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                                                                     EXHIBIT 4.5

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                              WILLBROS GROUP, INC.

                                       AND

                      [                                  ]
                       ----------------------------------
                                   AS TRUSTEE

                                    INDENTURE

                          DATED AS OF           , 200
                                      ----------     --

                          SUBORDINATED DEBT SECURITIES

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                                TABLE OF CONTENTS

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                                               ARTICLE I
                                   DEFINITIONS AND OTHER PROVISIONS
                                        OF GENERAL APPLICATION

     SECTION 1.1    DEFINITIONS.......................................................................1
     SECTION 1.2    COMPLIANCE CERTIFICATES AND OPINIONS.............................................11
     SECTION 1.3    FORM OF DOCUMENTS DELIVERED TO TRUSTEE...........................................12
     SECTION 1.4    ACTS OF HOLDERS; RECORD DATES....................................................13
     SECTION 1.5    NOTICES, ETC., TO TRUSTEE AND COMPANY............................................15
     SECTION 1.6    NOTICE TO HOLDERS; WAIVER........................................................16
     SECTION 1.7    CONFLICT WITH TRUST INDENTURE ACT................................................16
     SECTION 1.8    EFFECT OF HEADINGS AND TABLE OF CONTENTS.........................................16
     SECTION 1.9    SUCCESSORS AND ASSIGNS...........................................................16
     SECTION 1.10   SEPARABILITY CLAUSE..............................................................17
     SECTION 1.11   BENEFITS OF INDENTURE............................................................17
     SECTION 1.12   GOVERNING LAW....................................................................17
     SECTION 1.13   LEGAL HOLIDAYS...................................................................17
     SECTION 1.14   INDENTURE AND SECURITIES SOLELY CORPORATE OBLIGATIONS............................17
     SECTION 1.15   INDENTURE MAY BE EXECUTED IN COUNTERPARTS........................................18

                                              ARTICLE II
                                            SECURITY FORMS

     SECTION 2.1   FORMS GENERALLY...................................................................18
     SECTION 2.2   FORM OF LEGEND FOR GLOBAL SECURITIES..............................................18
     SECTION 2.3   FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION...................................19
     SECTION 2.4   FORM OF CONVERSION NOTICE.........................................................19

                                              ARTICLE III
                                            THE SECURITIES

     SECTION 3.1   AMOUNT UNLIMITED; ISSUABLE IN SERIES..............................................21
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     SECTION 3.2    DENOMINATIONS....................................................................25
     SECTION 3.3    EXECUTION, AUTHENTICATION, DELIVERY AND DATING...................................25
     SECTION 3.4    TEMPORARY SECURITIES.............................................................27
     SECTION 3.5    REGISTRATION; REGISTRATION OF TRANSFER AND EXCHANGE..............................27
     SECTION 3.6    MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES.................................29
     SECTION 3.7    PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED...................................30
     SECTION 3.8    PERSONS DEEMED OWNERS............................................................32
     SECTION 3.9    CANCELLATION.....................................................................32
     SECTION 3.10   COMPUTATION OF INTEREST..........................................................33

                                              ARTICLE IV
                                      SATISFACTION AND DISCHARGE

     SECTION 4.1    SATISFACTION AND DISCHARGE OF INDENTURE..........................................33
     SECTION 4.2    APPLICATION OF TRUST MONEY.......................................................34

                                               ARTICLE V
                                               REMEDIES

     SECTION 5.1    EVENTS OF DEFAULT................................................................35
     SECTION 5.2    ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT...............................36
     SECTION 5.3    COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE..................38
     SECTION 5.4    TRUSTEE MAY FILE PROOFS OF CLAIM.................................................38
     SECTION 5.5    TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES......................39
     SECTION 5.6    APPLICATION OF MONEY COLLECTED...................................................39
     SECTION 5.7    LIMITATION ON SUITS..............................................................40
     SECTION 5.8    UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM AND
                        INTEREST AND TO CONVERT......................................................41
     SECTION 5.9    RESTORATION OF RIGHTS AND REMEDIES...............................................41
     SECTION 5.10   RIGHTS AND REMEDIES CUMULATIVE...................................................41
     SECTION 5.11   DELAY OR OMISSION NOT WAIVER.....................................................41
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     SECTION 5.12   CONTROL BY HOLDERS...............................................................42
     SECTION 5.13   WAIVER OF PAST DEFAULTS..........................................................42
     SECTION 5.14   UNDERTAKING FOR COSTS............................................................43
     SECTION 5.15   WAIVER OF USURY, STAY OR EXTENSION LAWS..........................................43

                                              ARTICLE VI
                                              THE TRUSTEE

     SECTION 6.1    CERTAIN DUTIES AND RESPONSIBILITIES..............................................43
     SECTION 6.2    NOTICE OF DEFAULTS...............................................................44
     SECTION 6.3    CERTAIN RIGHTS OF TRUSTEE........................................................44
     SECTION 6.4    NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES...........................45
     SECTION 6.5    MAY HOLD SECURITIES AND ACT AS TRUSTEE UNDER OTHER INDENTURES....................45
     SECTION 6.6    MONEY HELD IN TRUST..............................................................46
     SECTION 6.7    COMPENSATION AND REIMBURSEMENT...................................................46
     SECTION 6.8    CONFLICTING INTERESTS............................................................46
     SECTION 6.9    CORPORATE TRUSTEE REQUIRED; ELIGIBILITY..........................................47
     SECTION 6.10   RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR................................47
     SECTION 6.11   ACCEPTANCE OF APPOINTMENT BY SUCCESSOR...........................................49
     SECTION 6.12   MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS......................50
     SECTION 6.13   PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY................................50
     SECTION 6.14   APPOINTMENT OF AUTHENTICATING AGENT..............................................51

                                              ARTICLE VII
                           HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

     SECTION 7.1    COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF HOLDERS........................53
     SECTION 7.2    PRESERVATION OF INFORMATION; COMMUNICATIONS TO HOLDERS...........................53
     SECTION 7.3    REPORTS BY TRUSTEE...............................................................54
     SECTION 7.4    REPORTS BY COMPANY...............................................................54
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                                             ARTICLE VIII
                         CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

     SECTION 8.1    COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS.............................54
     SECTION 8.2    SUCCESSOR SUBSTITUTED............................................................55

                                              ARTICLE IX
                                        SUPPLEMENTAL INDENTURES

     SECTION 9.1    SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS...............................56
     SECTION 9.2    SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS. ................................58
     SECTION 9.3    EXECUTION OF SUPPLEMENTAL INDENTURES.............................................59
     SECTION 9.4    EFFECT OF SUPPLEMENTAL INDENTURES................................................59
     SECTION 9.5    CONFORMITY WITH TRUST INDENTURE ACT..............................................60
     SECTION 9.6    REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES...............................60
     SECTION 9.7    SUBORDINATION UNIMPAIRED.........................................................60

                                               ARTICLE X
                                               COVENANTS

     SECTION 10.1   PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.......................................60
     SECTION 10.2   MAINTENANCE OF OFFICE OR AGENCY..................................................60
     SECTION 10.3   MONEY FOR SECURITIES PAYMENTS TO BE HELD IN TRUST................................61
     SECTION 10.4   STATEMENT BY OFFICERS AS TO DEFAULT..............................................62
     SECTION 10.5   EXISTENCE........................................................................63
     SECTION 10.6   WAIVER OF CERTAIN COVENANTS......................................................63

                                              ARTICLE XI
                                       REDEMPTION OF SECURITIES

     SECTION 11.1   APPLICABILITY OF ARTICLE.........................................................63
     SECTION 11.2   ELECTION TO REDEEM; NOTICE TO TRUSTEE............................................63
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     SECTION 11.3   SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED................................64
     SECTION 11.4   NOTICE OF REDEMPTION.............................................................65
     SECTION 11.5   DEPOSIT OF REDEMPTION PRICE......................................................66
     SECTION 11.6   SECURITIES PAYABLE ON REDEMPTION DATE............................................66
     SECTION 11.7   SECURITIES REDEEMED IN PART......................................................66

                                              ARTICLE XII
                                             SINKING FUNDS

     SECTION 12.1   APPLICABILITY OF ARTICLE.........................................................67
     SECTION 12.2   SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES............................67
     SECTION 12.3   REDEMPTION OF SECURITIES FOR SINKING FUND........................................68

                                              ARTICLE XIII
                                  DEFEASANCE AND COVENANT DEFEASANCE

     SECTION 13.1   COMPANY'S OPTION TO EFFECT DEFEASANCE OR COVENANT DEFEASANCE.....................68
     SECTION 13.2   DEFEASANCE AND DISCHARGE.........................................................68
     SECTION 13.3   COVENANT DEFEASANCE..............................................................69
     SECTION 13.4   CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE..................................70
     SECTION 13.5   DEPOSITED MONEY AND U.S. GOVERNMENT OBLIGATIONS TO BE HELD IN TRUST;
                        MISCELLANEOUS PROVISIONS.....................................................73
     SECTION 13.6   REINSTATEMENT....................................................................73

                                              ARTICLE XIV
                                       CONVERSION OF SECURITIES

     SECTION 14.1   APPLICABILITY OF ARTICLE.........................................................74
     SECTION 14.2   EXERCISE OF CONVERSION PRIVILEGE.................................................74
     SECTION 14.3   NO FRACTIONAL SHARES.............................................................75
     SECTION 14.4   ADJUSTMENT OF CONVERSION PRICE...................................................76
     SECTION 14.5   NOTICE OF CERTAIN CORPORATE ACTIONS..............................................76
     SECTION 14.6   RESERVATION OF SHARES OF COMMON STOCK............................................77
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     SECTION 14.7    PAYMENT OF CERTAIN TAXES UPON CONVERSION........................................78
     SECTION 14.8    NONASSESSABILITY................................................................78
     SECTION 14.9    PROVISION IN CASE OF CONSOLIDATION, MERGER OR SALE OF ASSETS....................78
     SECTION 14.10   DUTIES OF TRUSTEE REGARDING CONVERSION..........................................79
     SECTION 14.11   REPAYMENT OF CERTAIN FUNDS UPON CONVERSION......................................80

                                              ARTICLE XV
                                      SUBORDINATION OF SECURITIES

     SECTION 15.1    AGREEMENT OF SUBORDINATION......................................................80
     SECTION 15.2    PAYMENTS TO HOLDERS.............................................................81
     SECTION 15.3    SUBROGATION OF SECURITIES.......................................................84
     SECTION 15.4    AUTHORIZATION TO EFFECT SUBORDINATION...........................................85
     SECTION 15.5    NOTICE TO TRUSTEE...............................................................85
     SECTION 15.6    TRUSTEE'S RELATION TO SENIOR INDEBTEDNESS.......................................86
     SECTION 15.7    NO IMPAIRMENT OF SUBORDINATION..................................................87
     SECTION 15.8    CERTAIN CONVERSIONS DEEMED PAYMENT..............................................87
     SECTION 15.9    ARTICLE APPLICABLE TO PAYING AGENTS.............................................87
     SECTION 15.10   SENIOR INDEBTEDNESS ENTITLED TO RELY............................................88
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                  INDENTURE, dated as of ___________, 200__, between Willbros
Group, Inc., a corporation duly organized and existing under the laws of the
Republic of Panama (herein called the "Company"), having its principal executive
office at Plaza Bancomer Building, 50th Street, 8th Floor, Apartado 6307, Panama
5, Republic of Panama, and [___________________], as Trustee (herein called the
"Trustee").

                                  WITNESSETH:

                  WHEREAS, the Company has duly authorized the execution and
delivery of this Indenture to provide for the issuance from time to time of its
unsecured debentures, notes or other evidences of indebtedness (herein called
the "Securities"), to be issued in one or more series as provided in this
Indenture; and

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

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

                                    ARTICLE I

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

SECTION 1.1 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;

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                           (2) all other terms used herein which are defined in
         the Trust Indenture Act, 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 generally
         accepted accounting principles, and, except as otherwise herein
         expressly provided, the term "generally accepted accounting principles"
         with respect to any computation required or permitted hereunder shall
         mean such accounting principles as are generally accepted at the date
         of such computation;

                           (4) unless the context otherwise requires, any
         reference to an "Article" or a "Section" refers to an Article or a
         Section, as the case may be, of this Indenture; and

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

                  "Act," when used with respect to any Holder, has the meaning
specified in Section 1.4.

                  "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 6.14 to act on behalf of the Trustee to authenticate
Securities of one or more series.

                  "Board of Directors" means either the board of directors of
the Company or any duly authorized committee of that board empowered to act for
it with respect to this Indenture.

                  "Board Resolution" means a copy of a resolution certified by
the Secretary or an Assistant Secretary of the Company to have been duly adopted
by the

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Board of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee.

                  "Business Day," when used with respect to any Place of
Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which is not
a day on which banking institutions in that Place of Payment are authorized or
obligated by law or executive order to close.

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

                  "Common Stock" includes any stock of any class of the Company,
which has no preference in respect of dividends or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or winding-up of
the Company and which is not subject to redemption by the Company; provided,
however, subject to the provisions of Section 14.9, shares issuable upon
conversion of Securities shall include only shares of the class designated as
Common Stock of the Company at the date of this Indenture or shares of any class
or classes resulting from any reclassification or reclassifications thereof and
which have no preference in respect of dividends or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or winding-up of
the Company and which are not subject to redemption by the Company; provided,
further that if at any time there shall be more than one such resulting class,
the shares of each such class then so issuable shall be substantially in the
proportion which the total number of shares of such class resulting from all
such reclassifications bears to the total number of shares of all such classes
resulting from all such reclassifications.

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

                  "Company Request" or "Company Order" means a written request
or order signed in the name of the Company by its Chairman of the Board, its
President or a Vice President, and by its principal financial officer, its
Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and
delivered to the Trustee.

                  "Constituent Person" has the meaning specified in Section
14.9.

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                  "Corporate Trust Office" means the corporate trust office of
the Trustee at [___________________________], Attention: Corporate Trust
Department, or such other office, designated by the Trustee by written notice to
the Company, at which at any particular time its corporate trust business shall
be administered.

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

                  "Covenant Defeasance" has the meaning specified in Section
13.3.

                  "Credit Agreement" means that certain Credit Agreement, dated
as of [________________], among the Company, [________________],
[________________] and [________________] as amended through the date hereof, as
further amended, amended and restated, supplemented or otherwise modified from
time to time.

                  "Defaulted Interest" has the meaning specified in Section 3.7.

                  "Defeasance" has the meaning specified in Section 13.2.

                  "Depositary" means, with respect to Securities of any series
issuable in whole or in part in the form of one or more Global Securities, a
clearing agency registered under the Exchange Act that is designated to act as
Depositary for such Securities as contemplated by Section 3.1.

                  "Designated Senior Indebtedness" means the Credit Agreement
and any particular Senior Indebtedness in which the instrument creating or
evidencing the same or the assumption or guarantee thereof (or related
agreements or documents to which the Company is a party) expressly provides that
such Senior Indebtedness shall be "Designated Senior Indebtedness."

                  "Event of Default" has the meaning specified in Section 5.1.

                  "Exchange Act" means the Securities Exchange Act of 1934 and
any statute successor thereto, in each case as amended from time to time.

                  "Expiration Date" has the meaning specified in Section 1.4.

                  "Global Security" means a Security that evidences all or part
of the Securities of any series and bears the legend set forth in Section 2.2
(or such legend as may be specified as contemplated by Section 3.1 for such
Securities).

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

                  "Indebtedness" means, with respect to any Person, and without
duplication, (a) all indebtedness, obligations and other liabilities (contingent
or otherwise) of such Person for borrowed money (including obligations of the
Company in respect of overdrafts, foreign exchange contracts, currency exchange
agreements, interest rate protection agreements, and any loans or advances from
banks, whether or not evidenced by notes or similar instruments) or evidenced by
bonds, debentures, notes or similar instruments (whether or not the recourse of
the lender is to the whole of the assets of such Person or to only a portion
thereof) (other than any account payable or other accrued current liability or
obligation incurred in the ordinary course of business in connection with the
obtaining of materials or services), (b) all reimbursement obligations and other
liabilities (contingent or otherwise) of such Person with respect to letters of
credit, bank guarantees or bankers' acceptances, (c) all obligations and
liabilities (contingent or otherwise) in respect of leases of such Person
required, in conformity with generally accepted accounting principles, to be
accounted for as capitalized lease obligations on the balance sheet of such
Person and all obligations and other liabilities (contingent or otherwise) under
any lease or related document (including a purchase agreement) in connection
with the lease of real property which provides that such Person is contractually
obligated to purchase or cause a third party to purchase the leased property and
thereby guarantee a minimum residual value of the leased property to the lessor
and the obligations of such Person under such lease or related document to
purchase or to cause a third party to purchase such leased property, (d) all
obligations of such Person (contingent or otherwise) with respect to an interest
rate or other swap, cap or collar agreement or other similar instrument or
agreement or foreign currency hedge, exchange, purchase or similar instrument or
agreement, (e) all direct or indirect guaranties or similar agreements by such
Person in respect of, and obligations or liabilities (contingent or otherwise)
of such Person to purchase or otherwise acquire or otherwise assure a creditor
against loss in respect of indebtedness, obligations or liabilities of another
Person of the kind described in clauses (a) through (d), (f) any indebtedness or
other obligations described in clauses (a) through (d) secured by any mortgage,
pledge, lien or other encumbrance existing on property which is owned or held by
such Person, regardless of whether the indebtedness or other obligation secured
thereby shall have been assumed by such Person and (g) any and all deferrals,
renewals, extensions and refundings of, or amendments, modifications or
supplements to, any indebtedness, obligation or liability of the kind described
in clauses (a) through (f).

                  "Indenture" means this instrument as originally executed and
as it may from time to time be supplemented or amended by one or more indentures

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supplemental hereto entered into pursuant to the applicable provisions hereof,
including, for all purposes of this instrument and any such supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this instrument and any such supplemental indenture,
respectively. The term "Indenture" shall also include the terms of particular
series of Securities established as contemplated by Section 3.1; provided,
however, that if at any time more than one Person is acting as Trustee under
this Indenture due to the appointment of one or more separate Trustees for any
one or more separate series of Securities, "Indenture" shall mean, with respect
to such series of Securities for which any such Person is Trustee, 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 particular
series of Securities for which such Person is Trustee established as
contemplated by Section 3.1, exclusive, however, of any provisions or terms
which relate solely to other series of Securities for which such Person is not
Trustee, regardless of when such terms or provisions were adopted, and exclusive
of any provisions or terms adopted by means of one or more indentures
supplemental hereto executed and delivered after such Person had become such
Trustee, but to which such person, as such Trustee, was not a party; provided,
further that in the event that this Indenture is supplemented or amended by one
or more indentures supplemental hereto which are only applicable to certain
series of Securities, the term "Indenture" for a particular series of Securities
shall only include the supplemental indentures applicable thereto.

                  "interest," when used with respect to an Original Issue
Discount Security which by its terms bears interest only after Maturity, means
interest payable after Maturity.

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

                  "Investment Company Act" means the Investment Company Act of
1940 and any statute successor thereto, in each case as amended from time to
time.

                  "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, call for redemption or otherwise.

                  "Notice of Default" means a written notice of the kind
specified in Section 5.1(4).

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                  "Officers' Certificate" means a certificate signed by the
Chairman of the Board, the President or a Vice President, and by the principal
financial officer, the Treasurer, an Assistant Treasurer, the Secretary or an
Assistant Secretary, of the Company, and delivered to the Trustee. One of the
officers signing an Officers' Certificate given pursuant to Section 10.4 shall
be the principal executive, financial or accounting officer of the Company.

                  "Opinion of Counsel" means a written opinion of counsel, who
may be counsel for, or an employee of, the Company, and who shall be reasonably
acceptable 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 5.2.

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

                           (1) Securities theretofore canceled by the Trustee or
         delivered to the Trustee for cancellation;

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

                           (3) Securities as to which Defeasance has been
         effected pursuant to Section 13.2; and

                           (4) Securities which have been paid pursuant to
         Section 3.6 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

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         purchaser in whose hands such Securities are valid obligations of the
         Company;

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given, made or taken any
request, demand, authorization, direction, notice, consent, waiver or other
action hereunder as of any date, (A) the principal amount of an Original Issue
Discount Security which shall be deemed to be Outstanding shall be the amount of
the principal thereof which would be due and payable as of such date upon
acceleration of the Maturity thereof to such date pursuant to Section 5.2, (B)
if, as of such date, the principal amount payable at the Stated Maturity of a
Security is not determinable, the principal amount of such Security which shall
be deemed to be Outstanding shall be the amount as specified or determined as
contemplated by Section 3.1, (C) the principal amount of a Security denominated
in one or more foreign currencies or currency units which shall be deemed to be
Outstanding shall be the U.S. dollar equivalent, determined as of such date in
the manner provided as contemplated by Section 3.1, of the principal amount of
such Security (or, in the case of a Security described in Clause (A) or (B)
above, of the amount determined as provided in such Clause), and (D) Securities
owned by the Company or any other obligor upon the Securities or any Affiliate
of the Company 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 relying upon any such request, demand, authorization, direction,
notice, consent, waiver or other action, only Securities which 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 Company or any other obligor
upon the Securities or any Affiliate of the Company or of such other obligor.

                  "Paying Agent" means any Person authorized by the Company to
pay the principal of or any premium or interest on any Securities on behalf of
the Company.

                  "Payment Blockage Notice" has the meaning specified in Section
15.4.

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

                  "Place of Payment," when used with respect to the Securities
of any series, means the place or places where the principal of and any premium
and interest

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<PAGE>   16

on the Securities of that series are payable as specified as contemplated by
Section 3.1.

                  "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 3.6 in exchange for or in
lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security.

                  "Record Date" means any Regular Record Date or Special Record
Date.

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

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

                  "Regular Record Date" for the interest payable on any Interest
Payment Date on the Securities of any series means the date specified for that
purpose as contemplated by Section 3.1.

                  "Representative" means (a) the indenture trustee or other
trustee, agent or representative for any Senior Indebtedness or (b) with respect
to any Senior Indebtedness that does not have any such trustee, agent or other
representative, (i) in the case of such Senior Indebtedness issued pursuant to
an agreement providing for voting arrangements as among the holders or owners of
such Senior Indebtedness, any holder or owner of such Senior Indebtedness acting
with the consent of the required persons necessary to bind such holders or
owners of such Senior Indebtedness and (ii) in the case of all other such Senior
Indebtedness, the holder or owner of such Senior Indebtedness.

                  "Responsible Officer" means any officer within the corporate
trust department of the Trustee, including any vice president, assistant vice
president, treasurer, assistant treasurer, trust officer, secretary or any
assistant secretary, or any other officer who customarily performs functions
similar to those performed by any of the above designated officers, and also,
regarding a particular matter, any other officer of the Trustee to whom the
matter is referred because of that officer's knowledge of and familiarity with
the particular subject.

                                       9
<PAGE>   17

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

                  "Securities Act" means the Securities Act of 1933 and any
statute successor thereto, in each case as amended from time to time.

                  "Security Register" and "Security Registrar" have the
respective meanings specified in Section 3.5.

                  "Senior Indebtedness" means the principal of, premium, if any,
interest (including all interest accruing subsequent to the commencement of any
bankruptcy or similar proceeding, whether or not a claim for post-petition
interest is allowable as a claim in any such proceeding) and rent payable on or
in connection with, and all fees, costs, expenses and other amounts accrued or
due on or in connection with, Indebtedness of the Company, whether outstanding
on the date of this Indenture or thereafter created, incurred, assumed,
guaranteed or in effect guaranteed by the Company (including all deferrals,
renewals, extensions or refundings of, or amendments, modifications or
supplements to, the foregoing), unless in the case of any particular
Indebtedness the instrument creating or evidencing the same or the assumption or
guarantee thereof expressly provides that such Indebtedness shall not be senior
in right of payment to the Securities or expressly provides that such
Indebtedness is "pari passu" or "junior" to the Securities. Notwithstanding the
foregoing, the term Senior Indebtedness shall not include any Indebtedness of
the Company to any subsidiary of the Company, a majority of the voting stock of
which is owned, directly or indirectly, by the Company.

                  "Special Record Date" for the payment of any Defaulted
Interest means a date fixed by the Trustee pursuant to Section 3.7.

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

                  "Subsidiary" means, with respect to any Person, (i) any
corporation or trust of which a majority of the outstanding voting securities is
at the time, and (ii) any partnership of which a majority of the equity capital
or profit interest is at the time, owned, directly or indirectly, by the
Company, by one or more other Subsidiaries or by the Company and one or more
Subsidiaries. For the purposes of this definition, "voting securities" means
securities which ordinarily have voting

                                       10
<PAGE>   18

power for the election of directors, whether at all times or only so long as no
senior class of securities has such voting power by reason of any contingency.

                  "Trust Indenture Act" means the Trust Indenture Act of 1939 as
in force at the date as of which this instrument was executed; provided,
however, that in the event the Trust Indenture Act of 1939 is amended after such
date, "Trust Indenture Act" means, to the extent required by any such amendment,
the Trust Indenture Act of 1939 as so amended.

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

                  "U.S. Government Obligation" has the meaning specified in
Section 13.4.

                  "Vice President," when used with respect to the Company or the
Trustee, means any vice president, whether or not designated by a number or a
word or words added before or after the title "vice president."

SECTION 1.2 COMPLIANCE CERTIFICATES AND OPINIONS.

                  Upon any application or request by the Company to the Trustee
to take any action under any provision of this Indenture, the Company shall
furnish to the Trustee such certificates and opinions as may be required under
the Trust Indenture Act. Each such certificate or opinion shall be given in the
form of an Officers' Certificate, if to be given by an officer of the Company,
or an Opinion of Counsel, if to be given by counsel, and shall comply with the
requirements of the Trust Indenture Act and any other requirements set forth in
this Indenture.

                  Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include,

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

                                       11
<PAGE>   19

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

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

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

SECTION 1.3 FORM OF DOCUMENTS DELIVERED TO TRUSTEE.

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

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

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

                                       12
<PAGE>   20

SECTION 1.4 ACTS OF HOLDERS; RECORD DATES.

                  Any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made 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 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 and, where it is hereby expressly required, to the
Company. The Trustee shall promptly deliver to the Company copies of all such
instrument or instruments delivered to the Trustee. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the "Act" of the Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture
and (subject to Section 6.1) conclusive in favor of the Trustee and the Company,
if made in the manner provided in this Section.

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

                  The ownership of Securities shall be proved by the Security
Register.

                  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 or
the Company in reliance thereon, whether or not notation of such action is made
upon such Security.

                  The Company may set any day as a record date for the purpose
of determining the Holders of Outstanding Securities of any series entitled to
give, make or take any request, demand, authorization, direction, vote, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders of Securities of such series, provided that the
Company may not set a record date for, and the provisions of this paragraph
shall not apply with respect to,

                                       13
<PAGE>   21

the giving or making of any notice, declaration, request or direction referred
to in the next paragraph. If any record date is set pursuant to this paragraph,
the Holders of Outstanding Securities of the relevant series on such record
date, and no other Holders, shall be entitled to take the relevant action,
whether or not such Holders remain Holders after such record date; provided that
no such action shall be effective hereunder unless taken on or prior to the
applicable Expiration Date by Holders of the requisite principal amount of
Outstanding Securities of such series on such record date. Nothing in this
paragraph shall be construed to prevent the Company from setting a new record
date for any action for which a record date has previously been set pursuant to
this paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be canceled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders
of the requisite principal amount of Outstanding Securities of the relevant
series on the date such action is taken. Promptly after any record date is set
pursuant to this paragraph, the Company, at its own expense, shall cause notice
of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Trustee in writing and to each Holder of
Securities of the relevant series in the manner set forth in Section 1.6.

                  The Trustee may set any day as a record date for the purpose
of determining the Holders of Outstanding Securities of any series entitled to
join in the giving or making of (i) any Notice of Default, (ii) any declaration
of acceleration referred to in Section 5.2, (iii) any request to institute
proceedings referred to in Section 5.7(2) or (iv) any direction referred to in
Section 5.12, in each case with respect to Securities of such series. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of such series on such record date, and no other Holders, shall be
entitled to join in such notice, declaration, request or direction, whether or
not such Holders remain Holders after such record date; provided that no such
action shall be effective hereunder unless taken on or prior to the applicable
Expiration Date by Holders of the requisite principal amount of Outstanding
Securities of such series on such record date. Nothing in this paragraph shall
be construed to prevent the Trustee from setting a new record date for any
action for which a record date has previously been set pursuant to this
paragraph (whereupon the record date previously set shall automatically and with
no action by any Person be canceled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders
of the requisite principal amount of Outstanding Securities of the relevant
series on the date such action is taken. Promptly after any record date is set
pursuant to this paragraph, the Trustee, at the Company's expense, shall cause
notice of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Company in writing and to each Holder of
Securities of the relevant series in the manner set forth in Section 1.6.

                                       14
<PAGE>   22

                  With respect to any record date set pursuant to this Section,
the party hereto which sets such record dates may designate any day as the
"Expiration Date" and from time to time may change the Expiration Date to any
earlier or later day; provided that no such change shall be effective unless
notice of the proposed new Expiration Date is given to the other party hereto in
writing, and to each Holder of Securities of the relevant series in the manner
set forth in Section 1.6, on or prior to the existing Expiration Date. If an
Expiration Date is not designated with respect to any record date set pursuant
to this Section, the party hereto which set such record date shall be deemed to
have initially designated the 180th day after such record date as the Expiration
Date with respect thereto, subject to its right to change the Expiration Date as
provided in this paragraph. Notwithstanding the foregoing, no Expiration Date
shall be later than the 180th day after the applicable record date.

                  Without limiting the foregoing, a Holder entitled hereunder to
take any action hereunder with regard to any particular Security may do so with
regard to all or any part of the principal amount of such Security or by one or
more duly appointed agents each of which may do so pursuant to such appointment
with regard to all or any part of such principal amount.

SECTION 1.5 NOTICES, ETC., TO TRUSTEE AND COMPANY.

                  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 any Holder or by the Company shall
         be sufficient for every purpose hereunder if made, given, furnished or
         filed in writing (or by facsimile transmissions, provided that oral
         confirmation of receipt shall have been received) to or with the
         Trustee at its Corporate Trust Office, Attention: Corporate Trust
         Department, or

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

                                       15
<PAGE>   23

SECTION 1.6 NOTICE TO HOLDERS; WAIVER.

                  Where this Indenture provides for notice to Holders of any
event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, or
delivered by hand or overnight courier to each Holder affected by such event, at
its address as it appears in the Security Register, not later than the latest
date (if any), and not earlier than the earliest date (if any), prescribed for
the giving of such notice. Neither the failure to mail or deliver by hand or
overnight courier any such notice, nor any defect in any such notice so mailed
or delivered by hand or overnight courier, to any particular Holder shall affect
the sufficiency of such notice with respect to other Holders. 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.

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

SECTION 1.7 CONFLICT WITH TRUST INDENTURE ACT.

                  If any provision hereof limits, qualifies or conflicts with a
provision of the Trust Indenture Act which is required under such Act to be a
part of and govern this Indenture, the latter provision shall control. If any
provision of this Indenture modifies or excludes any provision of the Trust
Indenture Act which may be so modified or excluded, the latter provision shall
be deemed to apply to this Indenture as so modified or to be excluded, as the
case may be.

SECTION 1.8 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 1.9 SUCCESSORS AND ASSIGNS.

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

                                       16
<PAGE>   24

SECTION 1.10 SEPARABILITY CLAUSE.

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

SECTION 1.11 BENEFITS OF INDENTURE.

                  Nothing in this Indenture or in the Securities, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder, the holders of Senior Indebtedness and the Holders, any
benefit or any legal or equitable right, remedy or claim under this Indenture.

SECTION 1.12 GOVERNING LAW.

