21
         (e)  Sundays and Holidays.....................  21
         (f)  Damage to Land...........................  21
         (g)  Paragraph Headings and Cross-References..  21
         (h)  Recordation of Memorandum of Lease.......  21
         (i)  Compliance with Laws.....................  21
         (j)  Governing Law............................  22
         (k)  Certificates of Lessor and Lessee........  22
</TABLE>
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                                 LEASE AGREEMENT

         THIS LEASE AGREEMENT, (this "Lease"), made and entered into this _____
day of April, 2000, by and between Richmond Realty Company, LLC, a South
Carolina limited liability company and C. C. Grimes, Jr., as Trustee u/d of May
Allston Pyatt, dated December 29, 1972, recorded in Georgetown County, SC in
Deed Book 109 at Page 743, hereinafter referred to as "Lessor", and Sun
Bancshares, Inc., a South Carolina Corporation, hereinafter referred to as
"Lessee".

                                  WITNESSETH:

         WHEREAS, the Lessor, Richmond Realty Company, LLC, has agreed to lease
the demised premises hereinafter described to the Lessee, Sun Bancshares, Inc.,
so that its subsidiary, SunBank, might construct a office for its bank on said
premises pursuant to the terms of a Option Agreement between the parties dated
November 12, 1999;

         NOW, THEREFORE, IN CONSIDERATION of the rents hereinafter reserved and
the covenants and agreements hereinafter expressed on the parts of the parties
to be performed, Lessor leases unto Lessee and Lessee leases from Lessor the
land and premises hereinafter described, on the terms and conditions stated, to
wit:

         1.       DEMISED PREMISES: The Demised Premises are described
and identified as being:

         See attached Exhibit "A" for a description of the Demised Premises.

         2.       TERM: TO HAVE AND TO HOLD the same for and during the term
commencing on the 1st day of May, 2000, and expiring on the 30th day of April,
2030, inclusive, unless sooner terminated as hereinafter provided.

         3.       OPTION TO RENEW:

         (a)      The term of this Lease may be extended, at the option of the
         Lessee, for four (4) period(s) of five (5) years each, such period(s)
         being herein sometimes referred to as an extended term(s), as follows:
         First extended term: May 1, 2030 through April 30, 2035; Second
         extended term: May 1, 2035 through April 30, 2040; Third extended term:
         May 1, 2040 through April 30, 2045; Fourth

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         extended term: May 1, 2045 through April 30, 2050. Such option to
         extend shall be exercised by the Lessee by giving written notice to the
         Lessor not less than 180 days prior to the expiration of the then
         existing term.

         (b)      Each extended term shall be upon the same terms, covenants and
         conditions, with the exception of the annual rent payable, as hereafter
         provided in this Lease, which shall be established by an appraisal of
         said Demised Premises at the end of the initial term in accordance with
         the provisions hereinafter set forth so as to provide a twelve (12%)
         percent return to the Lessor. The rent will thereafter be adjusted at
         the end of the third year from the balance of that option period as is
         set forth in Item 4 below. The appraisal shall not include the
         Improvements (as said term is hereinafter defined) placed on the
         Demised Premises.

         4.       RENTAL: The lease will be a triple net lease and rent will be
on an absolute net basis. The rent shall be paid annually, in advance, due and
payable on or before the first (1st) of May of each year. For years one (1)
through three (3), the rent will be Fifty-Five Thousand and No/100's
($55,000.00) Dollars per year, (hereinafter "Basic Rental"). The receipt of
$55,000.00 for year one (1), (comprising option money previously paid to the
Lessor in the amount of $22,916.65) and the balance of $32,083.35 (paid at the
signing of this Lease), is hereby acknowledged by the Lessor. For the remaining
years of the Initial Term, beginning with the lease year commencing May 1st,
2003 and on May 1st of each three (3) years thereafter, the Basic Rental will be
adjusted according to the corresponding change in the Consumer Price Index (CPI)
as hereinafter set forth. Should the Lessee exercise its renewal option as
herein provided in Paragraph "3.(a)." above, the Basic Yearly rental for any
such option period shall be adjusted to provide a twelve (12%) percent annual
return to Lessor on the value of the land, at that time, minus all improvements
thereon, with such rental thereafter to be adjusted by the CPI in the third
(3rd) year for the balance of that option period. Should the Lessor and Lessee
fail to agree on the value of the land within (30) days of notice of exercising
such option, the value of the land shall be established by the "Appraisal
Procedure" as set forth in Paragraph "15.", below.

         On May 1st, 2003, and on each May 1st on each three year period while
the initial term of this lease, is in effect, the basic yearly rental of
$55,000.00 shall be adjusted in

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accordance with the "Consumer Price Index" in the manner as is hereinafter
defined. Yearly rental for each succeeding three (3) year period, shall be in an
amount determined by multiplying the Basic Yearly Rental ($55,000.00) by a
fraction, the numerator of which shall be the "Consumer Price Index" (as said
term is hereinafter defined) as adjusted for the previous year and published in
the Federal Reserve Bulletin for the preceding year, and the denominator of
which shall be the "Consumer Price Index" (as said term is hereinafter defined)
for the year 2000 as adjusted and published in the Federal Reserve Bulletin.

         The term "Consumer Price Index" as used herein shall mean the index
number published by the Bureau of Labor Statistics of the United States
Department of Labor Indexes, unadjusted Indexes, All Items, (base 1982-84 =
100)". In the event such Index is no longer published, then the successor
substitute index appropriately adjusted, shall be utilized in the determination
of the rent payable hereunder.

         5.       QUIET ENJOYMENT: Lessee, upon payment of the rental and all
other payments and charges to be paid by Lessee under the terms of this Lease,
and upon observing and keeping the agreements and the covenants of this Lease
on the part of Lessee to be observed and kept, shall lawfully and quietly hold,
occupy and enjoy the Demised Premises during the term of this Lease without
interference by Lessor, or anyone claiming by, through or under Lessor, subject
only to existing or future laws, ordinances and governmental regulations and to
matters of record affecting title to the Demised Premises.

         6.       IMPROVEMENTS: Lessee shall have the right to make such
improvements to the Demised Premises as it deems advisable including, but not
limited to, the construction of a bank building ("Improvements"); provided,
however, such plans and specifications therefor must be submitted to Lessor for
its approval. Such approval shall not be unreasonably withheld. Lessee shall be
responsible for the cost of any and all Improvements on the Demised Premises,
and shall hold Lessor harmless against any claims arising by reason of the con
struction thereof, expressly including, but without limiting the generality,
mechanics' liens, or public liability. All Improvements placed on the Demised
Premises shall be done in accordance with all applicable laws and codes,
including specifically the building regulations of the County of Georgetown,
South Carolina.

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         After construction is completed, Lessee shall have the right, without
the consent of Lessor, to make interior and exterior alterations, repairs,
improvements, or modifications in the building or buildings so constructed.

         7.       IMPROVEMENTS AND FIXTURES: At the expiration or earlier
termination of this Lease, all Improvements placed or constructed on the Demised
Premises by Lessee shall become the property of Lessor; provided, however, that
if Lessee is in full compliance with the terms of this Lease, then Lessee shall
have the right to remove any and all furniture, furnishings, equipment, or trade
fixtures which may be located in or on the Demised Premises. All of such items
shall be removed no later than thirty (30) days after the termination date of
this Lease. Any items remaining after such time shall conclusively be deemed to
have been abandoned and shall belong to Lessor.

         8.        USE OF PREMISES: The Lessee may use and occupy the leased
property for any lawful purpose. The Lessee shall not use or knowingly permit
any part of the leased property be used for any unlawful purpose.

         9.       ASSIGNMENT AND SUBLETTING: This Lease, and/or any rights
hereunder, may not be assigned, sub-leased or transferred by the Lessee except
as hereinafter specifically provided unless such assignment or transfer is
consented to in writing by the Lessor. Without limiting the provisions of
Section 10 hereof, this Lease, the Demised Premises, the Improvements (or any
portion thereof or any interest therein), and the rights, privileges,
obligations, and responsibilities of Lessee under this Lease may be transferred
or assigned, in whole or in part and from time to time, by Lessee without the
prior written approval of Lessor, provided that (a) the proposed assignee or
transferee has the financial capability to comply with this Lease at the time of
the applicable assignment or transfer, (b) the proposed assignee or transferee
agrees in writing to use the Demised Premises for business or professional
offices, or a full-service banking facility and (c) the proposed assignee or
transferee is a financial institution or business entity which is acquiring, is
being acquired by, is merging with, or is otherwise being consolidated with
Lessee (hereinafter collectively referred to as the "Permitted Assignments"). A
permitted assignee shall succeed to the rights of Lessee under this Lease,
subject, however, to all duties, covenants, and obligations of Lessee under this
Lease. Upon a Permitted Assignment by Lessee of all of Lessee's right, title,
and interest in and to the Demised

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Premises (or upon any further Permitted Assignment by a permitted assignee in
accordance with the requirements of this Section 9, Lessee (or said assigning
permitted assignee) shall be released from any duties, covenants, or obligations
under this Lease arising out of or in connection with events occurring
subsequent to the date of said Permitted Assignment, without the express
approval of Lessor. Provided further, however, Lessee may without the consent of
Lessee sublease a portion of the space in the bank building for business or
professional offices.

         10.      MORTGAGES:

                  (a)      Right To Mortgage Lessee's Interest In Property.
Lessee and each permitted assignee of Lessee, shall have the right to encumber
its Leasehold interest in the Demised Premises and Improvements, its right to
use and occupy the Demised Premises and Improvements, and any other property so
affixed to said land, buildings, or improvements as to be a part thereof and all
rents, income, revenues, issues and profits now or hereafter incident or
belonging to said leasehold estate and buildings and property, under any one or
more mortgages ("Project Mortgage(s)"), as security for any indebtedness or
obligation; provided that no project mortgagee or anyone that claims by,
through, or under such Project Mortgage or instrument in the nature thereof
shall by virtue thereof acquire any greater right in the Demised Premises or
Improvements thereon than Lessee then had under this Lease. The execution and
delivery of any such Project Mortgage, the transfer of the leasehold estate
pursuant to any foreclosure (judicial or otherwise) thereof or any deed or
assignment in lieu of foreclosure, or the disposition of the leasehold estate by
the holder of such Project Mortgage shall not be deemed prohibited by any
provisions hereof. Any Project Mortgage shall in all respects be and remain
subordinate and inferior to Lessor's rights, title, privileges and interests in
and to the Demised Premises and Improvements, and neither Lessee nor any
permitted assignee shall have the right to encumber in any manner Lessor's fee
simple title and reversionary interest in and to the Demised Premises.

                  (b)      Lessor agrees to modify this Lease from time to time
for the purpose of incorporating herein such additional project mortgagee
protective provisions as may be reasonably requested by any project mortgagee;
provided such modifications do not result in a change in the payment of rental
hereunder, do not materially modify the obligations of Lessee hereunder, are not
inconsistent with any of the terms

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and conditions of this Lease in any material respect, and do not increase the
financial risk or other obligations of or unduly burden Lessor. Any additional
modifications pursuant to this Section 10 shall be effected at no expense to
Lessor.

                  (c)      In the event Lessee or any permitted assignee of
Lessee shall encumber the Demised Premises, Improvements or any portion thereof
or any interest therein with a Project Mortgage, and the project mortgagee shall
register with Lessor ("Registered Mortgagee") by delivering to Lessor a copy of
the Project Mortgage certified by the Clerk or any Deputy Clerk of the Court of
where the Demised Premises and Improvements are located, together with a written
notice specifying the name and address of the project mortgagee, the pertinent
recording data, and the term or duration of the Project Mortgage, then from and
after the date of receipt by Lessor of such registration and for the term or
duration of said Project Mortgage, Lessor shall, simultaneously with giving
Lessee any notice under this Lease, serve a copy of such notice upon all
Registered Mortgagees, the serving of such notice upon each Registered Mortgagee
entitled to the receipt thereof being a condition precedent to the effectiveness
thereof with respect to such Registered Mortgagee. Upon request, Lessor shall
notify any Registered Mortgagee of the identity and address of Lessors agent, if
any, for receipt of notice and payments hereunder, and such Registered Mortgagee
shall be entitled to rely on such notice until such Registered Mortgagee is
delivered a notice from Lessor changing the identity and/or address of such
agent. Notices sent and payments made in accordance with any such notice from
Lessor shall constitute notice and payment to all parties included within the
term "Lessor." Each Registered Mortgagee shall have the right to remedy or cause
to be remedied any default complained of or request made by Lessor, and Lessor
shall accept performance by or at the instigation of any Registered Mortgagee
with the same force and effect as if Lessee had performed the action in
question. Nothing contained herein shall be construed as imposing any obligation
upon any project mortgagee so to perform or comply on behalf of Lessee.

                  (d)      No project mortgagee shall be or become liable to
Lessor as an assignee of this Lease or otherwise unless such project mortgagee
expressly assumes by written instrument such liability (in which event the
project mortgagee's liability shall be limited to the period of time it is the
owner of the leasehold estate created hereby), and no assumption shall be
inferred from or result from foreclosure or other appropriate proceedings in the
nature thereof or as

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the result of any other action or remedy provided for by such Project Mortgage
or other instrument or from a conveyance from Lessee pursuant to which the
purchaser at foreclosure or grantee shall acquire the rights and interest of
Lessee under the terms of this Lease; provided that nothing in this Section 10
shall be deemed to prevent Lessor from exercising all rights and remedies,
including, but not limited to, Termination of Lease, in accordance with Section
18 if the obligations of Lessee under this Lease are not performed as provided
in this Lease. It is further agreed that no person acquiring title to, or other
rights in, the Demised Premises and Improvements or this Lease solely by virtue
of the provisions of a Project Mortgage, collateral assignment, security
agreement, or similar security instrument shall have any liability hereunder
except as expressly provided in this Section 10, notwithstanding that such
security instrument may provide for a present assignment of Lessee's rights
hereunder to the acquiring person.

                  (e)      Lessor shall not accept any surrender of or agree to
any termination of (except as provided in Section 18 hereof) or enter into any
modification or amendment of this Lease without the prior written consent
thereto by all Registered Mortgagees, and any attempt so to do without such
written consent shall be void and of no force or effect.

                  (f)      The rights granted a Registered Mortgagee in this
Section 10 shall not extend to more than two (2) such Registered Mortgagees at
any one time and shall be exercisable by each Registered Mortgagee in accordance
with the respective priorities of the Project Mortgages.

         11.      REGISTERED MORTGAGEE'S RIGHT TO CURE DEFAULT:

         Lessor, upon providing Lessee with any Default Notice, shall at the
same time provide a copy of such notice to every Registered Mortgagee. From and
after the date of the Default Notice, each Registered Mortgagee shall have the
same period as is given to Lessee to remedy, commence remedying, or cause to be
remedied the Default specified in any such Default Notice. Lessor shall accept
such performance by or at the instigation of any such Registered Mortgagee as if
the same had been done by Lessee. Lessee authorizes each Registered Mortgagee to
take any such action at such Registered Mortgagee's option and does hereby
authorize entry upon the Leased Property by the Registered Mortgagee(s) for such
purposes.

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         12.      MAINTENANCE/APPEARANCE: Lessee covenants and agrees that
Lessee will be solely responsible for the maintenance and repair of the Demised
Premises and Improvements throughout the term of this Lease. Any necessary
maintenance shall be performed in a workmanlike manner utilizing proper
contractors, subcontractors and materialmen. Lessee shall be solely responsible
for the cost of such maintenance and shall save Lessor harmless from any claim
for labor and/or materials utilized in the performance of such maintenance and
repairs. Nothing contained herein shall be deemed to make Lessee or any of
Lessee's employees or agents (including any contractors, subcontractors or
suppliers of materials) the agent or employee of Lessor nor give rise to any
lien against the fee ownership of the Demised Premises of Lessor. Lessee further
covenants and agrees that during the term of this Lease, the Demised Premises
shall be maintained and kept in an attractive and neat manner, free from litter
and debris and unsightly conditions.

         13.      DAMAGE OR DESTRUCTION: No destruction of or damage to the
Improvements (or any portion thereof) by fire, windstorm or any other casualty,
shall entitle Lessee to terminate this Lease; and in the event of such casualty,
Lessee shall repair and restore the Improvements to a condition substantially
comparable to the condition of the Improvements prior to such damage or
destruction. Notwithstanding anything stated hereinabove, if such damage or
destruction occurs due to any casualty during the last five (5) years of the
Initial Term, First Extended Term, Second Extended Term, Third Extended Term, or
Fourth Extended Term, Lessee shall not have a duty to restore as stated above,
provided, however, at Lessor's option, Lessee may be required to remove any and
all improvements, debris and personal property from the premises and restore the
premises to the same condition as it existed at the commencement of the Lease.

         Any restoration or repair shall be performed in a workmanlike manner
utilizing proper contractors, subcontractors and materialmen. Lessee shall be
solely responsible for the cost of such restoration or repair and shall save
lessor harmless from any claim for labor and/or materials utilized in the
performance of such restoration or repairs. Nothing contained herein shall be
deemed to make Lessee or any of Lessee's employees or agents (including any
contractors, subcontractors or suppliers of materials) the agent or employee of
Lessor, nor give rise to any lien against the fee ownership of the Demised
Premises of Lessor.

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         14.      PAYMENT OF TAXES: Lessee shall be responsible for the payment
of all ad valorem or other taxes or assessments levied or imposed on the Demised
Premises and any improvements thereon during the entire term of this Lease.
However, all of such taxes and assessments payable for the calendar or tax year
in which the term of this Lease commences shall be prorated so that Lessor bears
the portion of such taxes and assessments attributable to the portion of the
year prior to the commencement of this Lease. Furthermore, all of such taxes and
assessments payable for the calendar or tax year in which the term of this Lease
expires shall be prorated so that Lessee bears the portion of such costs
attributable to the portion of the year during the term of this Lease and Lessor
bears the portion of such costs attributable to the portion of the year
following the expiration of the Lease. Taxes, assessments, and insurance
premiums herein provided for shall constitute additional rent, non-payment of
which shall constitute default in the payment of rent if not paid when due.
These payments may be made to the proper recipients rather than to Lessor. If
Lessor fails to have the Demised Premises designed as a separate tax parcel,
then Lessor shall provide Lessee with proof of a division of said taxes and
assessments. Lessee shall furnish to Lessor copies of receipts showing payment
of taxes and assessments. Lessee shall have the right to contest in good faith
and at its sole expense the amount or validity of such taxes and assessments by
appropriate legal proceedings, but Lessee's covenant to pay such taxes and
assessments before delinquency shall not be modified.

         15.      UTILITIES: Lessee shall be solely responsible for the payment
of all charges for electricity, gas, heat, water, telephone, and other utility
services used by Lessee in or on the Demised Premises.

         16.      APPRAISAL PROCEDURE: If it shall become necessary to determine
the appraised value of the Lessor's interest in the leased property, such
appraisal shall be conducted in accordance with the provisions of this
paragraph. The Lessee shall appoint a disinterested person with at least ten
years professional experience as a licensed real estate appraiser as an
appraiser. Within ten days thereafter, the Lessor shall by written notice to the
Lessee appoint a second disinterested person with at least ten years
professional experience as a licensed real estate appraiser as an appraiser. The
appraisers thus appointed shall appoint a third disinterested person with at
least ten years professional experience as a licensed real estate appraiser, and
such three appraisers shall promptly as

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possible determine such value. If a second appraiser shall not have been so
appointed, the first appraiser shall proceed to determine such value. If, within
five days after the appointment of the second appraiser, the two appraisers
appointed by the parties shall be unable to agree upon the appointment of a
third appraiser, they shall give written notice of such failure to agree to the
parties, and, if the parties fail to agree upon the selection of such third
appraiser within five days after the appraisers appointed by the parties have
given such notice, then within five days thereafter either of the parties upon
written notice to the other party may apply for such appointment to the Court of
Common Pleas of Georgetown County, South Carolina or to any other court having
jurisdiction and exercising functions similar to those now exercised by the
Court of Common Pleas of Georgetown County, South Carolina. The Lessor and the
Lessee shall each be entitled to present evidence and argument to the
appraisers. The determination of the majority of the appraisers, or of the sole
appraiser, as the case may be, shall be conclusive upon the parties and judgment
upon the same may be entered in any court having jurisdiction thereof. The
appraisers shall give written notice to the parties stating their determination,
and shall furnish to each party a copy of such determination signed by them. In
the event of the failure, refusal, or inability of any appraiser to act, a new
appraiser shall be appointed in his stead, which appointment shall be made in
the same manner as hereinabove provided for the appointment of the appraiser so
failing, refusing, or unable to act. The expenses of each appraisal conducted in
accordance with the provisions of this paragraph shall be borne equally by the
Lessor and Lessee.

         17.      CONDEMNATION:

                  (a)      If at any time during the term of this Lease, title
to the whole of the Demised Premises and Improvements shall be taken by the
exercise of the right of condemnation or the power of eminent domain, this Lease
shall terminate on the date of such taking, and the rent and other sums of money
provided to be paid by Lessee shall be apportioned and paid to the date of such
taking.

                  (b)      If title to more than fifty (50%) percent but less
than all of the entire Demised Premises shall be taken by the exercise of the
right of condemnation or the power of eminent domain, but the remainder of the
Demised Premises cannot be economically and feasibly used by Lessee, as
determined by Lessee in its reasonable discretion, then

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Lessee, at Lessee's option, shall have the option to cancel this Lease,
effective on the date of taking, on written notice to Lessor, whereupon this
Lease shall terminate and rent and other charges shall be apportioned and paid
to the date of such termination. In the event that Lessee does not elect to
cancel this Lease, the rental shall be reduced in accordance with the terms of
subparagraph (c) below.

                  (c)      If title to less than fifty (50%) percent of the
entire Demised Premises and Improvements shall be taken by the exercise of the
right of condemnation or the power of eminent domain, but the remainder of the
Demised Premises can be economically and feasibly used by Lessee, as determined
by Lessee in its reasonable discretion, or if Lessee elects not to cancel this
Lease in accordance with clause (b) above, then this Lease shall continue in
force and effect except that the base rent payable hereunder shall be reduced
commensurate with the amount of land taken.

                  (d)      In the event of any taking of (i) only appurtenances
to the Demised Premises (including any pond areas) and Improvements that do not
materially affect the bank operations, or (ii) rights in, under, or above the
streets adjoining the Demised Premises and Improvements, or (iii) the rights and
benefits of light, air or access, or (iv) the taking of space or rights below
the surface of, or above, the Demised Premises and Improvements that do not
materially affect bank operations, then this Lease shall remain in full force
and effect without reduction or abatement of rent. Lessor and Lessee shall share
the award for such taking as their interests may appear, depending on the nature
of such taking.

                  (e)      Lessor and Lessee shall each retain any condemnation
award made specifically to their favor with neither party having any claim on
any award made directly to the other party. Nothing in this Section 16 shall
preclude an award being made to Lessee by the condemning authority for its
leasehold interest in the Demised Premises, fee interest in the Improvements,
loss of business, or depreciation to, and cost of removal of equipment or
fixtures, or preclude Lessee's right to bring an action against the condemning
authority.

         18.      INDEMNIFICATION: Lessee agrees to defend, indemnify and save
Lessor harmless (except in the event of gross negligence or wilful misconduct
solely on the part of Lessor, its employees, or agents) against any and all
claims, demands, damages, costs and expenses, including all attorneys' fees

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incurred by Lessor for the defense thereof, arising from (i) the conduct or
management of any business operated by Lessee in, on or about the Demised
Premises including any accident, injury or damage which shall have occurred in,
on or about the Demised Premises or on or under the adjoining streets, curbs or
vaults, or resulting from the condition, maintenance or operation of the Demised
Premises on the adjoining streets, sidewalks, curbs or vaults; (ii) any breach
or default on the part of Lessee in the performance of any covenant or agreement
on the part of Lessee to be performed pursuant to the terms of this Lease; (iii)
any act of negligence of Lessee, Lessee's agents, contractors, servants,
employees, sublessees, concessionaires or licensees in or about the Demised
Premises; or (iv) any failure by Lessee or its agents or employees to comply
with any requirements of any governmental authority. In case of any action or
proceeding brought against Lessor by reason of any such claim, upon notice from
Lessor, Lessee covenants to defend such action or proceeding by counsel
reasonably satisfactory to Lessor.

                  All property kept, stored or maintained in the Demised
Premises shall be so kept, stored or maintained at the sole risk of Lessee.
Lessee agrees to pay and discharge any mechanics', materialmen's or other lien
against the Demised Premises or Lessor's interest therein claimed in respect to
any labor, services, materials, supplies or equipment furnished or alleged to
have been furnished to or upon the request of Lessee, provided that Lessee may
contest such lien claim upon furnishing to Lessor such indemnification for the
final payment and discharge thereof, together with the costs and expenses of
defending the same, as Lessor may reasonably require. Nothing contained in this
Lease shall be so construed as to in any way subject Lessor's interest in the
Demised Premises to any such lien.

         19.      DEFAULT: If Lessee shall fail or neglect to pay any amount of
rent when the same is due and payable, Lessee shall have a grace period of
fifteen (15) days from the date after Lessor delivers written notice to Lessee
of its failure. If Lessee shall fail or neglect to perform or observe any of the
other agreements or covenants herein contained, then Lessor shall, prior to
terminating this Lease as a result of such failure or neglect, deliver to Lessee
at the Demised Premises or at the office of the registered agent for Lessee a
written notice of such default, and Lessee shall have a period of thirty (30)
days after Lessor delivers such notice in which to cure the default (and, if
such default cannot be cured with due diligence within such thirty (30) day
period, then for

                                       14
<PAGE>   15

such additional time, in no event to exceed one hundred eighty (180) days, as
may be taken to cure the default so long as Lessee has commenced the cure of
such default during the 30 day period and thereafter continuously and diligently
prosecutes such cure). In the event that Lessee shall fail to pay the rent due
within such fifteen (15) day period after written notice, or cure the default
complained about after thirty (30) days' written notice (subject to extension as
set forth in the immediately preceding sentence), Lessor may immediately
terminate this Lease and take possession of the Demised Premises (excluding all
furnishings and personal property which are fixtures owned by Lessee) in
accordance with the termination provisions of this Lease, and Lessor shall also
have the right to enforce any and all rights and remedies that Lessor may have
at law or in equity. Without limiting the foregoing general statement, Lessor
shall also have the right, with or without terminating this Lease, to seek and
obtain injunctive relief against Lessee or any other person or entity,
compelling performance in accordance with the terms of this Lease.

         If Lessor shall exercise the right to terminate this Lease as
aforesaid, Lessor will not thereby be deprived of any other rights it may have
against Lessee, but shall at all times be entitled to recover from Lessee any
and all damages sustained by Lessor on account of the breach of the covenants or
agreements herein contained which Lessee is obligated to perform. In case of
termination of this Lease by Lessor, the base rent for the year of termination
shall not be apportionable but shall be payable in full by Lessee, unless Lessor
re-rents the Demised Premises on its own account, in which case, Lessor shall be
entitled to its damages under the usual rule applicable to damages where Lessor
re-rents solely for the purpose of mitigation of damages.

         If Lessor fails to object to a breach at the time it occurs, Lessor
does not waive Lessor's right to object to and demand a cure of said breach or
of a similar breach at a later date.

         Lessee shall be responsible for, and shall pay or reimburse Lessor for,
any and all reasonable legal fees and expenses incurred by Lessor in connection
with preserving or enforcing Lessor's rights under this Lease. However, if
litigation should arise under this Lease, then Section 29 hereof shall govern
with respect to the award of attorneys fees to the prevailing party.

                                       15
<PAGE>   16

         20.      NOTICES: All notices required to be given to Lessor hereunder
shall be sent by registered or certified mail to Lessor at:

                          Richmond Realty Company, LLC
                          Post Office Box 459
                          Georgetown, SC 29442

or to such other address or addresses as Lessor may direct from time to time by
written notice forwarded to Lessee by registered or certified mail.

         All notices required to be given to Lessee shall be sent by registered
or certified mail to Lessee at:

                  Sun Bancshares, Inc.
                  P.O. Box 1359
                  Murrells Inlet, SC 29576
                  ATTN: Thomas Bouchette, President

or to such other address as Lessee may direct from time to time by written
notice forwarded to Lessor by registered or certified mail.

         21.      LIABILITY INSURANCE: Lessee agrees to procure and maintain a
broad form policy or policies of liability insurance, at its own cost and
expense, insuring Lessee from all claims or demands for which liability
insurance is generally available subject to a minimum limit of liability for
personal injury of $3,000,000.00 for each occurrence and for property damage
liability of $1,000,000 for each occurrence, or for such lesser amounts as may
from time to time be available for commercially reasonable premiums and upon
commercially reasonable terms and conditions. Such insurance shall cover any
claim made by or on behalf of any person or persons, firm or corporation arising
from, related to, or connected with the conduct and operation of Lessee's
business on the Demised Premises. Said insurance shall be issued by an insurance
company of recognized responsibility and licensed to do business in the State of
South Carolina. Said insurance shall not be subject to cancellation except after
at least ten (10) days prior written notice to Lessor, and the policy or
policies, or duly executed certificate or certificates for the same, together
with satisfactory evidence of the payment of the premium thereon shall be
deposited with Lessor at the commencement of the term and renewals thereof not
less than thirty (30) days prior to the expiration of the term of such coverage
and shall contain, in addition to the

                                       16
<PAGE>   17

matters customarily set forth in such a certificate under standard insurance
industry practices, an undertaking by the insurer to give Lessor not less than
ten (10) days written notice of any cancellation or change in scope or amount of
coverage of such policy. Said policy shall also name Lessor as a covered or
named or additional insured.

         22.      LESSOR'S WARRANTY: Lessor hereby warrants that it has fee
simple title to the Demised premises, subject to easements, covenants, and other
matters of record, and has the right to enter into this Lease. Lessor warrants
and represents that the Demised Premises is zoned for banking use and Lessor
shall be obligated to do anything to the Demised Premises, with respect thereto;
and Lessor shall be liable to Lessee if the latter should hereafter deem the
land to be unsuitable for such use.

         Additionally, Lessor warrants and represents to its best knowledge as
follows:

         (i)      All necessary or applicable federal, state and local permits
                  concerning environmental protection have been secured by the
                  Lessor and are current;

         (ii)     The Lessor is (and has been) in full compliance with all
                  appropriate permits, zoning and with any other requirements
                  under federal, state or local law;

         (iii)    There are no pending legal actions against the Lessor, and the
                  Lessor has not received notice of any such action (or of a
                  possible action);

         (iv)     There are no past or current "releases" of "hazardous
                  substances" on the Demised Premises as those terms are
                  understood in the Superfund law;

         (v)      The Lessor is not aware of any condition on the Demised
                  Premises that could give rise to environmental liability;

         (vi)     Lessor does hereby indemnify and hold harmless Lessee for any
                  environmental actions brought against Lessee which resulted
                  from Lessor's action or inaction; and

                                       17
<PAGE>   18

         (vii)    Any intentional misrepresentation of these warranties by
                  Lessor shall allow Lessee to terminate this Lease.

         23.      LESSEE'S WARRANTY: Lessee hereby warrants that it has full
power and authority to enter into this Lease, that the person executing this
Lease on its behalf has full power and authority to do so, and that all
requisite corporate resolutions have been obtained. Lessee further warrants that
its execution of this Lease will not cause a default under or conflict with the
terms of any prior agreement entered into by Lessee. Lessee further warrants
that Lessee is fully familiar with, and accepts, (i) the physical condition of
the Demised Premises; (ii) the state of title to the Demised Premises; and (iii)
any environmental, wetlands, Coastal Zone Management, zoning, or other
governmentally imposed conditions or restrictions on the use of the Demised
Premises.

         24.      BINDING AGREEMENT: The provisions contained herein shall be
binding upon and inure to the benefit of the parties hereto, and their
representatives, heirs, successors and permitted assigns.

         25.      EXPIRATION: Upon the expiration of the term of this Lease, or
any extension or extensions thereof, this Lease shall terminate, and Lessee
shall surrender possession thereof and return the Demised Premises to Lessor in
substantially the same condition as exists on the date of this Lease subject
together with such improvements as may have been placed thereon, natural wear
and tear and acts of God excepted. Upon expiration or earlier termination of
this Lease, Lessee shall, at its sole expense, take such actions as are
necessary to clean up or remove any and all environmental hazards or
contaminants that were caused by Lessee's use of the Demised Premises and
Improvements, such that the Demised Premises will be in compliance with all
applicable laws, rules and regulations relating to the environmental quality or
environmental protection. Except as provided in Item 12 above, Lessee shall not
be required to remove the Improvements, upon the termination of this Lease
(including extensions).

         26.      INSOLVENCY, ETC., OF LESSEE: In the event Lessee shall become
insolvent, shall have a receiver appointed, shall make an assignment for the
benefit of its creditors, or shall be voluntarily or involuntarily adjudicated a
bankrupt, this Lease shall terminate at such time as shall be specified by
Lessor in the event of insolvency without bankruptcy proceedings or on the date
of adjudication of bankruptcy,

                                       18
<PAGE>   19

appointment of a receiver, or the making of any such assignment. If this
termination is deemed ineffective by any bankruptcy court or trustee, Lessor
shall be entitled to all assurances of future performance as are necessary to
assure that Lessor receives all consideration due it under the terms of this
Lease.

         27.      RICHMOND PLACE ROAD MAINTENANCE: At the request of Lessor,
Lessee will execute and deliver to Lessor, for the benefit of the Lessor, a
covenant and agreement to contribute to the future cost of the upkeep and
maintenance of the streets and roads within Richmond Place PUD; the sharing of
the cost of maintenance and the respective voting rights of the owners/tenants
shall be determined on a majority percentage basis as determined by the amount
of acreage of the Tenant's/Owner's premises as compared to the total acreage of
all property within Richmond Place, exclusive of roads, public easements and/or
rights-of-way, conservation easement areas and other non-buildable areas
dedicated to public and/or common use.

         28.      BROKERAGE: Lessor and Lessee both represent that Commercial
LandTec and Century 21, Grimes & Associates are the only brokers involved in
this transaction and the Lessor shall be responsible for all commissions due and
payable, if any, to these two (2) brokers. Each party shall indemnify and hold
harmless the other from and against all liability, loss, cost and expense,
whether or not meritorious, for any claims for real estate or brokerage fees,
commission, or expenses in connection with this transaction due, or claimed by,
any other brokers not disclosed herein.

         29.      LESSOR AND LESSEE NOT PARTNERS: This document is strictly a
lease and in no way constitutes a partnership or joint venture agreement.

         30.      LITIGATION: In the event of any litigation arising out of this
Lease, whether such litigation shall involve legal or equitable issues, or both,
the prevailing party shall receive his court costs and attorneys' fees as
determined by the court rather than by a jury. In case each of the parties
prevails on some points at issue, each shall pay his own attorneys' fees and
court costs unless some other provision therefor is deemed to be equitable by
the court.

         31.      HOLDOVERS: In the event Lessee shall not vacate the Demised
Premises at the end of the term, Lessee shall be deemed a Lessee from
month-to-month only, with rent payable

                                       19
<PAGE>   20

for each month or fraction thereof at one-sixth (1/6) the maximum amount payable
during the preceding twelve (12) month period prior to the beginning of the
holdover period. This paragraph applies only upon the normal expiration of the
term, not in the event of earlier termination as provided in this Lease.

         32.      ASSIGNMENT BY LESSOR: Lessor shall have the right, exercisable
at its sole option, to assign all of its right, title and interest in and to
this Lease to such individual or entity as Lessor may determine, provided that
such assignee expressly agrees to be bound by the terms of this Lease.

         33.      ENTRY ON PREMISES BY LESSOR: Lessor reserves the right to
enter on the Demised Premises at reasonable times and upon reasonable notice to
Lessee in order to inspect them.

         34.      FEDERAL DEPOSIT INSURANCE CORPORATION: Notwithstanding any
other provisions contained in this Lease, in the event (a) Lessee or its
successors or assignees shall become insolvent or bankrupt, or if it or their
interests under this Lease shall be levied upon or sold under execution or other
legal process, or (b) the depository institution then operating on the Demised
Premises is closed, or is taken over by any depository institution supervisory
authority ("Authority"), Lessor may, in either such event, terminate this Lease
only with the concurrence of any Receiver or Liquidator appointed by such
Authority; provided, that in the event this Lease is terminated by the Receiver
or Liquidator, the maximum claim of Lessor for rent, damages, or indemnity for
injury resulting from the termination, rejection, or abandonment of the
unexpired Lease shall be by law no greater than an amount equal to all accrued
and unpaid rent to the date of termination.

         35.      MISCELLANEOUS:

                  (a)      Authorization to Enter into this Lease: At the time
this Lease is executed, each party hereto shall furnish to the other party a
resolution of its board of directors or members, duly authenticated by its
secretary or authorized member (with the entity's official seal affixed),
authorizing such party to enter into this Lease by the officer executing the
same.

                  (b)      Waiver: If Lessor waives any default by Lessee or
any provision of this Lease, such waiver shall relate

                                       20
<PAGE>   21

solely its subject matter and shall not constitute waiver of any other default
or provision.

                  (c)      Integration: This document contains the entire
agreement of the parties with reference to its subject matter and shall not be
added to, altered, or varied by any oral evidence. No modification hereof shall
be made except by written agreement of the parties.

                  (d)      Time of Essence: By express provisions herein, the
parties have provided for grace periods and other extensions of time. Except
with respect thereto, and upon the lapse of such special times, time is of the
essence of this Lease.

                  (e)      Sundays and Holidays: Where any action is required to
be done on a day which is a Sunday or bank holiday in Georgetown County, it may
be done on the next succeeding day which is not a bank holiday in Georgetown
County.

                  (f)      Damage to Land: In the event third parties cause
damage to the Demised Premises, Lessee shall have a right of action against such
parties for Lessee's damages only, Lessor hereby retaining the right to maintain
an action on its own behalf for any damage to its reversion.

                  (g)      Paragraph Headiness and Cross-References: Paragraph
headings and cross-references are for convenience only, are not intended to be
all-inclusive, and shall not affect the interpretation of this Lease.

                  (h)      Recordation of Memorandum of Lease: Lessor and Lessee
agree not to record this Lease, however, each shall have the right to record, at
their respective expense, a memorandum of the Lease in Georgetown County
conforming to South Carolina law. Each shall execute any such memorandum
promptly upon request.

                  (i)      Compliance with Laws: Lessee shall, at its own
expense, comply in all material respects with all existing and future federal,
state and local laws, ordinances and regulations applicable to banks and bank
holding companies, to highway beautification, to environmental compliance, and
to any other laws, ordinances and regulations, and shall, at its expense
construct and maintain any and all buildings, structures, or other facilities
necessary for such compliance.

                                       21
<PAGE>   22

                  (j)      Governing Law: This Lease and any dispute or matter
arising hereunder shall be governed by, construed and enforced in accordance
with the laws of South Carolina.

                  (k)      Certificates of Lessor and Lessee: Either party
shall, at any time and from time to time, upon not less than twenty (20) days'
prior notice from the other party, execute, acknowledge and deliver to the other
party a statement in writing certifying that this Lease is unmodified and in
full force and effect (or if there have been modifications), and the dates to
which the rent and other charges have been paid in advance, and stating whether
or not to the best knowledge of the signer of such statement the other party is
in default in keeping, observing or performing any covenants or agreement
contained in this Lease and, if there be a default, specifying each such
default, it being intended that any such statement delivered pursuant to this
section may be relied upon by the other party or any purchaser, Sublessee or
mortgagee of its estate, but reliance on such statement may not extend to any
default as to which the signer shall have had no actual knowledge, after due
inquiry.

         IN WITNESS WHEREOF, the parties hereto have each caused these presents
to be executed in their behalves by their respective Presidents, Vice Presidents
or Authorized Member(s), attested by their respective Secretaries or Assistant
Secretaries, and their respective entity seals to be hereunto affixed, as of the
day and year first above written.

IN THE PRESENCE OF:                  LESSOR:

                                     Richmond Realty Company, LLC, a
                                     South Carolina limited
                                     liability company

/s/                                  By: /s/ Harriet P. Grimes
------------------------------          ---------------------------------------

/s/                                  Its Authorized Member
------------------------------

/s/                                  /s/ C.C. Grimes, Jr.
------------------------------       ------------------------------
                                     C.C. Grimes, Jr. as Trustee
                                     u/d of May Allston Pyatt, dated
/s/                                  December 29, 1972
------------------------------

                                       22
<PAGE>   23

                                       LESSEE:

                                       Sun Bancshares, Inc., a South
                                       Carolina corporation

/s/                                    By: /s/ Thomas Bouchette
------------------------------            -------------------------------------
                                          Its President

/s/                                    Attest: /s/ Richard E. Heath
------------------------------                ---------------------------------
                                                                      Secretary
                                                            [SEAL]

STATE OF SOUTH CAROLINA      )
                             )                     ACKNOWLEDGEMENT
COUNTY OF HORRY              )           (S.C. CODE ANN. ss.30-5-30(B)(C))

         I, the undersigned, a Notary Public for South Carolina, do hereby
certify that ___________________________________, as Authorized Member of
Richmond Realty Company, LLC personally appeared before me this day and
acknowledged the due execution of the foregoing instrument, as the act and deed
of said limited liability company.

         Witness my hand and official seal this 28th day of April, 2000.

                                             /s/                          (L.S.)
                                            ------------------------------
                                            Notary Public in and for S.C.

My Commission Expires: 11-04-2008
                       ----------

                                       23

<PAGE>   24

STATE OF SOUTH CAROLINA                     )
                                            )           ACKNOWLEDGEMENT
COUNTY OF HORRY                             )  (S.C. CODE ANN. ss.30-5-30(B)(C))

         I, the undersigned, a Notary Public for South Carolina, do hereby
certify that C.C. Grimes, Jr. as Trustee u/d of May Allston Pyatt, personally
appeared before me this day and acknowledged the due execution of the foregoing
instrument, as the act and deed of said Trustee.

         Witness my hand and official seal this 28th day of April,
2000.

                                            /s/
                                            -----------------------------(L.S.)
                                            Notary Public in and for S.C.

My Commission Expires: 11-04-2008

STATE OF SOUTH CAROLINA                     )
                                            )           ACKNOWLEDGEMENT
COUNTY OF HORRY                             )  (S.C. CODE ANN. ss.30-5-30(B)(C))

         I, the undersigned, a Notary Public for South Carolina, do hereby
certify that Thomas Bouchette, as President of Sun Bancshares, Inc. personally
appeared before me this day and acknowledged the due execution of the foregoing
instrument, as the act and deed of said corporation. limited liability company.

         Witness my hand and official seal this 28th day of April, 2000.

                                            /s/
                                            -----------------------------(L.S.)
                                            Notary Public in and for S.C.

My Commission Expires: 11-04-2008

                                       24

<PAGE>   25

                                   EXHIBIT "A"

                             DESCRIPTION OF PROPERTY
                               (DEMISED PREMISES)

                  All that certain lot of land located in Tax District #5 of the
         County of Georgetown, State of South Carolina containing 1.10 acres and
         more fully shown and delineated on a map entitled "LOT SURVEY OF 1.10
         ACRES, PHASE 111-A RICHMOND PLACE, LOCATED IN GEORGETOWN COUNTY, SOUTH
         CAROLINA", prepared by ETS-Engineering and Technical Services, Inc.,
         dated November 9, 1999 and recorded in the RMC Office for Georgetown
         County in Plat Book _______ at Page _______; the courses and distances,
         metes and bounds of which are incorporated herein by reference.

                                       25
<PAGE>   26

                      MEMORANDUM OF GROUND LEASE AGREEMENT

         THIS MEMORANDUM OF LEASE AGREEMENT, (this "Memorandum"), made and
entered into this 28th day of April, 2000, by and between Richmond Realty
Company, LLC, a South Carolina limited liability company and C. C. Grimes, Jr.,
as Trustee u/d of May Allston Pyatt, dated December 29, 1972, recorded in
Georgetown County, SC in Deed Book 109 at Page 743, hereinafter referred to as
"Lessor", and Sun Bancshares, Inc., a South Carolina Corporation, hereinafter
referred to as "Lessee".

                                   WITNESSETH:

         WHEREAS, Lessor and Lessee have entered into a certain Lease Agreement
of even date herewith (the "Lease") whereby Lessor did lease to Lessee, and
Lessee did lease from Lessor, that certain parcel of real property, which real
property is more particularly described in Exhibit "A", attached hereto
(hereinafter referred to as "Demised Premises"); and

         WHEREAS, Lessor and Lessee desire to enter into and record this
Memorandum in order that third parties may have notice of the Lease and of
Lessee's interest and rights under the Lease.

         NOW, THEREFORE, Lessor, in consideration of the rents and covenants
provided for in the Lease to be paid and performed by Lessee, does hereby lease
unto Lessee, and Lessee does hereby lease from Lessor, the Demised Premises in
accordance with the terms and conditions of the Lease.

         Specific reference is hereby made to the following provisions of the
Lease:

         1.       Pursuant to Section 2 of the Lease, Lessee shall have and hold
the Demised Premises for a term consisting of thirty (30) years commencing May
1, 2000 and Lessee shall also have the option to extend the term for four (4)
additional periods of five (5) years for each period, all as more particularly
described in the Lease.

         2.       All terms, conditions, provisions and covenants of the Lease
are incorporated in this Memorandum by reference as though fully set forth
herein, and the Lease and this Memorandum shall be deemed to constitute a single
instrument or document. This Memorandum has been entered into by Lessor and
Lessee for purposes of recordation in the appropriate real

                                       1
<PAGE>   27

estate records in Georgetown County, State of South Carolina, and to provide
notice to third parties of the Lease; and nothing contained herein shall be
deemed or construed to amend, modify, change, alter, amplify, interpret, or
supersede any of the terms and provisions of the Lease. In the event of a
conflict between the terms of the Lease and the terms of this Memorandum, the
terms of the Lease shall control.

         IN WITNESS WHEREOF, the parties hereto have executed this Memorandum
under seal as of the date first above written.

As to Lessor, signed,               LESSOR:
delivered in the presence
of:                                 Richmond Realty Company, LLC, a
                                    South Carolina limited
                                    liability company

/s/ Lonnie J. Simmons               By: /s/ Harriet P. Grimes
-------------------------------        -------------------------------

                                    Its Authorized Member
-------------------------------

/s/ Lonnie J. Simmons               /s/ C.C. Grimes, jr.
-------------------------------     ------------------------------
                                    C.C. Grimes, Jr. as Trustee
                                    u/d of May Allston Pyatt, dated
/s/                                 December 29, 1972
-------------------------------

STATE OF SOUTH CAROLINA    )
                           )             ACKNOWLEDGEMENT
COUNTY OF HORRY            )    (S.C. CODE ANN.sS.30-5-30(B)(C))

         I, the undersigned, a Notary Public for South Carolina, do hereby
certify that Harriet P. Grimes, as Authorized Member of Richmond Realty Company,
LLC personally appeared before me this day and acknowledged the due execution of
the foregoing instrument, as the act and deed of said limited liability company.

         Witness my hand and official seal this 28th day of April, 2000.

                                             /s/                          (L.S.)
                                             -----------------------------

                                       2
<PAGE>   28

                                             Notary Public in and for S.C.
My Commission Expires: 11-04-2008
                       ----------

STATE OF SOUTH CAROLINA    )
                           )           ACKNOWLEDGEMENT
COUNTY OF HORRY            )  (S.C. CODE ANN.sS.30-5-30(B)(C))

         I, the undersigned, a Notary Public for South Carolina, do hereby
certify that C.C. Grimes, Jr. as Trustee u/d of May Allston Pyatt, personally
appeared before me this day and acknowledged the due execution of the foregoing
instrument, as the act and deed of said Trustee.

         Witness my hand and official seal this 28th day of April, 2000.

                                            /s/                          (L.S.)
                                            -----------------------------
                                            Notary Public in and for S.C.

My Commission Expires: 11-04-2008
                       ----------

                                       3
<PAGE>   29

         IN WITNESS WHEREOF, the parties hereto have executed this Memorandum
under seal as of the date first above written.

As to Lessee, signed, sealed        LESSEE:
and delivered in the
presence of:                        Sun Bancshares, Inc., a South
                                    Carolina corporation

/s/ Lonnie J. Simmons               By: /s/ Thomas Bouchette
--------------------------------       ----------------------------------
                                       Its President

/s/                                 Attest: /s/
--------------------------------           ------------------------------
                                           Secretary
                                           [SEAL]

STATE OF SOUTH CAROLINA    )
                           )           ACKNOWLEDGEMENT
COUNTY OF HORRY            )  (S.C. CODE ANN.sS.30-5-30(B)(C))

         I, the undersigned, a Notary Public for South Carolina, do hereby
certify that Thomas Bouchette, as President of Sun 0Bancshares, Inc. personally
appeared before me this day and acknowledged the due execution of the foregoing
instrument, as the act and deed of said corporation. limited liability company.

         Witness my hand and official seal this 28th day of April, 2000.

                                            /s/                           (L.S.)
                                            ------------------------------
                                            Notary Public in and for S.C.

My Commission Expires: 11-04-2008
                      -----------------

                                       4
<PAGE>   30

                      MEMORANDUM OF GROUND LEASE AGREEMENT

         THIS MEMORANDUM OF LEASE AGREEMENT, (this "Memorandum"), made and
entered into this 28th day of April, 2000, by and between Richmond Realty
Company, LLC, a South Carolina limited liability company and C. C. Grimes, Jr.,
as Trustee u/d of May Allston Pyatt, dated December 29, 1972, recorded in
Georgetown County, SC in Deed Book 109 at Page 743, hereinafter referred to as
"Lessor", and Sun Bancshares, Inc., a South Carolina Corporation, hereinafter
referred to as "Lessee".

                                   WITNESSETH:

         WHEREAS, Lessor and Lessee have entered into a certain Lease Agreement
of even date herewith (the "Lease") whereby Lessor did lease to Lessee, and
Lessee did lease from Lessor, that certain parcel of real property, which real
property is more particularly described in Exhibit "A", attached hereto
(hereinafter referred to as "Demised Premises"); and

         WHEREAS, Lessor and Lessee desire to enter into and record this
Memorandum in order that third parties may have notice of the Lease and of
Lessee's interest and rights under the Lease.

         NOW, THEREFORE, Lessor, in consideration of the rents and covenants
provided for in the Lease to be paid and performed by Lessee, does hereby lease
unto Lessee, and Lessee does hereby lease from Lessor, the Demised Premises in
accordance with the terms and conditions of the Lease.

         Specific reference is hereby made to the following provisions of the
Lease:

         1.       Pursuant to Section 2 of the Lease, Lessee shall have and hold
the Demised Premises for a term consisting of thirty (30) years commencing May
1, 2000 and Lessee shall also have the option to extend the term for four (4)
additional periods of five (5) years for each period, all as more particularly
described in the Lease.

         2.       All terms, conditions, provisions and covenants of the Lease
are incorporated in this Memorandum by reference as though fully set forth
herein, and the Lease and this Memorandum shall be deemed to constitute a single
instrument or document. This Memorandum has been entered into by Lessor and
Lessee for purposes of recordation in the appropriate real

                                       1
<PAGE>   31

estate records in Georgetown County, State of South Carolina, and to provide
notice to third parties of the Lease; and nothing contained herein shall be
deemed or construed to amend, modify, change, alter, amplify, interpret, or
supersede any of the terms and provisions of the Lease. In the event of a
conflict between the terms of the Lease and the terms of this Memorandum, the
terms of the Lease shall control.

         IN WITNESS WHEREOF, the parties hereto have executed this Memorandum
under seal as of the date first above written.

As to Lessor, signed,               LESSOR:
delivered in the presence
of:                                 Richmond Realty Company, LLC, a
                                    South Carolina limited
                                    liability company

/s/ Lonnie J. Simmons               By: /s/ Harriet P. Grimes
-------------------------------        -------------------------------

                                    Its Authorized Member
-------------------------------

/s/ Lonnie J. Simmons               /s/ C.C. Grimes, Jr.
-------------------------------     ------------------------------
                                    C.C. Grimes, Jr. as Trustee
                                    u/d of May Allston Pyatt, dated
/s/                                 December 29, 1972
-------------------------------

STATE OF SOUTH CAROLINA    )
                           )             ACKNOWLEDGEMENT
COUNTY OF HORRY            )    (S.C. CODE ANN.sS.30-5-30(B)(C))

         I, the undersigned, a Notary Public for South Carolina, do hereby
certify that Harriet P. Grimes, as Authorized Member of Richmond Realty Company,
LLC personally appeared before me this day and acknowledged the due execution of
the foregoing instrument, as the act and deed of said limited liability company.

         Witness my hand and official seal this 28th day of April, 2000.

                                             /s/                          (L.S.)
                                             -----------------------------

                                       2
<PAGE>   32

                                             Notary Public in and for S.C.
My Commission Expires: 11-04-2008
                       -----------------

STATE OF SOUTH CAROLINA    )
                           )           ACKNOWLEDGEMENT
COUNTY OF HORRY            )  (S.C. CODE ANN.sS.30-5-30(B)(C))

         I, the undersigned, a Notary Public for South Carolina, do hereby
certify that C.C. Grimes, Jr. as Trustee u/d of May Allston Pyatt, personally
appeared before me this day and acknowledged the due execution of the foregoing
instrument, as the act and deed of said Trustee.

         Witness my hand and official seal this 28th day of April, 2000.

                                            /s/                          (L.S.)
                                            -----------------------------
                                            Notary Public in and for S.C.

My Commission Expires: 11-04-2008
                       -----------------

                                       3
<PAGE>   33

         IN WITNESS WHEREOF, the parties hereto have executed this Memorandum
under seal as of the date first above written.

As to Lessee, signed, sealed        LESSEE:
and delivered in the
presence of:                        Sun Bancshares, Inc., a South
                                    Carolina corporation

/s/ Lonnie J. Simmons               By: /s/ Thomas Bouchette
--------------------------------       ----------------------------------
                                       Its President

/s/                                 Attest: /s/
--------------------------------           ------------------------------
                                           Secretary
                                           [SEAL]

STATE OF SOUTH CAROLINA    )
                           )           ACKNOWLEDGEMENT
COUNTY OF HORRY            )  (S.C. CODE ANN.sS.30-5-30(B)(C))

         I, the undersigned, a Notary Public for South Carolina, do hereby
certify that Thomas Bouchette, as President of Sun 0Bancshares, Inc. personally
appeared before me this day and acknowledged the due execution of the foregoing
instrument, as the act and deed of said corporation. limited liability company.

         Witness my hand and official seal this 28th day of April, 2000.

                                            /s/                           (L.S.)
                                            ------------------------------
                                            Notary Public in and for S.C.

My Commission Expires: 11-04-2008
                      -----------

                                       4
<PAGE>   34

                                  EXHIBIT "A"

                            DESCRIPTION OF PROPERTY
                               (DEMISED PREMISES)

                  All that certain lot of land located in Tax District #5 of the
         County of Georgetown, State of South Carolina containing 1.10 acres and
         more fully shown and delineated on a map entitled "LOT SURVEY OF 1.10
         ACRES, PHASE 111-A RICHMOND PLACE, LOCATED IN GEORGETOWN COUNTY, SOUTH
         CAROLINA", prepared by ETS-Engineering and Technical Services, Inc.,
         dated November 9, 1999 and recorded in the RMC Office for Georgetown
         County in Plat Slide 357 at Page 1; the courses and distances, metes
         and bounds of which are incorporated herein by reference.

                                       5<PAGE>   1
                                                                    Exhibit 4.1
                                                                 EXECUTION COPY

                          POST APARTMENT HOMES, L.P.,
                                     Issuer

                                       TO

                                 SUNTRUST BANK,
                                    Trustee

                                   Indenture

                         Dated as of September 15, 2000

                             Senior Debt Securities

<PAGE>   2

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                   PAGE
                                                                                                                   ----

         <S>                        <C>                                                                            <C>
         ARTICLE ONE                DEFINITIONS AND OTHER PROVISIONS OF
                                    GENERAL APPLICATION..........................................................     8
         SECTION 101.               DEFINITIONS..................................................................     8
         SECTION 102.               COMPLIANCE CERTIFICATES AND OPINIONS.........................................    17
         SECTION 103.               FORM OF DOCUMENTS DELIVERED TO TRUSTEE.......................................    18
         SECTION 104.               ACTS OF HOLDERS..............................................................    18
         SECTION 105.               NOTICES, ETC., TO TRUSTEE AND ISSUER.........................................    20
         SECTION 106.               NOTICE TO HOLDERS; WAIVER....................................................    20
         SECTION 107.               EFFECT OF HEADINGS AND TABLE OF CONTENTS.....................................    21
         SECTION 108.               SUCCESSORS AND ASSIGNS.......................................................    21
         SECTION 109.               SEPARABILITY CLAUSE..........................................................    21
         SECTION 110.               BENEFITS OF INDENTURE........................................................    22
         SECTION 111.               GOVERNING LAW................................................................    22
         SECTION 112.               LEGAL HOLIDAYS...............................................................    22
         SECTION 113.               CONFLICT WITH TRUST INDENTURE ACT............................................    22
         SECTION 114.               COUNTERPARTS.................................................................    22
         SECTION 115.               JUDGMENT CURRENCY............................................................    22

         ARTICLE TWO                SECURITIES FORMS.............................................................    23
         SECTION 201.               FORMS OF SECURITIES..........................................................    23
         SECTION 202.               FORM OF TRUSTEE'S CERTIFICATE OF
                                    AUTHENTICATION...............................................................    23
         SECTION 203.               SECURITIES ISSUABLE IN GLOBAL FORM...........................................    24

         ARTICLE THREE              THE SECURITIES...............................................................    25
         SECTION 301.               AMOUNT UNLIMITED; ISSUABLE IN SERIES.........................................    25
         SECTION 302.               CURRENCY; DENOMINATIONS......................................................    29
         SECTION 303.               EXECUTION, AUTHENTICATION, DELIVERY AND
                                    DATING.......................................................................    29
         SECTION 304.               TEMPORARY SECURITIES.........................................................    31
         SECTION 305.               REGISTRATION, REGISTRATION OF TRANSFER AND
                                    EXCHANGE.....................................................................    34
         SECTION 306.               MUTILATED, DESTROYED, LOST AND STOLEN
                                    SECURITIES...................................................................    37
         SECTION 307.               PAYMENT OF INTEREST; INTEREST RIGHTS
                                    RESERVED.....................................................................    39
         SECTION 308.               PERSONS DEEMED OWNERS........................................................    41
         SECTION 309.               CANCELLATION.................................................................    41
         SECTION 310.               COMPUTATION OF INTEREST......................................................    42
</TABLE>

<PAGE>   3

<TABLE>
         <S>                        <C>                                                                              <C>
         ARTICLE FOUR               SATISFACTION AND DISCHARGE...................................................    42
         SECTION 401.               SATISFACTION AND DISCHARGE OF INDENTURE......................................    42
         SECTION 402.               APPLICATION OF TRUST FUNDS...................................................    43

         ARTICLE FIVE               REMEDIES.....................................................................    44
         SECTION 501.               EVENTS OF DEFAULT............................................................    44
         SECTION 502.               ACCELERATION OF MATURITY; RESCISSION AND
                                    ANNULMENT....................................................................    46
         SECTION 503.               COLLECTION OF INDEBTEDNESS AND SUITS
                                    FOR ENFORCEMENT BY TRUSTEE...................................................    47
         SECTION 504.               TRUSTEE MAY FILE PROOFS OF CLAIM.............................................    47
         SECTION 505.               TRUSTEE MAY ENFORCE CLAIMS WITHOUT
                                    POSSESSION OF SECURITIES OR COUPONS..........................................    48
         SECTION 507.               LIMITATION ON SUITS..........................................................    49
         SECTION 508.               UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE
                                    PRINCIPAL, PREMIUM, IF ANY, INTEREST AND
                                    ADDITIONAL AMOUNTS...........................................................    50
         SECTION 509.               RESTORATION OF RIGHTS AND REMEDIES...........................................    50
         SECTION 510.               RIGHTS AND REMEDIES CUMULATIVE...............................................    50
         SECTION 511.               DELAY OR OMISSION NOT WAIVER.................................................    50
         SECTION 512.               CONTROL BY HOLDERS OF SECURITIES.............................................    51
         SECTION 513.               WAIVER OF PAST DEFAULTS......................................................    51
         SECTION 514.               WAIVER OF USURY, STAY OR EXTENSION LAWS......................................    51
         SECTION 515.               UNDERTAKING FOR COSTS........................................................    52