                  THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING
EFFECT TO SUCH STATE'S CONFLICTS OF LAWS PRINCIPLES.

SECTION 1.13 LEGAL HOLIDAYS.

                  In any case where any Interest Payment Date, Redemption Date
or Stated Maturity of any Security or the last date on which a Holder has the
right to convert a Security at a particular conversion price shall not be a
Business Day at any Place of Payment, then (notwithstanding any other provision
of this Indenture or of the Securities (other than a provision of any Security
which specifically states that such provision shall apply in lieu of this
Section)) payment of interest or principal (and premium, if any) or, if
applicable to a particular series of Securities, conversion need not be made at
such Place of Payment on such date, but may be made on the next succeeding
Business Day at such Place of Payment with the same force and effect as if made
on the Interest Payment Date or Redemption Date, at the Stated Maturity or on
such last day for conversion, as the case may be.

SECTION 1.14 INDENTURE AND SECURITIES SOLELY CORPORATE OBLIGATIONS.

                  No recourse for the payment of the principal of or premium, if
any, or interest on any Security, or for any claim based thereon or otherwise in
respect thereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in this Indenture or in any supplemental indenture or
in any Security, or because of the creation of any indebtedness represented
thereby, shall be had against any incorporator, stockholder, employee, agent,
officer, or director or subsidiary, as such, past, present or future, of the
Company or of any successor corporation, either

                                       17
<PAGE>   25

directly or through the Company or any successor corporation, whether by virtue
of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly understood that all such
liability is hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issue of the
Securities.

SECTION 1.15 INDENTURE MAY BE EXECUTED IN COUNTERPARTS.

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

                                   ARTICLE II

                                 SECURITY FORMS

SECTION 2.1 FORMS GENERALLY.

                  The Securities of each series shall be in substantially the
form set forth in this Article, or in such other form as shall be established by
or pursuant to a Board Resolution or in one or more indentures supplemental
hereto, in each case with such appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this Indenture, and may
have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any
securities exchange or Depositary therefor or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their
execution thereof. If the form of Securities of any series is established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of
such action shall be certified by the Secretary or an Assistant Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the Company
Order contemplated by Section 3.3 for the authentication and delivery of such
Securities. Any such Board Resolution or record of such action shall have
attached thereto a true and correct copy of the form of Security referred to
therein approved by or pursuant to such Board Resolution.

SECTION 2.2 FORM OF LEGEND FOR GLOBAL SECURITIES.

                  Unless otherwise specified as contemplated by Section 3.1 for
the Securities evidenced thereby, every Global Security authenticated and
delivered hereunder shall bear a legend in substantially the following form:

                                       18
<PAGE>   26

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

SECTION 2.3 FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION.

                  The Trustee's certificates of authentication shall be in
substantially the following form:

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

                                    [                     ],
                                     ---------------------
                                      as Trustee

                                    By:
                                       ---------------------
                                         Authorized Officer

SECTION 2.4 FORM OF CONVERSION NOTICE.

                  Conversion notices shall be in substantially the following
form:

To Willbros Group, Inc.:

                  The undersigned owner of this Security hereby irrevocably
exercises the option to convert this Security, or portion hereof (which is
$1,000 or an integral multiple thereof) below designated, into shares of Common
Stock of the Company in accordance with the terms of the Indenture referred to
in this Security, and directs that the shares issuable and deliverable upon the
conversion, together with any check in payment for fractional shares and any
Securities representing any unconverted principal amount hereof, be issued and
delivered to the registered holder hereof unless a different name has been
indicated below. If this Notice is being delivered on a date after the close of
business on a Regular Record Date and prior to the opening of business on the
related Interest Payment Date (unless this Security or the portion

                                       19
<PAGE>   27

thereof being converted has been called for redemption on a Redemption Date
during the period beginning at the close of business on a Regular Record Date
and ending at the opening of business on the first Business Day after the next
succeeding Interest Payment Date, or if such Interest Payment Date is not a
Business Day, the second such Business Day), this Notice is accompanied by
payment, in funds acceptable to the Company, of an amount equal to the interest
payable on such Interest Payment Date of the principal of this Security to be
converted. If shares are to be issued in the name of a person other than the
undersigned, the undersigned will pay all transfer taxes payable with respect
hereto. Any amount required to be paid by the undersigned on account of interest
accompanies this Security.

              Principal Amount to be Converted
         (in an integral multiple of $1,000, if less than all)

U.S. $
      ---------
Dated:
      -------------
                           Signature(s) must be guaranteed by an eligible
                           guarantor institution (banks, stock brokers, savings
                           and loan associations and credit unions with
                           membership in an approved signature guarantee
                           medallion program) pursuant to Securities and
                           Exchange Commission Rule 17Ad-15.

                                     -----------------------------------
                                     Signature Guaranty

         Fill in for registration of shares of Common Stock and Security if to
be issued otherwise than to the registered Holder.

-------------------------           -------------------------------------
(Name)                              Social Security or Other Taxpayer
                                    Identification Number

-------------------------
(Address)

-----------------------------
Please print Name and Address
(including zip code number)

                                       20
<PAGE>   28

[The above conversion notice is to be modified, as appropriate, for conversion
into other securities or property of the Company.]

                                   ARTICLE III

                                 THE SECURITIES

SECTION 3.1 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 or pursuant to a Board Resolution and, subject to
Section 3.3, set forth, or determined in the manner provided, in an Officers'
Certificate, or established in one or more indentures supplemental hereto, prior
to the issuance of Securities of any series,

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

                           (2) any limit upon the aggregate principal amount of
         the Securities of the series which may be authenticated and delivered
         under this Indenture (except for Securities authenticated and delivered
         upon registration of transfer of, or in exchange for, or in lieu of,
         other Securities of the series pursuant to Section 3.4, 3.5, 3.6, 9.6
         or 11.7 and except for any Securities which, pursuant to Section 3.3,
         are deemed never to have been authenticated and delivered hereunder);

                           (3) the Person to whom any interest on a 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;

                           (4) the date or dates on which the principal of any
         Securities of the series is payable;

                           (5) the rate or rates at which any Securities of the
         series shall bear interest, if any, the date or dates from which any
         such

                                       21
<PAGE>   29

         interest shall accrue, the Interest Payment Dates on which any such
         interest shall be payable and the Regular Record Date for any such
         interest payable on any Interest Payment Date;

                           (6) the place or places where the principal of and
         any premium and interest on any Securities of the series shall be
         payable;

                           (7) the period or periods within which, the price or
         prices at which and the terms and conditions upon which any Securities
         of the series may be redeemed, in whole or in part, at the option of
         the Company and, if other than by a Board Resolution, the manner in
         which any election by the Company to redeem the Securities shall be
         evidenced;

                           (8) the obligation, if any, of the Company to redeem
         or purchase any Securities of the series pursuant to any sinking fund
         or analogous provisions or at the option of the Holder thereof and the
         period or periods within which, the price or prices at which and the
         terms and conditions upon which any Securities of the series shall be
         redeemed or purchased, in 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 Securities of
         the series shall be issuable;

                           (10) if the amount of principal of or any premium or
         interest on any Securities of the series may be determined with
         reference to an index or pursuant to a formula, the manner in which
         such amounts shall be determined;

                           (11) if other than the currency of the United States
         of America, the currency, currencies or currency units in which the
         principal of or any premium or interest on any Securities of the series
         shall be payable and the manner of determining the equivalent thereof
         in the currency of the United States of America for any purpose,
         including for purposes of the definition of "Outstanding" in Section
         1.1;

                           (12) if the principal of or any premium or interest
         on any Securities of the series is to be payable, at the election of
         the

                                       22
<PAGE>   30

         Company or the Holder thereof, in one or more currencies or currency
         units other than that or those in which such Securities are stated to
         be payable, the currency, currencies or currency units in which the
         principal of or any premium or interest on such Securities as to which
         such election is made shall be payable, the periods within which and
         the terms and conditions upon which such election is to be made and the
         amount so payable (or the manner in which such amount shall be
         determined);

                           (13) if other than the entire principal amount
         thereof, the portion of the principal amount of any Securities of the
         series which shall be payable upon declaration of acceleration of the
         Maturity thereof pursuant to Section 5.2;

                           (14) if the principal amount payable at the Stated
         Maturity of any Securities of the series will not be determinable as of
         any one or more dates prior to the Stated Maturity, the amount which
         shall be deemed to be the principal amount of such Securities as of any
         such date for any purpose thereunder or hereunder, including the
         principal amount thereof which shall be due and payable upon any
         Maturity other than the Stated Maturity or which shall be deemed to be
         Outstanding as of any date prior to the Stated Maturity (or, in any
         such case, the manner in which such amount deemed to be the principal
         amount shall be determined);

                           (15) if applicable, that the Securities of the
         series, in whole or any specified part, shall be defeasible pursuant to
         Section 13.2 or Section 13.3 or both such Sections and, if other than
         by a Board Resolution, the manner in which any election by the Company
         to defease such Securities shall be evidenced;

                           (16) if applicable, the terms of any right to convert
         Securities of the series into shares of Common Stock of the Company or
         other securities or property;

                           (17) if applicable, that any Securities of the series
         shall be issuable in whole or in part in the form of one or more Global
         Securities and, in such case, the respective Depositaries for such
         Global Securities, the form of any legend or legends which shall be
         borne by any such Global Security in addition to or in lieu of that set
         forth in Section 2.2 and any circumstances in addition to or in lieu of
         those set forth in Clause (2) of the last paragraph of Section 3.5 in

                                       23
<PAGE>   31

         which any such Global Security may be exchanged in whole or in part for
         Securities registered, and any transfer of such Global Security in
         whole or in part may be registered, in the name or names of Persons
         other than the Depositary for such Global Security or a nominee
         thereof;

                           (18) whether all of the provisions of this Indenture
         relating to the subordination of the Securities (including the
         provisions of Article 15), or different subordination provisions,
         including a different definition of "Senior Indebtedness" or
         "Designated Senior Indebtedness," will apply to Securities of the
         series;

                           (19) any addition to or change in the Events of
         Default which applies to any Securities of the series and any change in
         the right of the Trustee or the requisite Holders of such Securities to
         declare the principal amount thereof due and payable pursuant to
         Section 5.2;

                           (20) any addition to or change in the covenants set
         forth in Article 10 which applies to Securities of the series; and

                           (21) any other terms of the series (which terms shall
         not be inconsistent with the provisions of this Indenture, except as
         permitted by Section 9.1(5)).

                  All Securities of any one series shall be substantially
identical except as to denomination and except as may otherwise be provided in
or pursuant to the Board Resolution referred to above and (subject to Section
3.3) set forth, or determined in the manner provided, in the Officers'
Certificate referred to above or in any such indenture supplemental hereto.

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

                  The Securities shall be subordinated in right of payment to
Senior Indebtedness as provided in Article 15.

                                       24
<PAGE>   32

SECTION 3.2 DENOMINATIONS.

                  The Securities of each series shall be issuable only in
registered form without coupons and only in such denominations as shall be
specified as contemplated by Section 3.1. In the absence of any such specified
denomination with respect to the Securities of any series, the Securities of
such series shall be issuable in denominations of $1,000 and any integral
multiple thereof.

SECTION 3.3 EXECUTION, AUTHENTICATION, DELIVERY AND DATING.

                  The Securities shall be executed on behalf of the Company by
its Chairman of the Board, its Chief Executive Officer, its principal financial
officer, its President or one of its Vice Presidents, attested by its Treasurer,
Secretary or one of its Assistant Treasurers or Assistant Secretaries. The
signature of any of these officers on the Securities may be manual or facsimile.

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

                  At any time and from time to time after the execution and
delivery of this Indenture, the Company may deliver Securities of any series
executed by the Company to the Trustee for authentication, together with a
Company Order for the authentication and delivery of such Securities, and the
Trustee in accordance with the Company Order shall authenticate and deliver such
Securities. If the form or terms of the Securities of the series have been
established by or pursuant to one or more Board Resolutions as permitted by
Sections 2.1 and 3.1, in authenticating such Securities, and accepting the
additional responsibilities under this Indenture in relation to such Securities,
the Trustee shall be entitled to receive, and (subject to Section 6.1) shall be
fully protected in relying upon, a copy of such Board Resolution, the Officers'
Certificate setting forth the terms of the series and an Opinion of Counsel,
with such Opinion of Counsel stating,

                           (1) if the form of such Securities has been
         established by or pursuant to Board Resolution as permitted by Section
         2.1, that such form has been established in conformity with the
         provisions of this Indenture;

                           (2) if the terms of such Securities have been
         established by or pursuant to Board Resolution as permitted by

                                       25
<PAGE>   33

         Section 3.1, that such terms have been established in conformity with
         the provisions of this Indenture; and

                          (3) that such Securities, when authenticated and
         delivered by the Trustee and issued by the Company in the manner and
         subject to any conditions specified in such Opinion of Counsel, will
         constitute valid and legally binding obligations of the Company
         enforceable in accordance with their terms, subject to bankruptcy,
         insolvency, fraudulent transfer, reorganization, moratorium and similar
         laws of general applicability relating to or affecting creditors'
         rights and to general equity principles.

                  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 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 3.1 and of the
preceding paragraph, if all Securities of a series are not to be originally
issued at one time, it shall not be necessary to deliver the Officers'
Certificate otherwise required pursuant to Section 3.1 or the Company Order and
Opinion of Counsel otherwise required pursuant to such preceding paragraph at or
prior to the authentication of each Security of such series if such documents
are delivered at or prior to the authentication upon original issuance of the
first Security of such series to be issued.

                  Each Security shall be dated the date of its authentication.

                  No Security shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose unless there appears on such
Security a certificate of authentication substantially in the form provided for
herein executed by the Trustee by manual signature, and such certificate upon
any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder. Notwithstanding
the foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall
deliver such Security to the Trustee for cancellation as provided in Section
3.9, 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.

                  Neither the Company nor the Trustee shall have any
responsibility for any defect in the CUSIP number that appears on any Security,
check, advice of

                                       26
<PAGE>   34

payment or redemption notice, and any such document may contain a statement to
the effect that CUSIP numbers have been assigned by an independent service for
convenience of reference and that neither the Company nor the Trustee shall be
liable for any inaccuracy in such numbers.

SECTION 3.4 TEMPORARY SECURITIES.

                  Pending the preparation of definitive Securities of any
series, the Company may execute, and upon Company 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 and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
evidenced by their execution of such Securities.

                  If temporary Securities of any series are issued, the Company
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 Company 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, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor one or more
definitive Securities of the same series, of any authorized denominations and of
like tenor and aggregate principal amount. 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 and tenor.

SECTION 3.5 REGISTRATION; REGISTRATION OF TRANSFER AND EXCHANGE.

                  The Company shall cause to be kept at the Corporate Trust
Office of the Trustee a register (the register maintained in such office and in
any other office or agency of the Company in a Place of Payment being herein
sometimes collectively referred to as the "Security Register") in which, subject
to such reasonable regulations as it may prescribe, the Company shall provide
for the registration of Securities and of transfers of Securities. The Trustee
is hereby appointed "Security Registrar" for the purpose of registering
Securities and transfers of Securities as herein provided.

                                       27
<PAGE>   35

                  Upon surrender for registration of transfer of any Security of
a series at the office or agency of the Company in a Place of Payment for that
series, the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Securities of the same series, of any authorized denominations and of like
tenor and aggregate principal amount.

                  At the option of the Holder, Securities of any series may be
exchanged for other Securities of the same series, of any authorized
denominations and of like tenor and aggregate principal amount, upon surrender
of the Securities to be exchanged at such office or agency. Whenever any
Securities are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Securities which the Holder making
the exchange is entitled to receive.

                  All Securities issued upon any registration of transfer or
exchange of Securities shall be the valid obligations of the Company, 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 Security presented or surrendered for registration of
transfer or for exchange shall (if so required by the Company or the Trustee) be
duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed, by the
Holder thereof or its attorney duly authorized in writing.

                  No service charge shall be made for any registration of
transfer or exchange of Securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Securities, other
than exchanges pursuant to Section 3.4, 9.6 or 11.7 not involving any transfer.

                  If the Securities of any series (or of any series and
specified tenor) are to be redeemed in part, the Company shall not be required
(A) to issue, register the transfer of or exchange any Securities of that series
(or of that series and specified tenor, as the case may be) during a period
beginning at the opening of business 15 days before the day of the mailing of a
notice of redemption of any such Securities selected for redemption under
Section 11.3 and ending at the close of business on the day of such mailing, or
(B) to register the transfer of or exchange any Security so selected for
redemption in whole or in part, except the unredeemed portion of any Security
being redeemed in part.

                                       28
<PAGE>   36

                  The provisions of Clauses (1), (2), (3) and (4) below shall
apply only to Global Securities:

                           (1) Each Global Security authenticated under this
         Indenture shall be registered in the name of the Depositary designated
         for such Global Security or a nominee thereof and delivered to such
         Depositary or a nominee thereof or custodian therefor, and each such
         Global Security shall constitute a single Security for all purposes of
         this Indenture.

                           (2) Notwithstanding any other provision in this
         Indenture, no Global Security may be exchanged in whole or in part for
         Securities registered, and no transfer of a Global Security in whole or
         in part may be registered, in the name of any Person other than the
         Depositary for such Global Security or a nominee thereof unless (A)
         such Depositary (i) has notified the Company that it is unwilling or
         unable to continue as Depositary for such Global Security or (ii) has
         ceased to be a clearing agency registered under the Exchange Act, (B)
         there shall have occurred and be continuing an Event of Default with
         respect to such Global Security or (C) there shall exist such
         circumstances, if any, in addition to or in lieu of the foregoing as
         have been specified for this purpose as contemplated by Section 3.1.

                           (3) Subject to Clause (2) above, any exchange of a
         Global Security for other Securities may be made in whole or in part,
         and all Securities issued in exchange for a Global Security or any
         portion thereof shall be registered in such names as the Depositary for
         such Global Security shall direct.

                           (4) Every Security authenticated and delivered upon
         registration of transfer of, or in exchange for or in lieu of, a Global
         Security or any portion thereof, whether pursuant to this Section,
         Section 3.4, 3.6, 9.6 or 11.7 or otherwise, shall be authenticated and
         delivered in the form of, and shall be, a Global Security, unless such
         Security is registered in the name of a Person other than the
         Depositary for such Global Security or a nominee thereof.

SECTION 3.6 MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES.

                  If any mutilated Security is surrendered to the Trustee, the
Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a

                                       29
<PAGE>   37

new Security of the same series and of like tenor and principal amount and
bearing a number not contemporaneously outstanding.

                  If there shall be delivered to the Company and the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any Security
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 Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of the same series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding.

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

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

                  Every new Security of any series issued pursuant to this
Section in lieu of any destroyed, lost or stolen Security shall constitute an
original additional contractual obligation of the Company, whether or not the
destroyed, lost or stolen Security 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 duly issued
hereunder.

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

SECTION 3.7 PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.

                  Except as otherwise provided as contemplated by Section 3.1
with respect to any series of Securities, interest on any Security which is
payable, and is punctually paid or duly provided for, on any Interest Payment
Date shall be paid to the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest.

                  Any interest on any Security of any series which is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date
(herein called

                                       30
<PAGE>   38

"Defaulted Interest") shall forthwith cease to be payable to the Holder on the
relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company, at its election in each case, as
provided in Clause (1) or (2) below:

                           (1) The Company may elect to make payment of any
         Defaulted Interest to the Persons in whose names the 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
         Company shall notify the Trustee in writing of the amount of Defaulted
         Interest proposed to be paid on each Security of such series and the
         date of the proposed payment, and at the same time the Company shall
         deposit with the Trustee an amount of money equal to the aggregate
         amount proposed to be paid in respect of such Defaulted Interest or
         shall make arrangements satisfactory to the Trustee for such deposit
         prior to the date of the proposed payment, such money when deposited to
         be held in trust for the benefit of the Persons entitled to such
         Defaulted Interest as in this Clause provided. Thereupon the Trustee
         shall fix a Special Record Date for the payment of such Defaulted
         Interest which shall be not more than 15 days and not less than 10 days
         prior to the date of the proposed payment and not less than 10 days
         after the receipt by the Trustee of the notice of the proposed payment.
         The Trustee shall promptly notify the Company of such Special Record
         Date and, in the name and at the expense of the Company, shall cause
         notice of the proposed payment of such Defaulted Interest and the
         Special Record Date therefor to be given to each Holder of Securities
         of such series in the manner set forth in Section 1.6, not less than 10
         days prior to such Special Record Date. Notice of the proposed payment
         of such Defaulted Interest and the Special Record Date therefor having
         been so mailed, such Defaulted Interest shall be paid to the Persons in
         whose names the 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).

                           (2) The Company may make payment of any Defaulted
         Interest on the 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 Company to the Trustee
         of the proposed payment pursuant to this

                                       31
<PAGE>   39

         Clause, such manner of payment as shall be deemed practicable by the
         Trustee.

                  Subject to the foregoing provisions of this Section, 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.

                  Subject to the provisions of Section 14.2, in the case of any
Security (or any part thereof) which is converted after any Regular Record Date
and on or prior to the next succeeding Interest Payment Date (other than any
Security the principal of (or premium, if any, on) which shall become due and
payable, whether at Stated Maturity or by declaration of acceleration prior to
such Interest Payment Date), interest whose Stated Maturity is on such Interest
Payment Date shall be payable on such Interest Payment Date notwithstanding such
conversion and such interest (whether or not punctually paid or duly provided
for) shall be paid to the Person in whose name that Security (or any one or more
Predecessor Securities) is registered at the close of business on such Regular
Record Date. Except as otherwise expressly provided in the immediately preceding
sentence or in Section 14.2, in the case of any Security (or any part thereof)
which is converted, interest whose Stated Maturity is after the date of
conversion of such Security (or such part thereof) shall not be payable.

SECTION 3.8 PERSONS DEEMED OWNERS.

                  Prior to due presentment of a Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name such Security is registered as the owner of
such Security for the purpose of receiving payment of principal of and any
premium and (subject to Section 3.7) any interest on such Security and for all
other purposes whatsoever, whether or not such Security be overdue, and neither
the Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

SECTION 3.9   CANCELLATION.

                  All Securities surrendered for payment, redemption,
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 shall be promptly canceled by it. The Company may at any time
deliver to the Trustee for cancellation any Securities previously authenticated
and delivered hereunder which the Company 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

                                       32
<PAGE>   40

Securities previously authenticated hereunder which the Company has not issued
and sold, and all Securities so delivered shall be promptly canceled by the
Trustee. 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. All canceled Securities held by the Trustee shall be disposed
of as directed by a Company Order.

SECTION 3.10 COMPUTATION OF INTEREST.

                  Except as otherwise specified as contemplated by Section 3.1
for Securities of any series, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

SECTION 4.1 SATISFACTION AND DISCHARGE OF INDENTURE.

                  This Indenture shall upon Company Request cease to be of
further effect (except as to any surviving rights of registration of transfer or
exchange of Securities herein expressly provided for), and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

                           (1) either

                                    (A) all Securities theretofore authenticated
                  and delivered (other than (i) Securities which have been
                  destroyed, lost or stolen and which have been replaced or paid
                  as provided in Section 3.6 and (ii) Securities for whose
                  payment money has theretofore been deposited in trust or
                  segregated and held in trust by the Trustee or the Company and
                  thereafter repaid to the Company or discharged from such
                  trust, as provided in Section 10.3) have been delivered to the
                  Trustee for cancellation; or

                                    (B) all such Securities not theretofore
                  delivered to the Trustee for cancellation

                                             (i) have become due and payable, or

                                       33
<PAGE>   41

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

                                             (iii) 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 Company, and
                  the Company, in the case of (i), (ii) or (iii) above, has
                  deposited or caused to be deposited with the Trustee as trust
                  funds in trust for the purpose of making the following
                  payments, money in an amount sufficient to pay and discharge
                  the entire indebtedness on such Securities not theretofore
                  delivered to the Trustee for cancellation, for principal and
                  any premium and interest 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 Company has paid or caused to be paid all
         other sums payable hereunder by the Company; and

                           (3) the Company 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 have been complied with.

                  Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 6.7, the
obligations of the Trustee to any Authenticating Agent under Section 6.14 and,
if money shall have been deposited with the Trustee pursuant to subclause (B) of
Clause (1) of this Section, the obligations of the Trustee under Section 4.2 and
the last paragraph of Section 10.3 shall survive.

SECTION 4.2 APPLICATION OF TRUST MONEY.

                  Subject to the provisions of the last paragraph of Section
10.3, all money deposited with the Trustee pursuant to Section 4.1 shall be held
in trust and applied by it, in accordance with the provisions of the Securities
and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium and
interest for whose payment such money has been deposited with the Trustee.

                                       34
<PAGE>   42

                                    ARTICLE V

                                    REMEDIES

SECTION 5.1 EVENTS OF DEFAULT.

                  "Event of Default," wherever used herein with respect to
Securities of any series, means any one of the following events (whatever the
reason for such Event of Default and whether it shall be occasioned by the
provisions of Article 15 or 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):

                           (1) default in the payment of any interest upon any
         Security of that series when it 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 any
         premium on any Security of that series at its Maturity; or

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

                           (4) default in the performance, or breach, of any
         covenant or warranty of the Company in this Indenture (other than a
         covenant or warranty a default in whose performance or whose breach is
         elsewhere in this Section specifically dealt with or which has
         expressly been included in this Indenture solely for the benefit of
         series of Securities other than that series), 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 Company by the Trustee or to
         the Company 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) the entry by a court having jurisdiction in the
         premises of a decree or order for relief in respect of the Company in
         an involuntary case or proceeding under any applicable Federal or State
         bankruptcy, insolvency, reorganization or other similar law or (B) a
         decree or order adjudging the company a bankrupt or insolvent, or
         approving as properly filed a petition seeking reorganization,

                                       35
<PAGE>   43

         arrangement, adjustment or composition of or in respect of the Company
         under any applicable Federal or State law, or appointing a custodian,
         receiver, liquidator, assignee, trustee, equestrator or other similar
         official of the Company or of any substantial part of its property, or
         ordering the winding up or liquidation of its affairs, and the
         continuance of any such decree or order for relief or any such other
         decree or order unstayed and in effect for a period of 90 consecutive
         days; or

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

                           (7) any other Event of Default provided with respect
         to Securities of that series.

SECTION 5.2 ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.

                  If an Event of Default (other than an Event of Default
specified in Section 5.1(5) or 5.1(6)) with respect to Securities of any series
at the time Outstanding occurs and is continuing, then 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 amount of all
the Securities of that series (or, if any Securities of that series are Original
Issue Discount Securities, such portion of the principal amount of such
Securities as may be specified by the terms thereof) to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified
amount)

                                       36
<PAGE>   44

shall become immediately due and payable. If an Event of Default specified in
Section 5.1(5) or 5.1(6) with respect to Securities of any series at the time
Outstanding occurs, the principal amount of all the Securities of that series
(or, if any Securities of that series are Original Issue Discount Securities,
such portion of the principal amount of such Securities as may be specified by
the terms thereof) shall automatically, and without any declaration or other
action on the part of the Trustee or any Holder, become immediately due and
payable. Any payments by the Company on the Securities following any such
acceleration will be subject to the subordination provisions of Article 15 to
the extent provided therein.

                  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 a majority in principal
amount of the Outstanding Securities of that series, by written notice to the
Company and the Trustee, may rescind and annul such declaration and its
consequences if

                           (1) the Company has paid or deposited with the
         Trustee a sum sufficient to pay

                                    (A) all overdue interest on all Securities
                  of that series,

                                    (B) the principal of (and premium, if any,
                  on) any Securities of that series which have become due
                  otherwise than by such declaration of acceleration and any
                  interest thereon at the rate or rates prescribed therefor in
                  such Securities,

                                    (C) to the extent that payment of such
                  interest is lawful, interest upon overdue interest at the rate
                  or rates prescribed therefor 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 non-payment of the principal of
         Securities of that series which have become due solely by such
         declaration of acceleration, have been cured or waived as provided in
         Section 5.13. No

                                       37
<PAGE>   45

         such rescission shall affect any subsequent default or impair any right
         consequent thereon.

SECTION 5.3   COLLECTION OF INDEBTEDNESS AND SUITS FOR
                    ENFORCEMENT BY TRUSTEE.

                  The Company covenants that if

                           (1) default is made in the payment of any interest on
         any Security when such interest 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 at the Maturity thereof, the
         Company will, upon demand of the Trustee, pay to it, for the benefit of
         the Holders of such Securities, the whole amount then due and payable
         on such Securities for principal and any premium and interest and, to
         the extent that payment of such interest shall be legally enforceable,
         interest on any overdue principal and premium and on any overdue
         interest, at the rate or rates prescribed therefor 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 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 by such appropriate judicial proceedings as the Trustee shall deem
most effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy.

SECTION 5.4 TRUSTEE MAY FILE PROOFS OF CLAIM.

                  In case of any judicial proceeding relative to the Company (or
any other obligor upon the Securities), its property or its creditors, the
Trustee shall be entitled and empowered, by intervention in such proceeding or
otherwise, to take any and all actions authorized under the Trust Indenture Act
in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and
receive any moneys or other property payable or deliverable on any such claims
and to distribute the same; and any custodian, receiver, assignee,

                                       38
<PAGE>   46

trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 6.7.

                  No provision of this Indenture shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Securities or the rights of any Holder thereof or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding;
provided, however, that the Trustee may, on behalf of the Holders, vote for the
election of a trustee in bankruptcy or similar official and be a member of a
creditors' or other similar committee.

SECTION 5.5 TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES.

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

SECTION 5.6   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 any premium or interest, upon presentation of the Securities and the notation
thereon of the payment if only partially paid and upon surrender thereof if
fully paid:

                  FIRST: To the payment of all amounts due the Trustee under
Section 6.7;

                  SECOND: Subject to Article 15, to the payment of the amounts
then due and unpaid for principal of and any premium, if any, and interest on
the Securities in respect of which or for the benefit of which such money has
been collected, ratably,

                                       39
<PAGE>   47

without preference or priority of any kind, according to the amounts due and
payable on such Securities for principal and any premium, if any, and interest,
respectively; and

                  THIRD: The balance, if any, to the Company or any other Person
or Persons entitled thereto.

SECTION 5.7 LIMITATION ON SUITS.

                  No Holder of any Security of any series 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 reasonable indemnity 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 to affect, disturb
         or prejudice the rights of any other of such Holders, or to obtain or
         to seek to obtain priority or preference over any other of such Holders
         or to enforce any right under this Indenture, except in the manner
         herein provided and for the equal and ratable benefit of all of such
         Holders.

                                       40
<PAGE>   48

SECTION 5.8   UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE
              PRINCIPAL, PREMIUM AND INTEREST AND TO CONVERT.

                  Notwithstanding any other provision in this Indenture, the
Holder of any Security shall have the right, which is absolute and
unconditional, to receive payment of the principal of and any premium and
(subject to Section 3.7) interest on such Security on the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on the
Redemption Date), to convert such Securities in accordance with Article 14 to
the extent that such right to convert is applicable to such Security 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 5.9 RESTORATION OF RIGHTS AND REMEDIES.

                  If the Trustee or any Holder has instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding 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, subject to any
determination in such proceeding, the Company, the Trustee and the Holders shall
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 5.10 RIGHTS AND REMEDIES CUMULATIVE.

                  Except as otherwise provided with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities in the last
paragraph of Section 3.6, no right or remedy herein conferred upon or reserved
to the Trustee or to the Holders is intended to be exclusive of any other right
or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

SECTION 5.11 DELAY OR OMISSION NOT WAIVER.

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

                                       41
<PAGE>   49

by the Trustee (subject to the limitations contained in this Indenture) or by
the Holders, as the case may be.

SECTION 5.12 CONTROL BY HOLDERS.