         ARTICLE SIX                THE TRUSTEE..................................................................    52
         SECTION 601.               NOTICE OF DEFAULTS...........................................................    52
         SECTION 602.               CERTAIN RIGHTS OF TRUSTEE....................................................    52
         SECTION 603.               NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF
                                    SECURITIES...................................................................    54
         SECTION 604.               MAY HOLD SECURITIES..........................................................    54
         SECTION 605.               MONEY HELD IN TRUST..........................................................    54
         SECTION 606.               COMPENSATION AND REIMBURSEMENT...............................................    54
         SECTION 607.               CORPORATE TRUSTEE REQUIRED; ELIGIBILITY;
                                    CONFLICTING INTERESTS........................................................    55
         SECTION 608.               RESIGNATION AND REMOVAL; APPOINTMENT OF
                                    SUCCESSOR....................................................................    55
         SECTION 609.               ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.......................................    57
         SECTION 610.               MERGER, CONVERSION, CONSOLIDATION OR
                                    SUCCESSION TO BUSINESS.......................................................    58
         SECTION 611.               APPOINTMENT OF AUTHENTICATING AGENT..........................................    58
</TABLE>

                                      -3-
<PAGE>   4

<TABLE>
<S>                                 <C>                                                                              <C>
         ARTICLE SEVEN              HOLDERS' LIST AND REPORTS BY TRUSTEE|
                                    AND ISSUER...................................................................    60
         SECTION 701.               DISCLOSURE OF NAMES AND ADDRESSES OF
                                    HOLDERS......................................................................    60
         SECTION 702.               REPORTS BY TRUSTEE...........................................................    60
         SECTION 703.               REPORTS BY ISSUER............................................................    61
         SECTION 704.               ISSUER TO FURNISH TRUSTEE NAMES AND
                                    ADDRESSES OF HOLDERS.........................................................    61

ARTICLE EIGHT                       CONSOLIDATION, MERGER, SALE, LEASE OR
                                    CONVEYANCE...................................................................    62
         SECTION 801.               CONSOLIDATIONS AND MERGERS OF ISSUER AND
                                    SALES, LEASES AND CONVEYANCE PERMITTED
                                    SUBJECT TO CERTAIN CONDITIONS................................................    62
         SECTION 802.               RIGHTS AND DUTIES OF SUCCESSOR CORPORATION...................................    62
         SECTION 803.               OFFICERS' CERTIFICATE AND OPINION OF COUNSEL.................................    63

ARTICLE NINE                        SUPPLEMENTAL INDENTURES......................................................    63
         SECTION 901.               SUPPLEMENTAL INDENTURES WITHOUT
                                    CONSENT OF HOLDERS...........................................................    63
         SECTION 902.               SUPPLEMENTAL INDENTURES WITH CONSENT OF
                                    HOLDERS......................................................................    65
         SECTION 903.               EXECUTION OF SUPPLEMENTAL INDENTURES.........................................    66
         SECTION 904.               EFFECT OF SUPPLEMENTAL INDENTURES............................................    66
         SECTION 905.               CONFORMITY WITH TRUST INDENTURE ACT..........................................    66
         SECTION 906.               REFERENCE IN SECURITIES TO SUPPLEMENTAL
                                    INDENTURES...................................................................    66
         SECTION 907.               NOTICE OF SUPPLEMENTAL INDENTURES............................................    67

ARTICLE TEN                         COVENANTS....................................................................    67
         SECTION 1001.              PAYMENT OF PRINCIPAL, PREMIUM, IF ANY,
                                    INTEREST AND ADDITIONAL AMOUNTS..............................................    67
         SECTION 1002.              MAINTENANCE OF OFFICE OR AGENCY..............................................    67
         SECTION 1003.              MONEY FOR SECURITIES PAYMENTS TO BE
                                    HELD IN TRUST................................................................    69
         SECTION 1006.              EXISTENCE....................................................................    70
         SECTION 1007.              MAINTENANCE OF PROPERTIES....................................................    70
         SECTION 1008.              INSURANCE....................................................................    71
         SECTION 1009.              PAYMENT OF TAXES AND OTHER CLAIMS............................................    71
         SECTION 1010.              PROVISION OF FINANCIAL INFORMATION...........................................    71
         SECTION 1011.              STATEMENT AS TO COMPLIANCE...................................................    72
         SECTION 1012.              ADDITIONAL AMOUNTS...........................................................    72
         SECTION 1013.              WAIVER OF CERTAIN COVENANTS..................................................    73
</TABLE>

                                      -4-
<PAGE>   5

<TABLE>
<S>                                 <C>                                                                              <C>
ARTICLE ELEVEN                      REDEMPTION OF SECURITIES.....................................................    73
         SECTION 1101.              APPLICABILITY OF ARTICLE.....................................................    73
         SECTION 1102.              ELECTION TO REDEEM; NOTICE TO TRUSTEE........................................    73
         SECTION 1103.              SELECTION BY TRUSTEE OF SECURITIES TO BE
                                    REDEEMED.....................................................................    74
         SECTION 1104.              NOTICE OF REDEMPTION.........................................................    74
         SECTION 1105.              DEPOSIT OF REDEMPTION PRICE..................................................    76
         SECTION 1106.              SECURITIES PAYABLE ON REDEMPTION DATE........................................    76
         SECTION 1107.              SECURITIES REDEEMED IN PART..................................................    77

ARTICLE TWELVE                      SINKING FUNDS................................................................    77
         SECTION 1201.              APPLICABILITY OF ARTICLE.....................................................    77
         SECTION 1202.              SATISFACTION OF SINKING FUND PAYMENT
                                    WITH SECURITIES..............................................................    77
         SECTION 1203.              REDEMPTION OF SECURITIES FOR SINKING FUND....................................    78

ARTICLE THIRTEEN                    REPAYMENT AT THE OPTION OF HOLDERS...........................................    78
         SECTION 1301.              APPLICABILITY OF ARTICLE.....................................................    78
         SECTION 1302.              REPAYMENT OF SECURITIES......................................................    78
         SECTION 1303.              EXERCISE OF OPTION...........................................................    79
         SECTION 1304.              WHEN SECURITIES PRESENTED FOR REPAYMENT
                                    BECOME DUE AND PAYABLE.......................................................    80
         SECTION 1305.              SECURITIES REPAID IN PART....................................................    80

ARTICLE FOURTEEN                    DEFEASANCE AND COVENANT DEFEASANCE...........................................    81
         SECTION 1401.              APPLICABILITY OF ARTICLE; ISSUER'S OPTION TO
                                    EFFECT DEFEASANCE OR COVENANT DEFEASANCE.....................................    81
         SECTION 1402.              DEFEASANCE AND DISCHARGE.....................................................    81
         SECTION 1403.              COVENANT DEFEASANCE..........................................................    82
         SECTION 1404.              CONDITIONS TO DEFEASANCE OR COVENANT
                                    DEFEASANCE...................................................................    82
         SECTION 1405.              DEPOSITED MONEY AND GOVERNMENT
                                    OBLIGATIONS TO BE HELD IN TRUST; OTHER
                                    MISCELLANEOUS PROVISIONS.....................................................    84

ARTICLE FIFTEEN                     MEETINGS OF HOLDERS OF SECURITIES............................................    85
         SECTION 1501.              PURPOSES FOR WHICH MEETINGS MAY BE CALLED....................................    85
         SECTION 1502.              CALL, NOTICE AND PLACE OF MEETINGS...........................................    85
         SECTION 1503.              PERSONS ENTITLED TO VOTE AT MEETINGS.........................................    85
         SECTION 1504.              QUORUM; ACTION...............................................................    86
         SECTION 1505.              DETERMINATION OF VOTING RIGHTS; CONDUCT
                                    AND ADJOURNMENT OF MEETINGS..................................................    87
</TABLE>

                                      -5-
<PAGE>   6

<TABLE>
         <S>                        <C>                                                                              <C>
         SECTION 1506.              COUNTING VOTES AND RECORDING ACTION OF
                                    MEETINGS.....................................................................    88
         SECTION 1507.              EVIDENCE OF ACTION TAKEN BY HOLDERS..........................................    88
         SECTION 1508.              PROOF OF EXECUTION OF INSTRUMENTS............................................    88

ARTICLE SIXTEEN                     SECURITIES IN FOREIGN CURRENCIES.............................................    88
         SECTION 1601.              APPLICABILITY OF ARTICLE.....................................................    88
</TABLE>

                                      -6-
<PAGE>   7

                           POST APARTMENT HOMES, L.P.

         Reconciliation and Tie between Trust Indenture Act of 1939 (the "TIA"
or "Trust Indenture Act") and Indenture, dated as of September __, 2000

<TABLE>
<CAPTION>
Trust Indenture Act Section                                                                     Indenture Section
---------------------------                                                                     -----------------

<S>                                                                                             <C>
Sec. 310(a)(1)...............................................................................           607
      (a)(2).................................................................................           607
      (b)....................................................................................           607, 608
Sec. 312(a)..................................................................................           704
Sec. 312(c)..................................................................................           701
Sec. 313(a)..................................................................................           702
      (c)....................................................................................           702
Sec. 314(a)..................................................................................           703
      (a)(4).................................................................................           1011
      (c)(1).................................................................................           102
      (c)(2).................................................................................           102
      (e)....................................................................................           102
Sec. 315(b)..................................................................................           601
Sec. 316(a) (last sentence)..................................................................           101 "Outstanding")
      (a)(1)(A)..............................................................................           502, 512
      (a)(1)(B)..............................................................................           513
      (b)....................................................................................           508
Sec. 317(a)(1)...............................................................................           503
      (a)(2).................................................................................           504
Sec. 318(a)..................................................................................           113
      (c)....................................................................................
                                                                                                        113
</TABLE>
---------------

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

         Attention should also be directed to Section 318(c) of the Trust
Indenture Act, which provides that the provisions of Sections 310 to and
including 317 of the Trust Indenture Act are a part of and govern every
qualified indenture, whether or not physically contained therein.

                                      -7-
<PAGE>   8

         INDENTURE, dated as of September 15, 2000, between POST APARTMENT
HOMES, L.P., a Georgia limited partnership (the "Issuer"), having its principal
offices at 4401 Northside Parkway, Suite 800, Atlanta, Georgia 30327 and
SUNTRUST BANK, a national banking association organized under the laws of the
State of Georgia, as Trustee hereunder (the "Trustee"), having its Corporate
Trust Office at 25 Park Place, Atlanta, Georgia 30303.

                             RECITALS OF THE ISSUER

         The Issuer deems it necessary to issue from time to time for its
lawful purposes senior debt securities (hereinafter called the "Securities")
evidencing its unsecured and unsubordinated indebtedness, and has duly
authorized the execution and delivery of this Indenture to provide for the
issuance from time to time of the Securities, unlimited as to principal amount,
to bear interest at the rates or formulas, to mature at such times and to have
such other provisions as shall be fixed as hereinafter provided.

         This Indenture is subject to the provisions of the Trust Indenture Act
of 1939, as amended, and the rules and regulations of the Securities and
Exchange Commission promulgated thereunder that are deemed to be incorporated
into this Indenture and shall, to the extent applicable, be governed by such
provisions.

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

         NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

                                  ARTICLE ONE

            DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

         SECTION 101.      DEFINITIONS.  For all purposes of this Indenture,
except as otherwise expressly provided or unless the context otherwise
requires:

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

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

                  (3)      all accounting terms not otherwise defined herein
have the meanings assigned to them in accordance with GAAP;

                                      -8-
<PAGE>   9

                  (4)      the words "herein," "hereof," "hereto" 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; and

                  (5)      the word "or" is always used inclusively.

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

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

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

         "Authenticating Agent" means any Person authorized by the Trustee
pursuant to Section 611 to act on behalf of the Trustee to authenticate
Securities of one or more series.

         "Authorized Newspaper" means a newspaper, printed in the English
language or in an official language of the place of publication, customarily
published on each day that is a Business Day in the place of publication,
whether or not published on days that are Legal Holidays in the place of
publication, and of general circulation in each place in connection with which
the term is used or in the financial community of each such place. Whenever
successive publications are required to be made in Authorized Newspapers, the
successive publications may be made in the same or in different Authorized
Newspapers in the same city meeting the foregoing requirements and in each case
on any day that is a Business Day in the place of publication.

         "Bankruptcy Law" has the meaning specified in Section 501.

         "Bearer Security" means any Security established pursuant to Section
201 which is payable to bearer.

         "Board of Directors" means the board of directors of the General
Partner or any committee of that board duly authorized to act hereunder.

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

                                      -9-
<PAGE>   10

         "Business Day" when used with respect to any Place of Payment or any
other location referred to in this Indenture or in the Securities, means,
unless otherwise specified with respect to any Securities pursuant to Section
301, any day other than a Saturday or Sunday or other day on which banking
institutions in that Place of Payment or particular location are authorized or
required by law, regulation or executive order to close.

         "CEDEL" means Centrale de Livraison de Valeurs Mobilieres, S.A., or
its successor.

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

         "Common Depositary" has the meaning specified in Section 304(b).

         "Conversion Event" means the cessation of use of (i) a Foreign
Currency both by the government of the country or the confederation which
issued such currency and for the settlement of transactions by a central bank
or other public institutions of or within the international banking community,
(ii) the ECU both within the European Monetary System and for the settlement of
transactions by public institutions of or within the European Union or (iii)
any currency unit or composite currency other than the ECU for the purposes for
which it was established.

         "Corporate Trust Office" means the principal corporate trust office of
the Trustee at which, at any particular time, its corporate trust business
shall be principally administered, which office at the date hereof is located
at 25 Park Place, 24th Floor, Atlanta, Georgia 30303; provided that with
respect to presentment, transfer, exchange, registration or payment of
Securities, "Corporate Trust Office" means at the date hereof c/o Harris Trust
Bank of New York, Wall Street Plaza, 88 Pine Street, 19th Floor, New York, New
York 10005.

         "Corporation" includes corporations and limited liability companies,
associations, partnerships, companies and business trusts.

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

         "Custodian" has the meaning specified in Section 501.

         "Debt" of any Person means, without duplication, any indebtedness of
such Person, whether or not contingent, in respect of (i) borrowed money
evidenced by bonds, notes, debentures or similar instruments, (ii) indebtedness
secured by any mortgage, pledge, lien, charge, encumbrance or any security
interest existing on property owned by such Person, (iii) the reimbursement
obligations, contingent or otherwise, in connection with any letters of credit
actually issued or amounts 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 (iv) any lease of property by such Person
as lessee which is reflected on such Person's consolidated balance sheet as a
capitalized lease in accordance with GAAP, in the case of items of

                                     -10-
<PAGE>   11

indebtedness under (i) through (iii) above to the extent that any such items
(other than letters of credit) would appear as a liability on such Person's
consolidated balance sheet in accordance with GAAP, and also includes, to the
extent not otherwise included, any obligation by such Person to be liable for,
or to pay, as obligor, guarantor or otherwise (other than for purposes of
collection in the ordinary course of business), Debt of another Person (other
than such Person and its Subsidiaries) (it being understood that Debt shall be
deemed to be incurred by the Issuer and its Subsidiaries on a consolidated
basis whenever the Issuer and its Subsidiaries on a consolidated basis shall
create, assume, guarantee or otherwise become liable in respect thereof);
provided, however, that the term Debt shall not include any such indebtedness
that has been the subject of an "in substance" defeasance in accordance with
GAAP.

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

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

         "DTC" has the meaning specified in Section 304(b).

         "ECU" means European Currency Units as defined and revised from time
to time by the Council of the European Community.

         "Euroclear" means Morgan Guaranty Trust Company of New York, Brussels
Office, or its successor as operator of the Euroclear System.

         "European Community" means the European Economic Community.

         "European Monetary System" means the European Monetary System
established by the Resolution of December 5, 1978 of the Council of the
European Community.

         "European Union" means the European Community, the European Coal and
Steel Community and the European Atomic Energy Community.

         "Event of Default" has the meaning specified in Article Five.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

         "Foreign Currency" means any currency, currency unit or composite
currency, including, without limitation, the ECU, issued by the government of
one or more countries other than the United States or by any recognized
confederation or association of such governments.

         "GAAP" means generally accepted accounting principles, as in effect
from time to time, as used in the United States applied on a consistent basis;
provided that solely for purposes of any calculation required by the financial
covenants contained herein, "GAAP" shall mean generally accepted accounting
principles as used in the United States on the date hereof, applied on a
consistent basis.

                                     -11-
<PAGE>   12

         "General Partner" means Post GP Holdings, Inc., a Georgia corporation,
as general partner of the Issuer.

         "Government Obligations" means securities which are (i) direct
obligations of the United States or the government which issued the Foreign
Currency in which the Securities of a particular series are payable, for the
payment of which its full faith and credit is pledged or (ii) obligations of a
Person controlled or supervised by and acting as an agency or instrumentality
of the United States or such government which issued the foreign currency in
which the Securities of such series are payable, the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States or such other government, which, in either case, are not callable or
redeemable at the option of the issuer thereof, and shall also include a
depository receipt issued by a bank or trust company as custodian with respect
to any such Government Obligation or held by such custodian for the account of
the holder of a depository receipt, provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depository receipt from any amount received by the
custodian in respect of the Government Obligation or the specific payment of
interest on or principal of the Government Obligation evidenced by such
depository receipt.

         "Holder" means, in the case of any Registered Security, the Person in
whose name such Security is registered in the Security Register and, in the
case of any Bearer Security, the bearer thereof and, when used with respect to
any coupon, shall mean the bearer thereof.

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

         "Indexed Security" means a Security the terms of which provide that
the principal amount thereof payable at Stated Maturity may be more or less
than the principal face amount thereof at original issuance.

         "Interest," when used with respect to an Original Issue Discount
Security which by its terms bears interest only after Maturity, shall mean
interest payable after Maturity and, when used with respect to a Security which
provides for the payment of Additional Amounts pursuant to Section 1012,
includes such Additional Amounts.

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

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

         "Issuer Request" and "Issuer Order" mean, respectively, a written
request or order signed in the name of the Issuer by the General Partner by its
Chairman of the Board, its President or a Vice President (whether or not
designated by a number or a word or words added before or after

                                     -12-
<PAGE>   13

the title "vice president"), and by its Treasurer, an Assistant Treasurer, its
Secretary or an Assistant Secretary, of the General Partner, and delivered to
the Trustee.

         "Judgment Currency" has the meaning specified in Section 115.

         "Legal Holiday" means a day that is not a Business Day.

         "Maturity," when used with respect to any Security, means the date on
which the principal of such Security or an installment of principal becomes due
and payable as therein or herein provided, whether at the Stated Maturity or by
declaration of acceleration, notice of redemption or repurchase, notice of
option to elect repayment or otherwise, and includes the Redemption Date.

         "Officers' Certificate" means a certificate signed by the Chairman of
the Board, the President or a Vice President (whether or not designated by a
number or a word or words added before or after the title "vice president") of
the General Partner and by the Treasurer, an Assistant Treasurer, the Secretary
or an Assistant Secretary of the General Partner, and delivered to the Trustee.

         "Opinion of Counsel" means a written opinion of counsel, who may be
counsel for the Issuer or who may be an employee of or other counsel for the
Issuer and who shall be satisfactory to the Trustee.

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

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

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

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

                  (iii)    Securities, except to the extent provided in Section
         1402 and 1403, with respect to which the Issuer has effected
         defeasance and/or covenant defeasance as provided in Article Fourteen;
         and

                                     -13-
<PAGE>   14

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

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or are present at
a meeting of Holders for quorum purposes, and for the purpose of making the
calculations required by TIA Section 313, (i) the principal amount of an
Original Issue Discount Security that may be counted in making such
determination or calculation and that shall be deemed to be Outstanding for
such purpose shall be equal to the amount of principal thereof that would be
(or shall have been declared to be) due and payable, at the time of such
determination or calculation, upon a declaration of acceleration of the
maturity thereof pursuant to Section 502, (ii) the principal amount of any
Security denominated in a Foreign Currency that may be counted in making such
determination or calculation and that shall be deemed Outstanding for such
purpose shall be equal to the Dollar equivalent, determined pursuant to Section
301 as of the date such Security is originally issued by the Issuer, of the
principal amount (or, in the case of an Original Issue Discount Security, the
Dollar equivalent as of such date of original issuance of the amount determined
as provided in clause (i) above) of such Security, (iii) the principal amount
of any Indexed Security that may be counted in making such determination or
calculation and that shall be deemed Outstanding for such purpose shall be
equal to the principal face amount of such Indexed Security at original
issuance, unless otherwise provided with respect to such Security pursuant to
Section 301, and (iv) Securities owned by the Issuer or any other obligor upon
the Securities or any Affiliate of the Issuer or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in making such determination or
calculation or in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which a Responsible
Officer of the Trustee knows to be so owned shall be so disregarded. Securities
so owned which have been pledged in good faith may be regarded as Outstanding
if the pledgee establishes to the satisfaction of the Trustee the pledgee's
right so to act with respect to such Securities and that the pledgee is not the
Issuer or any other obligor upon the Securities or any Affiliate of the Issuer
or of such other obligor.

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

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

         "Place of Payment," when used with respect to any Security, means the
place or places where the principal of (and premium and Additional Amounts, if
any) and interest on such Securities are payable as specified as contemplated
by Sections 301 and 1002.

                                     -14-
<PAGE>   15

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

         "Recourse Indebtedness" means Debt other than Secured Debt as to which
the liability of the obligor thereon is limited to its interest in the
collateral securing such Secured Debt, provided that no such Secured Debt shall
constitute Recourse Indebtedness by reason of provisions therein for imposition
of full recourse liability on the obligor for certain wrongful acts,
environmental liabilities, or other customary exclusions from the scope of
so-called "non-recourse" provisions.

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

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

         "Registered Security" shall mean any Security which is registered in
the Security Register.

         "Regular Record Date" for the interest payable on any Interest Payment
Date on any Registered Security of or within any series means the date
specified for that purpose as contemplated by Section 301, whether or not a
Business Day.

         "Repayment Date" means, when used with respect to any Security to be
repaid at the option of the Holder, the date fixed for such repayment by or
pursuant to this Indenture.

         "Repayment Price" means, when used with respect to any Security to be
repaid at the option of the Holder, the price at which it is to be repaid by or
pursuant to this Indenture.

         "Responsible Officer," when used with respect to the Trustee, means
the chairman or vice-chairman of the board of directors, the chairman or
vice-chairman of the executive committee of the board of directors, the
president, any vice president (whether or not designated by a number or a word
or words added before or after the title "vice president"), the secretary, any
assistant secretary, the treasurer, any assistant treasurer, the cashier, any
assistant cashier, any trust officer or assistant trust officer, the controller
or any other officer of the Trustee customarily performing functions similar to
those performed by any of the above designated officers and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of such officer's knowledge and familiarity with the
particular subject.

                                     -15-
<PAGE>   16

         "Secured Debt" means, without duplication, Debt that is secured by a
mortgage, trust deed, deed of trust, deed to secure debt, security agreement,
pledge, conditional sale or other title retention agreement, capitalized lease,
or other like agreement granting or conveying security title to or a security
interest in real property or other tangible assets.

         "Security" has the meaning stated in the first recital of this
Indenture and, more particularly, means any Security or Securities
authenticated and delivered under this Indenture; provided, however, that, if
at any time there is more than one Person acting as Trustee under this
Indenture, "Securities" with respect to the Indenture as to which such Person
is Trustee shall have the meaning stated in the first recital of this Indenture
and shall more particularly mean Securities authenticated and delivered under
this Indenture, exclusive, however, of Securities of any series as to which
such Person is not Trustee.

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

         "Senior Executive Group" shall mean, collectively, those individuals
holding the offices of Chairman of the Board, President, Chief Executive
Officer, Chief Operating Officer, or any Executive Vice President of the
General Partner.

         "Significant Subsidiary" means any Subsidiary which is a "significant
subsidiary" (as defined in Article I, Rule 1-02 of Regulation S-X, promulgated
under the Securities Act of 1933, as amended) of the Issuer.

         "Special Record Date" for the payment of any Defaulted Interest on the
Registered Securities of or within any series means a date fixed by the Trustee
pursuant to Section 307.

         "Stated Maturity," when used with respect to any Security or any
installment of principal thereof or interest thereon or any Additional Amounts
with respect thereto, means the date specified in such Security or a coupon
representing such installment of interest as the fixed date on which the
principal of such Security or such installment of principal or interest, or
such Additional Amounts are due and payable.

         "Subsidiary" means (i) any Corporation or other entity the majority of
the shares of the non-voting capital stock or other equivalent ownership
interests of which (except directors' qualifying shares) are at the time
directly or indirectly owned by the Issuer or the General Partner, and the
majority of the shares of the voting capital stock or other equivalent
ownership interests of which (except directors' qualifying shares) are at the
time directly or indirectly owned by the Issuer, the General Partner, any other
Subsidiary, and/or one or more individuals of the Senior Executive Group (or,
in the event of death or disability of any of such individuals, his/her
respective legal representative(s)), or such individuals' successors in office
as an officer of the General Partner or the Secretary of such Subsidiary, and
(ii) any other entity (other than the General Partner) the accounts of which
are consolidated with the accounts of the Issuer.

                                     -16-
<PAGE>   17

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

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

         "United States" means, unless otherwise specified with respect to any
Securities pursuant to Section 301, the United States of America (including the
states and the District of Columbia), its territories, its possessions and
other areas subject to its jurisdiction.

         "United States Person" means, unless otherwise specified with respect
to any Securities pursuant to Section 301, an individual who is a citizen or
resident of the United States, a Corporation, partnership or other entity
created or organized in or under the laws of the United States or an estate or
trust the income of which is subject to United States federal income taxation
regardless of its source.

         "Yield to Maturity" means the yield to maturity, computed at the time
of issuance of a Security (or, if applicable, at the most recent
redetermination of interest on such Security) and as set forth in such Security
in accordance with generally accepted United States bond yield computation
principles.

         SECTION 102. COMPLIANCE CERTIFICATES AND OPINIONS. Except as otherwise
expressly provided in this Indenture, upon any application or request by the
Issuer to the Trustee to take any action under any provision of this Indenture,
the Issuer shall furnish to the Trustee an Officers' Certificate stating that
all conditions precedent, if any, provided for in this Indenture relating to
the proposed action have been complied with and an Opinion of Counsel stating
that in the opinion of such counsel all such conditions precedent, if any, have
been complied with, except that in the case of any such application or request
as to which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request,
no additional certificate or opinion need be furnished.

         Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (including certificates
delivered pursuant to Section 1011) shall include:

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

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

                                     -17-
<PAGE>   18

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

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

         SECTION 103. FORM OF DOCUMENTS DELIVERED TO TRUSTEE. In any case where
several matters are required to be certified by, or covered by an opinion of,
any specified Person, it is not necessary that all such matters be certified
by, or covered by the opinion of, only one such Person, or that they be so
certified or covered by only one document, but one such Person may certify or
give an opinion as to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such
matters in one or several documents.

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

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

         SECTION 104. ACTS OF HOLDERS. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or
by agents duly appointed in writing. If, but only if, Securities of a series
are issuable as Bearer Securities, any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture
to be given or taken by Holders of Securities of such series may,
alternatively, be embodied in and evidenced by the record of Holders of
Securities of such series voting in favor thereof, either in person or by
proxies duly appointed in writing, at any meeting of Holders of Securities of
such series duly called and held in accordance with the provisions of Article
Fifteen, or a combination of such instruments and any such record. Except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments or record or both are delivered to the Trustee
and, where it is hereby expressly required, to the Issuer. Such instrument or
instruments and any such record (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or

                                     -18-
<PAGE>   19

instruments or so voting at any such meeting. Proof of
execution of any such instrument or of a writing appointing any such agent, or
of the holding by any Person of a Security, shall be sufficient for any purpose
of this Indenture and (subject to Section 315 of the Trust Indenture Act)
conclusive in favor of the Trustee and the Issuer and any agent of the Trustee
or the Issuer, if made in the manner provided in this Section . The record of
any meeting of Holders of Securities shall be proved in the manner provided in
Section 1506.

         (b)      The fact and date of the execution by any Person of any such
instrument or writing may be proved in any reasonable manner which the Trustee
deems sufficient and in accordance with such reasonable rules as the Trustee
may determine; and the Trustee may in any instance require further proof with
respect to any of the matters referred to in this Section.

         (c)      The ownership, principal amount and serial numbers of
Registered Securities held by any Person, and the date of the commencement and
the date of the termination of holding the same, shall be proved by the
Security Register.

         (d)      The ownership, principal amount and serial numbers of Bearer
Securities held by any Person, and the date of the commencement and the date of
the termination of holding the same may be proved by the production of such
Bearer Securities or by a certificate executed, as depositary, by any trust
company, bank, banker or other depositary reasonably acceptable to the Issuer,
wherever situated, if such certificate shall be deemed by the Issuer and the
Trustee to be satisfactory, showing that at the date therein mentioned such
Person had on deposit with such depositary, or exhibited to it, the Bearer
Securities therein described; or such facts may be proved by the certificate or
affidavit of the Person holding such Bearer Securities, if such certificate or
affidavit is deemed by the Trustee to be satisfactory. The Trustee and the
Issuer may assume that such ownership of any Bearer Security continues until
(1) another certificate or affidavit bearing a later date issued in respect of
the same Bearer Security is produced, or (2) such Bearer Security is produced
to the Trustee by some other Person, or (3) such Bearer Security is surrendered
in exchange for a Registered Security, or (4) such Bearer Security is no longer
Outstanding. The ownership, principal amount and serial numbers of Bearer
Securities held by the Person so executing such instrument in writing and the
date of the commencement and the date of the termination of holding the same
may also be proved in any other manner which the Trustee deems sufficient.

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

                                     -19-
<PAGE>   20

authorization, agreement or consent by the Holders on such record date shall be
deemed effective unless it shall become effective pursuant to the provisions of
this Indenture not later than eleven months after the record date.

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

         SECTION 105. NOTICES, ETC., TO TRUSTEE AND ISSUER. Any request,
demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given
or furnished to, or filed with

                  (1)      the Trustee by a Holder or by the Issuer shall be
         sufficient for every purpose hereunder if made, given, furnished or
         filed in writing to or with the Trustee at its Corporate Trust Office,
         or

                  (2)      the Issuer by the Trustee or by any Holder shall be
         sufficient for every purpose hereunder (unless otherwise herein
         expressly provided) if in writing and mailed, first class postage
         prepaid, to the Issuer addressed to it at the address of its principal
         office specified in the first paragraph of this Indenture or at any
         other address previously furnished in writing to the Trustee by the
         Issuer.

         SECTION 106. NOTICE TO HOLDERS; WAIVER. Where this Indenture provides
for notice of any event to Holders of Registered Securities by the Issuer or
the Trustee, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
each such Holder affected by such event, at his address as it appears in the
Security Register, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such notice. In any case where
notice to Holders of Registered Securities is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders of Registered Securities or the sufficiency of any notice to
Holders of Bearer Securities given as provided herein. Any notice mailed to a
Holder in the manner herein prescribed shall be conclusively deemed to have
been received by such Holder, whether or not such Holder actually receives such
notice.