                  The Holders of 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, provided that:

                           (1) such direction shall not be in conflict with any
         rule of law or with this Indenture and the Trustee shall not have
         determined that the action so directed would be unjustly prejudicial to
         Holders of Securities of that series, or any other series, not taking
         part in such direction; and

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

SECTION 5.13   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 waive any past default hereunder with respect to such
series and its consequences, except:

                           (1) a default in the payment of the principal of or
         any premium or interest on any Security of such series; or

                           (2) to the extent such right is applicable to such
         Security, a failure by the Company on request to convert any Security
         into Common Stock; or

                           (3) in respect of a covenant or provision hereof
         which under Article 9 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

                                       42
<PAGE>   50

Indenture; but no such waiver shall extend to any subsequent or other default or
impair any right consequent thereon.

SECTION 5.14 UNDERTAKING FOR COSTS.

                  In any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, a court may require any party litigant in
such suit to file an undertaking to pay the costs of such suit, and may assess
costs against any such party litigant, in the manner and to the extent provided
in the Trust Indenture Act; provided that neither this Section nor the Trust
Indenture Act shall be deemed to authorize any court to require such an
undertaking or to make such an assessment in any suit instituted by the Company
or in any suit for the enforcement of the right to convert any Security in
accordance with Article 14.

SECTION 5.15 WAIVER OF USURY, STAY OR EXTENSION LAWS.

                  The Company covenants (to the extent that it may lawfully do
so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any 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 Company (to
the extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law and covenants that it will not hinder, delay or impede
the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law had been enacted.

                                   ARTICLE VI

                                   THE TRUSTEE

SECTION 6.1 CERTAIN DUTIES AND RESPONSIBILITIES.

                  The duties and responsibilities of the Trustee shall be as
provided by the Trust Indenture Act. Notwithstanding the foregoing, no provision
of this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.
Whether or not therein expressly so provided, every provision of this Indenture
relating

                                       43
<PAGE>   51

to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Section.

SECTION 6.2 NOTICE OF DEFAULTS.

                  If a default occurs hereunder with respect to Securities of
any series, the Trustee shall give the Holders of Securities of such series
notice of such default as and to the extent provided by the Trust Indenture Act;
provided, however, that in the case of any default of the character specified in
Section 5.1(4) with respect to Securities of such series, no such notice to
Holders shall be given until at least 30 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 Securities of such series.

SECTION 6.3 CERTAIN RIGHTS OF TRUSTEE.

                  Subject to the provisions of Section 6.1:

                           (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, other evidence of indebtedness
         or other paper or document believed by it to be genuine and to have
         been signed or presented by the proper party or parties;

                           (2) any request or direction of the Company mentioned
         herein shall be sufficiently evidenced by a Company Request or Company
         Order, and any resolution of the Board of Directors shall 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) is entitled to and 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;

                                       44
<PAGE>   52

                           (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 pursuant to this
         Indenture, unless such Holders shall have offered to the Trustee
         reasonable security or indemnity against the costs, expenses and
         liabilities which might be incurred by it in compliance with such
         request or direction;

                           (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, other evidence of
         indebtedness or other paper or document, but the Trustee, in its
         discretion, may make such further inquiry or investigation into such
         facts or matters as it may see fit, and, if the Trustee shall determine
         to make such further inquiry or investigation, it shall be entitled to
         examine the books, records and premises of the Company, personally or
         by agent or attorney; and

                           (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 attorneys and the Trustee shall not be responsible
         for any misconduct or negligence on the part of any agent or attorney
         appointed with due care by it hereunder.

SECTION 6.4 NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.

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

SECTION 6.5 MAY HOLD SECURITIES AND ACT AS TRUSTEE UNDER OTHER INDENTURES.

                  The Trustee, any Authenticating Agent, any Paying Agent, any
Security Registrar or any other agent of the Company, in its individual or any
other capacity, may become the owner or pledgee of Securities and, subject to
Sections 6.8 and 6.13, may otherwise deal with the Company with the same rights
it would have if it were not Trustee, Authenticating Agent, Paying Agent,
Security Registrar or such other agent.

                                       45
<PAGE>   53

                  Subject to the limitations imposed by the Trust Indenture Act,
nothing in this Indenture shall prohibit the Trustee from becoming and acting as
trustee under other indentures under which other securities, or certificates of
interest of participation in other securities, of the Company are outstanding in
the same manner as if it were not Trustee hereunder.

SECTION 6.6 MONEY HELD IN TRUST.

                  Money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee
shall be under no liability for interest on any money received by it hereunder
except as otherwise agreed with the Company.

SECTION 6.7   COMPENSATION AND REIMBURSEMENT.

                  The Company agrees:

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

                           (2) except as otherwise expressly provided herein, to
         reimburse the 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 the Trustee for, and to hold it
         harmless against, any loss, liability or expense incurred without
         negligence or bad faith on its 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 of
         its powers or duties hereunder.

SECTION 6.8 CONFLICTING INTERESTS.

                  If the Trustee has or shall acquire a conflicting interest
within the meaning of the Trust Indenture Act, the Trustee shall either
eliminate such interest or

                                       46
<PAGE>   54

resign, to the extent and in the manner provided by, and subject to the
provisions of, the Trust Indenture Act and this Indenture. To the extent
permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under this Indenture with respect to
Securities of more than one series.

SECTION 6.9 CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.

                  There shall at all times be one (and only one) Trustee
hereunder with respect to the Securities of each series, which may be Trustee
hereunder for Securities of one or more other series. Each Trustee shall be a
Person that is eligible pursuant to the Trust Indenture Act to act as such and
has (or if the Trustee is a member of a bank holding company system, its bank
holding company has) a combined capital and surplus of at least $50,000,000. If
any such Person or bank holding company publishes reports of condition at least
annually, pursuant to law or to the requirements of its supervising or examining
authority, then for the purposes of this Section and to the extent permitted by
the Trust Indenture Act, the combined capital and surplus of such Person or bank
holding company 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 with respect to the Securities of any series 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 6.10 RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

                  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 6.11.

                  The Trustee may resign at any time with respect to the
Securities of one or more series by giving written notice thereof to the
Company. If the instrument of acceptance by a successor Trustee required by
Section 6.11 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

                  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 Company.

                                       47
<PAGE>   55

                  If at any time:

                           (1) the Trustee shall fail to comply with Section 6.8
         after written request therefor by the Company or by any Holder 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 6.9 and shall fail to resign after written request therefor by
         the Company or by any such Holder, or

                           (3) the Trustee shall become incapable of acting or
         shall be adjudged a bankrupt or insolvent or a receiver of the Trustee
         or of its property shall be appointed or any public officer shall take
         charge or control of the Trustee or of its property or affairs for the
         purpose of rehabilitation, conservation or liquidation, then, in any
         such case, (A) the Company by a Board Resolution may remove the Trustee
         with respect to all Securities, or (B) subject to Section 5.14, any
         Holder who has been a bona fide Holder of a Security for at least six
         months may, on behalf of himself and all others similarly situated,
         petition any court of competent jurisdiction for the removal of the
         Trustee with respect to all Securities and the appointment of a
         successor Trustee or Trustees.

                  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 Company, by 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 6.11. 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 Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such appointment in accordance with the applicable requirements of Section
6.11, become the successor Trustee with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the Company. If
no successor Trustee with respect to the Securities of any series shall have
been so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 6.11, the retiring Trustee may petition, or any
Holder 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 the Securities of such series.

                                       48
<PAGE>   56

                  The Company 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
to all Holders of Securities of such series in the manner provided in Section
1.6. 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 6.11 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

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

                  In case of the appointment hereunder of a successor Trustee
with respect to the Securities of one or more (but not all) series, the Company,
the retiring Trustee and each successor Trustee with respect to the Securities
of one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates, (2)
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 Trustees co-trustees of the
same trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such supplemental
indenture the resignation or removal of the retiring Trustee shall become
effective to the extent provided therein and each such successor Trustee,
without any further act, deed or conveyance, shall become

                                       49
<PAGE>   57

vested with all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series to which the appointment
of such successor Trustee relates; but, on request of the Company or any
successor Trustee, such retiring Trustee shall duly assign, transfer and deliver
to such successor Trustee 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.

                  Upon request of any such successor Trustee, the Company shall
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Trustee all such rights, powers and trusts referred
to in the first or second preceding paragraph, as the case may be.

                  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 6.12 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.

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

SECTION 6.13 PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

                  If and when the Trustee shall be or become a creditor of the
Company (or any other obligor upon the Securities), the Trustee shall be subject
to the provisions of the Trust Indenture Act regarding the collection of claims
against the Company (or any such other obligor).

                                       50
<PAGE>   58

SECTION 6.14 APPOINTMENT OF AUTHENTICATING AGENT.

                  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 issued upon
original issue and upon exchange, registration of transfer or partial redemption
thereof or pursuant to Section 3.6, 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. Wherever reference is
made in this Indenture to the authentication and delivery of Securities by the
Trustee or the Trustee's certificate of authentication, such reference shall be
deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any State thereof
or the District of Columbia, authorized under such laws to act as Authenticating
Agent, having (or if the Authenticating Agent is a member of a bank holding
company system, its bank holding company has) a combined capital and surplus of
not less than $50,000,000 and subject to supervision or examination by Federal
or State authority. If such Authenticating Agent publishes reports of condition
at least annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined capital
and surplus of such Authenticating Agent shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. If at any time an Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, such Authenticating Agent shall
resign immediately in the manner and with the effect specified in this Section.

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

                  An Authenticating Agent may resign at any time by giving
written notice thereof to the Trustee and to the Company. The Trustee may at any
time terminate the agency of an Authenticating Agent by giving written notice
thereof to such Authenticating Agent and to the Company. Upon receiving such a
notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall give notice of such
appointment in the manner provided in Section 1.6 to all Holders of

                                       51
<PAGE>   59

Securities of the series with respect to which such Authenticating Agent will
serve. Any successor Authenticating Agent upon acceptance of its appointment
hereunder shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an
Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section.

                  The Trustee agrees to pay to each Authenticating Agent from
time to time reasonable compensation for its services under this Section, and
the Trustee shall be entitled to be reimbursed for such payments, subject to the
provisions of Section 6.7.

                  If an appointment with respect to one or more series is made
pursuant to this Section 6.12, the Securities of such series may have endorsed
thereon, in addition to the Trustee's certificate of authentication, an
alternative certificate of authentication in the following form:

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

                                            [                     ],
                                             ---------------------
                                              as Trustee

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

                                            By:
                                               ------------------------
                                                  Authorized Officer

                                       52
<PAGE>   60
                                   ARTICLE VII

                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 7.1 COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF HOLDERS.

                  The Company will furnish or cause to be furnished to the
Trustee:

                           (1) semi-annually, not later than 15 days after the
         Regular Record Date, a list, in such form as the Trustee may reasonably
         require, of the names and addresses of the Holders of Securities of
         each series as of such Regular Record Date, as the case may be; and

                           (2) at such other times as the Trustee may request in
         writing, within 30 days after the receipt by the Company of any such
         request, a list of similar form and content as of a date not more than
         15 days prior to the time such list is furnished; provided that no such
         list need be furnished by the Company to the Trustee so long as the
         Trustee is acting as Security Registrar.

SECTION 7.2 PRESERVATION OF INFORMATION; COMMUNICATIONS TO HOLDERS.

                  The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders contained in the most
recent list furnished to the Trustee as provided in Section 7.1 and the names
and addresses of Holders received by the Trustee in its capacity as Security
Registrar. The Trustee may destroy any list furnished to it as provided in
Section 7.1 upon receipt of a new list so furnished.

                  The rights of Holders to communicate with other Holders with
respect to their rights under this Indenture or under the Securities, and the
corresponding rights and privileges of the Trustee, shall be as provided by the
Trust Indenture Act.

                  Every Holder of Securities, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the Trustee
nor any agent of either of them shall be held accountable by reason of any
disclosure of information as to names and addresses of Holders made pursuant to
the Trust Indenture Act.

                                       53
<PAGE>   61

SECTION 7.3 REPORTS BY TRUSTEE.

                  The Trustee shall transmit to Holders such reports concerning
the Trustee and its actions under this Indenture as may be required pursuant to
the Trust Indenture Act at the times and in the manner provided pursuant
thereto.

                  Reports so required to be transmitted at stated intervals of
not more than 12 months shall be transmitted no later than July 1 in each
calendar year, commencing with the first July 1 after the first issuance of
Securities pursuant to this Indenture.

                  A copy of each such report shall, at the time of such
transmission to Holders, be filed by the Trustee with each stock exchange upon
which any Securities are listed, with the Commission and with the Company. The
Company will notify the Trustee when any Securities are listed on any stock
exchange.

SECTION 7.4 REPORTS BY COMPANY.

                  The Company shall file with the Trustee and the Commission,
and transmit to Holders, such information, documents and other reports, and such
summaries thereof, as may be required pursuant to the Trust Indenture Act at the
times and in the manner provided pursuant to the Trust Indenture Act; provided
that any such information, documents or reports required to be filed with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act shall be filed
with the Trustee within 15 days after the same is so required to be filed with
the Commission.

                                  ARTICLE VIII

              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

SECTION 8.1 COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS.

                  The Company shall not consolidate with or merge into any other
Person (in a transaction in which the Company is not the surviving corporation)
or convey, transfer or lease its properties and assets substantially as an
entirety to any Person, unless:

                           (1) in case the Company shall consolidate with or
         merge into another Person (in a transaction in which the Company is not
         the surviving corporation) or convey, transfer or lease its properties
         and assets substantially as an entirety to any Person, the Person
         formed by such consolidation or into which the Company is merged or the
         Person

                                       54
<PAGE>   62

         which acquires by conveyance or transfer, or which leases, the
         properties and assets of the Company substantially as an entirety shall
         be a corporation, limited liability company, partnership or trust,
         shall be organized and validly existing under the laws of the United
         States of America, any State thereof or the District of Columbia and
         shall expressly assume, by an indenture supplemental hereto, executed
         and delivered to the Trustee, in form satisfactory to the Trustee, the
         due and punctual payment of the principal of and any premium and
         interest on all the Securities and the performance or observance of
         every covenant of this Indenture on the part of the Company to be
         performed or observed and the conversion rights shall be provided for
         in accordance with Article 14, if applicable, or as otherwise specified
         pursuant to Section 3.1, by supplemental indenture satisfactory in form
         to the Trustee, executed and delivered to the Trustee, by the Person
         (if other than the Company) formed by such consolidation or into which
         the Company shall have been merged or by the Person which shall have
         acquired the Company's assets;

                           (2) immediately after giving effect to such
         transaction and treating any indebtedness which becomes an obligation
         of the Company or any Subsidiary as a result of such transaction as
         having been incurred by the Company or such Subsidiary at the time of
         such transaction, no Event of Default, and no event which, after notice
         or lapse of time or both, would become an Event of Default, shall have
         happened and be continuing; and

                           (3) the Company has delivered to the Trustee an
         Officers' Certificate and an Opinion of Counsel, each stating that such
         consolidation, merger, conveyance, transfer or lease and, if a
         supplemental indenture is required in connection with such transaction,
         such supplemental indenture comply with this Article and that all
         conditions precedent herein provided for relating to such transaction
         have been complied with.

SECTION 8.2 SUCCESSOR SUBSTITUTED.

                  Upon any consolidation of the Company with, or merger of the
Company into, any other Person or any conveyance, transfer or lease of the
properties and assets of the Company substantially as an entirety in accordance
with Section 8.1, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is
made shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this

                                       55
<PAGE>   63

Indenture with the same effect as if such successor Person had been named as the
Company herein, and thereafter, except in the case of a lease, the predecessor
Person shall be relieved of all obligations and covenants under this Indenture
and the Securities.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

SECTION 9.1 SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS.

                  Without the consent of any Holders, the Company, when
authorized by 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:

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

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

                           (4) to add to or change any of the provisions of this
         Indenture to such extent as shall be necessary to permit or facilitate
         the issuance of Securities in bearer form, registrable or not
         registrable as to principal, and with or without interest coupons, or
         to permit or facilitate the issuance of Securities in uncertificated
         form; or

                                       56
<PAGE>   64

                           (5) to add to, change or eliminate any of the
         provisions of this Indenture in respect of one or more series of
         Securities, provided that any such addition, change or elimination (A)
         shall neither (i) apply to any Security of any series created prior to
         the execution of such supplemental indenture and entitled to the
         benefit of such provision nor (ii) modify the rights of the Holder of
         any such Security with respect to such provision or (B) shall become
         effective only when there is no such Security Outstanding; or

                           (6) to secure the Securities; or

                           (7) to establish the form or terms of Securities of
         any series as permitted by Sections 2.1 and 3.1; 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 series and to add to or change any of the
         provisions of this Indenture as shall be necessary to provide for or
         facilitate the administration of the trusts hereunder by more than one
         Trustee, pursuant to the requirements of Section 6.11; or

                           (9) to make provision with respect to the conversion
         rights of Holders pursuant to the requirements of Article 14, including
         providing for the conversion of the securities into any security (other
         than the Common Stock of the Company) or property of the Company; or

                           (10) 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, provided that such
         action pursuant to this Clause (10) shall not adversely affect the
         interests of the Holders of Securities of any series in any material
         respect; or

                           (11) to supplement any of the provisions of the
         Indenture to such extent as shall be necessary to permit or facilitate
         the defeasance and discharge of any series of Securities pursuant to
         Articles Four and Thirteen, provided that any such action shall not
         adversely affect the interests of the Holders of Securities of such
         series or any other series of Securities in any material respect.

                                       57
<PAGE>   65

SECTION 9.2 SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS.

                  With the consent of the Holders of a majority in principal
amount of the Outstanding Securities of each series affected by such
supplemental indenture, by Act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by a Board Resolution, and the Trustee may
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
Holders of Securities of such series 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 any installment of principal of or interest on, any Security, or
         reduce the principal amount thereof or the rate of interest thereon or
         any premium payable upon the redemption thereof, or reduce the amount
         of the principal of an Original Issue Discount Security or any other
         Security which would be due and payable upon a declaration of
         acceleration of the Maturity thereof pursuant to Section 5.2, or change
         any Place of Payment where, or the coin or currency in which, any
         Security or any premium or interest thereon 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, on or
         after the Redemption Date), or modify the provisions of this Indenture
         with respect to the subordination of such series of Securities in a
         manner adverse to the Holders of Securities of such series, or, in the
         case of securities of any series that are convertible into Securities
         or other securities of the Company, adversely affect the right of
         Holders to convert any of the Securities of such series other than as
         provided in or pursuant to this Indenture, or

                           (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 (of compliance with certain
         provisions of this Indenture or certain defaults hereunder and their
         consequences) provided for in this Indenture, or

                           (3) modify any of the provisions of this Section,
         Section 5.13 or Section 10.06, except to increase any such percentage
         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; provided, however, that this
         clause shall not be deemed to require the consent of any Holder with

                                       58
<PAGE>   66

         respect to changes in the references to "the Trustee" and concomitant
         changes in this Section and Section 10.6, or the deletion of this
         proviso, in accordance with the requirements of Sections 6.11 and
         9.1(8), or

                           (4) if applicable, make any change that adversely
         affects the right to convert any security as provided in Article 14 or
         pursuant to Section 3.1 (except as permitted by Section 9.1(9)) or
         decrease the conversion rate or increase the conversion price of any
         such security. 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.

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.

SECTION 9.3 EXECUTION OF SUPPLEMENTAL INDENTURES.

                  In executing, or accepting the additional trusts created by,
any supplemental indenture permitted by this Article or the modifications
thereby of the trusts created by this Indenture, the Trustee shall be entitled
to receive, and (subject to Sections 6.1 and 6.3) 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 9.4 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 shall be bound thereby.

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<PAGE>   67

SECTION 9.5 CONFORMITY WITH TRUST INDENTURE ACT.

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

SECTION 9.6 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 indenture. If the Company shall
so determine, new Securities of any series so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may
be prepared and executed by the Company and authenticated and delivered by the
Trustee in exchange for Outstanding Securities of such series.

SECTION 9.7 SUBORDINATION UNIMPAIRED.

                  No provision in any supplemental indenture which affects the
superior priority of the holders of Senior Indebtedness shall be effective
against holders of Senior Indebtedness.

                                    ARTICLE X

                                    COVENANTS

SECTION 10.1 PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.

                  The Company covenants and agrees for the benefit of each
series of Securities that it will duly and punctually pay the principal of and
any premium and interest on the Securities of that series in accordance with the
terms of the Securities and this Indenture.

SECTION 10.2 MAINTENANCE OF OFFICE OR AGENCY.

                  The Company will 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, where Securities of that
series may be surrendered for conversion and where notices and demands to or
upon the Company in respect of the Securities of that series and this Indenture
may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency. If at any
time the Company shall fail to maintain any such

                                       60
<PAGE>   68

required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or
served at the Corporate Trust Office of the Trustee, and the Company hereby
appoints the Trustee as its agent to receive all such presentations, surrenders,
notices and demands. Unless otherwise provided in a supplemental indenture or
pursuant to Section 3.1 hereof, the Place of Payment for any series of
Securities shall be the Corporate Trust Office of the Trustee.

                  The Company may also 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 such purposes and may from time to time
rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to maintain
an office or agency in each Place of Payment for Securities of any series for
such purposes. The Company 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.

SECTION 10.3 MONEY FOR SECURITIES PAYMENTS TO BE HELD IN TRUST.

                  If the Company shall at any time act as its own Paying Agent
with respect to any series of Securities, it will, on or before each due date of
the principal of or any premium or interest on any of the Securities of that
series, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal and any premium and interest 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 Company shall have one or more Paying Agents for
any series of Securities, it will, on or prior to each due date of the principal
of or any premium or interest on any Securities of that series, deposit with a
Paying Agent a sum sufficient to pay such amount, such sum to be held as
provided by the Trust Indenture Act, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or failure
so to act.

                  The Company will cause each Paying Agent for any series of
Securities 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) comply with the
provisions of the Trust Indenture Act applicable to it as a Paying Agent and (2)
during the continuance of any default by the Company (or any other obligor upon
the Securities of that series) in the making of any payment in respect of the
Securities of that series, upon the written request of the

                                       61
<PAGE>   69

Trustee, forthwith pay to the Trustee all sums held in trust by such Paying
Agent for payment in respect of the Securities of that series.

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

                  Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of or any
premium or interest on any Security of any series and remaining unclaimed for a
period ending on the earlier of the date that is ten Business Days prior to the
date such money would escheat to the State or two years after such principal,
premium or interest has become due and payable shall be paid to the Company on
Company Request, or (if then held by the Company) shall be discharged from such
trust; and the Holder of such Security shall thereafter, as an unsecured general
creditor, look only to the Company for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability
of the Company as trustee thereof, shall thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company cause to be published once, in a
newspaper published in the English language, customarily published on each
Business Day and of general circulation in each Place of Payment, 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 Company.

SECTION 10.4 STATEMENT BY OFFICERS AS TO DEFAULT.

                  The Company will deliver to the Trustee, within 120 days after
the end of each fiscal year of the Company ending after the date hereof, an
Officers' Certificate, stating whether or not to the best knowledge of the
signers thereof the Company is in default in the performance and observance of
any of the terms, provisions and conditions of this Indenture (without regard to
any period of grace or requirement of notice provided hereunder) and, if the
Company shall be in default, specifying all such defaults and the nature and
status thereof of which they may have knowledge. The fiscal year of the Company
currently ends on December 31; and the Company will give the Trustee prompt
written notice of any change of its fiscal year.

                                       62
<PAGE>   70

SECTION 10.5 EXISTENCE.

                  Subject to Article 8, the Company will do or cause to be done
all things necessary to preserve and keep in full force and effect its
existence.

SECTION 10.6 WAIVER OF CERTAIN COVENANTS.

                  Except as otherwise specified as contemplated by Section 3.1
for Securities of such series, the Company may, with respect to the Securities
of any series, omit in any particular instance to comply with any term,
provision or condition set forth in any covenant provided pursuant to Section
3.1(20) or 9.1(2) for the benefit of the Holders of such series if before the
time for such compliance the Holders of at least a majority in principal amount
of the Outstanding Securities of such series shall, by Act of such Holders,
either waive such compliance in such instance or generally waive compliance with
such term, provision or condition, but no such waiver shall extend to or affect
such term, provision or condition except to the extent so expressly waived, and,
until such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

                                   ARTICLE XI

                            REDEMPTION OF SECURITIES

SECTION 11.1 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 3.1 for such Securities) in
accordance with this Article.

SECTION 11.2 ELECTION TO REDEEM; NOTICE TO TRUSTEE.

                  The election of the Company to redeem any Securities shall be
evidenced by a Board Resolution or in another manner specified as contemplated
by Section 3.1 for such Securities. In case of any redemption at the election of
the Company of less than all the Securities of any series (including any such
redemption affecting only a single Security), the Company shall, at least 45
days prior to the Redemption Date fixed by the Company (unless a shorter notice
shall be satisfactory to the Trustee), notify the Trustee of such Redemption
Date, of the principal amount of Securities of such series to be redeemed and,
if applicable, of the tenor of the Securities 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

                                       63
<PAGE>   71

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

SECTION 11.3 SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED.

                  If less than all the Securities of any series are to be
redeemed (unless all the Securities of such series and of a specified tenor are
to be redeemed or unless such redemption affects only a single Security), the
particular Securities to be redeemed shall be selected not more than 45 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of
such series not previously called for redemption, by lot, or in the Trustee's
discretion, on a pro-rata basis, provided that the unredeemed portion of the
principal amount of any Security shall be in an authorized denomination (which
shall not be less than the minimum authorized denomination) for such Security.
If less than all the Securities of such series and of a specified tenor are to
be redeemed (unless such redemption affects only a single Security), the
particular Securities to be redeemed shall be selected not more than 45 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of
such series and specified tenor not previously called for redemption in
accordance with the preceding sentence.

                  If any Security selected for partial redemption is converted
in part before termination of the conversion right with respect to the portion
of the Security so selected, the converted portion of such Security shall be
deemed (so far as may be) to be the portion selected for redemption. Securities
which have been converted during a selection of Securities to be redeemed shall
be treated by the Trustee as Outstanding for the purpose of such selection.

                  The Trustee shall promptly notify the Company in writing of
the Securities selected for redemption as aforesaid and, in case of any
Securities selected for partial redemption as aforesaid, the principal amount
thereof to be redeemed.

                  The provisions of the two preceding paragraphs shall not apply
with respect to any redemption affecting only a single Security, whether such
Security is to be redeemed in whole or in part. In the case of any such
redemption in part, the unredeemed portion of the principal amount of the
Security shall be in an authorized denomination (which shall not be less than
the minimum authorized denomination) for such Security.

                  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 Securities redeemed or to be redeemed only in
part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.

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SECTION 11.4   NOTICE OF REDEMPTION.

                  Notice of redemption shall be given by first-class mail,
postage prepaid, mailed not less than 30 nor more than 60 days prior to the
Redemption Date, unless a shorter period is specified in the Securities to be
redeemed, to each Holder of Securities to be redeemed, at its address appearing
in the Security Register.

                  All notices of redemption shall state:

                           (1) the Redemption Date,

                           (2) the Redemption Price (including accrued interest,
         if any),

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

                           (4) that on the Redemption Date the Redemption Price
         will become due and payable upon each such Security to be redeemed and,
         if applicable, that interest thereon will cease to accrue on and after
         said date,

                           (5) the place or places where each such Security is
         to be surrendered for payment of the Redemption Price,

                           (6) if applicable, the conversion price, the date on
         which the right to convert the principal of the Securities or the
         portions thereof to be redeemed will terminate, and the place or places
         where such Securities may be surrendered for conversion, and

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

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

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SECTION 11.5   DEPOSIT OF REDEMPTION PRICE.

                  On or prior to any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 10.3) an amount
of money sufficient to pay the Redemption Price of, and (except if the
Redemption Date shall be an Interest Payment Date) accrued interest on, all the
Securities which are to be redeemed on that date.

                  If any Security called for redemption is converted, any money
deposited with the Trustee or with a Paying Agent or so segregated and held in
trust for the redemption of such Security shall (subject to the right of any
Holder of such Security to receive interest as provided in the last paragraph of
Section 3.7) be paid to the Company on Company Request, or if then held by the
Company, shall be discharged from such trust.

SECTION 11.6 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, and from and after such date
(unless the Company shall default in the payment of the Redemption Price and
accrued interest) such Securities shall cease to bear interest. Upon surrender
of any such Security for redemption in accordance with said notice, such
Security shall be paid by the Company at the Redemption Price, together with
accrued interest to the Redemption Date; provided, however, that, unless
otherwise specified as contemplated by Section 3.1, installments of interest
whose Stated Maturity is on or prior to the Redemption Date will 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 3.7.

                  If any Security called for redemption shall not be so paid
upon surrender thereof for redemption, the principal and any premium shall,
until paid, bear interest from the Redemption Date at the rate prescribed
therefor in the Security.

SECTION 11.7 SECURITIES REDEEMED IN PART.

                  Any Security which is to be redeemed only in part shall be
surrendered at a Place of Payment therefor (with, if the Company or the Trustee
so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by, the Holder thereof
or its attorney duly authorized in writing), and the Company shall execute, and
the Trustee shall authenticate and deliver to the Holder of such Security
without service charge, a new Security or Securities of the

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<PAGE>   74

same series and of like tenor, 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.

                                   ARTICLE XII

                                  SINKING FUNDS

SECTION 12.1 APPLICABILITY OF ARTICLE.

                  The provisions of this Article shall be applicable to any
sinking fund for the retirement of Securities of any series except as otherwise
specified as contemplated by Section 3.1 for such Securities.

                  The minimum amount of any sinking fund payment provided for by
the terms of any Securities 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 is herein referred to as an "optional sinking fund
payment." If provided for by the terms of any Securities, the cash amount of any
sinking fund payment may be subject to reduction as provided in Section 12.2.
Each sinking fund payment shall be applied to the redemption of Securities as
provided for by the terms of such Securities.

SECTION 12.2 SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES.

                  The Company (1) may deliver Outstanding Securities of a series
(other than any previously called for redemption) and (2) may apply as a credit
Securities of a series which have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to any Securities of such series required to be made
pursuant to the terms of such Securities as and to the extent provided for by
the terms of such Securities; provided that the Securities to be so credited
have not been previously so credited. The Securities to be so credited shall be
received and credited for such purpose by the Trustee at the Redemption Price,
as specified in the Securities so to be redeemed, for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.

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SECTION 12.3 REDEMPTION OF SECURITIES FOR SINKING FUND.

                  Not less than 60 days prior to each sinking fund payment date
for any Securities, the Company will deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing sinking fund payment for
such Securities pursuant to the terms of such Securities, the portion thereof,
if any, which is to be satisfied by payment of cash and the portion thereof, if
any, which is to be satisfied by delivering and crediting Securities pursuant to
Section 12.2 and will also deliver to the Trustee any Securities to be so
delivered. Not less than 30 days prior to 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 11.3 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 11.4. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 11.6 and 11.7.

                                  ARTICLE XIII

                       DEFEASANCE AND COVENANT DEFEASANCE

SECTION 13.1 COMPANY'S OPTION TO EFFECT DEFEASANCE OR COVENANT DEFEASANCE.

                  The Company may elect, at its option at any time, to have
Section 13.2 or Section 13.3 applied to any Securities or any series of
Securities, as the case may be, designated pursuant to Section 3.1 as being
defeasible pursuant to such Section 13.2 or 13.3, in accordance with any
applicable requirements provided pursuant to Section 3.1 and upon compliance
with the conditions set forth below in this Article. Any such election shall be
evidenced by a Board Resolution or in another manner specified as contemplated
by Section 3.1 for such Securities.

SECTION 13.2 DEFEASANCE AND DISCHARGE.