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

         Except as otherwise expressly provided herein or otherwise specified
with respect to any Securities pursuant to Section 301, where this Indenture
provides for notice to Holders of Bearer Securities of any event, such notice
shall be sufficiently given if published in an Authorized

                                     -20-
<PAGE>   21
Newspaper in New York City and in such other city or cities as may be specified
in such Securities on a Business Day, such publication to be not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. Any such notice shall be deemed to have been given on the date
of such publication or, if published more than once, on the date of the first
such publication.

         If by reason of the suspension of publication of any Authorized
Newspaper or Authorized Newspapers or by reason of any other cause it shall be
impracticable to publish any notice to Holders of Bearer Securities as provided
above, then such notifications to Holders of Bearer Securities as shall be given
with the approval of the Trustee shall constitute sufficient notice to such
Holders for every purpose hereunder. Neither the failure to give notice by
publication to any particular Holder of Bearer Securities as provided above, nor
any defect in any notice so published, shall affect the sufficiency of such
notice with respect to other Holders of Bearer Securities or the sufficiency of
any notice to Holders of Registered Securities given as provided herein.

         Any request, demand, authorization, direction, notice, consent, waiver
or Act required or permitted under this Indenture shall be in the English
language, except that, if the Issuer so elects, any published notice may be in
an official language of the country of publication.

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

         SECTION 107.      EFFECT OF HEADINGS AND TABLE OF CONTENTS. The Article
and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

         SECTION 108.      SUCCESSORS AND ASSIGNS. All covenants and agreements
in this Indenture by the Issuer shall bind its successors and assigns, whether
so expressed or not.

         SECTION 109.      SEPARABILITY CLAUSE. In case any provision in this
Indenture or in any Security or coupon shall be deemed invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

         SECTION 110.      BENEFITS OF INDENTURE. Nothing in this Indenture or
in the Securities or coupons, express or implied, shall give to any Person,
other than the parties hereto, any Security Registrar, any Paying Agent, any
Authenticating Agent and their successors hereunder and the Holders any benefit
or any legal or equitable right, remedy or claim under this Indenture.

                                      -21-
<PAGE>   22

         SECTION 111.      GOVERNING LAW. This Indenture and the Securities and
coupons shall be governed by and construed in accordance with the laws of the
State of New York.

         SECTION 112.      LEGAL HOLIDAYS. In any case where any Interest
Payment Date, Redemption Date, Repayment Date, sinking fund payment date, Stated
Maturity or Maturity of any Security, or the last date on which a Holder has the
right to exchange Securities of a series that are exchangeable, shall be a Legal
Holiday at any Place of Payment, then (notwithstanding any other provision of
this Indenture or any Security or coupon other than a provision in any Security
or coupon that specifically states that such provision shall apply in lieu
hereof), payment of interest or any Additional Amounts or principal (and
premium, if any) need not be made at such Place of Payment on such date and such
Securities need not be exchanged on such date, but such payment may be made and
such Securities may be exchanged on the next succeeding Business Day at such
Place of Payment with the same force and effect as if made on the Interest
Payment Date, Redemption Date, Repayment Date or sinking fund payment date, or
at the Stated Maturity or Maturity or on such last day for exchange, provided
that no interest shall accrue on the amount so payable for the period from and
after such Interest Payment Date, Redemption Date, Repayment Date, sinking fund
payment date, Stated Maturity or Maturity or last day for or exchange, as the
case may be.

         SECTION 113.      CONFLICT WITH TRUST INDENTURE ACT. If any provision
hereof limits, qualifies or conflicts with any duties under any required
provision of the Trust Indenture Act imposed hereon by Section 318(c) thereof,
such required provision shall control.

         SECTION 114.      COUNTERPARTS. This Indenture may be executed in
several counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

         SECTION 115.      JUDGMENT CURRENCY. The Issuer agrees, to the fullest
extent that it may effectively do so under applicable law, that (a) if for the
purpose of obtaining judgment in any court it is necessary to convert the sum
due in respect of the principal of, or premium or interest, if any, or
Additional Amounts on the Securities of any series (the "Required Currency")
into a currency in which a judgment will be rendered (the "Judgment Currency"),
the rate of exchange used shall be the rate at which in accordance with normal
banking procedures the Trustee could purchase in The City of New York the
Required Currency with the Judgment Currency on the New York Banking Day
preceding that on which a final unappealable judgment is given and (b) its
obligations under this Indenture to make payments in the Required Currency (i)
shall not be discharged or satisfied by any tender, or any recovery pursuant to
any judgment (whether or not entered in accordance with clause (a)), in any
currency other than the Required Currency, except to the extent that such tender
or recovery shall result in the actual receipt, by the payee, of the full amount
of the Required Currency expressed to be payable in respect of such payments,
(ii) shall be enforceable as an alternative or additional cause of action for
the purpose of recovering in the Required Currency the amount, if any, by which
such actual receipt shall fall short of the full amount of the Required Currency
so expressed to be payable, and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture. For

                                      -22-
<PAGE>   23

purposes of the foregoing, "New York Banking Day" means any day except a Legal
Holiday in The City of New York.

                                   ARTICLE TWO

                                SECURITIES FORMS

         SECTION 201.      FORMS OF SECURITIES. The Registered Securities, if
any, of each series and the Bearer Securities, if any, of each series and
related coupons shall be in substantially the forms as shall be established in
one or more indentures supplemental hereto or approved from time to time by or
pursuant to a Board Resolution in accordance with Section 301, shall have such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture or any indenture supplemental hereto,
and may have such letters, numbers or other marks of identification or
designation and such legends or endorsements placed thereon as the Issuer may
deem appropriate and as are not inconsistent with the provisions of this
Indenture, or as may be required to comply with any law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any stock
exchange on which the Securities may be listed, or to conform to usage.

         Unless otherwise specified as contemplated by Section 301, Bearer
Securities shall have interest coupons attached.

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

         SECTION 202.      FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION.
Subject to Section 611, the Trustee's certificate of authentication shall be in
substantially the following form:

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

                                             (TRUSTEE)
                                             as Trustee

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

         SECTION 203.      SECURITIES ISSUABLE IN GLOBAL FORM. If Securities of
or within a series are issuable in global form, as specified as contemplated by
Section 301, then, notwithstanding clause (9) of Section 301 and the provisions
of Section 302, any such Security shall represent such of the Outstanding
Securities of such series as shall be specified therein and

                                      -23-
<PAGE>   24

may provide that it or any number of such Securities shall represent the
aggregate amount of Outstanding Securities of such series from time to time
endorsed thereon and may also provide that the aggregate amount of Outstanding
Securities of such series represented thereby may from time to time be increased
or decreased to reflect exchanges. Any endorsement of a Security in global form
to reflect the amount, or any increase or decrease in the amount, of Outstanding
Securities represented thereby shall be made in such manner and by such Person
or Persons as shall be specified therein or in the Issuer Order to be delivered
pursuant to Section 303 or 304. Subject to the provisions of Section 303 and, if
applicable, Section 304, the Trustee shall deliver and redeliver any Security in
permanent global form in the manner and upon instructions given by the Person or
Persons specified therein or in the applicable Issuer Order. If an Issuer Order
pursuant to Section 303 or 304 has been, or simultaneously is, delivered, any
instructions by the Issuer with respect to endorsement or delivery or redelivery
of a Security in global form shall be in writing but need not comply with
Section 102 and need not be accompanied by an Opinion of Counsel.

         The provisions of the last sentence of Section 303 shall apply to any
Security represented by a Security in global form if such Security was never
issued and sold by the Issuer and the Issuer delivers to the Trustee the
Security in global form together with written instructions (which need not
comply with Section 102 and need not be accompanied by an Opinion of Counsel)
with regard to the reduction in the principal amount of Securities represented
thereby, together with the written statement contemplated by the last sentence
of Section 303.

         Notwithstanding the provisions of Section 307, unless otherwise
specified as contemplated by Section 301, payment of principal of, and any
premium and interest on, and any Additional Amounts in respect of, any Security
in temporary or permanent global form shall be made to the Person or Persons
specified therein.

         Notwithstanding the provisions of Section 308 and except as provided in
the preceding paragraph, the Issuer, the Trustee and any agent of the Issuer and
the Trustee shall treat as the Holder of such principal amount of Outstanding
Securities represented by a global Security (i) in the case of global Security
in registered form, the Holder of such global Security in registered form, or
(ii) in the case of a global Security in bearer form, the Person or Persons
specified pursuant to Section 301.

                                  ARTICLE THREE

                                 THE SECURITIES

         SECTION 301.      AMOUNT UNLIMITED; ISSUABLE IN SERIES. The aggregate
principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.

         The Securities may be issued in one or more series. There shall be
established in one or more Board Resolutions or pursuant to authority granted by
one or more Board Resolutions and, subject to Section 303, set forth, or
determined in the manner provided, in an Officers'

                                      -24-
<PAGE>   25

Certificate, or established in one or more indentures supplemental hereto, prior
to the issuance of Securities of any series, any or all of the following, as
applicable (each of which (except for the matters set forth in clauses (1), (2)
and (16) below), if so provided, may be determined from time to time by the
Issuer with respect to unissued Securities of the series when issued from time
to time):

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

                  (2)      any limit upon the aggregate principal amount of the
         Securities of the series that may be authenticated and delivered under
         this Indenture (except for Securities authenticated and delivered upon
         registration of transfer of, or in exchange for, or in lieu of, other
         Securities of the series pursuant to Section 304, 305, 306, 906, 1107
         or 1305);

                  (3)      the percentage of the principal amount at which the
         Securities of the series will be issued and, if other than the
         principal amount thereof, the portion of the principal amount thereof
         payable upon declaration of acceleration of maturity thereof;

                  (4)      the date or dates, or the method for determining such
         date or dates, on which the principal of the Securities of the series
         shall be payable;

                  (5)      the rate or rates at which the Securities of the
         series shall bear interest, if any, or the method by which such rate or
         rates shall be determined, the date or dates from which such interest
         shall accrue or the method by which such date or dates shall be
         determined, the Interest Payment Dates on which such interest will be
         payable and the Regular Record Date, if any, for the interest payable
         on any Registered Security on any Interest Payment Date, or the method
         by which such date shall be determined, and the basis upon which
         interest shall be calculated if other than that of a 360-day year of
         twelve 30-day months;

                  (6)      the place or places, if any, other than or in
         addition to the Borough of Manhattan, New York City, where (i) the
         principal of (and premium, if any), interest, if any, on, and
         Additional Amounts, if any, payable in respect of, the Securities of
         the series shall be payable, (ii) any Registered Securities of the
         series may be surrendered for registration of transfer or exchange and
         (iii) notices or demands to or upon the Issuer in respect of the
         Securities of the series and this Indenture may be served;

                  (7)      the period or periods within which, the price or
         prices at which, the currency or currencies, currency unit or units or
         composite currency or currencies in which, and other terms and
         conditions upon which the Securities of the series may be redeemed, as
         a whole or in part, at the option of the Issuer, if the Issuer is to
         have such an option;

                  (8)      the obligation, if any, of the Issuer to redeem,
         repay or purchase the Securities of the series pursuant to any sinking
         fund or analogous provision or at the option of a Holder thereof, and
         the period or periods within which or the date or dates on

                                      -25-
<PAGE>   26

         which, the price or prices at which, the currency or currencies,
         currency unit or units or composite currency or currencies in which,
         and other terms and conditions upon which the Securities of the series
         shall be redeemed, repaid or purchased, as a whole or in part, pursuant
         to such obligation;

                  (9)      if other than denominations of $1,000 and any
         integral multiple thereof, the denominations in which any Registered
         Securities of the series shall be issuable and, if other than
         denominations of $5,000 and any integral multiple thereof, the
         denomination or denominations in which any Bearer Securities of the
         series shall be issuable;

                  (10)     if other than the Trustee, the identity of each
         Security Registrar and/or Paying Agent;

                  (11)     if other than the principal amount thereof, the
         portion of the principal amount of the Securities of the series that
         shall be payable upon declaration of acceleration of the Maturity
         thereof pursuant to Section 502 or the method by which such portion
         shall be determined;

                  (12)     if other than Dollars, the Foreign Currency or
         Currencies in which payment of the principal of (and premium, if any)
         or interest or Additional Amounts, if any, on the Securities of the
         series shall be payable or in which the Securities of the series shall
         be denominated;

                  (13)     whether the amount of payments of principal of (and
         premium, if any) or interest, if any, on the Securities of the series
         may be determined with reference to an index, formula or other method
         (which index, formula or method may be based, without limitation, on
         one or more currencies, currency units, composite currencies,
         commodities, equity indices or other indices), and the manner in which
         such amounts shall be determined;

                  (14)     whether the principal of (and premium, if any) or
         interest or Additional Amounts, if any, on the Securities of the series
         are to be payable, at the election of the Issuer or a Holder thereof,
         in a currency or currencies, currency unit or units or composite
         currency or currencies other than that in which such Securities are
         denominated or stated to be payable, the period or periods within
         which, and the terms and conditions upon which, such election may be
         made, and the time and manner of, and identity of the exchange rate
         agent with responsibility for, determining the exchange rate between
         the currency or currencies, currency unit or units or composite
         currency or currencies in which such Securities are denominated or
         stated to be payable and the currency or currencies, currency unit or
         units or composite currency or currencies in which such Securities are
         to be so payable;

                  (15)     provisions, if any, granting special rights to the
         Holders of the Securities of the series upon the occurrence of such
         events as may be specified;

                                      -26-
<PAGE>   27

                  (16)     any deletions from, modifications of or additions to
         the Events of Default or covenants of the Issuer with respect to the
         Securities of the series, whether or not such Events of Default or
         covenants are consistent with the Events of Default or covenants set
         forth herein;

                  (17)     whether the Securities of the series will be in
         certificated or book-entry form and, if certificated, whether
         Securities of the series are to be issuable as Registered Securities,
         Bearer Securities (with or without coupons) or both, any restrictions
         applicable to the offer, sale or delivery of Bearer Securities and the
         terms upon which Bearer Securities of the series may be exchanged for
         Registered Securities of the series and vice versa (if permitted by
         applicable laws and regulations), whether any Securities of the series
         are to be issuable initially in temporary global form and whether any
         Securities of the series are to be issuable in permanent global form
         with or without coupons and, if so, whether beneficial owners of
         interests in any such permanent global Security may exchange such
         interests for Securities of such series and of like tenor of any
         authorized form and denomination and the circumstances under which any
         such exchanges may occur, if other than in the manner provided in
         Section 305, and, if Registered Securities of the series are to be
         issuable as a global Security, the identity of the depositary for such
         series;

                  (18)     the date as of which any Bearer Securities of the
         series and any temporary global Security representing Outstanding
         Securities of the series shall be dated if other than the date of
         original issuance of the first Security of the series to be issued;

                  (19)     the Person to whom any interest on any Registered
         Security of the series shall be payable, if other than the Person in
         whose name that Security (or one or more Predecessor Securities) is
         registered at the close of business on the Regular Record Date for such
         interest, the manner in which, or the Person to whom, any interest on
         any Bearer Security of the series shall be payable, if otherwise than
         upon presentation and surrender of the coupons appertaining thereto as
         they severally mature, and the extent to which, or the manner in which,
         any interest payable on a temporary global Security on an Interest
         Payment Date will be paid if other than in the manner provided in
         Section 304;

                  (20)     the applicability, if any, of Sections 1402 and/or
         1403 to the Securities of the series and any provisions in modification
         of, in addition to or in lieu of, any of the provisions of Article
         Fourteen;

                  (21)     if the Securities of such series are to be issuable
         in definitive form (whether upon original issue or upon exchange of a
         temporary Security of such series) only upon receipt of certain
         certificates or other documents or satisfaction of other conditions,
         then the form and/or terms of such certificates, documents or
         conditions;

                  (22)     whether and under what circumstances the Issuer will
         pay Additional Amounts on the Securities of the series to any Holder
         who is not a United States Person (including any modification to the
         definition of such term) in respect of any tax, assessment or
         governmental charge and, if so, whether the Issuer will have the option
         to

                                      -27-
<PAGE>   28

         redeem such Securities rather than pay such Additional Amounts (and the
         terms of any such option);

                  (23)     with respect to any Securities that provide for
         optional redemption or prepayment upon the occurrence of certain events
         (such as a change of control of the Issuer), (i) the possible effects
         of such provisions on the market price of the Issuer's or the General
         Partner's securities or in deterring certain mergers, tender offers or
         other takeover attempts, and the intention of the Issuer to comply with
         the requirements of Rule 14e-1 under the Exchange Act and any other
         applicable securities laws in connection with such provisions; (ii)
         whether the occurrence of the specified events may give rise to
         cross-defaults on other indebtedness such that payment on such
         Securities may be effectively subordinated; and (iii) the existence of
         any limitations on the Issuer's financial or legal ability to
         repurchase such Securities upon the occurrence of such an event
         (including, if true, the lack of assurance that such a repurchase can
         be effected) and the impact, if any, under the Indenture of such a
         failure, including whether and under what circumstances such a failure
         may constitute an Event of Default; and

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

         All Securities of any one series and the coupons, if any, appertaining
to any Bearer Securities of the series shall be substantially identical except,
in the case of Registered Securities, as to denomination and except as may
otherwise be provided in or pursuant to the Board Resolution establishing the
series (subject to Section 303) and set forth in an Officers' Certificate or in
any indenture supplemental hereto. All Securities of any one series need not be
issued at the same time and, unless otherwise provided, a series may be
reopened, without the consent of the Holders, for issuances of additional
Securities of such series.

         If any of the terms of the Securities of any series are established by
action taken pursuant to one or more Board Resolutions, a copy of an appropriate
record of such action(s) shall be certified by the Secretary or an Assistant
Secretary of the General Partner and delivered to the Trustee at or prior to the
delivery of the Officers' Certificate setting forth the terms of the Securities
of such series.

         SECTION 302.      CURRENCY; DENOMINATIONS. Unless otherwise provided as
contemplated by Section 301, the principal of, any premium and interest on and
any Additional Amounts with respect to the Securities shall be payable in
Dollars. Unless otherwise provided as contemplated by Section 301, Registered
Securities denominated in Dollars (other than Registered Securities issued in
global form, which may be of any denomination) shall be issuable in
denominations of $1,000 and any integral multiple thereof, and the Bearer
Securities denominated in Dollars (other than Bearer Securities issued in global
form, which may be of any denomination) shall be issuable in denominations of
$5,000 and any integral multiple thereof. Securities not denominated in Dollars
shall be issuable in such denominations as are established with respect to such
Securities in or pursuant to this Indenture.

                                      -28-
<PAGE>   29

         SECTION 303.      EXECUTION, AUTHENTICATION, DELIVERY AND DATING. The
Securities and any coupons appertaining thereto shall be executed on behalf of
the Issuer by the General Partner by its Chairman of the Board, its President or
one of its Vice Presidents (whether or not designated by a number or word or
words added before or after the title "vice president"), under its corporate
seal reproduced thereon, and attested by its Secretary or one of its Assistant
Secretaries. The signature of any of these officers on the Securities and
coupons may be manual or facsimile signatures of the present or any future such
authorized officer and may be imprinted or otherwise reproduced on the
Securities.

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

         At any time and from time to time after the execution and delivery of
this Indenture, the Issuer may deliver the Securities of any series, together
with any coupon appertaining thereto, executed by the Issuer to the Trustee for
authentication, together with an Issuer Order for the authentication and
delivery of such Securities, and the Trustee in accordance with the Issuer Order
shall authenticate and delivery such Securities; provided, however, that, in
connection with its original issuance, no Bearer Security shall be mailed or
otherwise delivered to any location in the United States; and provided further
that, unless otherwise specified with respect to any series of Securities
pursuant to Section 301, a Bearer Security may be delivered in connection with
its original issuance only if the Person entitled to receive such Bearer
Security shall have furnished a certificate to Euroclear or CEDEL, as the case
may be, in the form set forth in Exhibit A-1 to this Indenture or such other
certificate as may be specified with respect to any series of Securities
pursuant to Section 301, dated no earlier than 15 days prior to the earlier of
the date on which such Bearer Security is delivered and the date on which any
temporary Security first becomes exchangeable for such Bearer Security in
accordance with the terms of such temporary Security and this Indenture. If any
Security shall be represented by a permanent global Bearer Security, then, for
purposes of this Section and Section 304, the notation of a beneficial owner's
interest therein upon original issuance of such Security or upon exchange of a
portion of temporary global Security shall be deemed to be delivery in
connection with its original issuance of such beneficial owner's interest in
such permanent global Security. Except as permitted by Section 306, the Trustee
shall not authenticate and deliver any Bearer Security unless all appurtenant
coupons for interest then matured have been detached and canceled.

         If all the Securities of any series are not to be issued at one time
and if the Board Resolution or supplemental indenture establishing such series
shall so permit, such Issuer Order may set forth procedures acceptable to the
Trustee for the issuance of such Securities and determining the terms of
particular Securities of such series, such as interest rate or formula, maturity
date, date of issuance and date from which interest shall accrue. In
authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to TIA Section 315(a) through 315(d)) shall be
fully protected in relying upon:

                  (i)      an Opinion of Counsel stating that:

                                      -29-
<PAGE>   30

                           (a)      the terms and the form or forms or terms of
                  such Securities and any coupons have been established in
                  conformity with the provisions of this Indenture; and

                           (b)      such Securities, together with any coupons
                  appertaining thereto, when completed by appropriate insertions
                  and executed and delivered by the Issuer to the Trustee for
                  authentication in accordance with this Indenture,
                  authenticated and delivered by the Trustee in accordance with
                  this Indenture and issued by the Issuer in the manner and
                  subject to any conditions specified in such Opinion of
                  Counsel, will constitute legal, valid and binding obligations
                  of the Issuer, enforceable in accordance with their terms,
                  subject to applicable bankruptcy, insolvency, reorganization
                  and other similar laws of general applicability relating to or
                  affecting the enforcement of creditors' rights generally and
                  to general equitable principles and will entitle the Holders
                  thereof to the benefits of this Indenture; and

                  (ii)     an Officers' Certificate stating that all conditions
         precedent provided for in this Indenture relating to the issuance of
         the Securities have been complied with and that, to the best of the
         knowledge of the signers of such certificate, no Event of Default with
         respect to any of the Securities shall have occurred and be continuing.

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

         Notwithstanding the provisions of Section 301 and of the preceding
paragraph, if all the Securities of any series are not to be issued at one time,
it shall not be necessary to deliver an Officers' Certificate otherwise required
pursuant to Section 301 or an Issuer Order, or an Opinion of Counsel or an
Officers' Certificate otherwise required pursuant to the preceding paragraph at
the time of issuance of each Security of such series, but such order, opinion
and certificates, with appropriate modifications to cover such future issuances,
shall be delivered at or before the time of issuance of the first Security of
such series.

         Each Registered Security shall be dated the date of its authentication
and each Bearer Security shall be dated as of the date specified as contemplated
by Section 301.

         No Security or coupon shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose unless there appears on such
Security or Security to which such coupon appertains a certificate of
authentication substantially in the form provided for herein duly executed by
the Trustee by manual signature of an authorized signatory, and such certificate
upon any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder and is entitled to
the benefits of this Indenture. Notwithstanding the foregoing, if any Security
shall have been authenticated and delivered hereunder but never issued and sold
by the Issuer, and the Issuer shall deliver such Security to

                                      -30-
<PAGE>   31

the Trustee for cancellation as provided in Section 309 together with a written
statement (which need not comply with Section 102 and need not be accompanied by
an Opinion of Counsel) stating that such Security has never been issued and sold
by the Issuer, for all purposes of this Indenture such Security shall be deemed
never to have been authenticated and delivered hereunder and shall never be
entitled to the benefits of this Indenture.

         SECTION 304.      TEMPORARY SECURITIES. (a) Pending the preparation of
definitive Securities of any series, the Issuer may execute, and upon Issuer
Order the Trustee shall authenticate and deliver, temporary Securities which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive Securities
in lieu of which they are issued, in registered form, or, if authorized, in
bearer form with one or more coupons or without coupons, and with such
appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as conclusively evidenced by
their execution of such Securities. Such temporary Securities may be in global
form.

         Except in the case of temporary Securities in global form (which shall
be exchanged in accordance with Section 304(b) or as otherwise provided in or
pursuant to a Board Resolution), if temporary Securities of any series are
issued, the Issuer will cause definitive Securities of that series to be
prepared without unreasonable delay. After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be
exchangeable for definitive Securities of such series upon surrender of the
temporary Securities of such series at the office or agency of the Issuer in a
Place of Payment for that series, without charge to the Holder. Upon surrender
for cancellation of any one or more temporary Securities of any series
(accompanied by any nonmatured coupons appertaining thereto), the Issuer shall
execute and the Trustee shall authenticate and deliver in exchange therefor a
like principal amount of definitive Securities of the same series of authorized
denominations; provided, however, that no definitive Bearer Security shall be
delivered in exchange for a temporary Registered Security; and provided further
that a definitive Bearer Security shall be delivered in exchange for a temporary
Bearer Security only in compliance with the conditions set forth in this
Indenture. Until so exchanged, the temporary Securities of any series shall in
all respects be entitled to the same benefits under this Indenture as definitive
Securities of such series.

         (b)      Unless otherwise provided in or pursuant to a Board
Resolution, this Section 304(b) shall govern the exchange of temporary
Securities issued in global form other than through the facilities of The
Depository Trust Company ("DTC"). If any such temporary Security is issued in
global form, then such temporary global Security shall, unless otherwise
provided therein, be delivered to the London office of a depositary or common
depositary (the "Common Depositary"), for the benefit of Euroclear and CEDEL,
for credit to the respective accounts of the beneficial owners of such
Securities (or to such other accounts as they may direct).

         Without unnecessary delay, but in any event not later than the date
specified in, or determined pursuant to the terms of, any such temporary global
Security (the "Exchange Date"), the Issuer shall deliver to the Trustee
definitive Securities, in aggregate principal amount equal to the principal
amount of such temporary global Security, executed by the Issuer. On or after
the

                                      -31-
<PAGE>   32

Exchange Date, such temporary global Security shall be surrendered by the
Common Depositary to the Trustee, as the Issuer's agent for such purpose, to be
exchanged, in whole or from time to time in part, for definitive Securities
without charge, and the Trustee shall authenticate and deliver, in exchange for
each portion of such temporary global Security, an equal aggregate principal
amount of definitive Securities of the same series of authorized denominations
and of like tenor as the portion of such temporary global Security to be
exchanged. The definitive Securities to be delivered in exchange for any such
temporary global Security shall be in bearer form, registered form, permanent
global bearer form or permanent global registered form, or any combination
thereof, as specified as contemplated by Section 301, and, if any combination
thereof is so specified, as requested by the beneficial owner thereof; provided,
however, that, unless otherwise specified in such temporary global Security,
upon such presentation by the Common Depositary, such temporary global Security
is accompanied by a certificate dated the Exchange Date or a subsequent date and
signed by Euroclear as to the portion of such temporary global Security held for
its account then to be exchanged and a certificate dated the Exchange Date or a
subsequent date and signed by CEDEL as to the portion of such temporary global
Security held for its account then to be exchanged, each in the form set forth
in Exhibit A-2 to this Indenture or in such other form as may be established
pursuant to Section 301; and provided further that definitive Bearer Securities
shall be delivered in exchange for a portion of a temporary global Security only
in compliance with the requirements of Section 303.

         Unless otherwise specified in such temporary global Security, the
interest of a beneficial owner of Securities of a series in a temporary global
Security shall be exchanged for definitive Securities of the same series and of
like tenor following the Exchange Date when the account holder instructs
Euroclear or CEDEL, as the case may be, to request such exchange on his behalf
and delivers to Euroclear or CEDEL, as the case may be, a certificate in the
form set forth in Exhibit A-1 to this Indenture (or in such other form as may be
established pursuant to Section 301), dated no earlier than 15 days prior to the
Exchange Date, copies of which certificate shall be available from the offices
of Euroclear and CEDEL, the Trustee, any Authenticating Agent appointed for such
series of Securities and each Paying Agent. Unless otherwise specified in such
temporary global Security, any such exchange shall be made free of charge to the
beneficial owners of such temporary global Security, except that a Person
receiving definitive Securities must bear the cost of insurance, postage,
transportation and the like unless such Person takes delivery of such definitive
Securities in person at the offices of Euroclear or CEDEL. Definitive Securities
in bearer form to be delivered in exchange for any portion of a temporary global
Security shall be delivered only outside the United States.

         Until exchanged in full as hereinabove provided, the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of the same series and of like
tenor authenticated and delivered hereunder, except that, unless otherwise
specified as contemplated by Section 301, interest payable on a temporary global
Security on an Interest Payment Date for Securities for such series occurring
prior to the applicable Exchange Date shall be payable to Euroclear and CEDEL on
such Interest Payment Date upon delivery by Euroclear and CEDEL to the Trustee
of a certificate or certificates in the form set forth in Exhibit A-2 to this
Indenture (or in such other forms as may be established pursuant to Section
301), for credit without further interest on or after such Interest Payment Date
to the respective accounts of Persons who are the beneficial owners of such
temporary

                                      -32-
<PAGE>   33

global Security on such Interest Payment Date and who have each delivered to
Euroclear or CEDEL, as the case may be, a certificate dated no earlier than 15
days prior to the Interest Payment Date occurring prior to such Exchange Date in
the form set forth as Exhibit A-1 to this Indenture (or in such other forms as
may be established pursuant to Section 301). Notwithstanding anything to the
contrary herein contained, the certifications made pursuant to this paragraph
shall satisfy the certification requirements of the preceding two paragraphs of
this Section 304(b) and of the third paragraph of Section 303 of this Indenture
and the interests of the Persons who are the beneficial owners of the temporary
global Security with respect to which such certification was made will be
exchanged for definitive Securities of the same series and of like tenor on the
Exchange Date or the date of certification if such date occurs after the
Exchange Date, without further act or deed by such beneficial owners. Except as
otherwise provided in this paragraph, no payments of principal or interest owing
with respect to a beneficial interest in a temporary global Security will be
made unless and until such interest in such temporary global Security shall have
been exchanged for an interest in a definitive Security. Any interest so
received by Euroclear and CEDEL and not paid as herein provided shall be
returned to the Trustee prior to the expiration of two years after such Interest
Payment Date in order to be repaid to the Issuer.

         (c)      Unless otherwise provided in or pursuant to a Board
Resolution, this Section 304(c) shall govern the exchange of temporary
Securities issued in global form through the facilities of DTC. If any such
temporary Security is issued in global form, then such temporary global security
shall, unless otherwise provided therein, be delivered to DTC for credit to the
respective accounts of the beneficial owners of such Securities (or to such
other accounts as they may direct).

         Without unnecessary delay, but in any event not later than the Exchange
Date, the Issuer shall deliver to the Trustee definitive Securities, in
aggregate principal amount equal to the principal amount of such temporary
global Security, executed by the Issuer. On or after the Exchange Date, such
temporary global Security shall be surrendered by DTC to the Trustee, as the
Issuer's agent for such purpose, to be exchanged, in whole or from time to time
in part, for definitive Securities without charge, and the Trustee shall
authenticate and deliver, in exchange for each portion of such temporary global
Security, an equal aggregate principal amount of definitive Securities of the
same series of authorized denominations and of like tenor as the portion of such
temporary global Security to be exchanged. The definitive Securities to be
delivered in exchange for any such temporary global Security shall be in
registered form or permanent global registered form, or any combination thereof,
as specified as contemplated by Section 301, and, if any combination thereof is
so specified as requested by the beneficial owner thereof.

         Unless otherwise specified in such temporary global Security, the
interest of a beneficial owner of Securities of a series in a temporary global
Security shall be exchanged for definitive Securities of the same series and of
like tenor following the Exchange Date when the account holder instructs DTC to
request such exchange on his behalf. Unless otherwise specified in such
temporary global Security, any such exchange shall be made free of charge to the
beneficial owners of such temporary global Security, except that a Person
receiving definitive Securities

                                      -33-
<PAGE>   34

must bear the cost of insurance, postage, transportation and the like unless
such Person takes delivery of such definitive Securities in person.

         Until exchanged in full as hereinabove provided, the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of the same series and of like
tenor authenticated and delivered hereunder, except that, unless otherwise
specified as contemplated by Section 301, interest payable on a temporary global
Security on an Interest Payment Date for Securities for such series occurring
prior to the applicable Exchange Date shall be payable to DTC on such Interest
Payment Date, for credit without further interest on or after such Interest
Payment Date to the respective accounts of Persons who are the beneficial owners
of such temporary global Security on such Interest Payment Date.

         SECTION 305.      REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE.
The Issuer shall cause to be kept at the Corporate Trust Office of the Trustee
or in any office or agency of the Issuer in a Place of Payment a register for
each series of Securities (the registers maintained in such office or in any
such office or agency of the Issuer in a Place of Payment being herein sometimes
referred to collectively as the "Security Register") in which, subject to such
reasonable regulations as it may prescribe, the Issuer shall provide for the
registration of Registered Securities and of transfers of Registered Securities.
The Security Register shall be in written form or any other form capable of
being converted into written form within a reasonable time. The Trustee, at its
Corporate Trust Office, is hereby appointed "Security Registrar" for the purpose
of registering Registered Securities and transfers of Registered Securities on
such Security Register as herein provided. The Issuer shall have the right to
remove and replace from time to time the Security Registrar for any series of
Securities; provided that no such removal or replacement shall be effective
until a successor Security Registrar with respect to such series of Securities
shall have been appointed by the Issuer and shall have accepted such appointment
by the Issuer. In the event that the Trustee shall cease to be Security
Registrar, it shall have the right to examine the Security Register at all
reasonable times.

         Subject to the provisions of this Section 305, upon surrender for
registration of transfer of any Registered Security of any series at any office
or agency of the Issuer in a Place of Payment for that series, the Issuer shall
execute, and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Registered Securities of
the same series, of any authorized denominations and of a like aggregate
principal amount, bearing a number not contemporaneously outstanding, and
containing identical terms and provisions. Whenever any such Registered
Securities are so surrendered for exchange, the Issuer shall execute, and the
Trustee shall authenticate and deliver, the Registered Securities which the
Holder making the exchange is entitled to receive.

         Unless otherwise specified with respect to any series of Securities as
contemplated by Section 301, Bearer Securities may not be issued in exchange for
Registered Securities. If (but only if) permitted by the applicable Board
Resolution and (subject to Section 303) set forth in the applicable Officers'
Certificate, or in any indenture supplemental hereto, delivered as contemplated
by Section 301, at the option of the Holder, Bearer Securities of any series may
be

                                      -34-
<PAGE>   35

exchanged for Registered Securities of the same series of any authorized
denominations and of a like aggregate principal amount and tenor, upon surrender
of the Bearer Securities to be exchanged at any such office or agency, with all
unmatured coupons and all matured coupons in default thereto appertaining. If
the Holder of a Bearer Security is unable to produce any such unmatured coupon
or coupons or matured coupon or coupons in default, any such permitted exchange
may be effected if the Bearer Securities are accompanied by payment in funds
acceptable to the Issuer in an amount equal to the face amount of such missing
coupon or coupons, or the surrender of such missing coupon or coupons may be
waived by the Issuer and the Trustee if there is furnished to them such security
or indemnity as they may require to save each of them and any Paying Agent
harmless. If thereafter the Holder of such Security shall surrender to any
Paying Agent any such missing coupon in respect of which such a payment shall
have been made, such Holder shall be entitled to receive the amount of such
payment; provided, however, that, except as otherwise provided in Section 1002,
interest represented by coupons shall be payable only upon presentation and
surrender of those coupons at an office or agency located outside the United
States. Notwithstanding the foregoing, in case a Bearer Security of any series
is surrendered at any such office or agency in a permitted exchange for a
Registered Security of the same series and like tenor after the close of
business at such office or agency on (i) any Regular Record Date and before the
opening of business at such office or agency on the relevant Interest Payment
Date, or (ii) any Special Record Date and before the opening of business at such
office or agency on the related proposed date for payment of Defaulted Interest,
such Bearer Security shall be surrendered without the coupon relating to such
Interest Payment Date or proposed date for payment, as the case may be, and
interest or Defaulted Interest, as the case may be, will not be payable on such
Interest Payment Date or proposed date for payment, as the case may be, in
respect of the Registered Security issued in exchange for such Bearer Security,
but will be payable only to the Holder of such coupon when due in accordance
with the provisions of this Indenture. Whenever any Securities are so
surrendered for exchange, the Issuer shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is
entitled to receive.

         If provided as contemplated by Section 301, at the option of the
Holder, Registered Securities of such series may be exchanged for Bearer
Securities upon such terms and conditions as may be provided in or pursuant to
this Indenture with respect to such series. Whenever any Securities are so
surrendered for exchange, the Issuer shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is
entitled to receive.

         Notwithstanding the foregoing, except as otherwise specified as
contemplated by Section 301, any permanent global Security shall be exchangeable
only as provided in this paragraph. If the depositary for any permanent global
Security is DTC, then unless the terms of such global Security expressly permit
such global Security to be exchanged in whole or in part for definitive
Securities, a global Security may be transferred, in whole but not in part, only
to a nominee of DTC, or by a nominee of DTC to DTC, or to a successor to DTC for
such global Security selected or approved by the Issuer or to a nominee of such
successor to DTC. If at any time DTC notifies the Issuer that it is unwilling or
unable to continue as depositary for the applicable global Security or
Securities or if at any time DTC ceases to be a clearing agency registered under
the Exchange Act if so required by applicable law or regulation, the Issuer
shall appoint a successor

                                      -35-
<PAGE>   36

depositary with respect to such global Security or Securities. If (x) a
successor depositary for such global Security or Securities is not appointed by
the Issuer within 90 days after the Issuer receives such notice or becomes aware
of such unwillingness, inability or ineligibility, (y) an Event of Default has
occurred and is continuing and the beneficial owners representing a majority in
principal amount of the applicable series of Securities represented by such
global Security or Securities advise DTC to cease acting as depositary for such
global Security or Securities or (z) the Issuer, in its sole discretion,
determines at any time that all Outstanding Securities (but not less than all)
of any series issued or issuable in the form of one or more global Securities
shall no longer be represented by such global Security or Securities, then the
Issuer shall execute, and the Trustee shall authenticate and deliver definitive
Securities of like series, rank, tenor and terms in definitive form in an
aggregate principal amount equal to the principal amount of such global Security
or Securities. If any beneficial owner of an interest in a permanent global
Security is otherwise entitled to exchange such interest for Securities of such
series and of like tenor and principal amount of another authorized form and
denomination, as specified as contemplated by Section 301 and provided that any
applicable notice provided in the permanent global Security shall have been
given, then without unnecessary delay but in any event not later than the
earliest day on which such interest may be so exchanged, the Issuer shall
execute, and the Trustee shall authenticate and deliver definitive Securities in
aggregate principal amount equal to the principal amount of such beneficial
owner's interest in such permanent global Security. On or after the earliest
date on which such interests may be so exchanged, such permanent global Security
shall be surrendered for exchange by DTC or such other depositary as shall be
specified in the Issuer Order with respect thereto to the Trustee, as the
Issuer's agent for such purpose; provided, however, that no such exchanges may
occur during a period beginning at the opening of business 15 days before any
selection of Securities to be redeemed and ending on the relevant Redemption
Date if the Security for which exchange is requested may be among those selected
for redemption; and provided further that no Bearer Security delivered in
exchange for a portion of a permanent global Security shall be mailed or
otherwise delivered to any location in the United States. If a Registered
Security is issued in exchange for any portion of a permanent global Security
after the close of business at the office or agency where such exchange occurs
on (i) any Regular Record Date and before the opening of business at such office
or agency on the relevant Interest Payment Date, or (ii) any Special Record Date
and the opening of business at such office or agency on the related proposed
date for payment of Defaulted Interest, interest or Defaulted Interest, as the
case may be, will not be payable on such Interest Payment Date or proposed date
for payment, as the case may be, in respect of such Registered Security, but
will be payable on such Interest Payment Date or proposed date for payment, as
the case may be, only to the Person to whom interest in respect of such portion
of such permanent global Security is payable in accordance with the provisions
of this Indenture.

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

         Every Registered Security presented or surrendered for registration of
transfer or for exchange or redemption shall (if so required by the Issuer or
the Security Registrar) be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Issuer

                                      -36-
<PAGE>   37

and the Security Registrar, duly executed by the Holder thereof or his attorney
duly authorized in writing.

         No service charge shall be made for any registration of transfer or
exchange of Securities, but the Issuer may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 304, 906, 1107 or 1305 not involving any transfer.

         Except as otherwise provided in or pursuant to this Indenture, the
Issuer or the Trustee, as applicable, shall not be required (i) to issue,
register the transfer of or exchange any Security if such Security may be among
those selected for redemption during a period beginning at the opening of
business 15 days before selection of the Securities to be redeemed under Section
1103 and ending at the close of business on (A) if such Securities are issuable
only as Registered Securities, the day of the mailing of the relevant notice of
redemption and (B) if such Securities are issuable as Bearer Securities, the day
of the first publication of the relevant notice of redemption or, if such
Securities are also issuable as Registered Securities and there is no
publication, the mailing of the relevant notice of redemption, or (ii) to
register the transfer of or exchange any Registered Security so selected for
redemption in whole or in part, except, in the case of any Registered Security
to be redeemed in part, the portion thereof not to be redeemed, or (iii) to
exchange any Bearer Security so selected for redemption except that such a
Bearer Security may be exchanged for a Registered Security of that series and
like tenor, provided that such Registered Security shall be simultaneously
surrendered for redemption, or (iv) to issue, register the transfer of or
exchange any Security which has been surrendered for repayment at the option of
the Holder, except the portion, if any, of such Security not to be so repaid.

         SECTION 306.      MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES. If
any mutilated Security or a Security with a mutilated coupon appertaining to it
is surrendered to the Trustee or the Issuer, together with, in proper cases,
such security or indemnity as may be required by the Issuer or the Trustee to
save each of them or any agent of either of them harmless, the Issuer shall
execute and the Trustee shall authenticate and deliver in exchange therefor a
new Security of the same series and principal amount, containing identical terms
and provisions and bearing a number not contemporaneously outstanding, with
coupons corresponding to the coupons, if any, appertaining to the surrendered
Security.

         If there shall be delivered to the Issuer and to the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any Security
or coupon, and (ii) such security or indemnity as may be required by them to
save each of them and any agent of either of them harmless, then, in the absence
of notice to the Issuer or the Trustee that such Security or coupon has been
acquired by a bona fide purchaser, the Issuer shall execute and upon its request
the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost
or stolen Security or in exchange for the Security to which a destroyed, lost or
stolen coupon appertains (with all appurtenant coupons not destroyed, lost or
stolen), a new Security of the same series and principal amount, containing
identical terms and provisions and bearing a number not contemporaneously
outstanding, with coupons corresponding to the coupons, if any, appertaining to
such destroyed, lost or stolen Security or to the Security to which such
destroyed, lost or stolen coupon appertains.

                                      -37-
<PAGE>   38

         Notwithstanding the provisions of the previous two paragraphs, in case
any such mutilated, destroyed, lost or stolen Security or coupon has become or
is about to become due and payable, the Issuer in its discretion may, instead of
issuing a new Security, with coupons corresponding to the coupons, if any,
appertaining to such destroyed, lost or stolen Security or to the Security to
which such destroyed, lost or stolen coupon appertains, pay such Security or
coupon; provided, however, that payment of principal of (and premium, if any),
and interest on and any Additional Amounts with respect to, Bearer Securities
shall, except as otherwise provided in Section 1002, be payable only at an
office or agency located outside the United States and, unless otherwise
specified as contemplated by Section 301, any interest in Bearer Securities
shall be payable only upon presentation and surrender of the coupons
appertaining thereto.

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

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

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

         SECTION 307.      PAYMENT OF INTEREST; INTEREST RIGHTS RESERVED. Except
as otherwise specified with respect to a series of Securities in accordance with
the provisions of Section 301, interest on and Additional Amounts with respect
to any Registered Security that is payable, and is punctually paid or duly
provided for, on any Interest Payment Date shall be paid to the Person in whose
name that Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest at the office or
agency of the Issuer maintained for such purpose pursuant to Section 1002;
provided, however, that each installment of interest on any Registered Security
may at the Issuer's option be paid by (i) mailing a check for such interest,
payable to or upon the written order of the Person entitled thereto pursuant to
Section 308, to the address of such Person as it appears on the Security
Register or (ii) transfer to an account maintained by the payee located inside
the United States.

         Unless otherwise provided as contemplated by Section 301 with respect
to the Securities of any series, payment of interest may be made, in the case of
a Bearer Security, by transfer to an account maintained by the payee with a bank
located outside the United States.

                                      -38-
<PAGE>   39

         Unless otherwise provided as contemplated by Section 301, every
permanent global Security will provide that interest, if any, payable on any
Interest Payment Date will be paid to DTC, Euroclear and/or CEDEL, as the case
may be, with respect to that portion of such permanent global Security held for
its account by Cede & Co. or the Common Depositary, as the case may be, for the
purpose of permitting such party to credit the interest received by it in
respect of such permanent global Security to the accounts of the beneficial
owners thereof.

         In case a Bearer Security of any series is surrendered in exchange for
a Registered Security of such series after the close of business (at an office
or agency in a Place of Payment for such series) on any Regular Record Date and
before the opening of business (at such office or agency) on the next succeeding
Interest Payment Date, such Bearer Security shall be surrendered without the
coupon relating to such Interest Payment Date and interest will not be payable
on such Interest Payment Date in respect of the Registered Security issued in
exchange for such Bearer Security, but will be payable only to the Holder of
such coupon when due in accordance with the provisions of this Indenture.

         Except as otherwise specified with respect to a series of Securities in
accordance with the provisions of Section 301, any interest on any Registered
Security of any series that is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called "Defaulted Interest")
shall forthwith cease to be payable to the registered Holder thereof on the
relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Issuer, at its election in each case, as
provided in clause (1) or (2) below:

                  (1)      The Issuer may elect to make payment of any Defaulted
         Interest to the Persons in whose names the Registered Securities of
         such series (or their respective Predecessor Securities) are registered
         at the close of business on a Special Record Date for the payment of
         such Defaulted Interest, which shall be fixed in the following manner.
         The Issuer shall notify the Trustee in writing of the amount of
         Defaulted Interest proposed to be paid on each Registered Security of
         such series and the date of the proposed payment (which shall not be
         less than 20 days after such notice is received by the Trustee), and at
         the same time the Issuer shall deposit with the Trustee an amount of
         money in the currency or currencies, currency unit or units or
         composite currency or currencies in which the Securities of such series
         are payable (except as otherwise specified pursuant to Section 301 for
         the Securities of such series) equal to the aggregate amount proposed
         to be paid in respect of such Defaulted Interest or shall make
         arrangements satisfactory to the Trustee for such deposit on or prior
         to the date of the proposed payment, such money when deposited to be
         held in trust for the benefit of the Persons entitled to such Defaulted
         Interest as provided in this clause. Thereupon the Trustee shall fix a
         Special Record Date for the payment of such Defaulted Interest which
         shall be not more than 15 days and not less than 10 days prior to the
         date of the proposed payment and not less than 10 days after the
         receipt by the Trustee of the notice of the proposed payment. The
         Trustee shall promptly notify the Issuer of such Special Record Date
         and, in the name and at the expense of the Issuer, shall cause notice
         of the proposed payment of such Defaulted Interest and the Special
         Record Date therefor to be mailed, first class postage prepaid, to each
         Holder of Registered Securities of such series at his

                                      -39-
<PAGE>   40

         address as it appears in the Security Register not less than 10 days
         prior to such Special Record Date. The Trustee may, in its discretion,
         in the name and at the expense of the Issuer, cause a similar notice to
         be published at least once in an Authorized Newspaper in each Place of
         Payment, but such publications shall not be a condition precedent to
         the establishment of such Special Record Date. Notice of the proposed
         payment of such Defaulted Interest and the Special Record Date
         therefore having been mailed as aforesaid, such Defaulted Interest
         shall be paid to the Persons in whose names the Registered Securities
         of such series (or their respective Predecessor Securities) are
         registered at the close of business on such Special Record Date and
         shall no longer be payable pursuant to the following clause (2). In
         case a Bearer Security of any series is surrendered at the office or
         agency in a Place of Payment for such series in exchange for a
         Registered Security of such series after the close of business at such
         office or agency on any Special Record Date and before the opening of
         business at such office or agency on the related proposed date for
         payment of Defaulted Interest, such Bearer Security shall be
         surrendered without the coupon relating to such proposed date of
         payment and Defaulted Interest will not be payable on such proposed
         date of payment in respect of the Registered Security issued in
         exchange for such Bearer Security, but will be payable only to the
         Holder of such coupon when due in accordance with the provisions of
         this Indenture.

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

         Subject to the foregoing provisions of this Section and Section 305,
each Security delivered under this Indenture upon registration of transfer of or
in exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.

         SECTION 308.      PERSONS DEEMED OWNERS. Prior to due presentment of a
Registered Security for registration of transfer, the Issuer, the Trustee and
any agent of the Issuer or the Trustee may treat the Person in whose name such
Registered Security is registered as the owner of such Security for the purpose
of receiving payment of principal of (and premium, if any), and (subject to
Sections 305 and 307) interest on and any Additional Amounts with respect to
such Registered Security and for all other purposes whatsoever, whether or not
such Registered Security be overdue, and neither the Issuer, the Trustee nor any
agent of the Issuer or the Trustee shall be affected by notice to the contrary.

         Title to any Bearer Security and any coupons appertaining thereto shall
pass by delivery. The Issuer, the Trustee and any agent of the Issuer or the
Trustee may treat the bearer of any Bearer Security and the bearer of any coupon
as the absolute owner of such Security or coupon for the purpose of receiving
any payment with respect to payment thereof or on account thereof and for all
other purposes whatsoever, whether or not any payment with respect to such
Security

                                      -40-
<PAGE>   41

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

         No Holder of any beneficial interest in any global Security held on its
behalf by a depositary shall have any rights under this Indenture with respect
to such global Security, and such depositary may be treated by the Issuer, the
Trustee, and any agent of the Issuer or the Trustee as the owner of such global
Security for all purposes whatsoever. None of the Issuer, the Trustee, any
Paying Agent or the Security Registrar will have any responsibility or liability
for any aspect of the records relating to or payments made on account of
beneficial ownership interests of a Security in global form or for maintaining,
supervising or reviewing any records relating to such beneficial ownership
interests.

         Notwithstanding the foregoing, with respect to any global Security,
nothing herein shall prevent the Issuer, the Trustee, or any agent of the Issuer
or the Trustee, from giving effect to any written certification, proxy or other
authorization furnished by any depository, as a Holder, with respect to such
global Security or impair, as between such depository and owners of beneficial
interests in such global Security, the operation of customary practices
governing the exercise of the rights of such depository (other its nominee) as
Holder of such global Security.

         SECTION 309.      CANCELLATION. All Securities and coupons surrendered
for payment, redemption, repayment at the option of the Holder, registration of
transfer or exchange or for credit against any sinking fund payment shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee,
and any such Securities and coupons and Securities and coupons surrendered
directly to the Trustee for any such purpose shall be promptly canceled by it;
provided, however, where the Place of Payment is located outside of the United
States, the Paying Agent at such Place of Payment may cancel the Securities
surrendered to it for such purposes prior to delivering the Securities to the
Trustee. The Issuer may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder which the Issuer may
have acquired in any manner whatsoever, and may deliver to the Trustee (or to
any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Issuer has not issued and sold, and
all Securities so delivered shall be promptly canceled by the Trustee. If the
Issuer shall so acquire any of the Securities, however, such acquisition shall
not operate as a redemption or satisfaction of the indebtedness represented by
such Securities unless and until the same are surrendered to the Trustee for
cancellation. No Securities shall be authenticated in lieu of or in exchange for
any Securities canceled as provided in this Section, except as expressly
permitted by this Indenture. Canceled Securities and coupons held by the Trustee
shall be destroyed by the Trustee and the Trustee shall deliver a certificate of
such destruction to the Issuer, unless by an Issuer Order the Issuer directs
their return to it.

         SECTION 310.      COMPUTATION OF INTEREST. Except as otherwise
specified as contemplated by Section 301 with respect to Securities of any
series, interest on the Securities shall be computed on the basis of a 360-day
year consisting of twelve 30-day months.

                                      -41-
<PAGE>   42

                                  ARTICLE FOUR

                           SATISFACTION AND DISCHARGE

         SECTION 401.      SATISFACTION AND DISCHARGE OF INDENTURE. This
Indenture shall upon Issuer Request cease to be of further effect with respect
to any series of Securities specified in such Issuer Request (except as to any
surviving rights of registration of transfer or exchange of Securities of such
series herein expressly provided for and any right to receive Additional
Amounts, as provided in Section 1012), and the Trustee, upon receipt of an
Issuer Order, and at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture as to such series
when

                  (1)      either

                           (A)      all Securities of such series theretofore
                  authenticated and delivered and all coupons, if any,
                  appertaining thereto (other than (i) appertaining to Bearer
                  Securities surrendered in exchange for Registered Securities
                  and maturing after such exchange, whose surrender is not
                  required or has been waived as provided in Section 305, (ii)
                  Securities and coupons of such series which have been
                  destroyed, lost or stolen and which have been replaced or paid
                  as provided in Section 306, (iii) coupons appertaining to
                  Securities called for redemption and maturing after the
                  relevant Redemption Date, whose surrender has been waived as
                  provided in Section 1106, and (iv) Securities and coupons of
                  such series for whose payment money has theretofore been
                  deposited in trust or segregated and held in trust by the
                  Issuer and thereafter repaid to the Issuer or discharged from
                  such Trust, as provided in Section 1003) have been delivered
                  to the Trustee for cancellation; or

                           (B)      all Securities of such series and, in the
                  case of (i) or (ii) below, any coupons appertaining thereto
                  not theretofore delivered to the Trustee for cancellation

                                    (i)     have become due and payable, or

                                    (ii)     will become due and payable at
                           their Stated Maturity within one year, or

                                    (iii)    if redeemable at the option of the
                           Issuer, are to be called for redemption within one
                           year under arrangements satisfactory to the Trustee
                           for the giving of notice of redemption by the Trustee
                           in the name, and at the expense, of the Issuer,

                  and the Issuer, in the case of (i), (ii) or (iii) above, has
                  irrevocably deposited or caused to be deposited with the
                  Trustee as trust funds in trust for such purpose an amount in
                  the currency or currencies, currency unit or units or
                  composite currency or currencies in which the Securities of
                  such series are payable, sufficient to pay and discharge the
                  entire indebtedness on such Securities and such coupons not

                                      -42-
<PAGE>   43

                  theretofore delivered to the Trustee for cancellation, for
                  principal (and premium, if any) and interest, and any
                  Additional Amounts with respect thereto, to the date of such
                  deposit (in the case of Securities which have become due and
                  payable) or to the Stated Maturity or Redemption Date, as the
                  case may be;

                  (2)      the Issuer has paid or caused to be paid all other
         sums payable hereunder by the Issuer; and

                  (3)      the Issuer has delivered to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that all conditions
         precedent herein provided for relating to the satisfaction and
         discharge of this Indenture as to such series have been complied with.

         Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Issuer to the Trustee and any predecessor trustee under
Section 606, the obligations of the Issuer to any Authenticating Agent under
Section 611 and, if money shall have been deposited with and held by the Trustee
pursuant to subclause (B) of clause (1) of this Section, the obligations of the
Trustee under Section 402 and the last paragraph of Section 1003 shall survive.

         SECTION 402.      APPLICATION OF TRUST FUNDS. Subject to the provisions
of the last paragraph of Section 1003, all money and Government Obligations
deposited with the Trustee pursuant to Section 401 or Article 14 shall be held
in trust and applied by it, in accordance with the provisions of the Securities,
the coupons and this Indenture, to the payment, either directly or through any
Paying Agent (including the Issuer acting as its own Paying Agent) as the
Trustee may determine, to the Persons entitled thereto, of the principal (and
premium, if any), and any interest and Additional Amounts for whose payment such
money has or Government Obligations have been deposited with or received by the
Trustee, but such money and Government Obligations need not be segregated from
other funds except to the extent required by law.

                                      -43-
<PAGE>   44

                                  ARTICLE FIVE

                                    REMEDIES

         SECTION 501.      EVENTS OF DEFAULT. "Event of Default," wherever used
herein with respect to any particular series of Securities, means any one of the
following events (whatever the reason for such Event of Default and whether or
not it shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body) unless such event is
specifically deleted or modified in or pursuant to the supplemental indenture,
Board Resolution or Officers' Certificate establishing the terms of such series
pursuant to this Indenture:

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

                  (2)      default in the payment of the principal of (or
         premium, if any, on) any Security of that series when it becomes due
         and payable at its Maturity; or

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

                  (4)      default in the performance, or breach, of any
         covenant or warranty of the Issuer in this Indenture with respect to
         any Security of that series (other than a covenant or warranty a
         default in the performance or the breach of which is elsewhere in this
         Section specifically dealt with), and continuance of such default or
         breach for a period of 60 days after there has been given, by
         registered or certified mail, to the Issuer by the Trustee or to the
         Issuer and the Trustee by the Holders of at least 25% in principal
         amount of the Outstanding Securities of that series a written notice
         specifying such default or breach and requiring it to be remedied and
         stating that such notice is a "Notice of Default" hereunder; or

                  (5)      a default under any evidence of Recourse Indebtedness
         of the Issuer, or under any mortgage, indenture or other instrument of
         the Issuer (including a default with respect to Securities of any
         series other than that series) under which there may be issued or by
         which there may be secured any Recourse Indebtedness of the Issuer (or
         by any Subsidiary, the repayment of which the Issuer has guaranteed or
         for which the Issuer is directly responsible or liable as obligor or
         guarantor), whether such indebtedness now exists or shall hereafter be
         created, which default shall constitute a failure to pay an aggregate
         principal amount exceeding $50,000,000 of such indebtedness when due
         and payable after the expiration of any applicable grace period with
         respect thereto and shall have resulted in such indebtedness in an
         aggregate principal amount exceeding $50,000,000 becoming or being
         declared due and payable prior to the date on which it would otherwise
         have become due and payable, without such indebtedness having been

                                      -44-
<PAGE>   45

         discharged, or such acceleration having been rescinded or annulled,
         within a period of 10 days after there shall have been given, by
         registered or certified mail, to the Issuer by the Trustee or to the
         Issuer and the Trustee by the Holders of at least 25% in principal
         amount of the Outstanding Securities of that series of a written notice
         specifying such default and requiring the Issuer to cause such
         indebtedness to be discharged or cause such acceleration to be
         rescinded or annulled and stating that such notice is a "Notice of
         Default" hereunder; or

                  (6)      the Issuer or any Significant Subsidiary pursuant to
         or within the meaning of any 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; or

                           (D)      makes a general assignment for the benefit
                  of its creditors; or

                  (7)      a court of competent jurisdiction enters an order or
         decree under any Bankruptcy Law that:

                           (A)      is for relief against the Issuer or any
                  Significant Subsidiary in an involuntary case,

                           (B)      appoints a Custodian of the Issuer or any
                  Significant Subsidiary or for all or substantially all of
                  either of its property, or

                           (C)      orders the liquidation of the Issuer or any
                  Significant Subsidiary, and the order or decree remains
                  unstayed and in effect for 90 days; or

                  (8)      any other Event of Default provided in or pursuant
         to this Indenture with respect to Securities of that series.

As used in this Section 501, the term "Bankruptcy Law" means title 11, U.S. Code
or any similar Federal or state law for the relief of debtors and the term
"Custodian" means any receiver, trustee, assignee, liquidator or other similar
official under any Bankruptcy Law.

         SECTION 502.      ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.
If an Event of Default with respect to Securities of any series at the time
Outstanding occurs and is continuing, then and in every such case the Trustee or
the Holders of not less than 25% in principal amount of the Outstanding
Securities of that series may declare the principal (or, if any Securities are
Original Issue Discount Securities or Indexed Securities, such portion of the
principal as may be specified in the terms thereof) of all the Securities of
that

                                      -45-
<PAGE>   46

series to be due and payable immediately, by a notice in writing to the Issuer
(and to the Trustee if given, or such lesser amount as may be provided for in
the Securities of such series, by the Holders), and upon any such declaration
such principal or such lesser amount shall become immediately due and payable.

         At any time after such a declaration of acceleration with respect to
Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Article provided, the Holders of not less than a majority in principal amount of
the Outstanding Securities of that series, by written notice to the Issuer and
the Trustee, may rescind and annul such declaration and its consequences if:

                  (1)      the Issuer has paid or deposited with the Trustee a

         sum sufficient to pay in the currency or currency unit or composite
         currency in which the Securities of such series are payable (except as
         otherwise specified pursuant to Section 301 for the Securities of such
         series):

                           (A)      all overdue installments of interest on and
                  any Additional Amounts payable in respect of all Outstanding
                  Securities of that series and any related coupons,

                           (B)      the principal of (and premium, if any, on)
                  any Outstanding Securities of that series which have become
                  due otherwise than by such declaration of acceleration and
                  interest thereon and any Additional Amounts with respect
                  thereto at the rate or rates borne by or provided for in such
                  Securities,

                           (C)      to the extent that payment of such interest
                  or Additional Amounts is lawful, interest upon overdue
                  installments of interest and any Additional Amounts at the
                  rate or rates borne by or provided for in such Securities, and

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

                  (2)      all Events of Default with respect to Securities of
         that series, other than the nonpayment of the principal of (or premium,
         if any) or interest on, and any Additional Amounts with respect to
         Securities of that series which have become due solely by such
         declaration of acceleration, have been cured or waived as provided in
         Section 513.