                  Upon the Company's exercise of its option (if any) to have
this Section applied to any Securities or any series of Securities, as the case
may be, the Company shall be deemed to have been discharged from its
obligations, and the provisions of Article 15 shall cease to be effective, with
respect to such Securities as provided in this Section on and after the date the
conditions set forth in Section 13.4 are satisfied (hereinafter called
"Defeasance"). For this purpose, such Defeasance means that the Company shall be
deemed to have paid and discharged the entire indebtedness represented by such
Securities and to have satisfied all its other obligations under such Securities
and this Indenture insofar as such Securities are concerned (and the Trustee, at

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<PAGE>   76

the expense of the Company, shall execute proper instruments acknowledging the
same), subject to the following which shall survive until otherwise terminated
or discharged hereunder:

                           (1) the rights of Holders of such Securities to
         receive, solely from the trust fund described in Section 13.4 and as
         more fully set forth in such Section, payments in respect of the
         principal of and any premium and interest on such Securities when
         payments are due;

                           (2) the Company's obligations with respect to such
         Securities under Sections 3.4, 3.5, 3.6, 10.2 and 10.3, and, if
         applicable, Article 14;

                           (3) the rights, powers, trusts, duties and immunities
         of the Trustee hereunder; and

                           (4) this Article.

                  Subject to compliance with this Article, the Company may
exercise its option (if any) to have this Section applied to any Securities
notwithstanding the prior exercise of its option (if any) to have Section 13.3
applied to such Securities.

SECTION 13.3 COVENANT DEFEASANCE.

                  Upon the Company's exercise of its option (if any) to have
this Section applied to any Securities or any series of Securities, as the case
may be:

                           (1) the Company shall be released from its
         obligations under any covenants provided pursuant to Section 3.1(20) or
         9.1(2) or for the benefit of the Holders of such Securities;

                           (2) the occurrence of any event specified in any
         covenants provided pursuant to Section 3.1(20) or 9.1(2) shall be
         deemed not to be or result in an Event of Default; and

                           (3) the provisions of Article 15 shall cease to be
         effective,

in each case with respect to such Securities as provided in this Section on and
after the date the conditions set forth in Section 13.4 are satisfied
(hereinafter called "Covenant Defeasance"). For this purpose, such Covenant
Defeasance means that, with respect to such Securities, the Company may omit to
comply with and shall have no liability in respect of any term, condition or
limitation set forth in any such specified Section (to the extent so specified
in the case of Section 5.1(4)) or Article 15, whether directly or

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<PAGE>   77

indirectly by reason of any reference elsewhere herein to any such Section or by
reason of any reference in any such Section or Article to any other provision
herein or in any other document, but the remainder of this Indenture and such
Securities shall be unaffected thereby.

SECTION 13.4 CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE.

                  The following shall be the conditions to the application of
Section 13.2 or Section 13.3 to any Securities or any series of Securities, as
the case may be:

                           (1) The Company shall irrevocably have deposited or
         caused to be deposited with the Trustee (or another trustee which
         satisfies the requirements contemplated by Section 6.9 and agrees to
         comply with the provisions of this Article 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
         benefits of the Holders of such Securities, (A) money in an amount, or
         (B) U.S. Government Obligations 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, money in an amount, or (C) a combination thereof, in each case
         sufficient, in the opinion of a nationally recognized firm of
         independent public accountants expressed in a written certification
         thereof delivered to the Trustee, to pay and discharge, and which shall
         be applied by the Trustee (or any such other qualifying trustee) to pay
         and discharge, the principal of and any premium and interest on such
         Securities on the respective Stated Maturities, in accordance with the
         terms of this Indenture and such Securities. As used herein, "U.S.
         Government Obligation" means (x) any security which is (i) a direct
         obligation of the United States of America for the payment of which the
         full faith and credit of the United States of America is pledged or
         (ii) an obligation of a Person controlled or supervised by and acting
         as an agency or instrumentality of the United States of America the
         payment of which is unconditionally guaranteed as a full faith and
         credit obligation by the United States of America, which, in either
         case (i) or (ii), is not callable or redeemable at the option of the
         issuer thereof, and (y) any depositary receipt issued by a bank (as
         defined in Section 3(a)(2) of the Securities Act) as custodian with
         respect to any U.S. Government Obligation which is specified in Clause
         (x) above and held by such bank for the account of the holder of such
         depositary receipt, or with respect to any specific payment of
         principal of or interest on any U.S. Government Obligation which is so
         specified and held, provided that (except as required by law)

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<PAGE>   78

         such custodian is not authorized to make any deduction from the amount
         payable to the holder of such depositary receipt from any amount
         received by the custodian in respect of the U.S. Government Obligation
         or the specific payment of principal or interest evidenced by such
         depositary receipt.

                           (2) In the event of an election to have Section 13.2
         apply to any Securities or any series of Securities, as the case may
         be, the Company shall have delivered to the Trustee an Opinion of
         Counsel stating that (A) the Company has received from, or there has
         been published by, the Internal Revenue Service a ruling or (B) since
         the date of this instrument, there has been a change in the applicable
         Federal income tax law, in either case (A) or (B) to the effect that,
         and based thereon such opinion shall confirm that, the Holders of such
         Securities will not recognize gain or loss for Federal income tax
         purposes as a result of the deposit, Defeasance and discharge to be
         effected with respect to such Securities and will be subject to Federal
         income tax on the same amount, in the same manner and at the same times
         as would be the case if such deposit, Defeasance and discharge were not
         to occur.

                           (3) In the event of an election to have Section 13.3
         apply to any Securities or any series of Securities, as the case may
         be, the Company shall have delivered to the Trustee an Opinion of
         Counsel to the effect that the Holders of such Securities will not
         recognize gain or loss for Federal income tax purposes as a result of
         the deposit and Covenant Defeasance to be effected with respect to such
         Securities and will be subject to Federal income tax on the same
         amount, in the same manner and at the same times as would be the case
         if such deposit and Covenant Defeasance were not to occur.

                           (4) The Company shall have delivered to the Trustee
         an Officers' Certificate to the effect that neither such Securities nor
         any other Securities of the same series, if then listed on any
         securities exchange, will be delisted as a result of such deposit.

                           (5) No event which is, or after notice or lapse of
         time or both would become, an Event of Default with respect to such
         Securities or any other Securities shall have occurred and be
         continuing at the time of such deposit or, with regard to any such
         event specified in Sections 5.1(5) and (6), at any time on or prior to
         the 90th day after the date of such deposit (it being understood that
         this condition shall not be deemed satisfied until after such 90th
         day).

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<PAGE>   79

                           (6) Such Defeasance or Covenant Defeasance shall not
         cause the Trustee to have a conflicting interest within the meaning of
         the Trust Indenture Act (assuming all Securities are in default within
         the meaning of such Act).

                           (7) Such Defeasance or Covenant Defeasance shall not
         result in a breach or violation of, or constitute a default under, any
         other agreement or instrument to which the Company is a party or by
         which it is bound.

                           (8) Such Defeasance or Covenant Defeasance shall not
         result in the trust arising from such deposit constituting an
         investment company within the meaning of the Investment Company Act
         unless such trust shall be registered under such Act or exempt from
         registration thereunder.

                           (9) At the time of such deposit,

                                    (A) no default in the payment of principal
                           of or any premium or interest on any Senior
                           Indebtedness shall have occurred and be continuing,

                                    (B) no event of default with respect to any
                           Senior Indebtedness shall have resulted in such
                           Senior Indebtedness becoming, and continuing to be,
                           due and payable prior to the date on which it would
                           otherwise have become due and payable (unless payment
                           of such Senior Indebtedness has been made or duly
                           provided for), and

                                    (C) no other event of default with respect
                           to any Senior Indebtedness shall have occurred and be
                           continuing permitting (after notice or lapse of time
                           or both) the holders of such Senior Indebtedness (or
                           a trustee on behalf of such holders) to declare such
                           Senior Indebtedness due and payable prior to the date
                           on which it would otherwise have become due and
                           payable.

                           (10) The Company shall have delivered to the Trustee
         an Officers' Certificate and an Opinion of Counsel, each stating that
         all conditions precedent with respect to such Defeasance or Covenant
         Defeasance have been complied with.

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SECTION 13.5 DEPOSITED MONEY AND U.S. GOVERNMENT OBLIGATIONS
             TO BE HELD IN TRUST; MISCELLANEOUS PROVISIONS.

                  Subject to the provisions of the last paragraph of Section
10.3, all money and U.S. Government Obligations (including the proceeds thereof)
deposited with the Trustee or other qualifying trustee (solely for purposes of
this Section and Section 13.6, the Trustee and any such other trustee are
referred to collectively as the "Trustee") pursuant to Section 13.4 in respect
of any Securities shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Securities and this Indenture, to the
payment, either directly or through any such Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Holders of
such Securities, of all sums due and to become due thereon in respect of
principal and any premium and interest, but money so held in trust need not be
segregated from other funds except to the extent required by law. Monies and
U.S. Government Obligations so held in trust shall not be subject to the
provisions of Article 15.

                  The Company shall pay and indemnify the Trustee against any
tax, fee or other charge imposed on or assessed against the U.S. Government
Obligations deposited pursuant to Section 13.4 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 Outstanding Securities.

                  Anything in this Article to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or U.S. Government Obligations held by it as provided in
Section 13.4 with respect to any Securities 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 the
Defeasance or Covenant Defeasance, as the case may be, with respect to such
Securities.

SECTION 13.6 REINSTATEMENT.

                  If the Trustee or the Paying Agent is unable to apply any
money in accordance with this Article with respect to any Securities by reason
of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, then the obligations
under this Indenture and such Securities from which the Company has been
discharged or released pursuant to Section 13.2 or 13.3 shall be revived and
reinstated as though no deposit had occurred pursuant to this Article with
respect to such Securities, until such time as the Trustee or Paying Agent is
permitted to apply all money held in trust pursuant to Section 13.5 with respect
to such Securities in accordance with this Article; provided, however, that if
the Company makes

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<PAGE>   81

any payment of principal of or any premium or interest on any such Security
following such reinstatement of its obligations, the Company shall be subrogated
to the rights (if any) of the Holders of such Securities to receive such payment
from the money so held in trust.

                                   ARTICLE XIV

                            CONVERSION OF SECURITIES

SECTION 14.1 APPLICABILITY OF ARTICLE.

                  The provisions of this Article shall be applicable to the
Securities of any series which are convertible into shares of Common Stock of
the Company, and the issuance of such shares of Common Stock upon the conversion
of such Securities, except as otherwise specified as contemplated by Section 3.1
for the Securities of such series.

SECTION 14.2 EXERCISE OF CONVERSION PRIVILEGE.

                  In order to exercise a conversion privilege, the Holder of a
Security of a series with such a privilege shall surrender such Security to the
Company at the office or agency maintained for that purpose pursuant to Section
10.2, accompanied by a duly executed conversion notice to the Company
substantially in the form set forth in Section 2.6 stating that the Holder
elects to convert such Security or a specified portion thereof. Such notice
shall also state, if different from the name and address of such Holder, the
name or names (with address) in which the certificate or certificates for shares
of Common Stock which shall be issuable on such conversion shall be issued.
Securities surrendered for conversion shall (if so required by the Company or
the Trustee) be duly endorsed by or accompanied by instruments of transfer in
forms satisfactory to the Company and the Trustee duly executed by the
registered Holder or its attorney duly authorized in writing; and Securities so
surrendered for conversion (in whole or in part) during the period from the
close of business on any Regular Record Date to the opening of business on the
next succeeding Interest Payment Date (excluding Securities or portions thereof
called for redemption during the period beginning at the close of business on a
Regular Record Date and ending at the opening of business on the first Business
Day after the next succeeding Interest Payment Date, or if such Interest Payment
Date is not a Business Day, the second such Business Day) shall also be
accompanied by payment in funds acceptable to the Company of an amount equal to
the interest payable on such Interest Payment Date on the principal amount of
such Security then being converted, and such interest shall be payable to such
registered Holder notwithstanding the conversion of such Security, subject to
the provisions of Section 3.7 relating to the payment of Defaulted Interest by
the Company. As promptly as practicable after the receipt of such notice and of
any payment required pursuant to a Board Resolution and, subject to

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Section 3.3, set forth, or determined in the manner provided, in an Officers'
Certificate, or established in one or more indentures supplemental hereto
setting forth the terms of such series of Security, and the surrender of such
Security in accordance with such reasonable regulations as the Company may
prescribe, the Company shall issue and shall deliver, at the office or agency at
which such Security is surrendered, to such Holder or on its written order, a
certificate or certificates for the number of full shares of Common Stock
issuable upon the conversion of such Security (or specified portion thereof), in
accordance with the provisions of such Board Resolution, Officers' Certificate
or supplemental indenture, and cash as provided therein in respect of any
fractional share of such Common Stock otherwise issuable upon such conversion.
Such conversion shall be deemed to have been effected immediately prior to the
close of business on the date on which such notice and such payment, if
required, shall have been received in proper order for conversion by the Company
and such Security shall have been surrendered as aforesaid (unless such Holder
shall have so surrendered such Security and shall have instructed the Company to
effect the conversion on a particular date following such surrender and such
Holder shall be entitled to convert such Security on such date, in which case
such conversion shall be deemed to be effected immediately prior to the close of
business on such date) and at such time the rights of the Holder of such
Security as such Security Holder shall cease and the person or persons in whose
name or names any certificate or certificates for shares of Common Stock of the
Company shall be issuable upon such conversion shall be deemed to have become
the Holder or Holders of record of the shares represented thereby. Except as set
forth above and subject to the final paragraph of Section 3.7, no payment or
adjustment shall be made upon any conversion on account of any interest accrued
on the Securities (or any part thereof) surrendered for conversion or on account
of any dividends on the Common Stock of the Company issued upon such conversion.
In the case of any Security which is converted in part only, upon such
conversion the Company shall execute and the Trustee shall authenticate and
deliver to or on the order of the Holder thereof, at the expense of the Company,
a new Security or Securities of the same series, of authorized denominations, in
aggregate principal amount equal to the unconverted portion of such Security.

SECTION 14.3 NO FRACTIONAL SHARES.

                  No fractional share of Common Stock of the Company shall be
issued upon conversions of Securities of any series. If more than one Security
shall be surrendered for conversion at one time by the same Holder, the number
of full shares which shall be issuable upon conversion shall be computed on the
basis of the aggregate principal amount of the Securities (or specified portions
thereof to the extent permitted hereby) so surrendered. If, except for the
provisions of this Section 14.3, any Holder of a Security or Securities would be
entitled to a fractional share of Common Stock of the Company upon the
conversion of such Security or Securities, or specified portions thereof, the
Company shall pay to such Holder an amount in cash equal to the current

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<PAGE>   83

market value of such fractional share computed, (i) if such Common Stock is
listed or admitted to unlisted trading privileges on a national securities
exchange or market, on the basis of the last reported sale price on such
exchange or market on the last trading day prior to the date of conversion upon
which such a sale shall have been effected, or (ii) if such Common Stock is not
at the time so listed or admitted to unlisted trading privileges on a national
securities exchange or market, on the basis of the average of the bid and asked
prices of such Common Stock in the over-the-counter market, on the last trading
day prior to the date of conversion, as reported by the National Quotation
Bureau, Incorporated or similar organization if the National Quotation Bureau,
Incorporated is no longer reporting such information, or if not so available,
the fair market price as determined by the Board of Directors. For purposes of
this Section, "trading day" shall mean each Monday, Tuesday, Wednesday, Thursday
and Friday other than any day on which the Common Stock is not traded on the New
York Stock Exchange, or if the Common Stock is not traded on the New York Stock
Exchange, on the principal exchange or market on which the Common Stock is
traded or quoted.

SECTION 14.4 ADJUSTMENT OF CONVERSION PRICE.

                  The conversion price of Securities of any series that is
convertible into Common Stock of the Company shall be adjusted for any stock
dividends, stock splits, reclassifications, combinations or similar transactions
in accordance with the terms of the supplemental indenture or Board Resolutions
setting forth the terms of the Securities of such series. Whenever the
conversion price is adjusted, the Company shall compute the adjusted conversion
price in accordance with terms of the applicable Board Resolution or
supplemental indenture and shall prepare an Officers' Certificate setting forth
the adjusted conversion price and showing in reasonable detail the facts upon
which such adjustment is based, and such certificate shall forthwith be filed at
each office or agency maintained for the purpose of conversion of Securities
pursuant to Section 10.2 and, if different, with the Trustee. The Company shall
forthwith cause a notice setting forth the adjusted conversion price to be
mailed, first class postage prepaid, to each Holder of Securities of such series
at its address appearing on the Security Register and to any conversion agent
other than the Trustee.

SECTION 14.5 NOTICE OF CERTAIN CORPORATE ACTIONS.

                  In case:

                           (1) the Company shall declare a dividend (or any
         other distribution) on its Common Stock payable otherwise than in cash
         out of its retained earnings (other than a dividend for which approval
         of any shareholders of the Company is required) that would require an
         adjustment pursuant to Section 14.4; or

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                           (2) the Company shall authorize the granting to all
         or substantially all of the holders of its Common Stock of rights,
         options or warrants to subscribe for or purchase any shares of capital
         stock of any class or of any other rights (other than any such grant
         for which approval of any shareholders of the Company is required); or

                           (3) of any reclassification of the Common Stock of
         the Company (other than a subdivision or combination of its outstanding
         shares of Common Stock, or of any consolidation, merger or share
         exchange to which the Company is a party and for which approval of any
         shareholders of the Company is required), or of the sale of all or
         substantially all of the assets of the Company; or

                           (4) of the voluntary or involuntary dissolution,
         liquidation or winding up of the Company;

then the Company shall cause to be filed with the Trustee, and shall cause to be
mailed to all Holders at their last addresses as they shall appear in the
Security Register, at least 20 days (or 10 days in any case specified in Clause
(1) or (2) above) prior to the applicable record date hereinafter specified, a
notice stating (i) the date on which a record is to be taken for the purpose of
such dividend, distribution, rights, options or warrants, or, if a record is not
to be taken, the date as of which the holders of Common Stock of Record to be
entitled to such dividend, distribution, rights, options or warrants are to be
determined, or (ii) the date on which such reclassification, consolidation,
merger, share exchange, sale, dissolution, liquidation or winding up is expected
to become effective, and the date as of which it is expected that holders of
Common Stock of record shall be entitled to exchange their shares of Common
Stock for securities, cash or other property deliverable upon such
reclassification, consolidation, merger, share exchange, sale, dissolution,
liquidation or winding up. If at any time the Trustee shall not be the
conversion agent, a copy of such notice shall also forthwith be filed by the
Company with the Trustee.

SECTION 14.6 RESERVATION OF SHARES OF COMMON STOCK.

                  The Company shall at all times reserve and keep available,
free from preemptive rights, out of its authorized but unissued Common Stock,
for the purpose of effecting the conversion of Securities, the full number of
shares of Common Stock of the Company then issuable upon the conversion of all
outstanding Securities of any series that has conversion rights.

                                       77
<PAGE>   85

SECTION 14.7 PAYMENT OF CERTAIN TAXES UPON CONVERSION.

                  Except as provided in the next sentence, the Company will pay
any and all taxes that may be payable in respect of the issue or delivery of
shares of its Common Stock on conversion of Securities pursuant hereto. The
Company shall not, however, be required to pay any tax which may be payable in
respect of any transfer involved in the issue and delivery of shares of its
Common Stock in a name other than that of the Holder of the Security or
Securities to be converted, and no such issue or delivery shall be made unless
and until the person requesting such issue has paid to the Company the amount of
any such tax, or has established, to the satisfaction of the Company, that such
tax has been paid.

SECTION 14.8 NONASSESSABILITY.

                  The Company covenants that all shares of its Common Stock
which may be issued upon conversion of Securities will upon issue in accordance
with the terms hereof be duly and validly issued and fully paid and
nonassessable.

SECTION 14.9 PROVISION IN CASE OF CONSOLIDATION, MERGER OR SALE OF ASSETS.

                  In case of any consolidation or merger of the Company with or
into any other Person, any merger of another Person with or into the Company
(other than a merger which does not result in any reclassification, conversion,
exchange or cancellation of outstanding shares of Common Stock of the Company)
or any conveyance, sale, transfer or lease of all or substantially all of the
assets of the Company, the Person formed by such consolidation or resulting from
such merger or which acquires such assets, as the case may be, shall execute and
deliver to the Trustee a supplemental indenture providing that the Holder of
each Security of a series then Outstanding that is convertible into Common Stock
of the Company shall have the right thereafter (which right shall be the
exclusive conversion right thereafter available to said Holder), during the
period such Security shall be convertible, to convert such Security only into
the kind and amount of securities, cash and other property receivable upon such
consolidation, merger, conveyance, sale, transfer or lease by a holder of the
number of shares of Common Stock of the Company into which such Security might
have been converted immediately prior to such consolidation, merger, conveyance,
sale, transfer or lease, assuming such holder of Common Stock of the Company (i)
is not a Person with which the Company consolidated or merged with or into or
which merged into or with the Company or to which such conveyance, sale,
transfer or lease was made, as the case may be (a "Constituent Person"), or an
Affiliate of a Constituent Person and (ii) failed to exercise his rights of
election, if any, as to the kind or amount of securities, cash and other
property receivable upon such consolidation, merger, conveyance, sale, transfer
or lease (provided that if the kind or

                                       78
<PAGE>   86

amount of securities, cash and other property receivable upon such
consolidation, merger, conveyance, sale, transfer, or lease is not the same for
each share of Common Stock of the Company held immediately prior to such
consolidation, merger, conveyance, sale, transfer or lease by others than a
Constituent Person or an Affiliate thereof and in respect of which such rights
of election shall not have been exercised ("Non-electing Share"), then for the
purpose of this Section 14.9 the kind and amount of securities, cash and other
property receivable upon such consolidation, merger, conveyance, sale, transfer
or lease by the holders of each Non-electing Share shall be deemed to be the
kind and amount so receivable per share by a plurality of the Non-electing
Shares). Such supplemental indenture shall provide for adjustments which, for
events subsequent to the effective date of such supplemental indenture, shall be
as nearly equivalent as may be practicable to the adjustments provided for in
this Article or in accordance with the terms of the supplemental indenture or
Board Resolutions setting forth the terms of such adjustments. The above
provisions of this Section 14.9 shall similarly apply to successive
consolidations, mergers, conveyances, sales, transfers or leases. Notice of the
execution of such a supplemental indenture shall be given by the Company to the
Holder of each Security of a series that is convertible into Common Stock of the
Company as provided in Section 1.6 promptly upon such execution. Neither the
Trustee nor any conversion agent, if any, shall be under any responsibility to
determine the correctness of any provisions contained in any such supplemental
indenture relating either to the kind or amount of shares of stock or other
securities or property or cash receivable by Holders of Securities of a series
convertible into Common Stock of the Company upon the conversion of their
Securities after any such consolidation, merger, conveyance, transfer, sale or
lease or to any such adjustment, but may accept as conclusive evidence of the
correctness of any such provisions, and shall be protected in relying upon, an
Opinion of Counsel with respect thereto, which the Company shall cause to be
furnished to the Trustee upon request.

SECTION 14.10 DUTIES OF TRUSTEE REGARDING CONVERSION.

                  Neither the Trustee nor any conversion agent shall at any time
be under any duty or responsibility to any Holder of Securities of any series
that is convertible into Common Stock of the Company to determine whether any
facts exist which may require any adjustment of the conversion price, or with
respect to the nature or extent of any such adjustment when made, or with
respect to the method employed, whether herein or in any supplemental indenture,
any resolutions of the Board of Directors or written instrument executed by one
or more officers of the Company provided to be employed in making the same.
Neither the Trustee nor any conversion agent shall be accountable with respect
to the validity or value (or the kind or amount) of any shares of Common Stock
of the Company, or of any securities or property, which may at any time be
issued or delivered upon the conversion of any Securities and neither the
Trustee nor any conversion agent makes any representation with respect thereto.
Subject to the provisions of Section 6.1,

                                       79
<PAGE>   87

neither the Trustee nor any conversion agent shall be responsible for any
failure of the Company to issue, transfer or deliver any shares of its Common
Stock or stock certificates or other securities or property upon the surrender
of any Security for the purpose of conversion or to comply with any of the
covenants of the Company contained in this Article 14 or in the applicable
supplemental indenture, resolutions of the Board of Directors or written
instrument executed by one or more duly authorized officers of the Company.

SECTION 14.11 REPAYMENT OF CERTAIN FUNDS UPON CONVERSION.

                  Any funds which at any time shall have been deposited by the
Company or on its behalf with the Trustee or any other paying agent for the
purpose of paying the principal of and any premium and interest on any of the
Securities (including, but not limited to, funds deposited for the sinking fund
referred to in Article 12 hereof and funds deposited pursuant to Article 13
hereof) and which shall not be required for such purposes because of the
conversion of such Securities as provided in this Article 14 shall after such
conversion be repaid to the Company by the Trustee upon the Company's written
request.

                                   ARTICLE XV

                           SUBORDINATION OF SECURITIES

SECTION 15.1 AGREEMENT OF SUBORDINATION.

                  Except as otherwise provided in a supplemental indenture or
pursuant to Section 3.1, the Company covenants and agrees, and each Holder of
Securities issued hereunder by his acceptance thereof likewise covenants and
agrees, that all Securities shall be issued subject to the provisions of this
Article 15; and each Person holding any Security, whether upon original issue or
upon transfer, assignment or exchange thereof, accepts and agrees to be bound by
such provisions.

                  The payment of the principal of and any premium and interest
on all Securities (including, but not limited to, the redemption price with
respect to the Securities called for redemption in accordance with Article 11)
issued hereunder shall, to the extent and in the manner hereinafter set forth,
be subordinated and subject in right of payment to the prior payment in full of
all Senior Indebtedness, whether outstanding at the date of this Indenture or
thereafter incurred.

                  No provision of this Article 15 shall prevent the occurrence
of any default or Event of Default hereunder.

                                       80
<PAGE>   88

SECTION 15.2 PAYMENTS TO HOLDERS.

                  No payment shall be made with respect to the principal of or
any premium or interest on the Securities (including, but not limited to, the
redemption price with respect to the Securities to be called for redemption in
accordance with Article 11), except payments and distributions made by the
Trustee as permitted by the first or second paragraph of Section 15.5, if:

                  (i) a default in the payment of principal, premium, interest,
         rent or other obligations due on any Senior Indebtedness occurs and is
         continuing (or, in the case of Senior Indebtedness for which there is a
         period of grace, in the event of such a default that continues beyond
         the period of grace, if any, specified in the instrument or lease
         evidencing such Senior Indebtedness), unless and until such default
         shall have been cured or waived or shall have ceased to exist; or

                  (ii) a default, other than a payment default, on a Designated
         Senior Indebtedness occurs and is continuing that then permits holders
         of such Designated Senior Indebtedness to accelerate its maturity and
         the Trustee receives a notice of the default (a "Payment Blockage
         Notice") from a Representative or the Company.

                  If the Trustee receives any Payment Blockage Notice pursuant
to clause (ii) above, no subsequent Payment Blockage Notice shall be effective
for purposes of this Section unless and until (A) at least 365 days shall have
elapsed since the initial effectiveness of the immediately prior Payment
Blockage Notice, and (B) all scheduled payments of principal, premium, if any,
and interest on the Securities that have come due have been paid in full in
cash. No nonpayment default that existed or was continuing on the date of
delivery of any Payment Blockage Notice to the Trustee shall be, or be made, the
basis for a subsequent Payment Blockage Notice.

                  The Company may and shall resume payments on and distributions
in respect of the Securities upon the earlier of:

                  (1) the date upon which the default is cured or waived or
ceases to exist; or

                                       81
<PAGE>   89

                  (2) in the case of a default referred to in clause (ii) above,
179 days pass after notice is received if the maturity of such Designated Senior
Indebtedness has not been accelerated,

unless this Article 15 otherwise prohibits the payment or distribution at the
time of such payment or distribution.

                  Upon any payment by the Company, or distribution of assets of
the Company of any kind or character, whether in cash, property or securities,
to creditors upon any dissolution or winding-up or liquidation or reorganization
of the Company, whether voluntary or involuntary or in bankruptcy, insolvency,
receivership or other proceedings, all amounts due or to become due upon all
Senior Indebtedness shall first be paid in full in cash or other payment
satisfactory to the holders of such Senior Indebtedness, or payment thereof in
accordance with its terms provided for in cash or other payment satisfactory to
the holders of such Senior Indebtedness, before any payment is made on account
of the principal of or any premium or interest on the Securities (except
payments made pursuant to Article 4 from monies deposited with the Trustee
pursuant thereto prior to commencement of proceedings for such dissolution,
winding-up, liquidation or reorganization); and upon any such dissolution or
winding-up or liquidation or reorganization of the Company or bankruptcy,
insolvency, receivership or other proceeding, any payment by the Company, or
distribution of assets of the Company of any kind or character, whether in cash,
property or securities, to which the Holders of the Securities or the Trustee
would be entitled, except for the provision of this Article 15, shall (except as
aforesaid) be paid by the Company or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution,
or by the Holders of the Securities or by the Trustee under this Indenture if
received by them or it, directly to the holders of Senior Indebtedness (pro rata
to such holders on the basis of the respective amounts of Senior Indebtedness
held by such holders, or as otherwise required by law or a court order) or their
representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing any Senior Indebtedness
may have been issued, as their respective interests may appear, to the extent
necessary to pay all Senior Indebtedness in full, in cash or other payment
satisfactory to the holders of such Senior Indebtedness, after giving effect to
any concurrent payment or distribution to or for the holders of Senior
Indebtedness, before any payment or distribution or provision therefor is made
to the Holders of the Securities or to the Trustee.

                  For purposes of this Article 15, the words, "cash, property or
securities" shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other corporation
provided for by a plan of reorganization or readjustment, the payment of which
is subordinated at least to the extent provided in this Article 15 with respect
to the Securities to the payment of all

                                       82
<PAGE>   90

Senior Indebtedness which may at the time be outstanding; provided that (i) the
Senior Indebtedness is assumed by the new corporation, if any, resulting from
any reorganization or readjustment and (ii) the rights of the holders of Senior
Indebtedness (other than leases which are not assumed by the Company or the new
corporation, as the case may be) are not, without the consent of such holders,
altered by such reorganization or readjustment. The consolidation of the Company
with, or the merger of the Company into, another corporation or the liquidation
or dissolution of the Company following the conveyance or transfer of its
property as an entirety, or substantially as an entirety, to another corporation
upon the terms and conditions provided for in Article 8 shall not be deemed a
dissolution, winding-up, liquidation or reorganization for the purposes of this
Section 15.2 if such other corporation shall, as a part of such consolidation,
merger, conveyance or transfer, comply with the conditions set forth in Article
8.

                  In the event of the acceleration of the Securities because of
an Event of Default, no payment or distribution shall be made to the Trustee or
any Holder of Securities in respect of the principal of or any premium or
interest on the Securities (including, but not limited to, the redemption price
with respect to the Securities called for redemption in accordance with Article
11), except payments and distributions made by the Trustee as permitted by the
first or second paragraph of Section 15.5, until all Senior Indebtedness has
been paid in full in cash or other payment satisfactory to the holders of Senior
Indebtedness or such acceleration is rescinded in accordance with the terms of
this Indenture. If payment of the Securities is accelerated because of an Event
of Default, the Company shall promptly notify holders of Senior Indebtedness of
the acceleration , unless there are no payment obligations of the Company
thereunder and all obligations thereunder to extend credit have been terminated
or expired.

                  In the event that, notwithstanding the foregoing provisions,
any payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities (including, without limitation, by way
of setoff or otherwise), prohibited by the foregoing, shall be received by the
Trustee or the Holders of the Securities before all Senior Indebtedness is paid
in full in cash or other payment satisfactory to the holders of such Senior
Indebtedness, or provision is made for such payment thereof in accordance with
its terms in cash or other payment satisfactory to the holders of such Senior
Indebtedness, such payment or distribution shall be held in trust for the
benefit of and shall be paid over or delivered to the holders of Senior
Indebtedness or their representative or representatives, or to the trustee or
trustees under any indenture pursuant to which any instruments evidencing any
Senior Indebtedness may have been issued, as their respective interests may
appear, as calculated by the Company, for application to the payment of all
Senior Indebtedness remaining unpaid to the extent necessary to pay all Senior
Indebtedness in full in cash or other payment satisfactory to the holders of
such Senior Indebtedness, after giving effect to any concurrent payment or
distribution to or for the holders of such Senior Indebtedness.

                                       83
<PAGE>   91

                  Nothing in this Section 15.2 shall apply to claims of, or
payments to, the Trustee under or pursuant to Section 6.7. This Section 15.2
shall be subject to the further provisions of Section 15.5.

SECTION 15.3 SUBROGATION OF SECURITIES.

                  Subject to the payment in full of all Senior Indebtedness, the
rights of the Holders of the Securities shall be subrogated to the extent of the
payments or distributions made to the holders of such Senior Indebtedness
pursuant to the provisions of this Article 15 (equally and ratably with the
holders of all indebtedness of the Company which by its express terms is
subordinated to other indebtedness of the Company to substantially the same
extent as the Securities are subordinated and is entitled to like rights of
subrogation) to the rights of the holders of Senior Indebtedness to receive
payments or distributions of cash, property or securities of the Company
applicable to the Senior Indebtedness until the principal of and any premium and
interest on the Securities shall be paid in full; and, for the purposes of such
subrogation, no payments or distributions to the holders of the Senior
Indebtedness of any cash, property or securities to which the Holders of the
Securities or the Trustee would be entitled except for the provisions of this
Article 15, and no payment over pursuant to the provisions of this Article 15,
to or for the benefit of the holders of Senior Indebtedness by Holders of the
Securities or the Trustee, shall, as between the Company, its creditors other
than holders of Senior Indebtedness, and the Holders of the Securities, be
deemed to be a payment by the Company to or on account of the Senior
Indebtedness; and no payments or distributions of cash, property or securities
to or for the benefit of the Holders of the Securities pursuant to the
subrogation provisions of this Article 15, which would otherwise have been paid
to the holders of Senior Indebtedness shall be deemed to be a payment by the
Company to or for the account of the Securities. It is understood that the
provisions of this Article 15 are and are intended solely for the purposes of
defining the relative rights of the Holders of the Securities, on the one hand,
and the holders of the Senior Indebtedness, on the other hand.

                  Nothing contained in this Article 15 or elsewhere in this
Indenture or in the Securities is intended to or shall impair, as among the
Company, its creditors other than the holders of Senior Indebtedness, and the
Holders of the Securities, the obligation of the Company, which is absolute and
unconditional, to pay to the Holders of the Securities the principal of and any
premium and interest on the Securities as and when the same shall become due and
payable in accordance with their terms, or is intended to or shall affect the
relative rights of the Holders of the Securities and creditors of the Company
other than the holders of the Senior Indebtedness, nor shall anything herein or
therein prevent the Trustee or the Holder of any Security from exercising all
remedies otherwise permitted by applicable law upon default under this
Indenture, subject to the rights, if any, under this Article 15 of the holders
of Senior Indebtedness in respect of cash, property or securities of the Company
received upon the exercise of any such remedy.

                                       84
<PAGE>   92

                  Upon any payment or distribution of assets of the Company
referred to in this Article 15, the Trustee, subject to the provisions of
Section 6.1, and the Holders of the Securities shall be entitled to rely upon
any order or decree made by any court of competent jurisdiction in which such
bankruptcy, dissolution, winding-up, liquidation or reorganization proceedings
are pending, or a certificate of the receiver, trustee in bankruptcy,
liquidating trustee, agent or other person making such payment or distribution,
delivered to the Trustee or to the Holders of the Securities, for the purpose of
ascertaining the persons entitled to participate in such distribution, the
holders of the Senior Indebtedness and other indebtedness of the Company, the
amount thereof or payable thereon and all other facts pertinent thereto or to
this Article 15.

SECTION 15.4 AUTHORIZATION TO EFFECT SUBORDINATION.

                  Each Holder of a Security by the Holder's acceptance thereof
authorizes and directs the Trustee on the Holder's behalf to take such action as
may be necessary or appropriate to effectuate the subordination as provided in
this Article 15 and appoints the Trustee to act as the Holder's attorney-in-fact
for any and all such purposes. If the Trustee does not file a proper proof of
claim or proof of debt in the form required in any proceeding referred to in
Section 5.3 hereof at least 30 days before the expiration of the time to file
such claim, the holders of any Senior Indebtedness or their representatives are
hereby authorized to file an appropriate claim for and on behalf of the Holders
of the Securities.

SECTION 15.5 NOTICE TO TRUSTEE.

                  The Company shall give prompt written notice in the form of an
Officers' Certificate to a Responsible Officer of the Trustee and to any paying
agent of any fact known to the Company which would prohibit the making of any
payment of monies to or by the Trustee or any paying agent in respect of the
Securities pursuant to the provisions of this Article 15. Notwithstanding the
provisions of this Article 15 or any other provision of this Indenture, the
Trustee shall not be charged with knowledge of the existence of any facts which
would prohibit the making of any payment of monies to or by the Trustee in
respect of the Securities pursuant to the provisions of this Article 15, unless
and until a Responsible Officer of the Trustee shall have received written
notice thereof at the Corporate Trust Office from the Company (in the form of an
Officers' Certificate) or a Representative or a holder or holders of Senior
Indebtedness or from any trustee thereof; and before the receipt of any such
written notice, the Trustee, subject to the provisions of Section 6.1, shall be
entitled in all respects to assume that no such facts exist; provided that if on
a date not fewer than two Business Days prior to the date upon

                                       85
<PAGE>   93

which by the terms hereof any such monies may become payable for any purpose
(including, without limitation, the payment of the principal of or any premium
or interest on any Security) the Trustee shall not have received, with respect
to such monies, the notice provided for in this Section 15.5, then, anything
herein contained to the contrary notwithstanding, the Trustee shall have full
power and authority to receive such monies and to apply the same to the purpose
for which they were received, and shall not be affected by any notice to the
contrary which may be received by it on or after such prior date.

                  Notwithstanding anything in this Article 15 to the contrary,
nothing shall prevent any payment by the Trustee to the Holders of monies
deposited with it pursuant to Section 4.1, and any such payment shall not be
subject to the provisions of Section 15.1 or Section 15.2.

                  The Trustee, subject to the provisions of Section 6.1, shall
be entitled to rely on the delivery to it of a written notice by a
Representative or a person representing himself to be a holder of Senior
Indebtedness (or a trustee on behalf of such holder) to establish that such
notice has been given by a Representative or a holder of Senior Indebtedness or
a trustee on behalf of any such holder or holders. In the event that the Trustee
determines in good faith that further evidence is required with respect to the
right of any person as a holder of Senior Indebtedness to participate in any
payment or distribution pursuant to this Article 15, the Trustee may request
such person to furnish evidence to the reasonable satisfaction of the Trustee as
to the amount of Senior Indebtedness held by such person, the extent to which
such person is entitled to participate in such payment or distribution and any
other facts pertinent to the rights of such person under this Article 15, and if
such evidence is not furnished, the Trustee may defer any payment to such person
pending judicial determination as to the right of such person to receive such
payment.

SECTION 15.6 TRUSTEE'S RELATION TO SENIOR INDEBTEDNESS.

                  The Trustee in its individual capacity shall be entitled to
all the rights set forth in this Article 15 in respect of any Senior
Indebtedness at any time held by it, to the same extent as any other holder of
Senior Indebtedness, and nothing in Section 6.13 or elsewhere in this Indenture
shall deprive the Trustee of any of its rights as such holder.

                  With respect to the holders of Senior Indebtedness, the
Trustee undertakes to perform or to observe only such of its covenants and
obligations as are specifically set forth in this Article 15, and no implied
covenants or obligations with respect to the holders of Senior Indebtedness
shall be read into this Indenture against the Trustee. The Trustee shall not be
deemed to owe any fiduciary duty to the holders of Senior Indebtedness and,
subject to the provisions of Section 6.1, the Trustee shall not be liable

                                       86
<PAGE>   94

to any holder of Senior Indebtedness if it shall pay over or deliver to Holders
of Securities, the Company or any other person money or assets to which any
holder of Senior Indebtedness shall be entitled by virtue of this Article 15 or
otherwise.

SECTION 15.7 NO IMPAIRMENT OF SUBORDINATION.

                  No right of any present or future holder of any Senior
Indebtedness to enforce subordination as herein provided shall at any time in
any way be prejudiced or impaired by any act or failure to act on the part of
the Company or by any act or failure to act, in good faith, by any such holder,
or by any noncompliance by the Company with the terms, provisions and covenants
of this Indenture, regardless of any knowledge thereof which any such holder may
have or otherwise be charged with.

SECTION 15.8 CERTAIN CONVERSIONS DEEMED PAYMENT.

                  For the purposes of this Article 15 only, (1) the issuance and
delivery of junior securities upon conversion of Securities in accordance with
Article 14 shall not be deemed to constitute a payment or distribution on
account of the principal of or any premium or interest on Securities or on
account of the purchase or other acquisition of Securities and (2) the payment,
issuance or delivery of cash (except in satisfaction of fractional shares
pursuant to Section 14.3), property or securities (other than junior securities)
upon conversion of a Security shall be deemed to constitute payment on account
of the principal of such Security. For the purposes of this Section 15.8, the
term "junior securities" means (a) shares of any stock of any class of the
Company or (b) securities of the Company which are subordinated in right of
payment to all Senior Indebtedness which may be outstanding at the time of
issuance or delivery of such securities to substantially the same extent as, or
to a greater extent than, the Securities are so subordinated as provided in this
Article. Nothing contained in this Article 15 or elsewhere in this Indenture or
in the Securities is intended to or shall impair, as among the Company, its
creditors (other than holders of Senior Indebtedness) and the Holders of
Securities, the right, which is absolute and unconditional, of the Holder of any
Security to convert such Security in accordance with Article 14.

SECTION 15.9 ARTICLE APPLICABLE TO PAYING AGENTS.

                  If at any time any Paying Agent (other than the Trustee) shall
have been appointed by the Company and be then acting hereunder, the term
"Trustee" as used in this Article shall (unless the context otherwise requires)
be construed as extending to and including such Paying Agent within its meaning
as fully for all intents and purposes as if such Paying Agent were named in this
Article in addition to or in place of the Trustee; provided, however, that the
first paragraph of Section 15.5 shall not apply to the Company or any Affiliate
of the Company if it or such Affiliate acts as Paying Agent.

                                       87
<PAGE>   95

SECTION 15.10 SENIOR INDEBTEDNESS ENTITLED TO RELY.

                  The holders of Senior Indebtedness (including, without
limitation, Designated Senior Indebtedness) shall have the right to rely upon
this Article 15, and no amendment or modification of the provisions contained
herein shall diminish the rights of such holders unless such holders shall have
agreed in writing thereto.

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

                                        WILLBROS GROUP, INC.

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

                                        ATTEST:

                                        [                     ],
                                         ---------------------
                                              as Trustee

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

                                       88<PAGE>   1
                                                                     EXHIBIT 4.4

                        EOG RESOURCES, INC. SAVINGS PLAN

<PAGE>   2

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                              PAGE
<S>               <C>                                                                                          <C>
ARTICLE I             DEFINITIONS

         1.1      Account......................................................................................I-1
         1.2      Active Service...............................................................................I-1
         1.3      Actual Contribution Ratio....................................................................I-1
         1.4      Actual Deferral Percentage...................................................................I-1
         1.5      Actual Deferral Ratio........................................................................I-2
         1.6      Affiliated Employer..........................................................................I-2
         1.7      Aggregate Accounts...........................................................................I-2
         1.8      Aggregation Group............................................................................I-2
         1.9      Annual Additions.............................................................................I-2
         1.10     Annual Compensation..........................................................................I-2
         1.11     Annuity Starting Date........................................................................I-3
         1.12     Beneficiary..................................................................................I-3
         1.13     Board of Directors...........................................................................I-3
         1.14     Code.........................................................................................I-3
         1.15     Committee....................................................................................I-3
         1.16     Company Stock................................................................................I-3
         1.17     Considered Compensation......................................................................I-3
         1.18     Contribution.................................................................................I-3
         1.19     Contribution Percentage......................................................................I-4
         1.20     Determination Date...........................................................................I-4
         1.21     Direct Rollover..............................................................................I-4
         1.22     Disability...................................................................................I-4
         1.23     Distributee..................................................................................I-4
         1.24     Eligible Retirement Plan.....................................................................I-4
         1.25     Eligible Rollover Distribution...............................................................I-4
         1.26     Employee.....................................................................................I-5
         1.27     Employer or Employers........................................................................I-5
         1.28     ERISA........................................................................................I-5
         1.29     Excess 401(k) Contributions..................................................................I-5
         1.30     Excess Aggregate 401(m) Contributions........................................................I-5
         1.31     Excess Deferral..............................................................................I-5
         1.32     Five Percent Owner...........................................................................I-6
         1.33     Former Member................................................................................I-6
         1.34     Highly Compensated Employee..................................................................I-6
         1.35     Hour of Service..............................................................................I-6
         1.36     Key Employee.................................................................................I-6
         1.37     Limitation Year..............................................................................I-6
         1.38     Member.......................................................................................I-6
         1.39     Non-Highly Compensated Employee..............................................................I-7
         1.40     Non-Key Employee.............................................................................I-7
         1.41     Period of Service............................................................................I-7
         1.42     Period of Severance..........................................................................I-7
</TABLE>

                                      -i-
<PAGE>   3
                               TABLE OF CONTENTS
                                  (continued)
<TABLE>
<CAPTION>
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         1.43     Plan.........................................................................................I-7
         1.44     Plan Year....................................................................................I-7
         1.45     Qualified Joint and Survivor Annuity.........................................................I-7
         1.46     Qualified Nonelective Employer Contribution..................................................I-7
         1.47     Qualified Preretirement Survivor Annuity.....................................................I-7
         1.48     Regulation...................................................................................I-7
         1.49     Retirement Age...............................................................................I-7
         1.50     Rollover Contribution........................................................................I-7
         1.51     Section 401(k) Contributions.................................................................I-7
         1.52     Section 401(m) Contributions.................................................................I-8
         1.53     Service......................................................................................I-8
         1.54     Severs Service...............................................................................I-8
         1.55     Sponsor......................................................................................I-8
         1.56     Top-Heavy Plan...............................................................................I-8
         1.57     Transferred..................................................................................I-8
         1.58     Trust........................................................................................I-8
         1.59     Trustee......................................................................................I-8
         1.60     Trust Fund...................................................................................I-8
         1.61     USERRA.......................................................................................I-8
         1.62     Valuation Date...............................................................................I-9

ARTICLE II            ACTIVE SERVICE

         2.1      When Active Service Begins..................................................................II-1
         2.2      Aggregation of Service......................................................................II-1
         2.3      Eligibility Computation Periods.............................................................II-1
         2.4      Periods of Service of Less Than One Year....................................................II-1
         2.5      Service Prior to Severance..................................................................II-1
         2.6      Periods of Severance Due to Child Birth or Adoption.........................................II-1
         2.7      Transfers...................................................................................II-2
         2.8      Employment Records Conclusive...............................................................II-2
         2.9      Coverage of Certain Previously Excluded Employees...........................................II-2
         2.10     Military Service............................................................................II-2

ARTICLE III           ELIGIBILITY RULES

         3.1      Eligibility Requirements...................................................................III-1
         3.2      Eligibility Upon Reemployment..............................................................III-1
         3.3      Frozen Participation.......................................................................III-1

ARTICLE IV            CONTRIBUTIONS AND THEIR LIMITATIONS

         4.1      Employee After Tax Contributions............................................................IV-1
         4.2      Rollover Contributions and Direct Transfers.................................................IV-1
         4.3      Salary Deferral Contributions...............................................................IV-1
         4.4      Employer Matching Contributions.............................................................IV-2
         4.5      Employer Discretionary Contributions........................................................IV-2
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         4.6      Restoration Contributions...................................................................IV-2
         4.7      Qualified Nonelective Employer Contribution.................................................IV-2
         4.8      Top-Heavy Contribution......................................................................IV-2
         4.9      Contributions Required on Return From Military Service......................................IV-3
         4.10     Deadline for Payment of Contributions.......................................................IV-3
         4.11     Limitations Based Upon Deductibility and the Maximum Allocation Permitted to a
                  Member's Account............................................................................IV-3
         4.12     Dollar Limitation on Salary Deferral Contributions..........................................IV-3
         4.13     Limitation Based Upon Actual Deferral Percentage............................................IV-4
         4.14     Limitation Based Upon Contribution Percentage...............................................IV-6
         4.15     Alternative Limitation Based Upon Actual Deferral Percentage and Contribution
                  Percentage..................................................................................IV-7
         4.16     Excess Deferral Fail Safe...................................................................IV-8
         4.17     Actual Deferral Percentage Fail Safe........................................................IV-8
         4.18     Contribution Percentage Fail Safe...........................................................IV-9
         4.19     Alternative Limitation Fail Safe...........................................................IV-10
         4.20     Income Allocable to Excess 401(k) and Aggregate 401(m) Contributions.......................IV-10
         4.21     Return of Contributions for Mistake, Disqualification or Disallowance of Deduction.........IV-10

ARTICLE V             PARTICIPATION

         5.1      Allocation of Employee Contributions.........................................................V-1
         5.2      Allocation of Rollover Contributions and Direct Transfers....................................V-1
         5.3      Allocation of Salary Deferral Contributions..................................................V-1
         5.4      Allocation of Employer Matching Contributions................................................V-1
         5.5      Allocation of Employer Discretionary Contributions...........................................V-1
         5.6      Allocation of Restoration Contributions......................................................V-1
         5.7      Allocation of Qualified Nonelective Employer Contributions...................................V-1
         5.8      Allocation of Top-Heavy Contributions........................................................V-2
         5.9      Effect of Transfers Upon Allocations.........................................................V-2
         5.10     Application of Forfeitures...................................................................V-2
         5.11     Scheduled Allocation of Income or Losses and Appreciation or Depreciation....................V-2
         5.12     Interim Allocation of Income or Losses and Appreciation or Depreciation......................V-2

ARTICLE VI            DISTRIBUTIONS AND FORFEITURES

         6.1      Valuation of Accounts for Distributions.....................................................VI-1
         6.2      Distribution on Death.......................................................................VI-1
         6.3      Distribution on Retirement..................................................................VI-1
         6.4      Distribution on Disability..................................................................VI-1
         6.5      Distribution on Severance From Service......................................................VI-1
         6.6      Distribution on Issuance of a Qualified Domestic Relations Order............................VI-2
         6.7      Forfeiture on Severing Service With All Affiliated Employers................................VI-2
         6.8      Forfeiture by Lost Members or Beneficiaries; Escheat........................................VI-3
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         6.9      Qualified Joint and Survivor and Qualified Preretirement Survivor Annuity...................VI-3
         6.10     Form of Distributions.......................................................................VI-5
         6.11     Adjustment of Value of Distribution.........................................................VI-6
         6.12     Normal Time for Distribution................................................................VI-6
         6.13     Time Limit For Distribution.................................................................VI-6
         6.14     Protected Benefits..........................................................................VI-7

ARTICLE VII           WITHDRAWALS AND LOANS

         7.1      Valuation of Accounts for Withdrawals and Loans............................................VII-1
         7.2      Withdrawals of Employee After Tax and Rollover Accounts....................................VII-1
         7.3      Withdrawal for Financial Hardship..........................................................VII-1
         7.4      Withdrawals On or After Age 59 1/2.........................................................VII-2
         7.5      Loans......................................................................................VII-2

ARTICLE VIII          GENERAL PROVISIONS APPLICABLE TO FILING A
                      CLAIM, DISTRIBUTIONS TO MINORS AND NO
                      DUPLICATION OF BENEFITS

         8.1      Claims Procedure..........................................................................VIII-1
         8.2      No Duplication of Benefits................................................................VIII-1
         8.3      Distributions to Disabled or Minors.......................................................VIII-1

ARTICLE IX            TOP-HEAVY REQUIREMENTS

         9.1      Application.................................................................................IX-1
         9.2      Top-Heavy Test..............................................................................IX-1
         9.3      Vesting Restrictions if Plan Becomes Top-Heavy..............................................IX-1
         9.4      Minimum Contribution if Plan Becomes Top-Heavy..............................................IX-2
         9.5      Coverage Under Multiple Top-Heavy Plans.....................................................IX-3

ARTICLE X             ADMINISTRATION OF THE PLAN

         10.1     Appointment, Term of Service & Removal.......................................................X-1
         10.2     Powers.......................................................................................X-1
         10.3     Organization.................................................................................X-2
         10.4     Quorum and Majority Action...................................................................X-2
         10.5     Signatures...................................................................................X-2
         10.6     Disqualification of Committee Member.........................................................X-2
         10.7     Disclosure to Members........................................................................X-2
         10.8     Standard of Performance......................................................................X-2
         10.9     Liability of Committee and Liability Insurance...............................................X-2
         10.10    Exemption from Bond..........................................................................X-3
         10.11    Compensation.................................................................................X-3
         10.12    Persons Serving in Dual Fiduciary Roles......................................................X-3
         10.13    Administrator................................................................................X-3
         10.14    Standard of Judicial Review of Committee Actions.............................................X-3
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ARTICLE XI            TRUST FUND AND CONTRIBUTIONS

         11.1     Funding of Plan.............................................................................XI-1
         11.2     Incorporation of Trust......................................................................XI-1
         11.3     Authority of Trustee........................................................................XI-1
         11.4     Allocation of Responsibility................................................................XI-1

ARTICLE XII           ADOPTION OF PLAN BY OTHER EMPLOYERS

         12.1     Adoption Procedure.........................................................................XII-1
         12.2     No Joint Venture Implied...................................................................XII-1
         12.3     All Trust Assets Available to Pay All Benefits.............................................XII-1
         12.4     Qualification a Condition Precedent to Adoption and Continued Participation................XII-1

ARTICLE XIII          AMENDMENT AND WITHDRAWAL OR TERMINATION

         13.1     Right to Amend............................................................................XIII-1
         13.2     Limitation on Amendments..................................................................XIII-1
         13.3     Each Employer Deemed to Adopt Amendment Unless Rejected...................................XIII-1
         13.4     Amendment Applicable Only to Members Still Employed Unless Amendment Specifically
                  Provides Otherwise........................................................................XIII-2
         13.5     Mandatory Amendments......................................................................XIII-2
         13.6     Withdrawal of Employer....................................................................XIII-2
         13.7     Termination of Plan.......................................................................XIII-3
         13.8     100% Vesting Required on Partial or Complete Termination or Complete Discontinuance.......XIII-3
         13.9     Distribution Upon Termination.............................................................XIII-3

ARTICLE XIV           SALE OF EMPLOYER OR SUBSTANTIALLY ALL OF ITS ASSETS

         14.1     Continuance Permitted Upon Sale or Transfer of Assets......................................XIV-1
         14.2     Distributions Upon Disposition of Assets or a Subsidiary...................................XIV-1

ARTICLE XV            MISCELLANEOUS

         15.1     Plan Not An Employment Contract.............................................................XV-1
         15.2     Benefits Provided Solely From Trust.........................................................XV-1
         15.3     Anti-Alienation Provision...................................................................XV-1
         15.4     Requirements Upon Merger or Consolidation of Plans..........................................XV-2
         15.5     Gender and Number...........................................................................XV-2
         15.6     Severability................................................................................XV-2
         15.7     Governing Law; Parties to Legal Actions.....................................................XV-2

ARTICLE XVI           VOTING OF COMPANY STOCK AND TENDER OFFERS

         16.1     Voting of Company Stock....................................................................XVI-1
         16.2     Tender Offers..............................................................................XVI-1
         16.3     Shares Credited............................................................................XVI-3
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         16.4     Conversion.................................................................................XVI-3
         16.5     Named Fiduciary............................................................................XVI-3
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<PAGE>   8

                        EOG RESOURCES, INC. SAVINGS PLAN

         EOG Resources, Inc. has entered into the following Agreement:

                                   WITNESSETH:

         WHEREAS, EOG Resources, Inc. has heretofore adopted a qualified profit
sharing plan with a 401(k) feature and exempt trust for the exclusive benefit of
its employees and their beneficiaries; and

         WHEREAS, it has been determined that the plan should now be completely
amended, restated and continued without a gap or lapse in coverage, time or
effect which would cause any Member to become fully vested or entitled to
distribution, in order to (a) effect numerous technical changes for the benefit
of eligible employees and beneficiaries, and (b) to ensure the plan's
qualification under the applicable provisions of the Internal Revenue Code of
1986, as amended, and the Employee Retirement Income Security Act of 1974, as
amended; and

         WHEREAS, it is intended that other business organizations may adopt
this plan and its related trust for the exclusive benefit of their employees and
their employees' beneficiaries;

         NOW, THEREFORE, this Agreement is entered into in order to set forth
the terms of that profit sharing plan with a 401(k) feature which are as
follows:

<PAGE>   9

                                   ARTICLE I

                                   DEFINITIONS

         The words and phrases defined in this Article shall have the meaning
set out in the definition unless the context in which the word or phrase appears
reasonably requires a broader, narrower or different meaning.

         1.1 "ACCOUNT" means all ledger accounts pertaining to a Member which
are maintained by the Committee to reflect the Member's interest in the Trust
Fund. The Committee shall establish the following Accounts and any additional
Accounts that the Committee considers necessary to reflect the entire interest
of the Member in the Trust Fund. Each of the Accounts listed below and any
additional Accounts established by the Committee shall reflect the Contributions
or amounts transferred to the Trust Fund, if any, and the appreciation or
depreciation of the assets in the Trust Fund and the income earned or loss
incurred on the assets in the Trust Fund attributable to the Contributions
and/or other amounts transferred to the Account.

                  (a) Employee After Tax Contribution Account - The Member's
         after tax contributions, if any.

                  (b) Salary Deferral Contribution Account - The Member's before
         tax contributions, if any.

                  (c) Employer Matching Contribution Account - The Employer's
         matching contributions allocated to the Member, if any.

                  (d) Employer Discretionary Contribution Account - The
         Employer's discretionary contributions, if any.

                  (e) Qualified Nonelective Employer Contribution Account - The
         Employer's Qualified Nonelective Employer Contributions allocated to
         the Member, if any.

                  (f) Rollover Account - Funds transferred from another
         qualified plan or IRA Account for the benefit of a Member.

         1.2 "ACTIVE SERVICE" means the Periods of Service which are counted for
either eligibility or vesting purposes as calculated under Article II.

         1.3 "ACTUAL CONTRIBUTION RATIO" means for an Employee the ratio of
Section 401(m) Contributions actually paid into the Trust on behalf of the
Employee for a Plan Year to the Employee's Annual Compensation earned while the
Employee was a Member for the same Plan Year.

         1.4 "ACTUAL DEFERRAL PERCENTAGE" means for a specified group of
Employees for a Plan Year the average of the ratios (calculated separately for
each Employee in the group) of the sum of Section 401(k) Contributions actually
paid into the Trust on behalf of each Employee for

                                      I-1
<PAGE>   10

that Plan Year to the Employee's Annual Compensation earned while the Employee
was a Member for the same Plan Year.

         1.5 "ACTUAL DEFERRAL RATIO" means for an Employee the ratio of Section
401(k) Contributions actually paid into the Trust on behalf of the Employee for
a Plan Year to the Employee's Annual Compensation earned while the Employee was
a Member for the same Plan Year.

         1.6 "AFFILIATED EMPLOYER" means the Employer and any employer which is
a member of the same controlled group of corporations within the meaning of
section 414(b) of the Code, which is a trade or business (whether or not
incorporated) which is under common control within the meaning of section 414(c)
of the Code, which is a member of an affiliated service group within the meaning
of section 414(m) of the Code with the Employer, or which is required to be
aggregated with the Employer under section 414(o) of the Code. For purposes of
the limitation on allocations contained in Part B of Article V, the definition
of Affiliated Employer is modified by substituting the phrase "more than 50
percent" in place of the phrase "at least 80 percent" each place the latter
phrase appears in section 1563(a)(1) of the Code.

         1.7 "AGGREGATE ACCOUNTS" means the total of all Account balances
derived from Employer Contributions and Employee Contributions.

         1.8 "AGGREGATION GROUP" means (a) each plan of the Employer or any
Affiliated Employer in which a Key Employee is a Member and (b) each other plan
of the Employer or any Affiliated Employer which enables any plan in (a) to meet
the requirements of either section 401(a)(4) or 410 of the Code. Any Employer
may treat a plan not required to be included in the Aggregation Group as being a
part of the group if the group would continue to meet the requirements of
sections 401(a)(4) and 410 of the Code with that plan being taken into account.

         1.9 "ANNUAL ADDITIONS" means the sum of the following amounts credited
on behalf of a Member for the Limitation Year: (a) Employer Contributions, (b)
Employee After Tax Contributions, and (c) forfeitures. Excess 401(k)
Contributions and Excess Aggregate 401(m) Contributions for a Plan Year are
treated as Annual Additions for that Plan Year even if they are corrected
through distribution or recharacterization. Excess Deferrals that are timely
distributed as set forth in Section 4.12 shall not be treated as Annual
Additions.

         1.10 "ANNUAL COMPENSATION" means wages within the meaning of section
3401(a) of the Code and all other payments of compensation to an Employee by the
Affiliated Employer for which a written statement is required to be furnished
under sections 6041(d), 6051(a)(3), and 6052 of the Code (but determined without
regard to any rules under section 3401(a) of the Code that limit the
remuneration included in wages based on the nature or location of the employment
or the services performed) as modified by including elective contributions under
a cafeteria plan described in section 125 of the Code and elective contributions
to any plan qualified under section 401(k), 408(k), or 403(b) of the Code.
Except for purposes of Part B of Article V of the Plan, Annual Compensation in
excess of $150,000.00 (as adjusted by the Secretary of Treasury) shall be
disregarded. If the Plan Year is ever less than 12 months the $150,000.00
limitation (as adjusted by the Secretary of Treasury) will be prorated by
multiplying the limitation by a fraction, the numerator of which is the number
of months in the Plan Year, and the denominator

                                      I-2
<PAGE>   11

of which is 12. For purposes of determining an Employee's Actual Contribution
Ratio or Actual Deferral Ratio, Annual Compensation shall include only
compensation earned during the portion of the Plan Year that the Employee was
eligible to participate in the Plan.

         1.11 "ANNUITY STARTING DATE" means the first day of the first period
for which an amount is payable as an annuity, or in the case of a benefit not
payable in the form of an annuity, the first day on which all events have
occurred which entitle the Member to the benefit.

         1.12 "BENEFICIARY" or Beneficiaries means the person or persons, or the
trust or trusts created for the benefit of a natural person or persons or the
Member's or Former Member's estate, designated by the Member or Former Member to
receive the benefits payable under this Plan upon his death.

         1.13 "BOARD OF DIRECTORS" means the board of directors, the executive
committee or other body given management responsibility for the Sponsor.

         1.14 "CODE" means the Internal Revenue Code of 1986, as amended from
time to time.

         1.15 "COMMITTEE" means the committee appointed by the Sponsor to
administer the Plan.

         1.16 "COMPANY STOCK" means EOG Resources, Inc. common stock.