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

         SECTION 503.      COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT
BY TRUSTEE.  The Issuer covenants that if:

                  (1)      default is made in the payment of any installment of
         interest or Additional Amounts, if any, on any Security of any series
         and any related coupon when such interest

                                      -46-
<PAGE>   47

         or Additional Amount becomes due and payable and such default continues
         for a period of 30 days, or

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

then the Issuer will, upon demand of the Trustee, pay to the Trustee, for the
benefit of the Holders of such Securities of such series and coupons, the whole
amount then due and payable on such Securities and coupons for principal (and
premium, if any) and interest and Additional Amounts, with interest upon any
overdue principal (and premium, if any) and, to the extent that payment of such
interest shall be legally enforceable, upon any overdue installments of interest
or Additional Amounts, if any, at the rate or rates borne by or provided for in
such Securities, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

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

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

         SECTION 504.      TRUSTEE MAY FILE PROOFS OF CLAIM. In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Issuer or any other obligor upon the Securities or
the property of the Issuer or of such other obligor or their creditors, the
Trustee (irrespective of whether the principal of the Securities of any series
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Issuer for the payment of overdue principal, premium, if any, or interest or
Additional Amounts) shall be entitled and empowered, by intervention in such
proceeding or otherwise:

                           (i)      to file and prove a claim for the whole
                  amount, or such lesser amount as may be provided for in the
                  Securities of such series, of principal (and premium, if any)
                  and interest and Additional Amounts, if any, owing and unpaid
                  in respect of the Securities and any related coupons and to
                  file such other claims of the Trustee (including any claim for
                  the reasonable compensation, expenses,

                                      -47-
<PAGE>   48

                  disbursements and advances of the Trustee, its agents and
                  counsel) and of the Holders allowed in such judicial
                  proceeding, and

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator (or
other similar official) in any such judicial proceeding is hereby authorized by
each Holder of the Securities of such series and coupons 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 and any predecessor Trustee, their agents and counsel, and any other
amounts due the Trustee or any predecessor Trustee under Section 606.

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

         SECTION 505.      TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF
SECURITIES OR COUPONS. All rights of action and claims under this Indenture or
any of the Securities or coupons may be prosecuted and enforced by the Trustee
without the possession of any of the Securities or coupons or the production
thereof in any proceeding relating thereto, and any such proceeding instituted
by the Trustee shall be brought in its own name as trustee of an express trust,
and any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, be for the ratable benefit of the Holders of the
Securities and coupons in respect of which such judgment has been recovered.

         SECTION 506.      APPLICATION OF MONEY COLLECTED. Any money collected
by the Trustee pursuant to this Article shall be applied in the following order,
at the date or dates fixed by the Trustee and, in case of the distribution of
such money on account of principal (or premium, if any) or interest and any
Additional Amounts, upon presentation of the Securities or coupons, or both, as
the case may be, and the notation thereon of the payment if only partially paid
and upon surrender thereof if fully paid:

                  FIRST: To the payment of all amounts due the Trustee and any
         predecessor Trustee under Section 606;

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

                                      -48-
<PAGE>   49

                  THIRD: The balance, if any, to the Issuer.

         SECTION 507.      LIMITATION ON SUITS. No Holder of any Security of any
series or any related coupon shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of
a receiver or trustee, or for any other remedy hereunder, unless:

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

                  (2)      the Holders of not less than 25% in principal amount
         of the Outstanding Securities of that series shall have made written
         request to the Trustee to institute proceedings in respect of such
         Event of Default in its own name as Trustee hereunder;

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

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

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

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

         SECTION 508.      UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL,
PREMIUM, IF ANY, INTEREST AND ADDITIONAL AMOUNTS. Notwithstanding any other
provision in this Indenture, the Holder of any Security or coupon shall have the
right which is absolute and unconditional to receive payment of the principal of
(and premium, if any) and (subject to Sections 305 and 307) interest on, and any
Additional Amounts in respect of, such Security or payment of such coupon on the
respective Stated Maturity or Maturities specified in such Security or coupon
(or, in the case of redemption, on the Redemption Date or, in the case of
repayment on the Repayment Date) and to institute suit for the enforcement of
any such payment, and such rights shall not be impaired without the consent of
such Holder.

         SECTION 509.      RESTORATION OF RIGHTS AND REMEDIES. If the Trustee or
any Holder of a Security or coupon has instituted any proceeding to enforce any
right or

                                      -49-
<PAGE>   50

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

         SECTION 510.      RIGHTS AND REMEDIES CUMULATIVE. Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities or coupons in the last paragraph of Section 306, no
right or remedy herein conferred upon or reserved to the Trustee or to each
Holder of Securities or coupons is intended to be exclusive of any other right
or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

         SECTION 511.      DELAY OR OMISSION NOT WAIVER. No delay or omission of
the Trustee or of any Holder of any Security or coupon to exercise any right or
remedy accruing upon any Event of Default shall impair any such right or remedy
or constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article or by law to the Trustee or to any
Holder may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee or by such Holder of Securities or coupons, as the
case may be.

         SECTION 512.      CONTROL BY HOLDERS OF SECURITIES. The Holders of not
less than a majority in principal amount of the Outstanding Securities of any
series shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee or exercising any trust
or power conferred on the Trustee with respect to the Securities of such series
and any related coupons, provided that

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

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

                  (3)      the Trustee need not take any action which might
         involve it in personal liability or be unduly prejudicial to the
         Holders of Securities of such series not joining therein.

         SECTION 513.      WAIVER OF PAST DEFAULTS. The Holders of not less than
a majority in principal amount of the Outstanding Securities of any series may
on behalf of the Holders of all the Securities of such series and any related
coupons waive any past default hereunder with respect to such series and its
consequences, except a default

                                      -50-
<PAGE>   51

                  (1)      in the payment of the principal of (or premium, if
         any) or interest on or Additional Amounts payable in respect of any
         Security of such series or any related coupons, or

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

         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 Event of Default or impair any right consequent thereon.

         SECTION 514.      WAIVER OF USURY, STAY OR EXTENSION LAWS. The Issuer
covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any usury, stay or extension law wherever enacted, now
or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Issuer (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.

         SECTION 515.      UNDERTAKING FOR COSTS. All parties to this Indenture
agree, and each Holder of any Security by his acceptance thereof shall be deemed
to have agreed, that any court may in its discretion require, in any suit for
the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken or omitted by it as Trustee, the filing
by any party litigant in such suit of any undertaking to pay the costs of such
suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees, against any party litigant in such suit
having due regard to the merits and good faith of the claims or defenses made by
such party litigant; but the provisions of this Section shall not apply to any
suit instituted by the Trustee, to any suit instituted by any Holder, or group
of Holders, holding in the aggregate more than 25% in principal amount of the
Outstanding Securities, or to any suit instituted by any Holder for the
enforcement of the payment of the principal of (or premium, if any) or interest
or Additional Amounts, if any on any Security on or after the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on or
after the Redemption Date or, in the case of repayment, on or after the
Repayment Date).

                                      -51-
<PAGE>   52

                                   ARTICLE SIX

                                   THE TRUSTEE

         SECTION 601.      NOTICE OF DEFAULTS. Within 90 days after the
occurrence of any default hereunder with respect to the Securities of any
series, the Trustee shall transmit in the manner and to the extent provided in
TIA Section 313(c), notice of such default hereunder known to the Trustee,
unless such default shall have been cured or waived; provided, however, that,
except in the case of a default in the payment of the principal of (or premium,
if any) or interest on or any Additional Amounts with respect to any Security of
such series, or in the payment of any sinking fund installment with respect to
the Securities of such series, the Trustee shall be protected in withholding
such notice if and so long as Responsible Officers of the Trustee in good faith
determine that the withholding of such notice is in the best interests of the
Holders of the Securities and coupons of such series; and provided further that
in the case of any default or breach of the character specified in Section
501(4) with respect to the Securities and coupons of such series, no such notice
to Holders shall be given until at least 60 days after the occurrence thereof.
For the purpose of this Section, the term "default" means any event which is, or
after notice or lapse of time or both would become, an Event of Default with
respect to the Securities of such series.

         SECTION 602.      CERTAIN RIGHTS OF TRUSTEE. Subject to the provisions
of TIA Section 315(a) through 315(d):

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

                  (2)      any request or direction of the Issuer mentioned
         herein shall be sufficiently evidenced by an Issuer Request or Issuer
         Order (other than delivery of any Security, together with any coupons
         appertaining thereto, to the Trustee for authentication and delivery
         pursuant to Section 303 which shall be sufficiently evidenced as
         provided therein) and any resolution of the Board of Trustees may be
         sufficiently evidenced by a Board Resolution;

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

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

                                      -52-
<PAGE>   53

                  (5)      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 of Securities of any series
         or any related coupons pursuant to this Indenture, unless such Holders
         shall have offered to the Trustee security or indemnity reasonably
         satisfactory to the Trustee against the costs, expenses and liabilities
         which might be incurred by it in compliance with such request or
         direction;

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

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

                  (8)      subject to the provisions of Section 602 hereof and
         Sections 315(a) through 315(d) of the Trust Indenture Act, the Trustee
         shall not be charged with knowledge of any Event of Default described
         in Section 501(4), (5), (6) or (7) hereof unless a Responsible Officer
         of the Trustee shall have actual knowledge of such Event of Default.

         The Trustee shall not be required to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

         Except during the continuance of an Event of Default, the Trustee
undertakes to perform only such duties as are specifically set forth in this
Indenture, and no implied covenants or obligations shall be read into this
Indenture against the Trustee.

         SECTION 603.      NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF
SECURITIES. The recitals contained herein and in the Securities, except the
Trustee's certificate of authentication, and in any coupons shall be taken as
the statements of the Issuer, and neither the Trustee nor any Authenticating
Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Securities or coupons, except that the Trustee represents that it is duly
authorized to execute and deliver this Indenture, authenticate the Securities
and perform its obligations hereunder and that the statements made by it in a
Statement of Eligibility and Qualification on Form T-1 supplied to the Issuer
are true and correct, subject to the qualifications

                                      -53-
<PAGE>   54

set forth therein. Neither the Trustee nor any Authenticating Agent shall be
accountable for the use or application by the Issuer of Securities or the
proceeds thereof.

         SECTION 604.      MAY HOLD SECURITIES. The Trustee, any Paying Agent,
Security Registrar, Authenticating Agent or any other agent of the Trustee or
the Issuer, in its individual or any other capacity, may become the owner or
pledgee of Securities and coupons and, subject to TIA Sections 310(b) and 311 of
the TIA, may otherwise deal with the Issuer with the same rights it would have
if it were not Trustee, Paying Agent, Security Registrar, Authenticating Agent
or such other agent.

         SECTION 605.      MONEY HELD IN TRUST. Except as provided in Section
402 and Section 1003, money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee
shall be under no liability for interest on any money received by it hereunder
except as otherwise agreed with the Issuer.

         SECTION 606.      COMPENSATION AND REIMBURSEMENT. The Issuer agrees:

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

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

                  (3)      to indemnify each of the Trustee and any predecessor
         Trustee for, and to hold it harmless against, any loss, liability or
         expense incurred without negligence or bad faith on its own part,
         arising out of or in connection with the acceptance or administration
         of the trust or trusts hereunder, including the costs and expenses of
         defending itself against any claim or liability in connection with the
         exercise or performance of any its powers or duties hereunder.

         When the Trustee incurs expenses or renders services in connection with
an Event of Default specified in Section 501(6) or Section 501(7), the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Federal or state bankruptcy, insolvency or
other similar law.

         As security for the performance of the obligations of the Issuer under
this Section, the Trustee shall have a lien prior to the Securities upon all
property and funds held or collected by

                                      -54-
<PAGE>   55

the Trustee as such, except funds held in trust for the payment of principal of
(or premium, if any) or interest or any Additional Amounts on particular
Securities or any related coupons.

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

         SECTION 607.      CORPORATE TRUSTEE REQUIRED; ELIGIBILITY; CONFLICTING
INTERESTS. There shall at all times be a Trustee hereunder which shall be
eligible to act as Trustee under TIA Section 310(a)(1) and shall have a combined
capital and surplus of at least $50,000,000. If such corporation publishes
reports of condition at least annually, pursuant to law or the requirements of
Federal, state, territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article.

         SECTION 608.      RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.
(a) No resignation or removal of the Trustee and no appointment of a successor
Trustee pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable
requirements of Section 609.

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

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

         (d)      If at any time:

                  (1)      the Trustee shall fail to comply with the provisions
         of TIA Section 310(b) after written request therefor by the Issuer or
         by any Holder of a Security who has been a bona fide Holder of a
         Security for at least six months, or

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

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

                                      -55-
<PAGE>   56

then, in any such case, (i) the Issuer by or pursuant to a Board Resolution may
remove the Trustee and appoint a successor Trustee with respect to all
Securities, or (ii) subject to TIA Section 315(e), any Holder of a Security who
has been a bona fide Holder of a Security for at least six months may, on behalf
of himself and all others similar situated, petition any court of competent
jurisdiction for the removal of the Trustee with respect to all Securities of
such series and the appointment of a successor Trustee or Trustees.

         (e)      If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause with
respect to the Securities of one or more series, the Issuer, by or pursuant to a
Board Resolution, shall promptly appoint a successor Trustee or Trustees with
respect to the Securities of that or those series (it being understood that any
such successor Trustee may be appointed with respect to the Securities of one or
more or all of such series and that at any time there shall be only one Trustee
with respect to the Securities of any particular series) and shall comply with
the applicable requirements of Section 609. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee with respect to the Securities of any series shall be
appointed by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series delivered to the Issuer and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such appointment in accordance with the applicable requirements of Section
609, become the successor Trustee with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the Issuer. If
no successor Trustee with respect to the Securities of any series shall have
been so appointed by the Issuer or the Holders of Securities and accepted
appointment in the manner provided in Section 609, any Holder of a Security who
has been a bona fide Holder of a Security of such series for at least six months
may, on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the appointment of a successor Trustee with
respect to Securities of such series.

         (f)      The Issuer shall give notice of each resignation and each
removal of the Trustee with respect to the Securities of any series and each
appointment of a successor Trustee with respect to the Securities of any series
in the manner provided for notices to the Holders of Securities in Section 106.
Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

         SECTION 609.      ACCEPTANCE OF APPOINTMENT BY SUCCESSOR. (a) In case
of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee shall execute, acknowledge and deliver
to the Issuer and to the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act, deed
or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee; but, on request of the Issuer or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and
deliver an instrument transferring to such successor Trustee all the rights,
powers and trusts of the retiring Trustee, and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder, subject nevertheless to its claim, if any, provided for in
Section 606.

                                      -56-
<PAGE>   57

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

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

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

         SECTION 610.      MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO
BUSINESS. Any Corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any Corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided such Corporation shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of any of the parties hereto. In case any Securities or coupons shall have
been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such authentication and deliver the Securities or coupons so
authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities or coupons. In case any Securities or coupons
shall not have been authenticated by

                                      -57-
<PAGE>   58

such predecessor Trustee, any such successor Trustee may authenticate and
deliver such Securities or coupons, in either its own name or that of its
predecessor Trustee, with the full force and effect which this Indenture
provides for the certificate of authentication of the Trustee.

         SECTION 611.      APPOINTMENT OF AUTHENTICATING AGENT. At any time when
any of the Securities remain Outstanding, the Trustee may appoint an
Authenticating Agent or Agents with respect to one or more series of Securities
which shall be authorized to act on behalf of the Trustee to authenticate
Securities of such series or pursuant to Section 306 issued upon original issue,
exchange, registration of transfer or partial redemption or repayment thereof,
and Securities so authenticated shall be entitled to the benefits of this
Indenture and shall be valid and obligatory for all purposes as if authenticated
by the Trustee hereunder. Any such appointment shall be evidenced by an
instrument in writing signed by a Responsible Officer of the Trustee, a copy of
which instrument shall be promptly furnished to the Issuer. Wherever reference
is made in this Indenture to the authentication and delivery of Securities by
the Trustee or the Trustee's certification of authentication, such reference
shall be deemed to include authentication and delivery on behalf of the Trustee
by an Authenticating Agent and a certificate of authentication executed on
behalf of the Trustee by an Authenticating Agent.

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

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

         An Authenticating Agent for any series of Securities may at any time
resign by giving written notice of resignation to the Trustee for such series
and to the Issuer. The Trustee for any series of Securities may at any time
terminate the agency of an Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Issuer. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the provision
of this Section, the Trustee for such series may appoint a successor
Authenticating Agent which shall be

                                      -58-
<PAGE>   59

acceptable to the Issuer and shall give notice of such appointment to all
Holders of Securities of the series with respect to which such Authenticating
Agent will serve in the manner set forth in Section 106. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers and duties of its predecessor hereunder, with
like effect as if originally named as an Authenticating Agent herein. No
successor Authenticating Agent shall be appointed unless eligible under the
provision of this Section.

         The Issuer agrees to pay to each Authenticating Agent from time to time
reasonable compensation including reimbursement of its reasonable expenses for
its services under this Section.

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

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

                                             (TRUSTEE)
                                             as Trustee

                                             By:
                                                 -------------------------------
                                             as Authenticating Agent

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

         If all of the Securities of any series may not be originally issued at
one time, and if the Trustee does not have an office capable of authenticating
Securities upon original issuance located in a Place of Payment where the Issuer
wishes to have Securities of such series authenticated upon original issuance,
the Trustee, if so requested in writing (which writing need not be accompanied
by or contained in an Officers' Certificate by the Issuer), shall appoint in
accordance with this Section an Authenticating Agent having an office in a Place
of Payment designated by the Issuer with respect to such series of Securities.

                                      -59-
<PAGE>   60

                                  ARTICLE SEVEN

                 HOLDERS' LIST AND REPORTS BY TRUSTEE AND ISSUER

         SECTION 701.      DISCLOSURE OF NAMES AND ADDRESSES OF HOLDERS. Every
Holder of Securities or coupons, by receiving and holding the same, agrees with
the Issuer and the Trustee that neither the Issuer nor the Trustee nor an
Authenticating Agent nor any Paying Agent nor any Security Registrar shall be
held accountable by reason of the disclosure of any information as to the names
and addresses of the Holders of Securities in accordance with TIA Section
312(c), regardless of the source from which such information was derived, and
that the Trustee shall not be held accountable by reason of mailing any material
pursuant to a request made under TIA Section 312(b).

         SECTION 702.      REPORTS BY TRUSTEE.

                           (1)      Within 60 days after December 31 of each
                  year commencing with the first December 31 following the first
                  issuance of Securities pursuant to Section 301, if required by
                  Section 313(a) of the Trust Indenture Act, the Trustee shall
                  transmit, pursuant to Section 313(c) of the Trust Indenture
                  Act, a brief report dated as of such December 31 with respect
                  to any of the events specified in said Section 313(a) which
                  may have occurred since the later of the immediately preceding
                  December 31 and the date of this Indenture.

                           (2)      The Trustee shall transmit the reports
                  required by Section 313(a) of the Trust Indenture Act at the
                  times specified therein.

                           (3)      Reports pursuant to this Section shall be
                  transmitted in the manner and to the Persons required by
                  Sections 313(c) and 313(d) of the Trust Indenture Act.

         SECTION 703.      REPORTS BY ISSUER. The Issuer will, pursuant to TIA
Section 314(a):

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

                                      -60-
<PAGE>   61
                           (2)      file with the Trustee and the Commission, in
                  accordance with rules and regulations prescribed from time to
                  time by the Commission, such additional information, documents
                  and reports with respect to compliance by the Issuer with the
                  conditions and covenants of this Indenture as may be required
                  from time to time by such rules and regulations; and

                           (3)      transmit by mail to the Holders of
                  Securities, within 30 days after the filing thereof with the
                  Trustee, in the manner and to the extent provided in TIA
                  Section 313(c), such summaries of any information, documents
                  and reports required to be filed by the Issuer pursuant to
                  Section 1010 and paragraphs (1) and (2) of this Section as may
                  be required by rules and regulations prescribed from time to
                  time by the Commission.

         SECTION 704.      ISSUER TO FURNISH TRUSTEE NAMES AND ADDRESSES OF
HOLDERS. In accordance with TIA Section 312(a), the Issuer will furnish or cause
to be furnished to the Trustee:

         (a)      semi-annually, not later than 15 days after the Regular Record
Date for interest of each series of Securities, a list, in such form as the
Trustee may reasonably require, of the names and addresses of the Holders of
Registered Securities of such series as of such Regular Record Date, or if there
is no Regular Record Date for interest for such series of Securities,
semi-annually, upon such dates as are set forth in the Board Resolution or
indenture supplemental hereto authorizing such series, and

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

provided however, that, so long as the Trustee is the Security Registrar, no
such list shall be required to be furnished.

                                  ARTICLE EIGHT

                CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE

         SECTION 801.      CONSOLIDATIONS AND MERGERS OF ISSUER AND SALES,
LEASES AND CONVEYANCE PERMITTED SUBJECT TO CERTAIN CONDITIONS. The Issuer may
consolidate with, or sell, lease or convey all or substantially all of its
assets to, or merge with or into, any other Corporation, provided that (i) the
Issuer shall be the continuing Corporation, or the successor Corporation (if
other than the Issuer) formed by or resulting from any such consolidation or
merger or which shall have received the transfer of such assets shall expressly
assume the payment of the principal of (and premium, if any) and interest on all
the Securities, and the due and punctual performance and observance of all of
the covenants and conditions in this Indenture; and (ii) immediately after
giving effect to such transaction and treating any indebtedness which becomes an
obligation of the Issuer or any

                                      -61-
<PAGE>   62

Subsidiary as a result thereof as having been incurred by the Issuer or such
Subsidiary at the time of such transaction, no Event of Default, and no event
which, after notice or the lapse of time, or both, would become such an Event of
Default, shall have occurred and be continuing.

         SECTION 802.      RIGHTS AND DUTIES OF SUCCESSOR CORPORATION. In case
of any such consolidation, merger, sale, lease or conveyance and upon any such
assumption by the successor Corporation, such successor Corporation shall
succeed to and be substituted for the Issuer, with the same effect as if it had
been named herein as the party of the first part, and the predecessor
Corporation, except in the event of a lease, shall be relieved of any further
obligation under this Indenture and the Securities. Such successor Corporation
thereupon may cause to be signed, and may issue either in its own name or in the
name of the Issuer, any or all of the Securities issuable hereunder which
theretofore shall not have been signed by the Issuer and delivered to the
Trustee; and, upon the order of such successor Corporation, instead of the
Issuer, and subject to all the terms, conditions and limitations in this
Indenture prescribed, the Trustee shall authenticate and shall deliver any
Securities which previously shall have been signed and delivered by the officers
of the Issuer to the Trustee for authentication, and any Securities which such
successor Corporation thereafter shall cause to be signed and delivered to the
Trustee for that purpose. All the Securities so issued shall in all respects
have the same legal rank and benefit under this Indenture as the Securities
theretofore or thereafter issued in accordance with the terms of this Indenture
as though all of such Securities had been issued at the date of the execution
hereof.

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

         SECTION 803.      OFFICERS' CERTIFICATE AND OPINION OF COUNSEL. Any
consolidation, merger, sale, lease or conveyance permitted under Section 801 is
also subject to the condition that the Trustee receive an Officers' Certificate
and an Opinion of Counsel to the effect that any such consolidation, merger,
sale, lease or conveyance, and the assumption by any successor corporation,
complies with the provisions of this Article and that all conditions precedent
herein provided for relating to such transaction have been complied with.

                                  ARTICLE NINE

                             SUPPLEMENTAL INDENTURES

         SECTION 901.      SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS.
Without the consent of any Holders of Securities or coupons, the Issuer, when
authorized by or pursuant to a Board Resolution, and the Trustee, at any time
and from time to time, may enter into one or more indentures supplemental
hereto, in form satisfactory to the Trustee, for any of the following purposes:

                                      -62-
<PAGE>   63

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

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

                  (3)      to add any additional Events of Default for the
         benefit of the Holders of all or any series of Securities (and if such
         Events of Default are to be for the benefit of less than all series of
         Securities, stating that such Events of Default are expressly being
         included solely for the benefit of such series); provided, however,
         that in respect of any such additional Events of Default such
         supplemental indenture may provide for a particular period of grace
         after default (which period may be shorter or longer than that allowed
         in the case of other defaults) or may provide for an immediate
         enforcement upon such default or may limit the remedies available to
         the Trustee upon such default or may limit the right of the Holders of
         a majority in aggregate principal amount of that or those series of
         Securities to which such additional Events of Default apply to waive
         such default; or

                  (4)      to add to or change any of the provisions of this
         Indenture to provide that Bearer Securities may be registrable as to
         principal, to change or eliminate any restrictions on the payment of
         principal of or any premium or interest on or any Additional Amounts
         with respect to Bearer Securities, to permit Bearer Securities to be
         issued in exchange for Registered Securities, to permit Bearer
         Securities to be issued in exchange for Bearer Securities of other
         authorized denominations or to permit or facilitate the issuance of
         Securities in uncertificated form, provided that any such action shall
         not adversely affect the interests of the Holders of Securities of any
         series or any related coupons in any material respect; or

                  (5)      to change or eliminate any of the provisions of this
         Indenture, provided that any such change or elimination shall become
         effective only when there is no Security Outstanding of any series
         created prior to the execution of such supplemental indenture which is
         entitled to the benefit of such provision; or

                  (6)      to secure the Securities; or

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

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

                                      -63-
<PAGE>   64

         series and to add to or change any of the provisions of this Indenture
         as shall be necessary to provide for or facilitate the administration
         of the trusts hereunder by more than one Trustee; or

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

                  (10)     to supplement any of the provisions of this Indenture
         to such extent as shall be necessary to permit or facilitate the
         defeasance and discharge of any series of Securities pursuant to
         Sections 401, 1402 and 1403, provided that any such action shall not
         adversely affect the interests of the Holders of Securities of such
         series and any related coupons or any other series of Securities in any
         material respect.

         SECTION 902.      SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS. With
the consent of the Holders of not less than a majority in principal amount of
all Outstanding Securities affected by such supplemental indenture, by Act of
said Holders delivered to the Issuer and the Trustee, the Issuer, when
authorized by or pursuant to a Board Resolution, and the Trustee may enter into
an indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of modifying in any manner the rights of the Holders of
Securities and any related coupons under this Indenture; provided, however, that
no such supplemental indenture shall, without the consent of the Holder of each
Outstanding Security affected thereby:

                  (1)      change the Stated Maturity of the principal of (or
         premium, if any, on) or any installment of principal of or interest on
         or any Additional Amounts with respect to, any Security, or reduce the
         principal amount thereof or the rate or amount of interest thereon or
         any Additional Amounts payable in respect thereof, or any premium
         payable upon the redemption thereof, or change any obligation of the
         Issuer to pay Additional Amounts pursuant to Section 1012 (except as
         contemplated by Section 801(1) and permitted by Section 901(1), or
         reduce the amount of the principal of an Original Issue Discount
         Security that would be due and payable upon a declaration of
         acceleration of the Maturity thereof pursuant to Section 502 or the
         amount thereof provable in bankruptcy pursuant to Section 504, or
         adversely affect any right of repayment at the option of the Holder of
         any Security, or change any Place of Payment where, or the currency or
         currencies, currency unit or units or composite currency or currencies
         in which the principal of, any premium or interest on, or any
         Additional Amounts with respect to any Security is payable, or impair
         the right to institute suit for the enforcement of any such payment on
         or after the Stated Maturity thereof (or, in the case of redemption or
         repayment at the option of the Holder, on or after the Redemption Date
         or the Repayment Date, as the case may be), or

                                      -64-
<PAGE>   65

                  (2)      reduce the percentage in principal amount of the
         Outstanding Securities of any series, the consent of whose Holders is
         required for any such supplemental indenture, or the consent of whose
         Holders is required for any waiver with respect to such series (or
         compliance with certain provisions of this Indenture or certain
         defaults hereunder and their consequences) provided for in this
         Indenture, or reduce the requirements of Section 1504 for quorum or
         voting, or

                  (3)      modify any of the provisions of this Section, Section
         513 or Section 1013, except to increase the required percentage to
         effect such action or to provide that certain other provisions of this
         Indenture cannot be modified or waived without the consent of the
         Holder of each Outstanding Security affected thereby.

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

         A supplemental indenture which changes or eliminates any covenant or
other provision of this Indenture which has expressly been included solely for
the benefit of one or more particular series of Securities, or which modifies
the rights of the Holders of Securities of such series with respect to such
covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

         SECTION 903.      EXECUTION OF SUPPLEMENTAL INDENTURES. As a condition
to executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modification thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and
(subject to TIA Section 315) shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be
obligated to, enter into any such supplemental indenture which affects the
Trustee's own rights, duties or immunities under this Indenture or otherwise.

         SECTION 904.      EFFECT OF SUPPLEMENTAL INDENTURES. Upon the execution
of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a
part of this Indenture for all purposes; and every Holder of Securities
theretofore or thereafter authenticated and delivered hereunder and of any
coupon appertaining thereto shall be bound thereby.

         SECTION 905.      CONFORMITY WITH TRUST INDENTURE ACT. Every
supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

         SECTION 906.      REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES.
Securities of any series authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall, if required by
the Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental

                                      -65-
<PAGE>   66

indenture. If the Issuer shall so determine, new Securities of any series so
modified as to conform, in the opinion of the Trustee and the Issuer, to any
such supplemental indenture may be prepared and executed by the Issuer and
authenticated and delivered by the Trustee in exchange for Outstanding
Securities of such series.

         SECTION 907.      NOTICE OF SUPPLEMENTAL INDENTURES. Promptly after the
execution by the Issuer and the Trustee of any supplemental indenture pursuant
to the provisions of Section 902, the Issuer shall give notice thereof to the
Holders of each Outstanding Security affected, in the manner provided for in
Section 106, setting forth in general terms the substance of such supplemental
indenture.