         1.17 "CONSIDERED COMPENSATION" means as to each Employee, that
Employee's Annual Compensation as modified further by excluding the following
items (even if includable in gross income): overtime, bonuses, commissions,
reimbursements or other expense allowances, fringe benefits (cash and noncash),
moving expenses, deferred compensation and welfare benefits. Considered
Compensation in excess of $150,000.00 (as adjusted by the Secretary of Treasury)
shall be disregarded. If the Plan Year is ever less than 12 months the
$150,000.00 limitation (as adjusted by the Secretary of Treasury) will be
prorated by multiplying the limitation by a fraction, the numerator of which is
the number of months in the Plan Year, and the denominator of which is 12.

         1.18 "CONTRIBUTION" means the total amount of contributions made under
the terms of this Plan. Each specific type of Contribution shall be designated
by the type of contribution made as follows:

                  (a) Employee After Tax Contribution - After tax contributions
         made by the Employee.

                  (b) Salary Deferral Contribution - Contributions made by the
         Employer under the Employee's salary deferral agreement.

                  (c) Employer Matching Contribution - Matching contributions
         made by the Employer.

                                      I-3
<PAGE>   12

                  (d) Employer Discretionary Contribution - Contributions made
         by the Employer on a discretionary basis.

                  (e) Qualified Nonelective Employer Contribution - Qualified
         Nonelective Employer Contributions made by the Employer as a means of
         passing the actual deferral percentage test of section 401(k) of the
         Code or the actual contribution percentage test of section 401(m) of
         the Code.

                  (f) Rollover Contribution - Contributions made by a Member
         which consist of any part of an Eligible Rollover Distribution (as
         defined in section 402 of the Code) from a qualified employee trust
         described in section 401(a) of the Code or an IRA Rollover Account.

         1.19 "CONTRIBUTION PERCENTAGE" means for a specified group of Employees
for a Plan Year the average of the ratios (calculated separately for each
Employee in the group) of the sum of Section 401(m) Contributions actually paid
into the Trust on behalf of each Employee for that Plan Year to the Employee's
Annual Compensation earned while the Employee was a Member for that Plan Year.

         1.20 "DETERMINATION DATE" means for a given Plan Year the last day of
the preceding Plan Year or in the case of the first Plan Year the last day of
that Plan Year.

         1.21 "DIRECT ROLLOVER" means a payment by the Plan to the Eligible
Retirement Plan specified by the Distributee.

         1.22 "DISABILITY" means any medically determinable physical or mental
impairment that is deemed to be a disability by the Social Security
Administration Department for purpose of receiving a Primary Social Security
Disability benefit, or any such physical or mental impairment which is
determined to make the individual eligible to receive a disability benefit in
accordance with the provisions of the Employer's insured long term disability
plan, if applicable to such Employee, by the insurance carrier underwriting such
plan.

         1.23 "DISTRIBUTEE" means an Employee or former Employee, and in
addition, the Employee's or former Employee's surviving spouse or the Employee's
or former Employee's spouse or former spouse who is the alternate payee under a
qualified domestic relations order, as defined in section 414(p) of the Code,
with regard to the interest of the spouse or former spouse.

         1.24 "ELIGIBLE RETIREMENT PLAN" means an individual retirement account
described in section 408(a) of the Code, an individual retirement annuity
described in section 408(b) of the Code, an annuity plan described in section
403(a) of the Code, or a qualified trust described in section 401(a) of the
Code, that accepts the Distributee's Eligible Rollover Distribution. However, in
the case of an Eligible Rollover Distribution to the surviving spouse, an
Eligible Retirement Plan is an individual retirement account or individual
retirement annuity.

         1.25 "ELIGIBLE ROLLOVER DISTRIBUTION" as defined in section 402 of the
Code means any distribution of all or any portion of the balance to the credit
of the Distributee, except that an Eligible Rollover Distribution does not
include: (a) any distribution that is one of a series of substantially equal
periodic payments (not less frequently than annually) made for the life (or life

                                      I-4
<PAGE>   13

expectancy) of the Distributee or the joint lives (or joint life expectancies)
of the Distributee and the Distributee's Beneficiary, or for a specified period
of ten years or more; (b) any distribution to the extent the distribution is
required under section 401(a)(9) of the Code; (c) the portion of any
distribution that is not includable in gross income (determined without regard
to the exclusion for net unrealized appreciation with respect to employer
securities); and (d) any hardship distribution described in section
401(k)(2)(B)(i)(IV) of the Code.

         If the Plan accepts a Rollover Contribution which the Trustee
reasonably concludes is qualified under this Section of the Plan, and
subsequently it is determined that such distribution was not qualified, the
Trustee shall distribute the amount of such rollover distribution, plus earnings
thereon, to the Member in compliance with applicable Regulations.

         1.26 "EMPLOYEE" means all common law employees of each Employer
exclusive of the following classifications: (a) employees working outside of the
United States unless the Committee elects to cover or continue to cover them in
this Plan and (b) all leased employees who are required to be treated as common
law employees under section 414(n) of the Code unless the Plan's qualified
status is dependent upon coverage of the leased employees. Independent
contractors are not common law employees and are therefore not within the
defined term "Employee" as used in this Plan. The determination of whether a
person is within an excluded class or is an independent contractor shall be made
by the Committee in its sole discretion as granted in Article X. However, if
either one or more individuals who are classified as leased employees or
independent contractors are later determined to be in fact common law employees
of an Employer, they are nevertheless to be excluded as a classification unless
the Plan's qualified status is dependent upon the coverage of that
classification of persons.

         1.27 "EMPLOYER" or "EMPLOYERS" means the Sponsor and any other business
organization which has adopted this Plan.

         1.28 "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended from time to time.

         1.29 "EXCESS 401(k) CONTRIBUTIONS" means, with respect to any Plan
Year, the excess of (a) the aggregate amount of Section 401(k) Contributions
actually paid into the Trust on behalf of Highly Compensated Employees for the
Plan Year over (b) the maximum amount of those contributions permitted under the
limitations set out in the first sentence of Section 4.13 of the Plan.

         1.30 "EXCESS AGGREGATE 401(m) CONTRIBUTIONS" means, with respect to any
Plan Year, the excess of (a) the aggregate amount of Section 401(m)
Contributions actually paid into the Trust on behalf of Highly Compensated
Employees for the Plan Year over (b) the maximum amount of those contributions
permitted under the limitations set out in the first sentence of Section 4.14 of
the Plan.

         1.31 "EXCESS DEFERRAL" means that part, if any, of the Salary Deferral
Contribution of a Member for his taxable year which, when added to the amounts
he deferred under other plans or arrangements described in sections 401(k),
408(k) and 403(b) of the Code, exceeds the deferral dollar limitation permitted
by section 402(g) of the Code.

                                      I-5
<PAGE>   14

         1.32 "FIVE PERCENT OWNER" means an Employee who is a 5-percent owner as
defined in section 416(i) of the Code.

         1.33 "FORMER MEMBER" means a person who was at one time a Member who
received allocations of Contributions and who is no longer a Member under the
Plan, but still has an Account balance in the Plan.

         1.34 "HIGHLY COMPENSATED EMPLOYEE" means an Employee or an employee of
an Affiliated Employer who: (a) during the Plan Year or the preceding Plan Year
was at any time a Five Percent Owner or (b) for the preceding year had Annual
Compensation in excess of $80,000.00 (as adjusted from time to time by the
Secretary of the Treasury) and was in the group consisting of the top 20 percent
of the Employees when ranked on the basis of Annual Compensation paid during the
preceding year. A former Member will be treated as a Highly Compensated Employee
if he was a Highly Compensated Employee when he Severed Service or he was a
Highly Compensated Employee at any time after attaining age 55. Non-resident
aliens who receive no earned income from the employer which constitutes income
from sources within the United States are excluded.

         1.35 "HOUR OF SERVICE" means each hour for which an Employee is paid or
entitled to payment for the performance of duties with an Affiliated Employer.

         1.36 "KEY EMPLOYEE" means an Employee or former or deceased Employee or
Beneficiary of an Employee who at any time during the Plan Year or any of the
four preceding Plan Years is (a) an officer of an Employer or any Affiliated
Employer having an Annual Compensation greater than 50% of the annual addition
limitation of section 415(b)(1)(A) of the Code for the Plan Year, (b) one of the
10 employees having an Annual Compensation from an Employer or any Affiliated
Employer of greater than 100% of the annual addition limitation of section
415(c)(1)(A) of the Code for the Plan Year and owning or considered as owning
(within the meaning of section 318 of the Code) the largest interest in an
Employer or any Affiliated Employer, treated separately, (c) a Five Percent
Owner of an Employer or any Affiliated Employer, treated separately, or (d) a 1%
owner of an Employer or any Affiliated Employer, treated separately, having
Annual Compensation from an Employer or any Affiliated Employer of more than
$150,000.00, as adjusted. For this purpose no more than 50 employees or, if
lesser, the greater of three employees or 10% of the employees shall be treated
as officers. Section 416(i) of the Code shall be used to determine percentage of
ownership. For the purpose of the test set out in (b) above, if two or more
employees have the same interest in an Employer, the employee with the greater
Annual Compensation from the Employer shall be treated as having the larger
interest.

         1.37 "LIMITATION YEAR" means the year used for purposes of applying the
limitations under section 415 of the Code. The Limitation Year shall be the Plan
Year unless the Employer affirmatively, by resolution, designates another
limitation year.

         1.38 "MEMBER" means the person or persons employed by an Employer who
are eligible to participate in this Plan.

                                      I-6
<PAGE>   15

         1.39 "NON-HIGHLY COMPENSATED EMPLOYEE" means any Employee who is not a
Highly Compensated Employee.

         1.40 "NON-KEY EMPLOYEE" means any Employee who is not a Key Employee.

         1.41 "PERIOD OF SERVICE" means a period of employment with an
Affiliated Employer which commences on the day on which an Employee performs his
initial Hour of Service or performs his initial Hour of Service upon returning
to the employ of an Affiliated Employer, whichever is applicable, and ends on
the date the Employee Severs Service.

         1.42 "PERIOD OF SEVERANCE" means the period of time which commences on
the date an Employee Severs Service and ends on the date the Employee again
performs an Hour of Service.

         1.43 "PLAN" means the EOG Resources, Inc. Savings Plan, including all
subsequent amendments.

         1.44 "PLAN YEAR" means the calendar year. The Plan Year shall be the
fiscal year of this Plan.

         1.45 "QUALIFIED JOINT AND SURVIVOR ANNUITY" means an annuity which is
purchased with the Member's vested Account balance as of the date of
distribution that will provide equal monthly payments for the life of the
Member, with a survivor annuity for the life of the Member's spouse equal to 50%
of the amount of the monthly payments payable during the joint lives of the
Member and the Member's spouse.

         1.46 "QUALIFIED NONELECTIVE EMPLOYER CONTRIBUTION" means the Employer's
Contribution, if any, made as a means of passing the Actual Deferral Percentage
test or the Contribution Percentage test.

         1.47 "QUALIFIED PRERETIREMENT SURVIVOR ANNUITY" means an annuity which
is purchased with the Member's vested Account balance as of the date of
distribution that will provide equal monthly payments for the life of the
surviving spouse.

         1.48 "REGULATION" means the Internal Revenue Service regulation
specified, as it may be changed from time to time.

         1.49 "RETIREMENT AGE" means 65 years of age, but may mean 55 years of
age, the earliest date at which a Member may retire, if the Member has completed
five years of Service and desires voluntarily to retire early. Once a Member has
attained his Retirement Age he shall be 100% vested at all times.

         1.50 "ROLLOVER CONTRIBUTION" means the amount contributed by a Member
to his Account in this Plan which consists of any part or all of an Eligible
Rollover Distribution.

         1.51 "SECTION 401(k) CONTRIBUTIONS" means the sum of Salary Deferral
Contributions made on behalf of the Member during the Plan Year and Qualified
Nonelective Employer Contributions that the Employer elects to have treated as
Section 401(k) Contributions pursuant

                                      I-7
<PAGE>   16

to section 401(k)(3)(D)(ii) of the Code to the extent that those contributions
are not used to enable the Plan to satisfy the minimum contribution requirements
of section 416 of the Code.

         1.52 "SECTION 401(m) CONTRIBUTIONS" means the sum of Employer Matching
Contributions and Employee After Tax Contributions made on behalf of the Member
during the Plan Year and Qualified Nonelective Employer Contributions that the
Employer elects to have treated as Section 401(m) Contributions pursuant to
section 401(m)(3)(B) of the Code to the extent that those contributions are not
used to enable the Plan to satisfy the minimum contribution requirements of
section 416 of the Code.

         1.53 "SERVICE" means the period or periods that a person is paid or is
entitled to payment for performance of duties with an Affiliated Employer.

         1.54 "SEVERS SERVICE" means the earlier of the following events: (a)
the Employee's quitting, retiring, dying or being discharged, (b) the completion
of a period of 365 continuous days in which the Employee remains absent from
Service (with or without pay) for any reason other than quitting, retiring,
dying or being discharged, such as vacation, holiday, sickness, disability,
leave of absence, layoff or any other absence or (c) the second anniversary of
the commencement of a continuous period of absence occasioned by the reason of
the pregnancy of the Employee, the birth of a child of the Employee, the
placement of a child with the Employee in connection with the adoption of the
child by the Employee or the caring for the child for a period commencing
immediately after the child's birth or placement.

         1.55 "SPONSOR" means EOG Resources, Inc. or any other organization
which assumes the primary responsibility for maintaining this Plan with the
consent of the last preceding Sponsor.

         1.56 "TOP-HEAVY PLAN" means any plan which has been determined to be
top-heavy under the test described in Article IX of this Plan.

         1.57 "TRANSFERRED" means an Employee's termination of employment with
one Employer and his contemporaneous commencement of employment with another
Employer.

         1.58 "TRUST" means the one or more trust estates created to fund this
Plan.

         1.59 "TRUSTEE" means collectively one or more persons or entities with
trust powers which have been appointed by the initial Sponsor and have accepted
the duties of Trustee and any and all successor or successors appointed by the
Sponsor or successor Sponsor.

         1.60 "TRUST FUND" means all of the trust estates established under the
terms of this Plan to fund this Plan, whether held to fund a particular group of
Accounts or held to fund all of the Accounts of Members, collectively.

         1.61 "USERRA" means the Uniformed Services Employment And Reemployment
Rights Act of 1994 which was enacted on October 13, 1994 as Public Law 103-353
and which amended Chapter 43 of Title 38 of the United States Code.

                                      I-8
<PAGE>   17

         1.62 "VALUATION DATE" means the day or days each Plan Year selected by
the Committee on which the Trust Fund is to be valued which cannot be less
frequent than annual. One or more Accounts may have different Valuation Dates
from other Accounts. The Valuation Date must be announced to all Members and
Former Members who have Account Balances and shall remain the same until changed
by the Committee and announced to the Members. Until changed by the Committee,
the Valuation Date shall be daily.

                                      I-9
<PAGE>   18
                                   ARTICLE II

                                 ACTIVE SERVICE

         2.1 WHEN ACTIVE SERVICE BEGINS. For purposes of eligibility and
vesting, Active Service begins when an Employee first performs an Hour of
Service for an Affiliated Employer or an employer the stock or assets of which
were or are acquired by an Employer or Affiliated Employer without regard to
whether a predecessor plan was maintained. Once an Employee has begun Active
Service for purposes of eligibility or vesting and Severs Service he shall
recommence Active Service for those purposes when he again performs an Hour of
Service for an Affiliated Employer. For purposes of the Plan, Active Service
shall include service performed with Enron Corp. or one of its subsidiaries if
the Employee was employed by the Employer on August 16, 1999.

         2.2 AGGREGATION OF SERVICE. When determining an Employee's Active
Service, all Periods of Service, whether or not completed consecutively, shall
be aggregated on a per day basis. Thirty days shall be counted as one month and
12 months shall be counted as one year. For purposes of eligibility and vesting,
only full years of Active Service shall be counted, any fractional year shall be
dropped.

         2.3 ELIGIBILITY COMPUTATION PERIODS. For the purpose of determining
eligibility and vesting, the initial period shall begin on the day the Employee
first performs an Hour of Service and each future year shall begin on the
anniversary of that date.

         2.4 PERIODS OF SERVICE OF LESS THAN ONE YEAR. If an Employee performs
an Hour of Service within 12 months after he Severs Service, the intervening
Period of Severance shall be counted as a Period of Service.

         2.5 SERVICE PRIOR TO SEVERANCE. If an Employee incurs a Period of
Severance of one year or more, all Periods of Service prior to that Period of
Severance shall not count as Active Service until the Employee has completed a
Period of Service of one year or more after his return to Service. If an
Employee Severs Service at a time when he does not have any vested right to
amounts credited to his Employer Matching Contribution Account or Employer
Discretionary Contribution Account and the Period of Severance continues for a
continuous period of five years or more, the Period of Service completed by the
Employee before the Period of Severance shall not be taken into account if his
Period of Severance equals or exceeds his Period of Service, whether or not
consecutive, completed before the Period of Severance.

         2.6 PERIODS OF SEVERANCE DUE TO CHILD BIRTH OR ADOPTION. If the period
of time between the first anniversary of the first day of an absence from
Service by reason of the pregnancy of the Employee, the birth of a child of the
Employee, the placement of a child with the Employee in connection with the
adoption of the child by the Employee or for purposes for caring for the child
for a period beginning immediately after the birth or placement and the second
anniversary of the first day of the absence occurs during or after the first
Plan Year beginning after December 31, 1984, it shall neither be counted as a
Period of Service nor of Severance.

                                      II-1
<PAGE>   19

         2.7 TRANSFERS. If an Employee is Transferred from one Employer to
another, his Active Service shall not be interrupted and he shall continue to be
in Active Service for purposes of eligibility, vesting and allocation of
Contributions and/or forfeitures. If an Employee is transferred to the service
of an Affiliated Employer that has not adopted the Plan he shall not have
Severed Service; however, even though he shall continue to be in Active Service
for eligibility and vesting purposes he shall not receive any allocation of
Contributions or forfeitures.

         2.8 EMPLOYMENT RECORDS CONCLUSIVE. The employment records of the
Employer shall be conclusive for all determinations of Active Service.

         2.9 COVERAGE OF CERTAIN PREVIOUSLY EXCLUDED EMPLOYEES. Any Employee who
is no longer excludable because he or she is no longer included in a unit of
Employees covered by a collective bargaining agreement between the Employees'
representative and the Employer where retirement benefits were the subject of
good faith bargaining shall immediately become eligible for membership if he
meets the eligibility requirements. All his Service with any Affiliated Employer
that would have been counted had he not been previously excluded shall now be
counted as Active Service for eligibility and vesting purposes.

         2.10 MILITARY SERVICE. A Member who leaves the employ of an Employer to
enter the armed services of the United States and is covered by USERRA shall not
be deemed to have broken his continuous employment if he is reemployed under
USERRA. And, the Member shall be awarded Active Service upon reemployment for
each period served by him in the uniformed services for eligibility, vesting and
benefit accrual purposes.

                                      II-2
<PAGE>   20
                                  ARTICLE III

                                ELIGIBILITY RULES

         3.1 ELIGIBILITY REQUIREMENTS. Each Employee shall be eligible to
participate in this Plan beginning on the date on which the Employee completes
one Hour of Service. However, all Employees who are included in a unit of
Employees covered by a collective bargaining agreement between the Employees'
representative and the Employer shall be excluded, even if they have met the
requirements for eligibility, if there has been good faith bargaining between
the Employer and the Employees' representative pertaining to retirement benefits
and the agreement does not require the Employer to include those Employees in
this Plan. In addition, all Employees who are nonresident aliens and who receive
no earned income from the Employer that constitutes income from sources within
the United States shall be excluded. Notwithstanding any other provision of the
Plan to the contrary, effective as of March 1, 2001, each Employee classified by
the Employer as a Minimal Benefits Employee shall be excluded from being
eligible to receive allocations of Employer Matching Contributions and Employer
Discretionary Contributions under the Plan even if such Employee has satisfied
the requirements for eligibility to receive an allocation of the Employer
Matching Contributions and Employer Discretionary Contributions and is having
Salary Deferral Contributions made on his behalf by the Employer.

         3.2 ELIGIBILITY UPON REEMPLOYMENT. If an Employee Severs Service with
the Employer for any reason after fulfilling the eligibility requirements but
prior to the date he initially begins participating in the Plan, the Employee
shall be eligible to begin participation in this Plan on the day he first
completes an Hour of Service upon his return to employment with an Employer.
Once an Employee has become eligible to be a Member, his eligibility shall
continue until he Severs Service. A former Member shall be eligible to
recommence participation in this Plan on the first day he completes an Hour of
Service upon his return to employment with an Employer.

         3.3 FROZEN PARTICIPATION. An employee employed by an Affiliated
Employer, which has not adopted this Plan, cannot actively participate in this
Plan even though he accrues Active Service. Likewise, if an Employee: (a) is
transferred from an Employer to an Affiliated Employer which has not adopted
this Plan, (b) is a Member of this Plan when he is excluded from this Plan
because he becomes excluded under the provisions of a collective bargaining
agreement or because he becomes a leased employee or an independent contractor
and he has not had a complete termination of his contractual relationship with
all Affiliated Employers, or (c) is a Member of the Plan when he is employed
outside the United States and is not designated by the Committee to continue to
be eligible to participate, his participation becomes inactive. Under these
circumstances, the Member's Account becomes frozen: he cannot contribute to the
Plan nor can he share in the allocation of any Employer Contribution or
forfeitures for the frozen period. However, his Accounts shall continue to share
in any appreciation or depreciation of the Trust Fund and in any income earned
or losses incurred by the Trust Fund during the frozen period of time. Once the
contract or contracts of an independent contractor, who has a frozen Account,
have expired with all Affiliated Employers in a good-faith and complete
termination of the contractual relationship and no renewal is expected or once
an employee who has a frozen

                                     III-1
<PAGE>   21

Account terminates his employment with all Affiliated Employers, he shall have
Severed Service for purposes of distribution of benefits.

                                     III-2
<PAGE>   22
                                   ARTICLE IV

                       CONTRIBUTIONS AND THEIR LIMITATIONS

                             PART A.  CONTRIBUTIONS

         4.1 EMPLOYEE AFTER TAX CONTRIBUTIONS. The Committee may permit Employee
After Tax Contributions to be made by Members from time to time. If the
Committee permits Contributions by Members, the opportunity must be made
available to all Members on a nondiscriminatory basis. If the Committee decides
to stop all Contributions by Members, the Contributions to the effective date of
the announcement shall be retained in the Trust Fund subject to the right of
withdrawal described under this Plan.

         Employee After Tax Contributions are limited to an amount which, when
added to the other amounts required to be taken into consideration, will not
exceed the limit set by section 415 of the Code and will meet the Contribution
Percentage test described in section 401(m) of the Code.

         Changes in the rate of Employee After Tax Contributions and suspension
of those Contributions shall be permitted under any uniform method determined
from time to time by the Committee.

         4.2 ROLLOVER CONTRIBUTIONS AND DIRECT TRANSFERS. The Committee may
permit Rollover Contributions by Members and/or direct transfers to or from
another qualified plan on behalf of Members from time to time. If Rollover
Contributions and/or direct transfers to or from another qualified plan are
permitted, the opportunity to make those Contributions must be made available to
all Members on a nondiscriminatory basis. For this purpose, all Employees of an
Employer who are in a classification which may participate in this Plan shall be
considered to be Members of the Plan even though they may not have met the
eligibility requirements. However, they shall not be entitled to elect to have
Salary Deferral Contributions or Employee After Tax Contributions or share in
any Employer Contribution unless and until they have met the requirements for
eligibility and allocation.

         A Rollover Contribution shall not be accepted unless it is directly
rolled over to this Plan in a roll over described in section 401(a)(31) of the
Code and the property is acceptable to the Trustee. A direct transfer of assets
from another qualified plan in a transfer subject to the requirements of section
414(l) of the Code shall not be accepted if it was at any time part of the plan
which contained a right, feature or benefit not contained in this Plan unless
the Committee, in its sole discretion, agrees to continue to provide that right,
feature or benefit to that portion of the Member's Account.

         Rollover Contributions shall have no effect upon the amount permitted
to be allocated to a Member's Account under section 415 of the Code, or the
amount contributed to the Plan by a Member under Section 4.1.

         4.3 SALARY DEFERRAL CONTRIBUTIONS. Each Employer shall contribute for
each Plan Year the amount by which the Member's Considered Compensation is
reduced as a result of a

                                      IV-1
<PAGE>   23

salary deferral agreement, from one percent (1%) to fifteen percent (15%) of the
Member's Considered Compensation for the Plan Year, less the amount of the
Member's Employee After Tax Contribution, if any.

         The election to have Salary Deferral Contributions made, the ability to
change the rate of Salary Deferral Contributions, the right to suspend Salary
Deferral Contributions, and the manner of commencing new Salary Deferral
Contributions shall be permitted under any uniform method determined from time
to time by the Committee.

         4.4 EMPLOYER MATCHING CONTRIBUTIONS. Effective for the period beginning
on August 31, 1999 and ending on December 31, 1999, each Employer shall
contribute for each Plan Year an amount, for each Member who is employed by one
of the Employers at the end of the month, which is equal to fifty percent (50%)
of the Member's Salary Deferral Contribution not in excess of four percent (4%)
of the Member's Considered Compensation. Effective January 1, 2000, each
Employer shall contribute for each Plan Year an amount, for each Member who is
employed by one of the Employers at the end of the month, which is equal to one
hundred percent (100%) of the Member's Salary Deferral Contribution not in
excess of six percent (6%) of the Member's Considered Compensation.

         An Employer Matching Contribution shall not be made with respect to
amounts that must be distributed to the Member because of Code sections 401(k),
401(m) or 402(g). Therefore, if inadvertent Employer Matching Contributions were
made on behalf of a Member on amounts that must be distributed to the Member,
that excess amount, plus any earnings, shall be refunded to the Employer.

         4.5 EMPLOYER DISCRETIONARY CONTRIBUTIONS. Each Employer shall
contribute for each Plan Year an amount, if any, which is designated by the
Board of Directors in its sole discretion to be the Employer Discretionary
Contribution for the Plan Year.

         4.6 RESTORATION CONTRIBUTIONS. Each Employer shall contribute for each
Plan Year an amount, which when added to previously unapplied and unallocated
forfeitures, shall equal the amounts which were not vested and therefore
forfeited by Members who have previously terminated but who have now become
entitled to have their forfeited amounts restored plus an amount equal to the
value of all forfeited benefits for Members who formerly could not be located,
but have now filed a claim.

         4.7 QUALIFIED NONELECTIVE EMPLOYER CONTRIBUTION. Each Employer
concerned shall contribute for a given Plan Year an amount, if any, which is
designated by the Board of Directors to be the Qualified Nonelective Employer
Contribution for the Plan Year.

         A Member's right to benefits derived from Qualified Nonelective
Employer Contributions made to the Plan on his behalf shall be nonforfeitable.
In no event will Qualified Nonelective Employer Contributions be distributed
before Salary Deferral Contributions may be distributed.

         4.8 TOP-HEAVY CONTRIBUTION. Each Employer concerned shall contribute
for a given Plan Year an amount which is equal to the amount, if any, necessary
to fulfill the Top-Heavy Plan requirements found in Article IX if the Plan is
determined to be a Top-Heavy Plan.

                                      IV-2
<PAGE>   24

         4.9 CONTRIBUTIONS REQUIRED ON RETURN FROM MILITARY SERVICE. If a Member
leaves the employ of an Employer to enter the armed services of the United
States and is covered by USERRA and is reemployed under USERRA, the Employer
shall make a contribution equal to the amount of the Employer Discretionary
Contributions which would have been allocated to the Member's Account if he had
remained in the employ of the Employer for the period of time he was covered by
USERRA. In addition, the Member may make additional "catch up" Salary Deferral
Contributions during a period beginning on his date of reemployment and ending
on the earlier of (a) three times the period of his qualified military service
and (b) five years equal to the maximum amount he could have made and the
Employer must make the appropriate Employer Matching Contributions. The Employer
shall not make any contribution for lost earnings or failure to share in
forfeitures.

         4.10 DEADLINE FOR PAYMENT OF CONTRIBUTIONS. The Employee After Tax
Contributions and the Salary Deferral Contributions are to be paid to the
Trustee in installments. The installment for each payroll period is to be paid
as of the end of the payroll period and shall be paid as soon as
administratively feasible but in any event not later than the time prescribed by
law for filing the Employer's federal income tax return (including extensions)
for its taxable year which ends with or next follows the end of the Plan Year
for which the Contribution is to be made. The Employer's Contribution for a Plan
Year must be paid into the Trust Fund in one or more installments not later than
the time prescribed by law for filing the Employer's federal income tax return
(including extensions) for its taxable year for which it is to take the
deduction. If the Contribution is paid after the last day of the Employer's
taxable year but prior to the date it files its tax return (including
extensions), it shall be treated as being received by the Trustee on the last
day of the taxable year if (a) the Employer notifies the Trustee in writing that
the payment is being made for that taxable year or (b) the Employer claims the
Contribution as a deduction on its federal income tax return for the taxable
year.

                PART B.  LIMITATIONS APPLICABLE TO CONTRIBUTIONS

         4.11 LIMITATIONS BASED UPON DEDUCTIBILITY AND THE MAXIMUM ALLOCATION
PERMITTED TO A MEMBER'S ACCOUNT. Notwithstanding any other provision of this
Plan, no Employer shall make any contribution that would be a nondeductible
contribution within the meaning of section 4972 of the Code or that would cause
the limitation on allocations to each Member's Account within the meaning of
section 415 of the Code to be exceeded. For a further description of the
limitation on allocations and the corrections permitted, see Part B of
Article V.

         4.12 DOLLAR LIMITATION ON SALARY DEFERRAL CONTRIBUTIONS. The maximum
Salary Deferral Contribution that a Member may elect to have made on his behalf
during the Member's taxable year may not, when added to the amounts deferred
under other plans or arrangements described in sections 401(k), 408(k) and
403(b) of the Code exceed $7,000 (as adjusted by the Secretary of Treasury).

         For purposes of applying the requirements of Section 4.13 and Article
IX, Excess Deferrals shall not be disregarded merely because they are Excess
Deferrals or because they are distributed in accordance with this Section.
However, Excess Deferrals made to the Plan on behalf of Non-Highly Compensated
Employees are not to be taken into account under Section 4.13.

                                      IV-3
<PAGE>   25

         If the Member makes "elective deferrals," as defined in Regulations
issued pursuant to section 402(g) of the Code, to more than one plan, which
exceed the limit described above in the aggregate, such Member may elect a
distribution of a part or all of such excess amount what has been contributed to
the Plan. An election to receive a distribution of such Excess Deferrals must be
in writing and must include the Employee's certification that the specified
amount is an Excess Deferral. Such election must be made not later than the
first March 15th following the close of the Plan Year in which such Excess
Deferrals occurred. Upon such election, the excess amount specified by the
Member shall be distributed to the Member not later than the first April 15th
following the close of the Plan Year in which such Excess Deferrals occurred.
The amount of such excess to be distributed shall be reduced by the amount of
any excess contributions previously distributed for the Plan Year beginning
within the taxable year for which the excess under this Section is distributed.

         In the event Employer Matching Contributions that have been made on
behalf of the Member that relate to the Excess Deferrals distributed pursuant to
the previous paragraph become discriminatory due to the above distribution, the
Employer may distribute such excess contributions to the Member if such
contributions meet the definition of Excess Aggregate 401(m) Contributions under
the Plan. If the Employer Matching Contributions cannot be distributed as Excess
Aggregate 401(m) Contributions, the excess contributions shall be forfeited in
accordance with applicable sections of the Code and Regulations.

4.13 LIMITATION BASED UPON ACTUAL DEFERRAL PERCENTAGE. The Actual Deferral
Percentage for eligible Highly Compensated Employees for any Plan Year must bear
a relationship to the Actual Deferral Percentage for all other eligible
Employees for the preceding Plan Year which meets either of the following tests:

                  (a) the Actual Deferral Percentage of the eligible Highly
         Compensated Employees is not more than the Actual Deferral Percentage
         of all other eligible Employees multiplied by 1.25; or

                  (b) the excess of the Actual Deferral Percentage of the
         eligible Highly Compensated Employees over that of all other eligible
         Employees is not more than two percentage points, and the Actual
         Deferral Percentage of the eligible Highly Compensated Employees is not
         more than the Actual Deferral Percentage of all other eligible
         Employees multiplied by two.

         For the initial Plan Year of this Plan and for the initial Plan Year of
any Employer which adopts this Plan as its separate plan, the amount taken into
account as the Actual Deferral Percentage of Non-highly Compensated Employees
for the preceding Plan Year shall be (a) three percent or (b) if the Employer
makes an election under this subclause (b), the Actual Deferral Percentage of
Non-highly Compensated Employees for the first Plan year.

         For purposes of this test an eligible Employee is an Employee who is
directly or indirectly eligible to make Salary Deferral Contributions for all or
part of the Plan Year. A person who is suspended from making Salary Deferral
Contributions because he has made a withdrawal is an eligible Employee. If no
Salary Deferral Contributions are made for an eligible

                                      IV-4
<PAGE>   26

Employee, the Actual Deferral Ratio that shall be included for him in
determining the Actual Deferral Percentage is zero.

         If this Plan and any other plan or plans which include cash or deferred
arrangements are considered as one plan for purposes of section 401(a)(4) or
410(b) of the Code, the cash or deferred arrangements included in this Plan and
the other plans shall be treated as one plan for these tests. If any Highly
Compensated Employee is a Member of this Plan and any other cash or deferred
arrangements of the Employer, when determining the deferral percentage of the
Employee, all of the cash or deferred arrangements are treated as one. If the
Employer elects to apply section 410(b)(4)(B) of the Code in determining whether
the Plan meets the requirements of section 401(k)(3)(A)(i) of the Code, the
Employer may, in determining whether the arrangement meets the requirements of
section 401(k)(3)(A)(ii), exclude from consideration all eligible Employees
(other than Highly Compensated Employees) who are not 21 years of age or have
not completed one year of Active Service by the end of the Plan Year.

         The Actual Deferral Percentages are to be calculated and the provisions
of this Section are to be applied, separately, for each Employer which
constitutes a separate controlled group or affiliated service group.

         A Salary Deferral Contribution will be taken into account under the
Actual Deferral Percentage test of Code section 401(k) and this Section for a
Plan Year only if it relates to Annual Compensation that either would have been
received by the Employee in the Plan Year (but for the deferral election) or is
attributable to services performed by the employee in the Plan Year and would
have been received by the Employee within 2 1/2 months after the close of the
Plan Year (but for the deferral election). In addition, a Section 401(k)
Contribution will be taken into account under the Actual Deferral Percentage
test of Code section 401(k) and this Section for a Plan Year only if it is
allocated to an Employee as of a date within that Plan Year. For this purpose of
a Section 401(k) Contribution is considered allocated as of a date within a Plan
Year if the allocation is not contingent on participation or performance of
services after that date and the Section 401(k) Contribution is actually paid to
the Trust no later than 12 months after the Plan Year to which the Section
401(k) Contribution relates.

         Failure to correct Excess 401(k) Contributions by the close of the Plan
Year following the Plan Year for which they were made will cause the Plan's cash
or deferred arrangement to be disqualified for the Plan Year for which the
Excess 401(k) Contributions were made and for all subsequent years during which
they remain in the Trust. Also, the Employer will be liable for a 10% excise tax
on the amount of Excess 401(k) Contributions unless they are corrected within
2 1/2 months after the close of the Plan Year for which they were made.

         In the event Employer Matching Contributions that have been made on
behalf of the Member that relate to the Excess 401(k) Contributions distributed
in accordance with Plan provisions become discriminatory as a result of such
distribution, the Employer may distribute such excess contributions to the
Member if such contributions meet the definition of Excess Aggregate 401(m)
Contributions under the Plan. If the Employer Matching Contributions cannot be
distributed as Excess Aggregate 401(m) Contributions, the excess contributions
shall be forfeited in accordance with applicable sections of the Code and
Regulations.

                                      IV-5
<PAGE>   27

         4.14 LIMITATION BASED UPON CONTRIBUTION PERCENTAGE. The Contribution
Percentage for eligible Highly Compensated Employees for any Plan Year must not
exceed the greater of the following:

                  (a) the Contribution Percentage for all other eligible
         Employees for the preceding Plan Year multiplied by 1.25; or

                  (b) the lesser of the Contribution Percentage for all other
         eligible Employees for the preceding Plan Year multiplied by two, or
         the Contribution Percentage for all other eligible Employees for the
         preceding Plan Year plus two percentage points.

         For the initial Plan Year of this Plan and for the initial Plan Year of
any Employer which adopts this Plan as its separate plan, the amount taken into
account as the Contribution Percentage of Non-highly Compensated Employees for
the preceding Plan Year shall be (a) three percent or (b) if the Employer makes
an election under this subclause (b), the Contribution Percentage of Non-highly
Compensated Employees for the first Plan Year.

         For purposes of this test an eligible Employee is an Employee who is
directly or indirectly eligible to make Employee After Tax Contributions or to
receive an allocation of Employer Matching Contributions under the Plan for all
or part of the Plan Year. A person who is suspended from making Employee After
Tax Contributions because he has made a withdrawal, a person who would be
eligible to receive an allocation of Employer Matching Contributions but for his
election not to participate, and a person who would be eligible to receive an
allocation of Employer Matching Contributions but for the limitation on his
Annual Additions imposed by section 415 of the Code, are all eligible Employees.

         If no Section 401(m) Contributions are made on behalf of an eligible
Employee, the Actual Contribution Ratio that shall be included for him in
determining the Contribution Percentage is zero. If this Plan and any other plan
or plans to which Section 401(m) Contributions are made are considered as one
plan for purposes of section 401(a)(4) or 410(b) of the Code, this Plan and
those plans are to be treated as one. The Actual Contribution Ratio of a Highly
Compensated Employee who is eligible to participate in more than one plan of an
Affiliated Employer to which employee or matching contributions are made is
calculated by treating all the plans in which the Employee is eligible to
participate as one plan. However, plans that are not permitted to be aggregated
under Regulation section 1.410(m)-1(b)(3)(ii) are not aggregated for this
purpose.

         A Matching Employer Contribution will be taken into account under this
Section for a Plan Year only if (a) it is allocated to the Employee's Account as
of a date within the Plan Year, (b) it is paid to the Trust no later than the
end of the 12 month period beginning after the close of the Plan Year, and (c)
it is made on behalf of an Employee on account of his Salary Deferral
Contributions for the Plan Year.

         If the Employer elects to apply section 410(b)(4)(B) of the Code in
determining whether the Plan meets the requirements of section 410(b) of the
Code, the Employer may, in determining whether the arrangement meets the
requirements of section 401(m)(2) of the Code exclude from consideration all
eligible Employees (other than Highly Compensated Employees)

                                      IV-6
<PAGE>   28

who are not 21 years of age or have not completed one year of Active Service by
the end of the Plan Year.

         The Contribution Percentage shall be calculated and the provisions of
this Section applied, separately, for each Employer which constitutes a separate
controlled group or affiliated service group.

         At the election of the Employer, a Member's Salary Deferral
Contributions, and Qualified Nonelective Employer Contributions made on behalf
of the Member during the Plan Year shall be treated as Section 401(m)
Contributions that are Employer Matching Contributions provided that the
conditions set forth in Regulation section 1.401(m)-1(b)(5) are satisfied.
Salary Deferral Contributions may not be treated as Employer Matching
Contributions for purposes of the Contribution Percentage test unless the
contributions, including those taken into account for purposes of the test,
satisfy the Actual Deferral Percentage test set forth in Section 4.13. Salary
Deferral Contributions and Qualified Nonelective Employer Contributions may not
be taken into account for purposes of the test to the extent that those
contributions are taken into account in determining whether any other
contributions satisfy the Actual Deferral Percentage test set forth in Section
4.13. Finally, Salary Deferral Contributions and Qualified Nonelective Employer
Contributions may be taken into account for purposes of the test only if they
are allocated to the Employee's Account as of a date within the Plan Year being
tested within the meaning of Regulation section 1.401(k)-1(b)(4).

         Failure to correct Excess Aggregate 401(m) Contributions by the close
of the Plan Year following the Plan Year for which they were made will cause the
Plan to fail to be qualified for the Plan Year for which the Excess Aggregate
401(m) Contributions were made and for all subsequent years during which they
remain in the Trust. Also, the Employer will be liable for a 10% excise tax on
the amount of Excess Aggregate 401(m) Contributions unless they are corrected
within 2 1/2 months after the close of the Plan Year for which they were made.

         4.15 ALTERNATIVE LIMITATION BASED UPON ACTUAL DEFERRAL PERCENTAGE AND
CONTRIBUTION PERCENTAGE. If the second alternative permitted in Sections 4.13
and 4.14 is used for both the Actual Deferral Percentage test and the
Contribution Percentage test the following additional limitation on Salary
Deferral Contributions shall apply. The Actual Deferral Percentage plus the
Contribution Percentage of the eligible Highly Compensated Employees cannot
exceed the greater of (a) or (b), where:

              (a) is the sum of:

                  (i) 1.25 times the greater of the Actual Deferral Percentage
              or the Contribution Percentage of the eligible Non-Highly
              Compensated Employees for the preceding Plan Year, and

                  (ii) the lesser of (x) two percentage points plus the lesser
              of the Actual Deferral Percentage or the Contribution Percentage
              of the eligible Non-Highly Compensated Employees for the preceding
              Plan Year or (y) two times the lesser of the Actual Deferral
              Percentage or the Contribution Percentage of the group of eligible
              Non-Highly Compensated Employees for the preceding Plan Year, and

                                      IV-7
<PAGE>   29

              (b) is the sum of:

                  (i) 1.25 times the lesser of the Actual Deferral Percentage or
              the Contribution Percentage of the eligible Non-Highly Compensated
              Employees for the preceding Plan Year, and

                  (ii) the lesser of (x) two percentage points plus the greater
              of the Actual Deferral Percentage or the Contribution Percentage
              of the eligible Non-Highly Compensated Employees for the preceding
              Plan Year or (y) two times the greater of the Actual Deferral
              Percentage or the Contribution Percentage of the group of eligible
              Non-Highly Compensated Employees for the preceding Plan Year.

                   PART C.  CORRECTION PROCEDURES FOR ERRONEOUS
                                 CONTRIBUTIONS

         4.16 EXCESS DEFERRAL FAIL SAFE. As soon as practical after the close of
each Plan Year, the Committee shall determine if there would be any Excess
Deferrals. If there would be an Excess Deferral by a Member, the Excess Deferral
as adjusted by any earnings or losses, will be distributed to the Member no
later than April 15 following the Member's taxable year in which the Excess
Deferral was made. The income allocable to the Excess Deferrals for the taxable
year of the Member shall be determined by multiplying the income for the taxable
year of the Member allocable to Salary Deferral Contributions by a fraction. The
numerator of the fraction is the amount of the Excess Deferrals made on behalf
of the Member for the taxable year. The denominator of the fraction is the
Member's total Salary Deferral Account balance as of the beginning of the
taxable year plus the Member's Salary Deferral Contributions for the taxable
year.

         4.17 ACTUAL DEFERRAL PERCENTAGE FAIL SAFE. As soon as practicable after
the close of each Plan Year, the Committee shall determine whether the Actual
Deferral Percentage for the Highly Compensated Employees would exceed the
limitation. If the limitation would be exceeded for a Plan Year, before the
close of the following Plan Year (a) the amount of Excess 401(k) Contributions
for that Plan Year (and any income allocable to those Contributions as
calculated in the specific manner required by Section 4.20) shall be
distributed, or (b) the Employer may make a Qualified Nonelective Employer
Contribution which it elects to have treated as a Section 401(k) Contribution.

         The amount of Excess 401(k) Contributions to be distributed shall be
that amount of the Salary Deferral Contributions by or on behalf of those Highly
Compensated Employees with the largest Salary Deferral Contributions as is equal
to the Excess 401(k) Contributions, taken ratably from each Account, based
solely on those Salary Deferral Contributions for the Plan Year. This initial
distribution shall not reduce those Accounts affected below the next highest
level of Salary Deferral Contributions. If any further reduction is necessary
the same process is to be repeated at the next highest level of Salary Deferral
Contributions by or on behalf of the Highly Compensated Employees, and if
necessary repeated in successively lower levels of Salary Deferral Contributions
until the cash or deferred arrangement satisfies the Actual Deferral Percentage
test.

                                      IV-8
<PAGE>   30

         The amount of Excess 401(k) Contributions to be distributed shall be
determined in the following manner:

         First, the Plan will determine how much Actual Deferral Ratio of the
Highly Compensated Employee with the highest Actual Deferral Ratio would have to
be reduced to satisfy the Actual Deferral Percentage Test or cause such ratio to
equal the Actual Deferral Ratio of the Highly Compensated Employee with the next
highest ratio. Second, this process is repeated until the Actual Deferral
Percentage Test is satisfied. The amount of Excess 401(k) Contributions is equal
to the sum of these hypothetical reductions multiplied, in each case, by the
Highly Compensated Employee's Annual Compensation.

         Then, distributions of Excess 401(k) Contributions shall be made on the
basis of the respective amounts attributable to each Highly Compensated
Employee. The Highly Compensated Employees subject to the actual distribution
are determined using the "dollar leveling method" starting with the Highly
Compensated Employee with the greatest dollar amount of Salary Deferral
Contributions and other contributions treated as Section 401(k) Contributions
for the Plan Year and continuing until the amount of the Excess 401(k)
Contributions have been accounted for.

         Qualified Nonelective Employer Contributions shall be treated as
Section 401(k) Contributions only if: (a) the conditions described in Regulation
section 1.401(k)-1(b)(5) are satisfied and (b) they are allocated to Members'
Accounts as of a date within that Plan Year and are actually paid to the Trust
no later than the end of the 12 month period immediately following the Plan Year
to which the contributions relate. If the Employer makes a Qualified Nonelective
Employer Contribution that it elects to have treated as a Section 401(k)
Contribution, the Contribution will be in an amount necessary to satisfy the
Actual Deferral Percentage test and will be allocated first to those Non-Highly
Compensated Employees who had the lowest Actual Deferral Ratio.

         Any distributions of the Excess 401(k) Contributions for any Plan Year
are to be made to Highly Compensated Employees on the basis of the amount of
contributions by, or on behalf of, each Highly Compensated Employee. The amount
of Excess 401(k) Contributions to be distributed for any Plan Year must be
reduced by any excess Salary Deferral Contributions previously distributed for
the taxable year ending in the same Plan Year.

         4.18 CONTRIBUTION PERCENTAGE FAIL SAFE. If the limitation would be
exceeded for any Plan Year, before the close of the following Plan Year any one
or more of the following corrective actions shall be taken, as determined by the
Committee in its sole discretion: (a) the amount of the Excess Aggregate 401(m)
Contributions for that Plan Year (and any income allocable to those
Contributions as calculated in the specific manner required by Section 4.20)
shall be distributed or forfeited (to the extent not vested), or (b) the
Employer may make a Qualified Nonelective Employer Contribution which it elects
to have treated as a Section 401(m) Contribution. Any distributions of the
Excess Aggregate 401(m) Contributions for any Plan Year are to be made to Highly
Compensated Employees on the basis of the respective portions of the amounts
attributable to each of them. Forfeitures of Excess Aggregate 401(m)
Contributions may not be allocated to Members whose contributions are reduced
under this Section.

                                      IV-9
<PAGE>   31

         The amount of Excess Aggregate 401(m) Contributions to be distributed
shall be determined in the following manner:

         First, the Plan will determine how much Actual Contribution Ratio of
the Highly Compensated Employee with the highest Actual Contribution Ratio would
have to be reduced to satisfy the Actual Contribution Percentage Test or cause
such ratio to equal the Actual Contribution Ratio of the Highly Compensated
Employee with the next highest ratio. Second, this process is repeated until the
Actual Contribution Percentage Test is satisfied. The amount of Excess Aggregate
401(m) Contributions is equal to the sum of these hypothetical reductions
multiplied, in each case, by the Highly Compensated Employee's Annual
Compensation.

         Then, distributions of Excess Aggregate 401(m) Contributions shall be
made on the basis of the respective amounts attributable to each Highly
Compensated Employee. The Highly Compensated Employees subject to the actual
distribution are determined using the "dollar leveling method" starting with the
Highly Compensated Employee with the greatest dollar amount of Employer Matching
Contributions and other contributions treated as matching contributions for the
Plan Year and continuing until the amount of the Excess Aggregate 401(m)
Contributions have been accounted for.

         4.19 ALTERNATIVE LIMITATION FAIL SAFE. As soon as practicable after the
close of each Plan Year, the Committee shall determine whether the alternative
limitation would be exceeded. If the limitation would be exceeded for any Plan
Year, before the close of the following Plan Year the Actual Deferral Percentage
or Contribution Percentage of the eligible Highly Compensated Employees, or a
combination of both, shall be reduced by distributions made in the manner
described in the Regulations. These distributions shall be in addition to and
not in lieu of distributions required for Excess 401(k) Contributions and Excess
Aggregate 401(m) Contributions.

         4.20 INCOME ALLOCABLE TO EXCESS 401(k) AND AGGREGATE 401(m)
CONTRIBUTIONS. The income allocable to Excess 401(k) Contributions for the Plan
Year shall be determined by multiplying the income for the Plan Year allocable
to Section 401(k) Contributions by a fraction. The numerator of the fraction is
the amount of Excess 401(k) Contributions made on behalf of the Member for the
Plan Year. The denominator of the fraction is the Member's total Account balance
attributable to Section 401(k) Contributions as of the beginning of the Plan
Year plus the Member's Section 401(k) Contributions for the Plan Year. The
income allocable to Excess Aggregate 401(m) Contributions for a Plan Year shall
be determined by multiplying the income for the Plan Year allocable to Section
401(m) Contributions by a fraction. The numerator of the fraction is the amount
of Excess Aggregate 401(m) Contributions made on behalf of the Member for the
Plan Year. The denominator of the fraction is the Member's total Account balance
attributable to Section 401(m) Contributions as of the beginning of the Plan
Year plus the Member's Section 401(m) Contributions for the Plan Year.

         4.21 RETURN OF CONTRIBUTIONS FOR MISTAKE, DISQUALIFICATION OR
DISALLOWANCE OF DEDUCTION. Subject to the limitations of section 415 of the
Code, the assets of the Trust shall not revert to any Employer or be used for
any purpose other than the exclusive benefit of the Members and their
Beneficiaries and the reasonable expenses of administering the Plan except:

                                     IV-10
<PAGE>   32

                  (a) any Contribution made because of a mistake of fact shall
         be repaid to the Employer within one year after the payment of the
         Contribution;

                  (b) any Contribution conditioned upon the Plan's initial
         qualification under section 401 of the Code or the initial
         qualification of an Employer's adoption of the Plan, if later, shall be
         repaid to the Employer within one year after the date of denial of the
         initial qualification of the Plan or of its adoption by the Employer;
         and

                  (c) any and all Employer Contributions are conditioned upon
         their deductibility under section 404 of the Code; therefore, to the
         extent the deduction is disallowed, the Contributions shall be repaid
         to the Employer within one year after the disallowance.

         The Employer has the exclusive right to determine if a Contribution or
any part of it is to be repaid or is to remain as a part of the Trust Fund
except that the amount to be repaid is limited, if the Contribution is made by
mistake of fact or if the deduction for the Contribution is disallowed, to the
excess of the amount contributed over the amount that would have been
contributed had there been no mistake or over the amount disallowed. Earnings
which are attributable to any excess contribution cannot be repaid. Losses
attributable to an excess contribution must reduce the amount that may be
repaid. All repayments of mistaken Contributions or Contributions which are
disallowed are limited so that the balance in a Member's Account cannot be
reduced to less than the balance that would have been in the Member's Account
had the mistaken amount or the amount disallowed never been contributed.

                                     IV-11
<PAGE>   33

                                   ARTICLE V

                                  PARTICIPATION

                              PART A.  ALLOCATIONS

         5.1 ALLOCATION OF EMPLOYEE CONTRIBUTIONS. The Committee shall allocate
each Member's Employee After Tax Contributions made on his behalf to his
Employee After Tax Contribution Account as of the date they are contributed.

         5.2 ALLOCATION OF ROLLOVER CONTRIBUTIONS AND DIRECT TRANSFERS. If
Rollover Contributions and/or direct transfers are permitted, the Committee
shall allocate each Member's Rollover Contribution and/or direct transfers to
his Rollover Account as of the date it is contributed or transferred.

         5.3 ALLOCATION OF SALARY DEFERRAL CONTRIBUTIONS. The Committee shall
allocate the Salary Deferral Contributions, if any, made on behalf of each
Member to his Salary Deferral Contribution Account, as of the date they are
contributed.

         5.4 ALLOCATION OF EMPLOYER MATCHING CONTRIBUTIONS. The Committee shall,
as of the end of each month, allocate the Employer Matching Contributions made
on behalf of each Member to his Employer Matching Contribution Account.

         5.5 ALLOCATION OF EMPLOYER DISCRETIONARY CONTRIBUTIONS. The Committee
shall, as of the end of each Plan Year, allocate the Employer Discretionary
Contribution, if any, among the Members who are eligible to participate and who
are employed by an Employer or Affiliated Employer at the end of the Plan Year
based upon each Member's Considered Compensation as compared to the Considered
Compensation of all Members eligible to participate and who are employed by an
Employer or Affiliated Employer at the end of the Plan Year.

         5.6 ALLOCATION OF RESTORATION CONTRIBUTIONS. The Committee shall, as of
the end of each Plan Year, allocate the previously unapplied and unallocated
forfeitures and the Employer Contribution, if any, which are required to restore
the nonvested portion of the Employer Accounts of Members who had previously
forfeited that nonvested portion on the date they terminated employment but who
qualified for the restoration of that amount during the Plan Year and allocate
the previously unapplied and unallocated forfeitures and the Employer
Contribution, if any, which are required to restore the Accounts of those
Members whose distributions were forfeited because of the Committee's inability
to contact the Members previously but who have filed a claim for their Accounts
during the Plan Year. The Committee shall establish and maintain a separate
subaccount for the amount allocated to an Account in order to restore a
previously forfeited amount.

         5.7 ALLOCATION OF QUALIFIED NONELECTIVE EMPLOYER CONTRIBUTIONS. The
Committee shall, as of the end of the Plan Year, allocate the Qualified
Nonelective Employer Contribution, if any, among the Non-Highly Compensated
Employees as set forth in Section 4.17 or 4.18, whichever is applicable.

                                      V-1
<PAGE>   34

         5.8 ALLOCATION OF TOP-HEAVY CONTRIBUTIONS. The Committee shall, as of
the end of the Plan Year, allocate the Employer Contribution, if any, which is
necessary to fulfill the Top-Heavy Plan requirements found in Article IX if the
Plan is determined to be a Top-Heavy Plan.

         5.9 EFFECT OF TRANSFERS UPON ALLOCATIONS. If a Member has been
Transferred during the Plan Year, the Member shall be entitled to have allocated
to him a portion of the Employer Matching Contribution based upon his Salary
Deferral Contributions made while he was an Employee of each Employer and the
Employer Discretionary Contribution based upon his Considered Compensation for
the Plan Year earned from all of the Employers for which an Employer
Discretionary Contribution was made.

         5.10 APPLICATION OF FORFEITURES. Amounts forfeited for any reason shall
first be allocated under Section 5.6 to restore previously forfeited Accounts
which are to be restored under the terms of this Plan and if any amount remains
after that allocation, it shall be used to reduce the Employer Matching
Contribution for that Plan Year.

         5.11 SCHEDULED ALLOCATION OF INCOME OR LOSSES AND APPRECIATION OR
DEPRECIATION. The Trustee shall value the Trust Fund on its Valuation Date at
its then fair market value, but without regard to any Contributions made to the
Plan after the preceding Valuation Date, shall determine the amount of income
earned or losses suffered by the Trust Fund and shall determine the appreciation
or depreciation of the Trust Fund since the preceding Valuation Date. The
Committee shall then allocate as of the Valuation Date the income earned or
losses suffered and the appreciation or depreciation in the assets of the Trust
Fund for the period since the last preceding Valuation Date. The allocation
shall be among the Members and former Members who have undistributed Account
balances based upon their Account balances in each of the various investment
funds or accounts, if more than one, as of the last Valuation Date reduced, as
appropriate, by amounts used from the investment fund or account to make a
withdrawal or distribution or any other transaction which is properly chargeable
to the Member's Account during the period since the last Valuation Date. The
Committee, by resolution, may elect in lieu of the allocation method described
above to use a unit allocation method, a separate account method or any other
equitable method if it announces the method of allocation to the Members prior
to the beginning of the period during which it is first used.

         5.12 INTERIM ALLOCATION OF INCOME OR LOSSES AND APPRECIATION OR
DEPRECIATION. If at any time in the interval between Valuation Dates, one or
more withdrawals or one or more distributions are to be made and the Committee
determines that an interim allocation is necessary to prevent discrimination
against those Members and former Members who are not receiving funds, the
Trustee is to perform a valuation of a portion or all of the Trust Fund as of a
date selected by the Committee which is administratively practical and near the
date of withdrawals or distributions in the same manner as it would if it were a
scheduled Valuation Date. That date may be before or after any particular
distribution or withdrawal. The Committee shall then allocate as of that date
any income or loss and any appreciation or depreciation to the various Accounts
of each of the Members in the same manner as it would if it were a scheduled
Valuation Date. Then without regard to the language in Section 6.1, all
withdrawals or distributions made after that date and prior to the next
Valuation Date, even though the event

                                      V-2
<PAGE>   35

causing it occurred earlier, shall be based upon the Accounts as adjusted by the
interim valuation.

                         PART B.  LIMITATION ALLOCATIONS

         The Annual Additions that may be credited to an individual Member's
Accounts under this Plan and any other qualified defined contribution plan
maintained by an Affiliated Employer for a Limitation Year shall not exceed the
lesser of (a) $30,000.00 (as adjusted by the Secretary of Treasury), or (b) 25%
of the Member's Annual Compensation for the Limitation Year. The Plan will be
operated in compliance with section 415 of the Code and its Regulations, the
terms of which are incorporated in this Plan.

         If Annual Additions are made in excess of the limitations contained in
this Part B, to the maximum extent permitted by law, those excess Annual
Additions shall be attributed to this Plan.

         If an excess Annual Addition attributed to this Plan is held or
contributed as a result of the application of forfeitures, reasonable error in
estimating a Member's Annual Compensation, reasonable error in calculating the
maximum Salary Deferral Contribution that may be made for a Member under section
415 of the Code or because of other facts and circumstances which the
Commissioner of Internal Revenue finds to be justified, the excess Annual
Addition shall be corrected as follows:

                  (a) first, the excess Annual Addition shall be reduced to the
         extent necessary by distributing to the Member all Employee After Tax
         Contributions, if any, and then Salary Deferral Contributions together
         with their earnings. These distributed amounts are disregarded for
         purposes of the testing and limitations contained in Article IV;

                  (b) second, if the Member is still employed by the Employer at
         the end of the Plan Year, any remaining excess funds shall be placed in
         an unallocated suspense account to be applied to reduce future Employer
         Contributions for that Member for as many Plan Years as are necessary
         to exhaust the suspense account in keeping with the amounts which would
         otherwise be allocated to that Member's Account; and

                  (c) third, if the Member is not employed by the Employer at
         the end of the Plan Year, the remaining excess funds shall be placed in
         an unallocated suspense account to reduce future Employer Contributions
         for all remaining Members for as many Plan Years as are necessary to
         exhaust the suspense account.

         If the Plan terminates prior to the exhaustion of the suspense account,
the remaining amount shall revert to the Employer.

                       PART C.  INVESTMENT OF TRUST FUNDS

         The Committee may: (a) maintain commingled and/or separate Trusts, (b)
establish separate investment funds and/or (c) permit individual investments,
some or all of which are directed by the Committee or selected by the Members or
former Members for any portion or all of their Accounts. Once the Committee has
selected or changed the mode of investments, it shall

                                      V-3
<PAGE>   36

establish rules pertaining to its administration, including but not limited to:
selection of forms, rules for making selections effective, establishing the
frequency of permitted changes, the minimum percentage in any investment, and
all other necessary or appropriate regulations.

         The Committee may direct the Trustee to hold funds in cash or near
money awaiting investment or to sell assets and hold the proceeds in cash or
near money awaiting reinvestment when establishing, using or changing investment
modes. For this purpose the funds may be held in cash or invested in short term
investments such as certificates of deposit, U.S. Treasury bills, savings
accounts, commercial paper, demand notes, money market funds, any common, pooled
or collective funds which the Trustee or any other corporation may now have or
in the future may adopt for short term investments and any other similar assets
which may be offered by the federal government, national or state banks (whether
or not serving as Trustee) or any savings and loan association.

                                      V-4
<PAGE>   37

                                   ARTICLE VI

                          DISTRIBUTIONS AND FORFEITURES

                             PART A.  DISTRIBUTIONS

         6.1 VALUATION OF ACCOUNTS FOR DISTRIBUTIONS. For the purpose of making
a distribution, a Member's Accounts shall be his Accounts as valued as of the
Valuation Date which is coincident with or next preceding the event which caused
the distribution, adjusted only for Contributions, distributions and
withdrawals, if any, made between the Valuation Date and that event.

         6.2 DISTRIBUTION ON DEATH. If a Member or Retired Member dies, the
Member's spouse or designated Beneficiary or Beneficiaries is entitled to
receive 100% of the remaining amount in all of his Accounts as of the day he
dies. Each Member has the right to designate and to revoke the designation of
his Beneficiary or Beneficiaries. Each designation or revocation must be
evidenced by a written document in the form required by the Committee, signed by
the Member and filed with the Committee. If no designation is on file at the
time of a Member's death or if the Committee determines that the designation is
ineffective, the designated Beneficiary shall be the Member's spouse, if living,
or if not, the executor, administrator or other personal representative for
administration and distribution as part of the Member's estate.

         If a Member is considered to be married under local law, the Member's
designation of any Beneficiary, other than the Member's spouse, shall not be
valid unless the spouse acknowledges in writing that he or she understands the
effect of the Member's beneficiary designation and consents to it. The consent
must be to a specific Beneficiary. The written acknowledgment and consent must
be filed with the Committee, signed by the spouse, and witnessed by a Plan
representative or a notary public. However, if the spouse cannot be located or
there exist other circumstances as described in sections 401(a)(11) and
417(a)(2) of the Code, the requirement of the Member's spouse's acknowledgment
and consent may be waived.

         6.3 DISTRIBUTION ON RETIREMENT. A Member may retire at any time on or
after he attains his Retirement Age. If a Member retires, he is entitled to
receive 100% of all of his Accounts as of the day he retires.

         6.4 DISTRIBUTION ON DISABILITY. If a Member's employment with an
Employer is terminated and the Committee determines he is suffering from a
Disability, he is entitled to receive 100% of all of his Accounts as of the day
he terminated because of his Disability.

         6.5 DISTRIBUTION ON SEVERANCE FROM SERVICE. If a Member Severs Service
with all Affiliated Employers for any reason other than death, retirement, or
disability, he is entitled to receive 100% of all his Accounts under the Plan.
Notwithstanding the above, effective solely for Contributions made to the Plan
on or after January 1, 2000, if a Member Severs Service with all Affiliated
Employers for any reason other than death, retirement or disability, he is
entitled to receive (a) 100% of all of his Accounts, except his Employer
Matching Contribution Account and his Employer Discretionary Contribution
Account, if any, and (b) that percentage of his

                                      VI-1
<PAGE>   38

Employer Matching Contribution Account and his Employer Discretionary
Contribution Account, if any, as shown in the vesting schedule below, as of the
day he severs employment.