                                   ARTICLE TEN

                                    COVENANTS

         SECTION 1001.     PAYMENT OF PRINCIPAL, PREMIUM, IF ANY, INTEREST AND
ADDITIONAL AMOUNTS. The Issuer covenants and agrees for the benefit of the
Holders of each series of Securities that it will duly and punctually pay the
principal of (and premium, if any) and interest on and any Additional Amounts
payable in respect of the Securities of that series in accordance with the terms
of such series of Securities, any coupons appertaining thereto and this
Indenture. Unless otherwise specified as contemplated by Section 301 with
respect to any series of Securities, any interest due on and any Additional
Amounts payable in respect of any Bearer Securities on or before Maturity, other
than Additional Amounts, if any, payable as provided in Section 1012 in respect
of principal of (or premium, if any, on) such a Security), shall be payable only
upon presentation and surrender of the several coupons for such interest
installments as are evidenced thereby as they severally mature. Unless otherwise
specified with respect to Securities of any series pursuant to Section 301, at
the option of the Issuer, all payments of principal may be paid by check to the
registered Holder of the Registered Security or other person entitled thereto
against surrender of such Security.

         SECTION 1002.     MAINTENANCE OF OFFICE OR AGENCY. If Securities of a
series are issuable only as Registered Securities, the Issuer shall maintain in
each Place of Payment for any series of Securities an office or agency where
Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Issuer in respect of the
Securities of that series and this Indenture may be served. If Securities of a
series are issuable as Bearer Securities, the Issuer will maintain: (A) in the
Borough of Manhattan, New York City, an office or agency where any Securities of
that series may be presented or surrendered for payment, where any Securities of
that series may be surrendered for registration of transfer, where Securities of
that series may be surrendered for exchange, where notices and demands to or
upon the Issuer in respect of the Securities of that series and this Indenture
may be served and where Bearer Securities of that series and related coupons may
be presented or surrendered for payment in the circumstances described in the
following paragraph (and not otherwise); (B) subject to any laws or regulations
applicable thereto, in a Place of Payment for that series which is located
outside the United States, an office or agency where Securities of that

                                      -66-
<PAGE>   67

series and related coupons may be presented and surrendered for payment
(including payment of any Additional Amounts payable on Securities of that
series pursuant to Section 1012), provided, however, that if the Securities of
that series are listed on the Luxembourg Stock Exchange or any other stock
exchange located outside the United States and such stock exchange shall so
require, the Issuer will maintain a Paying Agent for the Securities of that
series in Luxembourg or any other required city located outside the United
States, as the case may be, so long as the Securities of that series are listed
on such exchange and (C) subject to any laws or regulations applicable thereto,
in a Place of Payment for that series located outside the United States an
office or agency where any Registered Securities of that series may be
surrendered for registration of transfer, where Securities of that series may be
surrendered for exchange and where notices and demands to or upon the Issuer in
respect of the Securities of that series and this Indenture may be served. The
Issuer will give prompt written notice to the Trustee of the location, and any
change in the location, of each such office or agency. If at any time the Issuer
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee, except that Bearer Securities of that series and the related coupons
may be presented and surrendered for payment (including payment of any
Additional Amounts payable on Bearer Securities of that series pursuant to
Section 1012) at the offices specified in the Security in London, England, and
the Issuer hereby appoints the same as its agent to receive such respective
presentations, surrenders, notices and demands, and the Issuer hereby appoints
the Trustee its agent to receive all such presentations, surrenders, notices and
demands.

         Unless otherwise specified with respect to any Securities pursuant to
Section 301, no payment of principal, premium or interest on or Additional
Amounts in respect of Bearer Securities shall be made at any office or agency of
the Issuer in the United States or by check mailed to any address in the United
States or by transfer to an account maintained with a bank located in the United
States; provided, however, that, if amounts owing with respect to any Bearer
Securities of a series are payable in Dollars, payment of principal of and any
premium and interest on any Bearer Security (including any Additional Amounts
payable on Securities of such series pursuant to Section 1012) shall be made at
the office of the designated agent of the Issuer's Paying Agent in the Borough
of Manhattan, New York City, if (but only if) payment in Dollars of the full
amount of such principal, premium, interest or Additional Amounts, as the case
may be, at all offices or agencies outside the United States maintained for the
purpose by the Issuer in accordance with this Indenture, is illegal or
effectively precluded by exchange controls or other similar restrictions.

         The Issuer may from time to time designate one or more other offices or
agencies where the Securities of one or more series may be presented or
surrendered for any or all of such purposes, and may from time to time rescind
such designations; provided, however, that no such designations or rescission
shall in any manner relieve the Issuer of its obligation to maintain an office
or agency in accordance with the requirements set forth above for Securities of
any series for such purposes. The Issuer will give prompt written notice to the
Trustee of any such designation or rescission and of any change in the location
of any such other office or agency. Unless otherwise specified with respect to
any Securities pursuant to Section 301 with respect to a series of Securities,
the Issuer hereby designates as a Place of Payment for each series of Securities
the office or agency of the Issuer in the Borough of Manhattan, New York City,
and

                                      -67-
<PAGE>   68

initially appoints the Trustee at its Corporate Trust Office as Paying Agent
in such city and as its agent to receive all such presentations, surrenders,
notices and demands.

         Unless otherwise specified with respect to any Securities pursuant to
Section 301, if and so long as the Securities of any series (i) are denominated
in a Foreign Currency or (ii) may be payable in a Foreign Currency, or so long
as it is required under any other provision of the Indenture, then the Issuer
will maintain with respect to each such series of Securities, or as so required,
at least one exchange rate agent.

         SECTION 1003.     MONEY FOR SECURITIES PAYMENTS TO BE HELD IN TRUST. If
the Issuer shall at any time act as its own Paying Agent with respect to any
series of any Securities and any related coupons, it will, on or before each due
date of the principal of (and premium, if any), or interest on or Additional
Amounts in respect of, any of the Securities of that series, segregate and hold
in trust for the benefit of the Persons entitled thereto a sum in the currency
or currencies, currency unit or units or composite currency or currencies in
which the Securities of such series are payable (except as otherwise specified
pursuant to Section 301 for the Securities of such series) sufficient to pay the
principal (and premium, if any) or interest or Additional Amounts so becoming
due until such sums shall be paid to such Persons or otherwise disposed of as
herein provided, and will promptly notify the Trustee of its action or failure
so to act.

         Whenever the Issuer shall have one or more Paying Agents for any series
of Securities and any related coupons, it will, before each due date of the
principal of (and premium, if any), or interest on or Additional Amounts in
respect of, any Securities of that series, deposit with a Paying Agent a sum (in
the currency or currencies, currency unit or units or composite currency or
currencies described in the preceding paragraph) sufficient to pay the principal
(and premium, if any) or interest or Additional Amounts, so becoming due, such
sum to be held in trust for the benefit of the Persons entitled to such
principal, premium or interest or Additional Amounts and (unless such Paying
Agent is the Trustee) the Issuer will promptly notify the Trustee of its action
or failure so to act.

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

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

                  (2)      give the Trustee notice of any default by the Issuer
         (or any other obligor upon the Securities) in the making of any such
         payment of principal (and premium, if any) or interest or Additional
         Amounts; and

                                      -68-
<PAGE>   69

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

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

         Except as otherwise provided in the Securities of any series, any money
deposited with the Trustee or any Paying Agent, or then held by the Issuer, in
trust for the payment of the principal of (and premium, if any) or interest on,
or any Additional Amounts in respect of, any Security of any series or any
related coupon and remaining unclaimed for two years after such principal (and
premium, if any), interest or Additional Amounts have become due and payable
shall be paid to the Issuer upon Issuer Request or (if then held by the Issuer)
shall be discharged from such trust; and the Holder of such Security shall
thereafter, as an unsecured general creditor, look only to the Issuer for
payment of such principal of (and premium, if any) or interest on, or any
Additional Amounts in respect of, any Security, without interest thereon, and
all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Issuer 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 Issuer cause to
be published once, in an Authorized Newspaper, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than
30 days from the date of such publication, any unclaimed balance of such money
then remaining will be repaid to the Issuer.

         SECTION 1004.     [intentionally omitted]

         SECTION 1005.     [intentionally omitted]

         SECTION 1006.     EXISTENCE. Subject to Article Eight, the Issuer will
do or cause to be done all things necessary to preserve and keep in full force
and effect its existence, rights and franchises; provided, however, that the
Issuer shall not be required to preserve any right or franchise if the Board of
Directors shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the Issuer and that the loss thereof is not
disadvantageous in any material respect to the Holders.

         SECTION 1007.     MAINTENANCE OF PROPERTIES. The Issuer will cause all
of its material properties used or useful in the conduct of its business or the
business of any Subsidiary to be maintained and kept in good condition, repair
and working order and supplied with all necessary equipment and will cause to be
made all necessary repairs, renewals, replacements, betterments and improvements
thereof, all as in the judgment of the Issuer may be necessary so that the
business carried on in connection therewith may be properly and advantageously
conducted at all times; provided, however, that nothing in this Section shall

                                      -69-
<PAGE>   70

prevent the Issuer or any Subsidiary from selling or otherwise disposing of for
value any of their properties in the ordinary course of business.

         SECTION 1008.     INSURANCE. The Issuer will, and will cause each of
its Subsidiaries to, maintain insurance coverage on all of its insurable
property against loss or damage at least equal to their then full insurable
value by financially sound and reputable insurance companies.

         SECTION 1009.     PAYMENT OF TAXES AND OTHER CLAIMS. The Issuer will
pay or discharge or cause to be paid or discharged, before the same shall become
delinquent, (i) all taxes, assessments and governmental charges levied or
imposed upon it or any Subsidiary or upon the income, profits or property of the
Issuer or any Subsidiary, and (ii) all lawful claims for labor, materials and
supplies which, if unpaid, might by law become a lien upon the property of the
Issuer or any Subsidiary; provided, however, that the Issuer shall not be
required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim whose amount, applicability or validity is being
contested in good faith by appropriate proceedings.

         SECTION 1010.     PROVISION OF FINANCIAL INFORMATION. Whether or not
the Issuer is subject to Section 13 or 15(d) of the Exchange Act and for so long
as any Securities are outstanding, the Issuer will, to the extent permitted
under the Exchange Act, file with the Commission the annual reports, quarterly
reports and other documents which the Issuer would have been required to file
with the Commission pursuant to such Section 13 or 15(d) (the "Financial
Statements") if the Issuer were so subject, such documents to be filed with the
Commission on or prior to the respective dates (the "Required Filing Dates") by
which the Issuer would have been required so to file such documents if the
Issuer were so subject.

         The Issuer will also in any event (x) within 15 days of each Required
Filing Date (i) transmit by mail to all Holders, as their names and addresses
appear in the Security Register, without cost to such Holders, copies of the
annual reports and quarterly reports which the Issuer would have been required
to file with the Commission pursuant to Section 13 or 15(d) of the Exchange Act
if the Issuer were subject to such Sections, and (ii) file with the Trustee
copies of the annual reports, quarterly reports and other documents which the
Issuer would have been required to file with the Commission pursuant to Section
13 or 15(d) of the Exchange Act if the Issuer were subject to such Sections, and
(y) if filing such documents by the Issuer with the Commission is not permitted
under the Exchange Act, promptly upon written request and payment of the
reasonable cost of duplication and delivery, supply copies of such documents to
any prospective Holder.

                                      -70-
<PAGE>   71

         SECTION 1011.     STATEMENT AS TO COMPLIANCE. The Issuer shall deliver
to the Trustee, within 120 days after the end of each fiscal year, a written
statement (which need not be contained in or accompanied by an Officers'
Certificate) signed by the principal executive officer, the principal financial
officer or the principal accounting officer of the General Partner acting in its
capacity as the sole general partner of the Issuer, stating that:

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

                  (2)      to the best of his or her knowledge, based on such
         review, (a) the Issuer has complied with all the conditions and
         covenants imposed on it under this Indenture throughout such year, or,
         if there has been a default in the fulfillment of any such condition or
         covenant, specifying each such default known to him or her and the
         nature and status thereof, and (b) no event has occurred and is
         continuing which is, or after notice or lapse of time or both would
         become, an Event of Default, or, if such an event has occurred and is
         continuing, specifying each such event known to him and the nature and
         status thereof.

         SECTION 1012.     ADDITIONAL AMOUNTS. If any Securities of a series
provide for the payment of Additional Amounts, the Issuer will pay to the Holder
of any Security of such series or any coupon appertaining thereto Additional
Amounts as may be specified as contemplated by Section 301. Whenever in this
Indenture there is mentioned, in any context except in the case of Section
502(1), the payment of the principal of or any premium or interest on, or in
respect of, any Security of any series or payment of any related coupon or the
net proceeds received on the sale or exchange of any Security of any series,
such mention shall be deemed to include mention of the payment of Additional
Amounts provided by the terms of such series established pursuant to Section 301
to the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof pursuant to such terms and express mention of the
payment of Additional Amounts (if applicable) in any provisions hereof shall not
be construed as excluding Additional Amounts in those provisions hereof where
such express mention is not made.

         Except as otherwise specified as contemplated by Section 301, if the
Securities of a series provide for the payment of Additional Amounts, at least
10 days prior to the first Interest Payment Date with respect to that series of
Securities (or if the Securities of that series will not bear interest prior to
Maturity, the first day on which a payment of principal and any premium is
made), and at least 10 days prior to each date of payment of principal and any
premium or interest if there has been any change with respect to the matters set
forth in the below-mentioned Officers' Certificate, the Issuer shall furnish to
the Trustee and the Paying Agent, if other than the Trustee, an Officers'
Certificate instructing the Trustee and such Paying Agent or Paying Agents
whether such payment of principal of and any premium or interest on the
Securities of that series shall be made to Holders of Securities of that series
or any related coupons who are not United States persons without withholding for
or on account of any tax, assessment or other governmental charge described in
the Securities of the series. If any such withholding shall be required, then
such Officers' Certificate shall specify by country the amount, if any, required
to be withheld on such payments to such Holders of Securities of that series or
related coupons and

                                      -71-
<PAGE>   72

the Issuer will pay to the Trustee or such Paying Agent the Additional Amounts
required by the terms of such Securities. If the Trustee or any Paying Agent, as
the case may be, shall not so receive the above-mentioned certificate, then the
Trustee or such Paying Agent shall be entitled (i) to assume that no such
withholding or deduction is required with respect to any payment of principal or
interest with respect to any Securities of a series or related coupons until it
shall have received a certificate advising otherwise and (ii) to make all
payments of principal and interest with respect to the Securities of a series or
related coupons without withholding or deductions until otherwise advised. The
Issuer covenants to indemnify the Trustee and any Paying Agent for, and to hold
them harmless against, any loss, liability or expense reasonably incurred
without negligence or bad faith on their part arising out of or in connection
with actions taken or omitted by any of them or in reliance on any Officers'
Certificate furnished pursuant to this Section or in reliance on the Issuer's
not furnishing such an Officers' Certificate.

         SECTION 1013.     WAIVER OF CERTAIN COVENANTS. The Issuer may omit in
any particular instance to comply with any term, provision or condition set
forth in Sections 1004 to 1011, inclusive, if before or after the time for such
compliance the Holders of at least a majority in principal amount of all
Outstanding Securities of such series, by Act of such Holders, either waive such
compliance in such instance or generally waive compliance with such covenant or
condition, but no such waiver shall extend to or affect such covenant or
condition except to the extent so expressly waived, and, until such waiver shall
become effective, the obligations of the Issuer and the duties of the Trustee in
respect of any such term, provision or condition shall remain in full force and
effect.

                                 ARTICLE ELEVEN

                            REDEMPTION OF SECURITIES

         SECTION 1101.     APPLICABILITY OF ARTICLE. Securities of any series
which are redeemable before their Stated Maturity shall be redeemable in
accordance with their terms and (except as otherwise specified as contemplated
by Section 301 for Securities of any series) in accordance with this Article.

         SECTION 1102.     ELECTION TO REDEEM; NOTICE TO TRUSTEE. The election
of the Issuer to redeem any Securities shall be evidenced by or pursuant to a
Board Resolution. In case of any redemption at the election of the Issuer of
less than all of the Securities of any series, the Issuer shall, at least 45
days prior to the giving of the notice of redemption in Section 1104 (unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee of such
Redemption Date and of the principal amount of Securities of such series to be
redeemed. In the case of any redemption of Securities prior to the expiration of
any restriction on such redemption provided in the terms of such Securities or
elsewhere in this Indenture, the Issuer shall furnish the Trustee with an
Officers' Certificate evidencing compliance with such restriction.

         SECTION 1103.     SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED. If
less than all the Securities of any series issued on the same day with the same
terms are to be redeemed, the particular Securities to be redeemed shall be
selected not more

                                      -72-
<PAGE>   73

than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series issued on such date with the same terms not previously
called for redemption, by such method as the Trustee shall deem fair and
appropriate and which may provide for the selection for redemption of portions
(equal to the minimum authorized denomination for Securities of that series or
any integral multiple thereof) of the principal amount of Securities of such
series of a denomination larger than the minimum authorized denomination for
Securities of that series.

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

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

         SECTION 1104.     NOTICE OF REDEMPTION. Notice of redemption shall be
given in the manner provided in Section 106, not less than 30 days nor more than
60 days prior to the Redemption Date, unless a shorter period is specified by
the terms of such series established pursuant to Section 301, to each Holder of
Securities to be redeemed. Failure to give such notice in the manner herein
provided to the Holder of any Security designated for redemption as a whole or
in part, or any defect in the notice to any such Holder, shall not affect the
validity of the proceedings for the redemption of any other such Security or
portion thereof.

         Any notice that is mailed to the Holders of Registered Securities in
the manner herein provided shall be conclusively presumed to have been duly
given, whether or not the Holder receives the notice.

         All notices of redemption shall state:

                  (1)      the Redemption Date;

                  (2)      the Redemption Price, accrued interest to the
         Redemption Date payable as provided in Section 1106, if any, and
         Additional Amounts, if any,

                  (3)      if less than all Outstanding Securities of any series
         are to be redeemed, the identification (and, in the case of partial
         redemption, the principal amount) of the particular Security or
         Securities to be redeemed,

                  (4)      in case any Security is to be redeemed in part only,
         the notice which relates to such Security shall state that on and after
         the Redemption Date, upon surrender of such Security, the holder will
         receive, without a charge, a new Security or Securities of authorized
         denominations for the principal amount thereof remaining unredeemed,

                                      -73-
<PAGE>   74

                  (5)      that on the Redemption Date the Redemption Price and
         accrued interest to the Redemption Date payable as provided in Section
         1106, if any, will become due and payable upon each such Security, or
         the portion thereof, to be redeemed and, if applicable, that interest
         thereon shall cease to accrue on and after said date,

                  (6)      the Place or Places of Payment where such Securities,
         together in the case of Bearer Securities with all coupons appertaining
         thereto, if any, maturing after the Redemption Date, are to be
         surrendered for payment of the Redemption Price and accrued interest,
         if any,

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

                  (8)      that, unless otherwise specified in such notice,
         Bearer Securities of any series, if any, surrendered for redemption
         must be accompanied by all coupons maturing subsequent to the date
         fixed for redemption or the amount of any such missing coupon or
         coupons will be deducted from the Redemption Price, unless security or
         indemnity satisfactory to the Issuer, the Trustee for such series and
         any Paying Agent is furnished,

                  (9)      if Bearer Securities of any series are to be redeemed
         and any Registered Securities of such series are not to be redeemed,
         and if such Bearer Securities may be exchanged for Registered
         Securities not subject to redemption on this Redemption Date pursuant
         to Section 305 or otherwise, the last date, as determined by the
         Issuer, on which such exchanges may be made,

                  (10)     the CUSIP number or the Euroclear or CEDEL reference
         numbers of such Security, if any, and

                  (11)     if applicable, that a Holder of Securities who
         desires to convert Securities for redemption must satisfy the
         requirements for conversion contained in such Securities, the then
         existing conversion price or rate, and the date and time when the
         option to convert shall expire.

         A notice of redemption published as contemplated by Section 106 need
not identify particular Registered Securities to be redeemed.

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

         SECTION 1105.     DEPOSIT OF REDEMPTION PRICE. At least one Business
Day prior to any Redemption Date, the Issuer shall deposit with the Trustee or
with a Paying Agent (or, if the Issuer is acting as its own Paying Agent, which
it may not do in the case of a sinking fund payment under Article Twelve,
segregate and hold in trust as provided in Section 1003) an amount of money in
the currency or currencies, currency unit or units or composite currency or
currencies in which the Securities of such series are payable (except as
otherwise specified pursuant to Section 301 for the Securities of such series)
sufficient to pay on the Redemption Date the Redemption Price of, and (except if
the Redemption Date shall be an Interest Payment

                                      -74-
<PAGE>   75

Date) accrued interest on and Additional Amounts with respect thereto, all the
Securities or portions thereof which are to be redeemed on that date.

         SECTION 1106.     SECURITIES PAYABLE ON REDEMPTION DATE. Notice of
redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified in the currency or currencies, currency unit or units or
composite currency or currencies in which the Securities of such series are
payable (except as otherwise specified pursuant to Section 301 for the
Securities of such series) (together with accrued interest, if any, to the
Redemption Date), and from and after such date (unless the Issuer shall default
in the payment of the Redemption Price and accrued interest) such Securities
shall, if the same were interest-bearing, cease to bear interest and the coupons
for such interest appertaining to any Bearer Securities so to be redeemed,
except to the extent provided below, shall be void. Upon surrender of any such
Security for redemption in accordance with said notice, together with all
coupons, if any, appertaining thereto maturing after the Redemption Date, such
Security shall be paid by the Issuer at the Redemption Price, together with
accrued interest and Additional Amounts, if any, to the Redemption Date;
provided, however, that installments of interest on Bearer Securities whose
Stated Maturity is on or prior to the Redemption Date shall be payable only at
an office or agency located outside the United States (except as otherwise
provided in Section 1002) and, unless otherwise specified as contemplated by
Section 301, only upon presentation and surrender of coupons for such interest;
and provided further that, except as otherwise provided, installments of
interest on Registered Securities whose Stated Maturity is on or prior to the
Redemption Date shall be payable to the Holders of such Securities, or one or
more Predecessor Securities, registered as such at the close of business on the
relevant Record Dates according to their terms and the provisions of Section
307.

         If any Bearer Security surrendered for redemption shall not be
accompanied by all appurtenant coupons maturing after the Redemption Date, such
Security may be paid after deducting from the Redemption Price an amount equal
to the face amount of all such missing coupons, or the surrender of such missing
coupon or coupons may be waived by the Issuer and the Trustee if there be
furnished to them such security or indemnity as they may require to save each of
them and any Paying Agent harmless. If thereafter the Holder of such Security
shall surrender to the Trustee or any Paying Agent any such missing coupon in
respect of which a deduction shall have been made from the Redemption Price,
such Holder shall be entitled to receive the amount so deducted; provided,
however, that interest represented by coupons shall be payable only upon
presentation and surrender of those coupons at an office or agency located
outside the United States (except as otherwise provided in Section 1002).

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

         SECTION 1107.     SECURITIES REDEEMED IN PART. Any Registered Security
which is to be redeemed only in part (pursuant to the provisions of this
Article) shall be surrendered at a Place of Payment therefor (with, if the
Issuer or the Trustee so requires, due endorsement by, or a written instrument
of transfer in form satisfactory to the Issuer and the

                                      -75-
<PAGE>   76

Trustee duly executed by, the Holder thereof or his attorney duly authorized in
writing) and the Issuer shall execute and the Trustee shall authenticate and
deliver to the Holder of such Security without service charge a new Registered
Security or Securities of the same series, of any authorized denomination as
requested by such Holder in aggregate principal amount equal to and in exchange
for the unredeemed portion of the principal of the Security so surrendered. If a
Security in global form is so surrendered, the Issuer shall execute, and the
Trustee shall authenticate and deliver to the depositary for such Security in
global form as shall be specified in the Issuer Order with respect thereto to
the Trustee, without service charge, a new Security in global form in a
denomination equal to and in exchange for the unredeemed portion of the
principal of the Security in global form so surrendered.

                                 ARTICLE TWELVE

                                  SINKING FUNDS

         SECTION 1201.     APPLICABILITY OF ARTICLE. The provisions of this
Article shall be applicable to any sinking fund for the retirement of Securities
of a series except as otherwise specified as contemplated by Section 301 for
Securities of such series.

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

         SECTION 1202.     SATISFACTION OF SINKING FUND PAYMENT WITH SECURITIES.
The Issuer may, in satisfaction of all or any part of any mandatory sinking fund
payment with respect to the Securities of a series, (1) deliver Outstanding
Securities of such series (other than any Securities previously called for
redemption) together in the case of any Bearer Securities of such series with
all unmatured coupons appertaining thereto and (2) apply as a credit Securities
of such series which have been redeemed either at the election of the Issuer
pursuant to the terms of such Securities or through the application of permitted
optional sinking fund payments pursuant to the terms of such Securities, or
which have otherwise been acquired by the Issuer; provided that such Securities
so delivered or applied as a credit have not been previously so credited. Such
Securities shall be received and credited for such purpose by the Trustee at the
applicable Redemption Price specified in such Securities for redemption through
operation of the sinking fund and the amount of such mandatory sinking fund
payment shall be reduced accordingly.

         SECTION 1203.     REDEMPTION OF SECURITIES FOR SINKING FUND. Not less
than 60 days prior to each sinking fund payment date for Securities of any
series, the Issuer will deliver to the Trustee an Officers' Certificate
specifying the amount of the next ensuing

                                      -76-
<PAGE>   77

mandatory sinking fund payment for that series pursuant to the terms of that
series, the portion thereof, if any, which is to be satisfied by payment of cash
in the currency or currencies, currency unit or units or composite currency or
currencies in which the Securities of such series are payable (except as
otherwise specified pursuant to Section 301 for the Securities of such series)
and the portion thereof, if any, which is to be satisfied by delivering and
crediting Securities of that series pursuant to Section 1202, and the optional
amount, if any, to be added in cash to the next ensuing mandatory sinking fund
payment, and will also deliver to the Trustee any Securities to be so delivered
and credited. If such Officers' Certificate shall specify an optional amount to
be added in cash to the next ensuing mandatory sinking fund payment, the Issuer
shall thereupon be obligated to pay the amount therein specified. Not less than
30 days before each such sinking fund payment date the Trustee shall select the
Securities to be redeemed upon such sinking fund payment date in the manner
specified in Section 1103 and cause notice of the redemption thereof to be given
in the name of and at the expense of the Issuer in the manner provided in
Section 1104. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Sections
1106 and 1107.

                                ARTICLE THIRTEEN

                       REPAYMENT AT THE OPTION OF HOLDERS

         SECTION 1301.     APPLICABILITY OF ARTICLE. Repayment of Securities of
any series before their Stated Maturity at the option of Holders thereof shall
be made in accordance with the terms of such Securities, if any, and (except as
otherwise specified by the terms of such series established pursuant to Section
301) in accordance with this Article.

         SECTION 1302.     REPAYMENT OF SECURITIES. Securities of any series
subject to repayment in whole or in part at the option of the Holders thereof
will, unless otherwise provided in the terms of such Securities, be repaid at a
price equal to the principal amount thereof, together with interest, if any,
thereon accrued to the Repayment Date specified in or pursuant to terms of such
Securities. The Issuer covenants that at least one Business Day prior to the
Repayment Date it will deposit with the Trustee or with a Paying Agent (or, if
the Issuer is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 1003) an amount of money in currency or currencies, currency
unit or units or composite currency or currencies in which the Securities of
such series are payable (except as otherwise specified pursuant to Section 301
for the Securities of such series) sufficient to pay the principal (or, if so
provided by the terms of the Securities of any series, a percentage of the
principal) of, and (except if the Repayment Date shall be an Interest Payment
Date) accrued interest on, all the Securities or portions thereof, as the case
may be, to be repaid on such date.

         SECTION 1303.     EXERCISE OF OPTION. Securities of any series subject
to repayment at the option of the Holders thereof will contain an "Option to
Elect Repayment" form on the reverse of such Securities. In order for any
Security to be repaid at the option of the Holder, the Trustee must receive at
the Place of Payment therefor specified in the terms of such Security (or at
such other place or places of which the Issuer shall from time to time notify
the

                                      -77-
<PAGE>   78

Holders of such Securities) not earlier than 60 days nor later than 30 days
prior to the Repayment Date (1) the Security so providing for such repayment
together with the "Option to Elect Repayment" form on the reverse thereof duly
completed by the Holder (or by the Holder's attorney duly authorized in writing)
or (2) a telegram, telex, facsimile transmission or a letter from a member of a
national securities exchange, or the National Association of Securities Dealers,
Inc., or a commercial bank or trust company in the United States setting forth
the name of the Holder of the Security, the principal amount of the Security,
the principal amount of the Security to be repaid, the CUSIP number, if any, or
a description of the tenor and terms of the Security, a statement that the
option to elect repayment is being exercised thereby and a guarantee that the
Security to be repaid, together with the duly completed form entitled "Option to
Elect Repayment" on the reverse of the Security, will be received by the Trustee
not later than the fifth Business Day after the date of such telegram, telex,
facsimile transmission or letter; provided, however, that such telegram, telex,
facsimile transmission or letter shall only be effective if such Security and
form duly completed are received by the Trustee by such fifth Business Day. If
less than the entire principal amount of such Security is to be repaid in
accordance with the terms of such Security, the principal amount of such
Security to be repaid, in increments of the minimum denominations for Securities
of such series, and the denomination or denominations of the Security or
Securities to be issued to the Holder for the portion of the principal amount of
such Security surrendered that is not to be repaid, must be specified. The
principal amount of any Security providing for repayment at the option of the
Holder thereof may not be repaid in part if, following such repayment, the
unpaid principal amount of such Security would be less than the minimum
authorized denomination of Securities of the series of which such Security to be
repaid is a part. Except as otherwise may be provided by the terms of any
Security providing for repayment at the option of the Holder thereof, exercise
of the repayment option by the Holder shall be irrevocable unless waived by the
Issuer.

         SECTION 1304.     WHEN SECURITIES PRESENTED FOR REPAYMENT BECOME DUE
AND PAYABLE. If Securities of any series providing for repayment at the option
of the Holders thereof shall have been surrendered as provided in this Article
and as provided by or pursuant to the terms of such Securities, such Securities
or the portions thereof, as the case may be, to be repaid shall become due and
payable and shall be paid by the Issuer on the Repayment Date therein specified,
and on and after such Repayment Date (unless the Issuer shall default in the
payment of such Securities on such Repayment Date) such Securities shall, if the
same were interest-bearing, cease to bear interest and the coupons for such
interest appertaining to any Bearer Securities so to be repaid, except to the
extent provided below, shall be void. Upon surrender of any such Security for
repayment in accordance with such provisions, together with all coupons, if any,
appertaining thereto maturing after the Repayment Date, the principal amount of
such Security so to be repaid shall be paid by the Issuer, together with accrued
interest, if any, to the Repayment Date; provided, however, that coupons whose
Stated Maturity is on or prior to the Repayment Date shall be payable only at an
office or agency located outside the United States (except as otherwise provided
in Section 1002) and, unless otherwise specified pursuant to Section 301, only
upon presentation and surrender of such coupons; and provided further that, in
the case of Registered Securities, installments of interest, if any, whose
Stated Maturity is on or prior to the Repayment Date shall be payable (but
without interest thereon, unless the Issuer shall default in the payment
thereof) to the Holders of such Securities, or one or

                                      -78-
<PAGE>   79

more Predecessor Securities, registered as such at the close of business on the
relevant Record Dates according to their terms and the provisions of Section
307.

         If any Bearer Security surrendered for repayment shall not be
accompanied by all appurtenant coupons maturing after the Repayment Date, such
Security may be paid after deducting from the amount payable therefor as
provided in Section 1302 an amount equal to the face amount of all such missing
coupons, or the surrender of such missing coupon or coupons may be waived by the
Issuer and the Trustee if there be furnished to them such security or indemnity
as they may require to save each of them and any Paying Agent harmless. If
thereafter the Holder of such Security shall surrender to the Trustee or any
Paying Agent any such missing coupon in respect of which a deduction shall have
been made as provided in the preceding sentence, such Holder shall be entitled
to receive the amount so deducted; provided, however, that interest represented
by coupons shall be payable only at an office or agency located outside the
United States (except as otherwise provided in Section 1002) and, unless
otherwise specified as contemplated by Section 301, only upon presentation and
surrender of those coupons.

         If the principal amount of any Security surrendered for repayment shall
not be so repaid upon surrender thereof, such principal amount (together with
interest, if any, thereon, accrued to such Repayment Date) shall, until paid,
bear interest from the Repayment Date at the rate of interest or Yield to
Maturity (in the case of Original Issue Discount Securities) set forth in such
Security.

         SECTION 1305.     SECURITIES REPAID IN PART. Upon surrender of any
Registered Security which is to be repaid in part only, the Issuer shall execute
and the Trustee shall authenticate and deliver to the Holder of such Security,
without service charge and at the expense of the Issuer, a new Registered
Security or Securities of the same series, of any authorized denomination
specified by the Holder, in an aggregate principal amount equal to and in
exchange for the portion of the principal of such Security so surrendered which
is not to be repaid.

                                ARTICLE FOURTEEN

                       DEFEASANCE AND COVENANT DEFEASANCE

         SECTION 1401.     APPLICABILITY OF ARTICLE; ISSUER'S OPTION TO EFFECT
DEFEASANCE OR COVENANT DEFEASANCE. If, pursuant to Section 301, provision is
made for either or both of (a) defeasance of the Securities of or within a
series under Section 1402 or (b) covenant defeasance of the Securities of or
within a series under Section 1403, then the provisions of such Section or
Sections, as the case may be, together with the other provisions of this Article
(with such modifications thereto as may be specified pursuant to Section 301
with respect to any Securities), shall be applicable to such Securities and any
coupons appertaining thereto, and the Issuer may at its option by Board
Resolution, at any time, with respect to such Securities and any coupons
appertaining thereto, elect to have Section 1402

                                      -79-
<PAGE>   80

(if applicable) or Section 1403 (if applicable) be applied to such Outstanding
Securities and any coupons appertaining thereto upon compliance with the
conditions set forth below in this Article.

         SECTION 1402.     DEFEASANCE AND DISCHARGE. Upon the Issuer's exercise
of the above option applicable to this Section with respect to any Securities of
or within a series, the Issuer shall be deemed to have been discharged from its
obligations with respect to such Outstanding Securities and any coupons
appertaining thereto on the date the conditions set forth in Section 1404 are
satisfied (hereinafter, "defeasance"). For this purpose, such defeasance means
that the Issuer shall be deemed to have paid and discharged the entire
indebtedness represented by such Outstanding Securities and any coupons
appertaining thereto, which shall thereafter be deemed to be "Outstanding" only
for the purposes of Section 1405 and the other Sections of this Indenture
referred to in clauses (A) and (B) below, and to have satisfied all of its other
obligations under such Securities and any coupons appertaining thereto and this
Indenture insofar as such Securities and any coupons appertaining thereto are
concerned (and the Trustee, at the expense of the Issuer, shall execute proper
instruments acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged hereunder: (A) the rights of
Holders of such Outstanding Securities and any coupons appertaining thereto
receive, solely from the trust fund described in Section 1404 and as more fully
set forth in such Section, payments in respect of the principal of (and premium,
if any) and interest and Additional Amounts, if any, on such Securities and any
coupons appertaining thereto when such payments are due and any right of such
Holder to exchange such Securities for other Securities, (B) the Issuer's
obligations with respect to such Securities under Sections 305, 306, 1002 and
1003 and with respect to the payment of Additional Amounts, if any, on such
Securities as contemplated by Section 1012 (but only to the extent that the
Additional Amounts payable with respect to such Securities exceed the amount
deposited in respect of such Additional Amounts pursuant to Section 1404 below),
(C) the rights, powers, trusts, duties and immunities of the Trustee hereunder
and (D) this Article. Subject to compliance with this Article Fourteen, the
Issuer may exercise its option under this Section notwithstanding the prior
exercise of its option under Section 1403 with respect to such Securities and
any coupons appertaining thereto.

         SECTION 1403.     COVENANT DEFEASANCE. Upon the Issuer's exercise of
the above option applicable to this Section with respect to any Securities of or
within a series, the Issuer shall be released from its obligations under
Sections 1004 to 1011, inclusive, and, if specified pursuant to Section 301, its
obligations under any other covenant, with respect to such Outstanding
Securities and any coupons appertaining thereto on and after the date the
conditions set forth in Section 1404 are satisfied (hereinafter, "covenant
defeasance"), and such Securities and any coupons appertaining thereto shall
thereafter be deemed to be 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 any such covenant, but shall continue to be deemed
"Outstanding" for all other purposes hereunder. For this purpose, such covenant
defeasance means that, with respect to such Outstanding Securities and any
coupons appertaining thereto, the Issuer may omit to comply with and shall have
no liability in respect of any term, condition or limitation set forth in any
such Section or such other covenant, whether directly or indirectly, by reason
of any reference elsewhere herein to any such Section or such other covenant or
by reason of reference in any such Section or such other covenant to any other
provision herein or in any other document and such omission to comply shall not
constitute a

                                      -80-
<PAGE>   81
default or an Event of Default under Section 501(4) or 501(8) or otherwise, as
the case may be, but, except as specified above, the remainder of this
Indenture and such Securities and any coupons appertaining thereto shall be
unaffected thereby.

         SECTION 1404.     CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE. The
following shall be the conditions to application of Section 1402 or Section
1403 to any Outstanding Securities of or within a series and any coupons
appertaining thereto:

         (a)      The Issuer shall irrevocably have deposited or caused to be
deposited with the Trustee (or another trustee satisfying the requirements of
Section 607 who shall agree to comply with the provisions of this Article
Fourteen applicable to it) as trust funds in trust for the purpose of making
the following payments, specifically pledged as security for, and dedicated
solely to, the benefit of the Holders of such Securities and any coupons
appertaining thereto, (1) an amount in such currency, currencies or currency
unit in which such Securities and any coupons appertaining thereto are then
specified as payable at Stated Maturity, or (2) Government Obligations
applicable to such Securities and coupons appertaining thereto (determined on
the basis of the currency, currencies or currency unit in which such Securities
and coupons appertaining thereto are then specified as payable at Stated
Maturity) which through the scheduled payment of principal and interest in
respect thereof in accordance with their terms will provide, not later than one
day before the due date of any payment of principal of (and premium, if any)
and interest, if any, on such Securities and any coupons appertaining thereto,
money in an amount, or (3) a combination thereof, any case, in an amount,
sufficient, without consideration of any reinvestment of such principal and
interest, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Trustee, to pay and discharge, and which shall be applied by the Trustee (or
other qualifying trustee) to pay and discharge, (i) the principal of (and
premium, if any) and interest, if any, on such Outstanding Securities and any
coupons appertaining thereto on the Stated Maturity of such principal or
installment of principal or interest and (ii) any mandatory sinking fund
payments or analogous payments applicable to such Outstanding Securities and
any coupons appertaining thereto on the day on which such payments are due and
payable in accordance with the terms of this Indenture and of such Securities
and any coupons appertaining thereto.

         (b)      Such defeasance or covenant defeasance shall not result in a
breach or violation of, or constitute a default under, this Indenture or any
other material agreement or instrument to which the Issuer is a party or by
which it is bound.

         (c)      No Event of Default or event which with notice or lapse of
time or both would become an Event of Default with respect to such Securities
and any coupons appertaining thereto shall have occurred and be continuing on
the date of such deposit and, with respect to defeasance only, at any time
during the period ending on the 91st day after the date of such deposit (it
being understood that this condition shall not be deemed satisfied until the
expiration of such period).

         (d)      In the case of an election under Section 1402, the Issuer
shall have delivered to the Trustee an Opinion of Counsel stating that (i) the
Issuer has received from, or there has been published by, the Internal Revenue
Service a ruling, or (ii) since the date of execution of this Indenture, there
has been a change in the applicable Federal income tax law, in either case to
the

                                     -81-
<PAGE>   82

effect that, and based thereon such opinion shall confirm that, the Holders
of such Outstanding Securities and any coupons appertaining thereto will not
recognize income, gain or loss for Federal income tax purposes as a result of
such defeasance and will not 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 defeasance had not occurred.

         (e)      In the case of an election under Section 1403, the Issuer
shall have delivered to the Trustee an Opinion of Counsel to the effect that
the Holders of such Outstanding Securities and any coupons appertaining thereto
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.

         (f)      The Issuer shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent to the defeasance under Section 1402 or the covenant defeasance under
Section 1403 (as the case may be) have been complied with.

         (g)      Notwithstanding any other provisions of this Section, such
defeasance or covenant defeasance shall be effected in compliance with any
additional or substitute terms, conditions or limitations which may be imposed
on the Issuer in connection therewith pursuant to Section 301.

         SECTION 1405.     DEPOSITED MONEY AND GOVERNMENT OBLIGATIONS TO BE HELD
IN TRUST; OTHER MISCELLANEOUS PROVISIONS. Subject to the provisions of the last
paragraph of Section 1003, all money and Government Obligations (or other
property as may be provided pursuant to Section 301) (including the proceeds
thereof) deposited with the Trustee (or other qualifying trustee, collectively
for purposes of this Section 1405, the "Trustee") pursuant to Section 1404 in
respect of any Outstanding Securities of any series and any coupons
appertaining thereto shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Securities and any coupons appertaining
thereto and this Indenture, to the payment, either directly or through any
Paying Agent (including the Issuer acting as its own Paying Agent) as the
Trustee may determine, to the Holders of such Securities and any coupons
appertaining thereto of all sums due and to become thereon in respect of
principal (and premium, if any) and interest and Additional Amounts, if any,
but such money need not be segregated from other funds except to the extent
required by law.

         Unless otherwise specified with respect to any Security pursuant to
Section 301, in or pursuant to this Indenture or any Security if, after a
deposit referred to in Section 1404(a) has been made, (a) the Holder of a
Security in respect of which such deposit was made is entitled to, and does,
elect pursuant to Section 301 or the terms of such Security to receive payment
in a currency or currency unit other than that in which the deposit pursuant to
Section 1404(a) has been made in respect of such Security, or (b) a Conversion
Event occurs in respect of the Foreign Currency in which the deposit pursuant
to Section 1404(a) has been made, the indebtedness represented by such Security
and any coupons appertaining thereto shall be deemed to have been, and will be,
fully discharged and satisfied through the payment of the principal of (and

                                     -82-
<PAGE>   83

premium, if any), and interest, if any, on and Additional Amounts, if any, with
respect to such Security as the same becomes due out of the proceeds yielded by
converting (from time to time as specified below in the case of any such
election) the amount or other property deposited in respect of such Security
into the currency or currency unit in which such Security becomes payable as a
result of such election or Conversion Event based on the applicable market
exchange rate for such currency or currency unit in effect on the second
Business Day prior to each payment date, except, with respect to a Conversion
Event, for such Foreign Currency in effect (as nearly as feasible) at the time
of the Conversion Event.

         The Issuer shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the Government Obligations deposit
pursuant to Section 1404 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 such Outstanding Securities and any coupons
appertaining thereto.

         Anything in this Article to the contrary notwithstanding, subject to
Section 606, the Trustee shall deliver or pay to the Issuer from time to time
upon Issuer Request any money or Government Obligations (or other property and
any proceeds therefrom) held by it as provided in Section 1404 which, in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to
effect a defeasance or covenant defeasance, as applicable, in accordance with
this Article.

                                ARTICLE FIFTEEN

                       MEETINGS OF HOLDERS OF SECURITIES

         SECTION 1501.     PURPOSES FOR WHICH MEETINGS MAY BE CALLED. A meeting
of Holders of Securities of any series may be called at any time and from time
to time pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be made, given or taken by Holders of Securities of such
series.

         SECTION 1502.     CALL, NOTICE AND PLACE OF MEETINGS. (a) The Trustee
may at any time call a meeting of Holders of Securities of any series for any
purpose specified in Section 1501, to be held at such time and at such place in
the Borough of Manhattan, New York City, or in London as the Trustee shall
determine. Notice of every meeting of Holders of Securities of any series,
setting forth the time and the place of such meeting and in general terms the
action proposed to be taken at such meeting and in general terms the action
proposed to be taken at such meeting, shall be given, in the manner provided in
Section 106, not less than 21 nor more than 180 days prior to the date fixed
for the meeting.

         (b)      In case at any time the Issuer, pursuant to a Board
Resolution, or any Holders of at least 10% in principal amount of the
Outstanding Securities of any series shall have requested the Trustee to call a
meeting of the Holders of Securities of such series for any purpose specified

                                     -83-
<PAGE>   84

in Section 1501, by written request setting forth in reasonable detail the
action proposed to be taken at the meeting, and the Trustee shall not have made
the first publication of the notice of such meeting within 21 days after
receipt of such request or shall not thereafter proceed to cause the meeting to
be held as provided herein, then the Issuer or the Holders of Securities of
such series in the amount above specified, as the case may be, may determine
the time and the place in the Borough of Manhattan, New York City, or in London
for such meeting and may call such meeting for such purposes by giving notice
thereof as provided in subsection (a) of this Section.

         SECTION 1503.     PERSONS ENTITLED TO VOTE AT MEETINGS. To be entitled
to vote at any meeting of Holders of Securities of any series, a Person shall
be (1) a Holder of one or more Outstanding Securities of such series, or (2) a
Person appointed by an instrument in writing as proxy for a Holder or Holders
of one or more Outstanding Securities of such series by such Holder or Holders.
The only Persons who shall be entitled to be present or to speak at any meeting
of Holders of Securities of any series shall be the Persons entitled to vote at
such meeting and their counsel, any representatives of the Trustee and its
counsel and any representatives of the Issuer and its counsel.

         SECTION 1504.     QUORUM; ACTION. The Persons entitled to vote a
majority in principal amount of the Outstanding Securities of a series shall
constitute a quorum for a meeting of Holders of Securities of such series;
provided, however, that if any action is to be taken at such meeting with
respect to a consent or waiver which this Indenture expressly provides may be
given by the Holders of not less than a specified percentage in principal
amount of the Outstanding Securities of a series, the Persons entitled to vote
such specified percentage in principal amount of the Outstanding Securities of
such series shall constitute a quorum. In the absence of a quorum within 30
minutes after the time appointed for any such meeting, the meeting shall , if
convened at the request of Holders of Securities of such series, be dissolved.
In any other case the meeting may be adjourned for a period of not less than 10
days as determined by the chairman of the meeting prior to the adjournment of
such meeting. In the absence of a quorum at the reconvening of any such
adjourned meeting, such adjourned meeting may be further adjourned for a period
of not less than 10 days as determined by the chairman of the meeting prior to
the adjournment of such adjourned meeting. Notice of the reconvening of any
adjourned meeting shall be given as provided in Section 1502(a), except that
such notice need to be given only once not less than five days prior to the
date on which the meeting is scheduled to be reconvened. Notice of the
reconvening of any adjournment meeting shall state expressly the percentage, as
provided above, of the principal amount of the Outstanding Securities of such
series which shall constitute a quorum.

         Except as limited by the proviso to Section 902, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum
is present as aforesaid may be adopted by the affirmative vote of the persons
entitled to vote a majority in aggregate principal amount of the Outstanding
Securities represented at such meeting; provided, however, that, except as
limited by the proviso to Section 902, any resolution with respect to any
request, demand, authorization, direction, notice, consent, waiver or other
action which this Indenture expressly provides may be made, given or taken by
the Holders of a specified percentage, which is less than a majority, in
principal amount of the Outstanding Securities of a series may be adopted at a
meeting or an adjourned meeting duly reconvened and at which a quorum is
present as aforesaid

                                     -84-
<PAGE>   85

by the affirmative vote of the Holders of such specified percentage in
principal amount of the Outstanding Securities of that series.

         Any resolution passed or decision taken at any meeting of Holders of
Securities of any series duly held in accordance with this Section shall be
binding on all the Holders of Securities of such series and the related
coupons, whether or not present or represented at the meeting.

         Notwithstanding the foregoing provisions of this Section 1504, if any
actions is to be taken at a meeting of Holders of Securities of any series with
respect to any request, demand, authorization, direction, notice, consent,
waiver or other action that this Indenture expressly provides may be made,
given or taken by the Holders of a specified percentage in principal amount of
all Outstanding Securities affected thereby, or of the Holders of such series
and one or more additional series:

                  (i)      there shall be no minimum quorum requirement for
         such meeting; and

                  (ii)     the principal amount of the Outstanding Securities of
         such series that vote in favor of such request, demand, authorization,
         direction, notice, consent, waiver or other action shall be taken into
         account in determining whether such request, demand, authorization,
         direction, notice, consent, waiver or other action has been made,
         given or taken under this Indenture.

         SECTION 1505.     DETERMINATION OF VOTING RIGHTS; CONDUCT AND
ADJOURNMENT OF MEETINGS. (a) Notwithstanding any provisions of this Indenture,
the Trustee may make such reasonable regulations as it may deem advisable for
any meeting of Holders of Securities of a series in regard to proof of the
holding of Securities of such series and of the appointment of proxies and in
regard to the appointment and duties of inspectors of votes, the submission and
examination of proxies, certificates and other evidence of the right to vote,
and such other matters concerning the conduct of the meeting as it shall deem
appropriate. Except as otherwise permitted or required by any such regulations,
the holding of Securities shall be proved in the manner specified in Section
104 and the appointment of any proxy shall be proved in the manner specified in
Section 104 or by having the signature of the Person executing the proxy
witnessed or guaranteed by any trust company, bank or banker authorized by
Section 104 to certify to the holding of Bearer Securities. Such regulations
may provide that written instruments appointing proxies, regular on their face,
may be presumed valid and genuine without the proof specified in Section 104 or
other proof.

         (b)      The Trustee shall, by an instrument in writing appoint a
temporary chairman of the meeting, unless the meeting shall have been canceled
by the Issuer of by Holders of Securities as provided in Section 1502(b), in
which case the Issuer or the Holders of Securities of the series calling the
meeting, as the case may be, shall in like manner appoint a temporary chairman.
A permanent chairman and a permanent secretary of the meeting shall be elected
by vote of the persons entitled to vote a majority in principal amount of
Outstanding Securities of such series represented at the meeting.

                                     -85-
<PAGE>   86

         (c)      At any meeting each holder of a Security of such series or
proxy shall be entitled to one vote for each $1,000 principal amount of the
Outstanding Securities of such series held or represented by him; provided,
however that no vote shall be cast or counted at any meeting in respect of any
Security challenged as not Outstanding and ruled by the chairman of the meeting
to be not Outstanding. The chairman of the meeting shall have no right to vote,
except as a Holder of a Security of such series or proxy.

         (d)      Any meeting of Holders of Securities of any series duly called
pursuant to Section 1502 at which a quorum is present may be adjourned from
time to time by Persons entitled to vote a majority in principal amount of the
Outstanding Securities of such series represented at the meeting, and the
meeting may be held as so adjourned without further notice.

         SECTION 1506.     COUNTING VOTES AND RECORDING ACTION OF MEETINGS. The
vote upon any resolution submitted to any meeting of Holders of Securities of
any series shall be by written ballots on which shall be subscribed the
signatures of the Holders of Securities of such series or of their
representatives by proxy and the principal amounts and serial numbers of the
Outstanding Securities of such series held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the meeting their verified written
reports in duplicate of all votes cast at the meeting. A record, at least in
duplicate, of the proceedings of each meeting of Holders of Securities of any
Series shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the fact, setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 1502 and, if
applicable, Section 1504. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Issuer and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated.

         SECTION 1507.     EVIDENCE OF ACTION TAKEN BY HOLDERS. Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by a specified percentage in
principal amount of the Holders of any or all series may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such specified percentage of Holders in person or by agent duly appointed in
writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the
Trustee. Proof and execution of any instrument or of a writing appointing any
such agent shall be sufficient for any purpose of this Indenture and (subject
to Article Six) conclusive in favor of the Trustee and the Issuer, if made in
the manner provided in this Article.

         SECTION 1508.     PROOF OF EXECUTION OF INSTRUMENTS. Subject to Article
Six, the execution of any instrument by a Holder or his agent or proxy may be
proved in accordance with such reasonable rules and regulations as may be
prescribed by the Trustee or in such manner as shall be satisfactory to the
Trustee.

                                     -86-
<PAGE>   87

                                ARTICLE SIXTEEN

                        SECURITIES IN FOREIGN CURRENCIES

         SECTION 1601.     APPLICABILITY OF ARTICLE. Whenever this Indenture
provides for (i) any action by, or the determination of any of the rights of
Holders of Securities of any series in which not all of such Securities are
denominated in the same currency, or (ii) any distribution to Holders of
Securities, in the absence of any provision to the contrary in the form of
Security of any particular series or pursuant to this Indenture or the
Securities, any amount in respect of any Security denominated in a currency
other than Dollars shall be treated for any such action or distribution as that
amount of Dollars that could be obtained for such amount on such reasonable
basis of exchange and as of the record date with respect to Registered
Securities of such series (if any) for such action, determination of rights for
distribution (or, if there shall be no applicable record date, such other date
reasonably proximate to the date of such action, determination of rights or
distribution) as the Issuer may specify in a written notice to the Trustee or,
in the absence of such written notice, as the Trustee may determine.

                                  * * * * * *

                                     -87-
<PAGE>   88

         IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed, and their respective corporate seals to be hereunto affixed
and attested, all as of the day and year first above written.

                                        POST APARTMENT HOMES, L.P.

                                              By: Post GP Holdings, Inc.
                                                  as General Partner

                                              By: /s/ R. Byron Canock, Jr.
                                                  --------------------------
                                                  Name: R. Byron Canock, Jr.
                                                  Title: EVP

Attest:

Title:

                                        SUNTRUST BANK, ATLANTA
                                        as Trustee

                                              By: /s/ B.A. Donaldson
                                                  --------------------------
                                                  Name: B.A. Donaldson
                                                  Title: Vice President

                                              By: /s/ George T. Hayan
                                                  --------------------------
                                                  Name: George T. Hayan
                                                  Title: Vice President

                                     -88-
<PAGE>   89

STATE OF GEORGIA               )
                               )ss:
COUNTY OF COBB                 )

         On the 15th day of September 2000, before me personally came R. Byron
Carlock, to me known, who, being by me duly sworn, did depose and say that he is
Executive Vice President of POST GP HOLDINGS, INC., the general partner of POST
APARTMENT HOMES, L.P., one of the parties described in and which executed the
foregoing instrument, and that he signed his name thereto by authority of the
Board of Directors.

{Notarial Seal}

                                /s/
                                -------------------------------
                                Notary Public
                                COMMISSION EXPIRES

                                     -89-
<PAGE>   90

STATE OF GEORGIA                )
                                ) ss:
COUNTY OF FULTON                )

         On the 15th day of September 2000, before me personally came Barton
Donaldson, to me known, who, being by me duly sworn, did depose and say that he
is Vice President of SunTrust Bank, Atlanta, one of the parties described in
and which executed the foregoing instrument, and that he signed his name
thereto by authority of the Board of Directors.

{Notarial Seal}

                                /s/ Kelly Lennon
                                -------------------------------
                                Notary Public
                                COMMISSION EXPIRES

                                     -90-
<PAGE>   91

                                   EXHIBIT A

                             FORMS OF CERTIFICATION

                                  EXHIBIT A-1

               FORM OF CERTIFICATE TO BE GIVEN BY PERSON ENTITLED
                TO RECEIVE BEARER SECURITY OR TO OBTAIN INTEREST
                       PAYABLE PRIOR TO THE EXCHANGE DATE

                                  CERTIFICATE

     {Insert title or sufficient description of Securities to be delivered}

         This is to certify that, as of the date hereof, and except as set
forth below, the above-captioned Securities held by you for our account (i) are
owned by person(s) that are not citizens or residents of the United States,
domestic partnerships, domestic corporations or any estate or trust the income
of which is subject to United States federal income taxation regardless of its
source ("United States person(s)"), (ii) are owned by United States person(s)
that are (a) foreign branches of United States financial institutions
(financial institutions, as defined in United States Treasury Regulations
Section 2.165-12(c)(1)(v) are herein referred to a "financial institutions")
purchasing for their own account or for resale, or (b) United States person(s)
who acquired the Securities through foreign branches of United States financial
institutions and who hold the Securities through such United States financial
institutions on the date hereof (and in either case (a) or (b), each such
United States financial institution hereby agrees, on its own behalf or through
its agent, that you may advise Post Properties, Inc. or its agent that such
financial institution will comply with the requirements of Section
165(j)(3)(A), (B) or (C) of the United States Internal Revenue Code of 1986,
amended, and the regulations thereunder), or (iii) are owned by United States
or foreign financial institution(s) for purposes of resale during the
restricted period (as defined in United States Treasury Regulations Section
1.163-5(c)(2)(i)(D)(7)), and, in addition, if the owner is a United States or
foreign financial institution described in clause (iii) above (whether or not
also described in clause (i) or (ii)), this is to further certify that such
financial institution has not acquired the Securities for purposes of resale
directly or indirectly to a United States person or to a person within the
United States or its possessions.

         As used herein, "United States" means the United States of America
(including the States and the District of Columbia); and its "possessions"
include Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island
and the Northern Mariana Islands.

         We undertake to advise your promptly by tested telex on or prior to
the date on which you intend to submit your certification relating to the
above-captioned Securities held by you for our account in accordance with
Operating Procedures if any applicable statement herein is not correct on such
date, and in the absence of any such notification it may be assumed that this
certification applies as of such date.

                                     A - 1

<PAGE>   92

         This certificate excepts and does not relate to U.S. [ ] of such
interest in the above-captioned Securities in respect of which we are not able
to certify and as to which we understand an exchange for an interest in a
Permanent Global Security or an exchange for and delivery of definitive
Securities (or, if relevant, collection of any interest) cannot be made until
we do so certify.

         We understand that this certificate may be required in connection with
certain tax legislation in the United States. If administrative or legal
proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.

Dated: _____________________ , 19
(To be dated no  earlier  than the 15th day
prior to (i) the Exchange  Date or (ii) the
relevant  Interest Payment Date occurring
prior to the Exchange  Date, as applicable)

                                (Name of Person Making Certification)

                                --------------------------------------
                                (Authorized Signatory)
                                Name:
                                Title:

                                     A - 2

<PAGE>   93

                                  EXHIBIT A-2

         FORM OF CERTIFICATE TO BE GIVEN BY EUROCLEAR AND CEDEL S.A.A IN
         CONNECTION WITH THE EXCHANGE OF A PORTION OF A TEMPORARY GLOBAL
         SECURITY OR TO OBTAIN INTEREST PAYABLE PRIOR TO THE EXCHANGE DATE

                                  CERTIFICATE

     {Insert title or sufficient description of Securities to be delivered}

         This is to certify that, based solely on written certifications that
we have received in writing, by tested telex or by electronic transmission from
each of the persons appearing in our records as persons entitled to a portion
of the principal amount set forth below (our "Member Organizations")
substantially in the form attached hereto, as of the date hereof,
{U.S.}_____________________ principal amount of the above-captioned Securities
(i) is owned by person(s) that are not citizens or residents of the United
States, domestic partnerships, domestic corporations or any estate or trust the
income of which is subject to United States Federal income taxation regardless
of its source ("United States person(s)"), (ii) is owned by United States
person(s) that are (a) foreign branches of United States financial institutions
(financial institutions, as defined in the U.S. Treasury Regulations Section
1.165-12(c)(1)(v) are herein referred to as "financial institutions")
purchasing for their own account or for resale, or (b) United States person(s)
who acquired the Securities through foreign branches of United States financial
institutions and who hold the Securities through such United States financial
institutions on the date hereof (and in either case (a) or (b), each such
financial institution has agreed, on its own behalf or through its agent, that
we may advise Post Properties, Inc. or its agent that such financial
institution will comply with the requirements of Section 165(j)(3)(A), (B) or
(C) of the Internal Revenue Code of 1986, as amended, and the regulations
thereunder), or (iii) is owned by United States or foreign financial
institution(s) for purposes of resale during the restricted period (as defined
in United States Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)), and, to
the further effect, that financial institutions described in clause (iii) above
(whether or not also described in clause (i) or (ii)) have certified that they
have not acquired the Securities for purposes of resale directly or indirectly
to a United States person or to a person within the United States or its
possessions.

         As used herein "United States" means the United States of America
(including the States and the District of Columbia); and its "possessions"
include Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island
and the Northern Mariana Islands.

         We further certify that (i) we are not making available herewith for
exchange (or, if relevant, collection of any interest) any portion of the
temporary global Security representing the above-captioned Securities excepted
in the above-referenced certificates of Member Organizations and (ii) as of the
date hereof we have not received any notification from any of our Member
Organizations to the effect that the statements made by such Member
Organizations with respect to any portion of the part submitted herewith for
exchange (or, if relevant, collection of any interest) are no longer true and
cannot be relied upon as of the date hereof.

                                     A - 3

<PAGE>   94

         We understand that this certification is required in connection with
certain tax legislation in the United States. If administrative or legal
proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.

Dated: _____________________________ , 19
(To be dated no earlier than the Exchange Date or the relevant Interest Payment
Date occurring prior to the Exchange Date, as applicable)

{Morgan Guaranty Trust Company of New York, Brussels Office}, as Operator of the
Euroclear System {Cedel}

By:
   ---------------------------------------------

                                     A - 4

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