<TABLE>
<CAPTION>
                                                                     PERCENTAGE OF AMOUNT VESTED IN ACCOUNTS
                                                                           CONTAINING EMPLOYER MATCHING
COMPLETED YEARS OF ACTIVE SERVICE                                        AND DISCRETIONARY CONTRIBUTIONS
---------------------------------                                        -------------------------------
<S>                                                                      <C>
         Less than one year.....................................................        0%
         One year but less than two years.......................................       20%
         Two years but less than three years....................................       40%
         Three years but less than four years...................................       60%
         Four years but less than five years....................................       80%
         Five years or more.....................................................      100%
</TABLE>

         6.6 DISTRIBUTION ON ISSUANCE OF A QUALIFIED DOMESTIC RELATIONS ORDER.
If the Committee determines that a judgment, decree or order relating to child
support, alimony payments or marital property rights of the spouse, former
spouse, child or other dependent of the Member is a qualified domestic relations
order which complies with a state's domestic relations law or community property
law and section 414(p) of the Code or is a domestic relations order entered
before January 1, 1985, the Committee may direct the Trustee to distribute the
awarded property to the person named in the award but only in the manner
permitted under this Plan. To be a qualified domestic relations order, the order
must clearly specify: (a) the name and last known mailing address of the Member
and each alternate payee under the order, (b) the amount or percentage of the
Member's benefits to be paid from the Plan to each alternate payee or the manner
in which the amount or percentage can be determined, (c) the number of payments
or periods for which the order applies, (d) the plan to which the order applies,
and (e) all other requirements set forth in section 414(p) of the Code. If a
distribution is made at a time when the Member is not fully vested, a separate
subaccount shall be created for the remaining portion of each Account which was
not fully vested. That subaccount shall then remain frozen: that is, no further
contributions nor any forfeitures shall be allocated to the subaccount; however,
it shall receive its proportionate share of trust appreciation or depreciation
and income earned on or losses incurred by the Trust Fund. To determine the
Member's vested interest in each subaccount at any future time, the Committee
shall add back to the subaccount at that time the amount that was previously
distributed under the qualified domestic relations order, shall multiply the
reconstituted subaccount by the vesting percentage, and shall then subtract the
amount that was previously distributed. The remaining amount is the Member's
vested interest in the subaccount at that time.

         6.7 FORFEITURE ON SEVERING SERVICE WITH ALL AFFILIATED EMPLOYERS. If as
a result of Severing Service with all Affiliated Employers a former Member
receives a distribution of his entire vested interest in his Account, the
nonvested amount in his Account is immediately forfeited. A former Member who
received no distribution upon his Severing Service with all Affiliated Employers
because he had no vested interest shall be treated as if he received a
distribution of his entire vested interest and that interest was less than
$5,000.00.

         If a former Member who has a vested interest in his Account received no
distribution or a distribution of less than the full amount of his entire vested
interest as a result of his Severing

                                      VI-2
<PAGE>   39

Service with all Affiliated Employers the nonvested amount in his Account is
immediately forfeited following five consecutive one-year Periods of Severance.

         A distribution shall be treated as if it were made as a result of
Severing Service with all Affiliated Employers if it is made not later than the
end of the second Plan Year following the Plan Year in which the former Member
Severs Service.

         6.8 FORFEITURE BY LOST MEMBERS OR BENEFICIARIES; ESCHEAT. If a person
who is entitled to a distribution cannot be located during a search period of 60
days after the Trustee has initially attempted making payment, that person's
Account shall be forfeited. However, if at any time prior to the termination of
this Plan and the complete distribution of the Trust Fund, the Former Member or
Beneficiary files a claim with the Committee for the forfeited benefit, that
benefit shall be reinstated (without adjustment for trust income or losses
during the forfeited period) effective as of the date of the receipt of the
claim. As soon as appropriate following the Employer's Contribution of the
reinstated amount, it shall be paid to the former Member or Beneficiary in a
single sum.

               PART B.  FORM, ADJUSTMENTS AND TIME OF DISTRIBUTION

         6.9 QUALIFIED JOINT AND SURVIVOR AND QUALIFIED PRERETIREMENT SURVIVOR
ANNUITY. Each Member (a) who is married to the same spouse throughout the one
year period ending on the earlier of (i) the Member's Annuity Starting Date, or
(ii) the date of the Member's death, (b) who has a vested Account balance in
excess of $5,000.00 will be paid in the form of a Qualified Joint and Survivor
Annuity, unless he and his spouse make a valid election out of this form of
payment. Payments under the Qualified Joint and Survivor Annuity will begin
immediately on the Member's Annuity Starting Date. If the Member marries within
one year of the first day of the first period for which amounts are received as
an annuity by the Member, and the Member and his spouse have been continuously
married for at least a one-year period ending on or before the date of the
Member's death, the Member and his spouse will be treated as having been married
throughout the one-year period ending on the Member's Annuity Starting Date.

         If a married Member who qualifies for a Qualified Joint and Survivor
Annuity dies before the Annuity Starting Date, a Qualified Preretirement
Survivor Annuity in an amount not less than 50% of the Member's nonforfeitable
Account balance, including the proceeds of insurance, if any, on the Member's
life, as of the date of the Member's death will be paid to his surviving spouse,
unless the Member and his surviving spouse elect to receive a lump sum payment.
The Member's surviving spouse may direct that payments under the Qualified
Preretirement Survivor Annuity begin within a reasonable time after the Member's
death.

         Each Member, with the consent of his spouse, may elect at any time, and
any number of times, during the 90 day period ending on the Member's Annuity
Starting Date, to waive the Qualified Joint and Survivor Annuity or may revoke
that election. Also a Member, with the consent of his spouse, may elect, at any
time, and any number of times, during the period which begins on the first day
of the Plan Year in which the Member attains age 35 and ends on the date of the
Member's death, to waive the Qualified Preretirement Survivor Annuity or may
revoke that election. If a Member has terminated employment with the Employer
and all Affiliated Employers, his election period will not begin later than the
date the former Member terminated

                                      VI-3
<PAGE>   40

employment. A Member's waiver of the Qualified Joint and Survivor Annuity or
Qualified Preretirement Survivor Annuity must state the specific nonspouse
Beneficiary, including any class of Beneficiaries or any contingent
Beneficiaries, who will receive the Member's benefits. A Member's waiver of the
Qualified Joint and Survivor Annuity must specify the particular optional form
of benefit selected.

         A Member's waiver of the Qualified Joint and Survivor Annuity or the
Qualified Preretirement Survivor Annuity will not be effective unless the
Member's spouse signs either a specific or a general consent to the Member's
waiver.

         A specific spousal consent must be in writing, consent to the Member's
waiver, consent to the specific nonspouse Beneficiary designated by the Member
to receive Plan benefits, acknowledge the form of payment, acknowledge the
effect of the spouse's consent to the Member's waiver and be witnessed by a
notary public or a Plan representative.

         A general spousal consent must be in writing; consent to the Member's
waiver; specify that the Member may change (a) the optional form of benefit
elected by him, (b) the Beneficiary designated by him to receive Plan benefits
in the event of his death or (c) both, without any requirement of further
consent by the spouse; acknowledge that the spouse has the right to limit
consent to a specific Beneficiary and a particular optional form of benefit;
specify that the spouse voluntarily elects to relinquish the right to limit
consent to a specific Beneficiary, a specific optional form of benefit or both;
acknowledge the effect of the spouse's consent to the Member's waiver; and be
witnessed by a notary public or a Plan representative.

         The Member's election to waive the Qualified Joint and Survivor Annuity
and/or Qualified Preretirement Survivor Annuity will be effective if it is
established to the satisfaction of the Employer that the spousal consent
ordinarily required can not be obtained because there is no spouse, the spouse
cannot be located, or there exist other circumstances which obviate the
necessity of obtaining the spousal consent. Any consent by the Member's spouse,
or establishment that the consent of the Member's spouse can not be obtained,
will be effective only to that spouse.

         During a period that is no less than 30 days, unless waived, and no
more than 90 days before the Member's Annuity Starting Date, each Member is to
receive the following information written in nontechnical language: a general
description and explanation of the terms and conditions of the Qualified Joint
and Survivor Annuity, an explanation of the eligibility conditions and other
material features and of the forms of distribution available, sufficient
information to explain the relative values of the forms of distribution
available, the circumstances under which the Qualified Joint and Survivor
Annuity will be provided unless the Member elects to waive that form, a general
explanation of the Member's right to elect to waive the Qualified Joint and
Survivor Annuity form of benefit and the effect of a waiver, the right of the
Member's spouse to consent or not to consent to a waiver, a general explanation
of the Member's right to revoke an election to waive the Qualified Joint and
Survivor Annuity and the effect of a revocation, and the Member's right to
request a written explanation of the financial effect upon his benefit of
electing to waive the Qualified Joint and Survivor Annuity. Similarly, within
the period beginning on the first day of the Plan Year in which a Member attains
age 32 and ending with the close of the Plan Year preceding the Plan Year in
which the Member attains

                                      VI-4
<PAGE>   41

age 35, or within the one year period that starts on the date that the Member
becomes a Member, or within the one year period that starts on the date that the
Member severs Service if the Member severs before attaining age 35, whichever
period ends last, each Member is to receive a written explanation with respect
to the Qualified Preretirement Survivor Annuity comparable to that required for
the Qualified Joint and Survivor Annuity.

         The 30 day waiting period provided in the preceding paragraph may be
waived by the Member affirmatively waiving the waiting period in a manner that
satisfies the applicable Regulation but that waiver will not affect the
requirement that the information required by this Section be provided the Member
no more than 90 days before his Annuity Starting Date.

         If a Member is single on the earlier of the Member's Annuity Starting
Date or the date of the Member's death and has a vested right to any portion of
his Account balance in excess of $5,000.00 as determined under Section 6.12, his
benefit payable for any reason other than the Member's death will be paid in the
form of a single life only annuity unless the Member elects the form of
distribution described in the next Section. If a Member who qualifies for a
single life only annuity dies before his Annuity Starting Date, a single sum in
cash equal to the amount in the Member's Account will be paid to his designated
Beneficiary. The waiver periods and information to be provided single Members
are the same as those to be provided the married Members.

         If a Member's vested Account balance plus all prior Plan distributions
to the Member does not exceed $5,000.00, then in lieu of providing a Qualified
Joint and Survivor Annuity or Qualified Preretirement Survivor Annuity or a
single life only annuity, whichever is applicable, the Member's vested Account
balance will be distributed in a single lump sum payment in cash within one year
after the Member becomes entitled to the distribution. However, if the
distribution is to be made after the Member's Annuity Starting Date, the single
sum distribution will not be made unless the Member or in the event the Member
is married, the Member and his spouse, or if the Member has died, the deceased
Member's surviving spouse, consent in writing to the distribution.

         6.10 FORM OF DISTRIBUTIONS. Distributions shall be made only in cash
unless an asset held in the Trust cannot be sold by distribution date or can
only be sold at less than its appraised value, in which event part or all of the
distribution may be made in kind. If the Qualified Joint and Survivor Annuity or
the Qualified Preretirement Survivor Annuity, whichever is applicable, is
properly waived, distribution shall be made in one lump sum payment or, as a
Direct Rollover if the Distributee elects, at the time and in the manner
prescribed by the Committee, to have any portion or all of the Eligible Rollover
Distribution paid directly to an Eligible Retirement Plan named by the
Distributee.

         Each Member who was a participant in the Somerset Oil & Gas Company,
Inc. 401(k) Plan (the "Somerset Plan") may, in addition to the distribution
options listed above, have the balance of their Account transferred from the
Somerset Plan paid in equal monthly or quarterly installments for a period of
time not to exceed the shorter of 10 years or the life expectancy of the Member
or the joint life and last survivor expectancy of the Member and the Member's
designated Beneficiary. The term certain must be of a duration for which it is
expected that more than 50% of the present value of the Member's accrued benefit
shall be paid to the Member. The

                                      VI-5
<PAGE>   42

Member's Account from which the installments are payable shall be maintained as
a part of the general Trust Fund. The income earned on the Account shall be
distributed not less often than annually.

         Notwithstanding any other provision of the Plan to the contrary,
effective for Members with Annuity Starting Dates occurring after the earlier of
(1) January 1, 2003 or (2) the 90th day following the date Members have been
furnished with a summary of material modifications satisfying the requirements
of 29 C.F.R. Section 2520.104b-3, distributions under the Plan shall be made
solely in the form of a single lump-sum payment in cash or as a Direct Rollover
if the Distributee elects, at the time and in the manner prescribed by the
Committee, to have any portion or all of the Eligible Rollover Distribution paid
directly to an Eligible Retirement Plan named by the Distributee.

         6.11 ADJUSTMENT OF VALUE OF DISTRIBUTION. Any Account held for
distribution past one or more Valuation Dates shall continue to share in the
appreciation or depreciation of the Trust Fund and in the income earned or
losses incurred by the Trust Fund until the last Valuation Date which occurs
with or next precedes the date distribution is made.

         6.12 NORMAL TIME FOR DISTRIBUTION. The following rules shall normally
govern the time for distribution unless Section 6.13 requires an earlier
distribution. If the benefit to be distributed to the Member is or is deemed to
be $5,000.00 or less, the benefit should be distributed within one year after
the Member becomes entitled to the benefit. Also, if it is or is deemed to be
greater than $5,000.00 and the Member consents to the distribution, the benefit
should be distributed or begin to be distributed within one year after the
Member becomes entitled to the benefit. If, however, the benefit to be
distributed is or is deemed to be greater than $5,000.00 and the Member fails to
consent to the distribution, the distribution shall not be made without the
Member's consent until he attains normal Retirement Age or age 62, whichever is
later.

         6.13 TIME LIMIT FOR DISTRIBUTION. All distributions must comply with
sections 401(a)(9) and 401(a)(14) of the Code and their regulations. Thus, the
distribution must be made no later than the EARLIER of the date required by
subsection (a) or (b) if the Member has not died.

                  (a) Section 401(a)(9): Each Member must begin receiving a
         distribution under the Plan on or before April 1st of the calendar year
         following the later of the calendar year in which the Member retires or
         attains age 70 1/2 in the amount required by section 401(a)(9) of the
         Code and its Regulations. However, if the Member is a Five Percent
         Owner in the Plan Year ending in the calendar year in which he attains
         70 1/2, distribution must begin April 1st of the following calendar
         year regardless of whether he remains employed by the Employer or an
         Affiliated Employer. Without regard to the above rules, if a Member
         made a designation before January 1, 1984, which complied with section
         401(a)(9) of the Code before its amendment by the Tax Reform Act of
         1984, the distribution does not have to be made until the time
         described in the designation, if later.

                                      VI-6
<PAGE>   43

                  With respect to distributions under the Plan made for calendar
         years beginning on or after January 1, 2001, the Plan will apply the
         minimum distribution requirements of section 401(a)(9) of the Code in
         accordance with Regulations under section 401(a)(9) that were proposed
         on January 17, 2001, notwithstanding any provision of the Plan to the
         contrary. This amendment shall continue in effect until the end of the
         last calendar year beginning before the effective date of the final
         regulations under section 401(a)(9) or such other date as may be
         specified in guidance published by the Internal Revenue Service.

                  (b) Section 401(a)(14): The distribution must be made to the
         Member on or before the 60th day after the latest of the end of the
         Plan Year in which the Member attains his Retirement Age, attains the
         10th anniversary of the year in which he began participation or
         terminates employment with all Affiliated Employers unless the Member
         consents to a later time.

         If the Member has died and benefits are being paid in installments and
the Member dies after benefit payments have begun, the balance must be
distributed at least as rapidly as the installment method chosen by the Member.
If the Member dies prior to the beginning of installments his entire Account
must be distributed within five years after his death. However, if a portion of
the Member's Account is payable to a designated Beneficiary, that part may be
paid in installments over a period not exceeding the life expectancy of the
Beneficiary. Those payments must begin not later than one year after the
Member's death. If the surviving spouse is the Beneficiary, the payments may be
delayed so as to begin on the date on which the Member would have attained age
70 1/2. If payment is postponed and the surviving spouse dies before payments
begin, the surviving spouse shall be treated as the Member for purposes of this
paragraph.

         6.14 PROTECTED BENEFITS. No provision of this Plan shall reduce or
eliminate any benefit protected by section 411(d)(6) of the Code, except as
otherwise may be permitted or required by law.

                                      VI-7
<PAGE>   44

                                  ARTICLE VII

                              WITHDRAWALS AND LOANS

         7.1 VALUATION OF ACCOUNTS FOR WITHDRAWALS AND LOANS. For the purpose of
withdrawals and loans, a Member's Account shall be his Accounts as valued as of
the Valuation Date which is coincident with or next preceding the request for
the withdrawal or loan adjusted only for Contributions, distributions,
withdrawals and loans, if any, made between the Valuation Date and that event.

         7.2 WITHDRAWALS OF EMPLOYEE AFTER TAX AND ROLLOVER ACCOUNTS. A Member
is entitled at any time to receive a withdrawal from his Employee After Tax
Contribution and/or Rollover Account after giving 10 days written notice to the
Committee. The withdrawal cannot be more than the balance of the Account. The
Member's withdrawal request for his Employee After Tax Contributions terminates
his right to make any Employee After Tax Contributions until the next time
Employee After Tax Contributions are permitted after the lapse of one year
following the withdrawal and his timely filing of a written request to resume
Contributions. Each withdrawal of Employee After Tax Contributions shall include
a pro rata share of income earned on those Contributions.

         7.3 WITHDRAWAL FOR FINANCIAL HARDSHIP. A Member is entitled to receive
a withdrawal from his Salary Deferral Contribution Account (exclusive of income
earned) in the event of an immediate and heavy financial need incurred by the
Member and the Committee's determination that the withdrawal is necessary to
alleviate that hardship. Notwithstanding the above, each Member who was a
participant in the Somerset Plan shall be entitled to receive a hardship
withdrawal in accordance with the provisions of this Section 7.3 from the vested
portion of all their Accounts that were transferred to the Plan from the
Somerset Plan.

                  (a) Approval Reasons for Hardship: A distribution shall be
         made on account of financial hardship only if the distribution is for:
         (i) expenses for medical care described in section 213(d) of the Code
         previously incurred by the Member, the Member's spouse, or any
         dependents of the Member (as defined in section 152 of the Code) or
         necessary for these persons to obtain medical care described in section
         213(d) of the Code, (ii) costs directly related to the purchase
         (excluding mortgage payments) of a principal residence for the Member,
         (iii) payment of tuition, related educational fees and room and board
         expenses, for the next 12 months of post-secondary education for the
         Member, his or her spouse, children, or dependents (as defined in
         section 152 of the Code), (iv) payments necessary to prevent the
         eviction of the Member from his principal residence or foreclosure on
         the mortgage of the Member's principal residence, or (v) any other
         event added to this list by the Commissioner of Internal Revenue.

                  (b) Maximum Distribution Permitted: A distribution to satisfy
         an immediate and heavy financial need shall not be made in excess of
         the amount of the immediate and heavy financial need of the Member and
         the Member must have obtained all distributions, other than hardship
         distributions, and all nontaxable (at the time of the loan) loans
         currently available under all plans maintained by the Employer. The
         amount of a Member's immediate and heavy financial need includes any
         amounts necessary to pay

                                     VIII-1
<PAGE>   45

         any federal, state or local income taxes or penalties reasonably
         anticipated to result from the financial hardship distribution.

                  (c) Conditions Placed on Participation in Plan and other
         Fringe Benefits:. The Member's hardship distribution shall terminate
         his or her right to make any Employee After Tax Contributions or to
         have the Employer make any Salary Deferral Contributions on his or her
         behalf until the next time Employee After Tax Contributions and Salary
         Deferral Contributions are permitted after the lapse of 12 months
         following the hardship distribution and his or her timely filing of a
         written request to resume his or her Employee After Tax Contributions
         or Salary Deferral Contributions. Even then, if the Member resumes
         Contributions in his next taxable year he cannot have the Employer make
         any Salary Deferral Contributions in excess of the limit in section
         402(g) of the Code for that taxable year reduced by the amount of
         Salary Deferral Contributions made by the Employer on the Member's
         behalf during the taxable year of the Member in which he received the
         hardship distribution.

                  In addition, for 12 months after he receives a hardship
         distribution from this Plan the Member is prohibited from making
         elective contributions and employee contributions to all other
         qualified and nonqualified plans of deferred compensation maintained by
         the Employer, including stock option plans, stock purchase plans and
         cash or deferred arrangements that are part of cafeteria plans
         described in section 125 of the Code. However, the Member is not
         prohibited from making mandatory employee contributions to a defined
         benefit plan, or contributions to a health or welfare benefit plan,
         including one that is part of a cafeteria plan within the meaning of
         section 125 of the Code.

         7.4 WITHDRAWALS ON OR AFTER AGE 59 1/2. A Member who is at least age 59
1/2 is entitled to withdraw his vested interest in all of his Accounts.

         7.5 LOANS. The Committee may direct the Trustee to make loans to
Members (and Beneficiaries who are "parties in interest" within the meaning of
ERISA) who have a vested interest in the Plan. Loans may not be made to any
shareholder-employee (as defined in section 1379 of the Code as in effect before
the enactment of the Subchapter S Revision Act of 1982) or any owner-employee
(as defined in section 401(c)(3) of the Code or a member of the family of either
(as defined in section 267(c)(4) of the Code. The Loan Committee established by
the Committee will be responsible for administering the Plan loan program. All
loans will comply with the following requirements:

                  (a) All loans will be made solely from the Member's or
         Beneficiary's Account.

                  (b) Loans will be available on a nondiscriminatory basis to
         all Beneficiaries who are "parties in interest" within the meaning of
         ERISA, and to all Members.

                  (c) Loans will not be made for less than $1,000.

                  (d) The maximum amount of a loan may not exceed the lesser of
         (i) $50,000 reduced by the person's highest outstanding loan balance
         from the Plan during the preceding one year period, or (ii) one-half of
         the present value of the person's vested

                                     VII-2
<PAGE>   46

         Account balance under the Plan determined as of the date on which the
         loan is approved by the Loan Committee. If determining whether a loan
         would exceed these limits, all loans under all plans of the Employer
         and all Affiliated Employers which are outstanding or which have not
         been repaid at least one year before must be taken into consideration.

                  (e) Any loan from the Plan will be evidenced by a note or
         notes (signed by the person applying for the loan) having such
         maturity, bearing such rate of interest, and containing such other
         terms as the Loan Committee will require by uniform and
         nondiscriminatory rules consistent with this Section and proper lending
         practices. When required by law, the borrowing person must be supplied
         with all documents required by the truth-in-lending laws and any other
         applicable federal or state statute.

                  (f) All loans will bear a reasonable rate of interest which
         will be established by the Loan Committee. In determining the proper
         rate of interest to be charged, at the time any loan is made or
         renewed, the Loan Committee may contact one or more of the banks in the
         geographic location in which the Member or Beneficiary resides to
         determine what interest rate the banks would charge for a similar loan
         taking into account the collateral offered.

                  (g) Each loan will be fully secured by a pledge of the
         borrowing person's vested Account balance. No more than 50% of the
         person's vested Account balance (determined immediately after the
         origination of the loan) will be considered as security for any loan.

                  (h) Generally, the term of the loan will not be more than five
         years. The Loan Committee may agree to a longer term only if the term
         is otherwise reasonable and the proceeds of the loan are to be used to
         acquire a dwelling which will be used within a reasonable time
         (determined at the time the loan is made) as the principal residence of
         the borrowing person.

                  (i) The loan agreement will require level amortization over
         the term of the loan and repayment through salary withholding except in
         the case of a loan to a person who is not employed by the Employer.

                  (j) A Member may not make a withdrawal if the remaining
         balance of the Member's Account would be less than the outstanding loan
         balance or the withdrawal would violate any security requirements of
         the loan. No distribution may be made to a Member until all loans to
         him have been paid in full. If a Member has an outstanding loan from
         the Plan at the time he terminates employment with all Affiliated
         Employers, the outstanding loan principal balance and any accrued but
         unpaid interest will become immediately due in full. The Member will
         have the right to immediately pay the Trustee that amount. If the
         Member fails to repay the loan, the Trustee will foreclose on the loan
         and the Member will be deemed to have received a Plan distribution of
         the amount foreclosed upon. The Trustee will not foreclose upon a
         Member's Salary Deferral Contributions Account or Qualified Nonelective
         Employer Contributions Account until the Member has terminated
         employment with all Affiliated Employers.

                                     VII-3
<PAGE>   47

                  (k) If a Beneficiary defaults on his loan, the Trustee will
         foreclose on the loan and the Beneficiary will be deemed to have
         received a Plan distribution of the amount foreclosed upon.

                  (l) No amount that is pledged as collateral for a Plan loan to
         a Participant will be available for withdrawal before he has fully
         repaid his loan.

                  (m) All interest payments made pursuant to the terms of the
         loan agreement will be credited to the borrowing person's Account and
         will not be considered as general earnings of the Trust Fund to be
         allocated to other Members. All expenses or losses incurred because of
         the loan shall be charged to the borrowing person's Account.

                  (n) Payment of any loan made by a Member shall be suspended
         while a Member is in qualified military service and is covered by
         USERRA.

                  (o) The Committee is authorized to establish written
         guidelines which, if and when adopted, shall become part of this Plan
         and shall establish a procedure for applying for loans, the basis on
         which loans will be approved or denied, limitations (if any) on the
         types and amounts of loans offered, and any other matters necessary or
         appropriate to administering this Section.

                                     VII-4
<PAGE>   48

                                  ARTICLE VIII

                GENERAL PROVISIONS APPLICABLE TO FILING A CLAIM,
             DISTRIBUTIONS TO MINORS AND NO DUPLICATION OF BENEFITS

         8.1 CLAIMS PROCEDURE. When a benefit is due, the Member or Beneficiary
should submit his claim to the person or office designated by the Committee to
receive claims. Under normal circumstances, a final decision shall be made as to
a claim within 90 days after receipt of the claim. If the Committee notifies the
claimant in writing during the initial 90 day period, it may extend the period
up to 180 days after the initial receipt of the claim. The written notice must
contain the circumstances necessitating the extension and the anticipated date
for the final decision. If a claim is denied during the claims period, the
Committee must notify the claimant in writing. The denial must include the
specific reasons for it, the Plan provisions upon which the denial is based, and
the claims review procedure. If no action is taken during the claims period, the
claim is treated as if it were denied on the last day of the claims period.

         If a Member's or Beneficiary's claim is denied and he wants a review,
he must apply to the Committee in writing. That application may include any
comment or argument the claimant wishes to make. The claimant may either
represent himself or appoint a representative, either of whom has the right to
inspect all documents pertaining to the claim and its denial. The Committee may
schedule any meeting with the claimant or his representative that it finds
necessary or appropriate to complete its review.

         The request for review must be filed within 60 days after the denial.
If it is not, the denial becomes final. If a timely request is made, the
Committee must make its decision, under normal circumstances, within 60 days of
the receipt of the request for review. However, if the Committee notifies the
claimant prior to the expiration of the initial review period, it may extend the
period of review up to 120 days following the initial receipt of the request for
a review. All decisions of the Committee must be in writing and must include the
specific reasons for their action and the Plan provisions on which their
decision is based. If a decision is not given to the claimant within the review
period, the claim is treated as if it were denied on the last day of the review
period.

         8.2 NO DUPLICATION OF BENEFITS. There shall be no duplication of
benefits under this Plan. Without regard to any other language in this Plan, all
distributions and withdrawals are to be subtracted from a Member's Account as of
the date of the distribution or withdrawal. Thus, if the Member has received one
distribution or withdrawal and is ever entitled to another distribution or
withdrawal, the prior distribution or withdrawal is to be taken into account.

         8.3 DISTRIBUTIONS TO DISABLED OR MINORS. If the Committee determines
that any person to whom a payment is due is a minor or is unable to care for his
affairs because of a physical or mental disability, it shall have the authority
to cause the payments to be made to an ancestor, descendant, spouse, or other
person the Committee determines to have incurred, or to be expected to incur,
expenses for that person or to the institution which is maintaining or has
custody of the person unless a prior claim is made by a qualified guardian or
other legal representative. The Committee and the Trustee shall not be
responsible to oversee the application of those payments. Payments made pursuant
to this power shall be a complete

                                     VIII-1
<PAGE>   49

discharge of all liability under the Plan and Trust and the obligations of the
Employer, the Trustee, the Trust Fund and the Committee.

                                     VIII-2
<PAGE>   50

                                   ARTICLE IX

                             TOP-HEAVY REQUIREMENTS

         9.1 APPLICATION. The requirements described in this Article shall apply
to each Plan Year that this Plan is determined to be a Top-Heavy Plan under the
test set out in the following Section.

         9.2 TOP-HEAVY TEST. If on the Determination Date the Aggregate Accounts
of Key Employees in the Plan exceeds 60% of the Aggregate Accounts of all
Employees in the Plan, this Plan shall be a Top-Heavy Plan for that Plan Year.
In addition, if this Plan is required to be included in an Aggregation Group and
that group is a top-heavy group, this Plan shall be treated as a Top-Heavy Plan.
An Aggregation Group is a top-heavy group if on the Determination Date the sum
of (a) the present value of the cumulative accrued benefits for Key Employees
under all defined benefit plans in the Aggregation Group which contains this
Plan plus (b) the total of all of the accounts of Key Employees under all
defined contribution plans included in the Aggregation Group (which contains
this Plan) is more than 60% of a similar sum determined for all employees
covered in the Aggregation Group which contains this Plan.

                  In applying the above tests, the following rules shall apply:

                  (a) In determining the present value of the accumulated
         accrued benefits for any Employee or the amount in the account of any
         Employee, the value or amount shall be increased by all distributions
         made to or for the benefit of the Employee under the Plan during the
         five year period ending on the Determination Date.

                  (b) All rollover contributions made after December 31, 1983 by
         the Employee to the Plan shall not be considered by the Plan for either
         test.

                  (c) If an Employee is a Non-Key Employee under the Plan for
         the Plan Year but was a Key Employee under the Plan for another prior
         Plan Year, his account shall not be considered.

                  (d) Benefits shall not be taken into account in determining
         the top-heavy ratio for any Employee who has not performed services for
         the Employer during the last five-year period ending upon the
         Determination Date.

         9.3 VESTING RESTRICTIONS IF PLAN BECOMES TOP-HEAVY. If a Member has at
least one Hour of Service during a Plan Year when the Plan is a Top-Heavy Plan
he shall either vest under each of the normal vesting provisions of the Plan or
under the following vesting schedule, whichever is more favorable:

                                      IX-1
<PAGE>   51

<TABLE>
<CAPTION>
                                                                           PERCENTAGE OF AMOUNT VESTED
                                                                              IN ACCOUNTS CONTAINING
COMPLETED YEARS OF ACTIVE SERVICE                                             EMPLOYER CONTRIBUTIONS
---------------------------------                                             ----------------------
<S>                                                                           <C>
         Less than two years....................................................        0%
         Two years but less than three years....................................       20%
         Three years but less than four years...................................       40%
         Four years but less than five years....................................       60%
         Five years but less than six years.....................................       80%
         Six years or more......................................................      100%
</TABLE>

If the Plan ceases to be a Top-Heavy Plan, this requirement shall no longer
apply. After that date the normal vesting provisions of the Plan shall be
applicable to all subsequent Contributions by the Employer.

         9.4 MINIMUM CONTRIBUTION IF PLAN BECOMES TOP-HEAVY. If this Plan is a
Top-Heavy Plan and the normal allocation of the Employer Contribution and
forfeitures is less than 3% of any Non-Key Employee Member's Annual
Compensation, the Committee, without regard to the normal allocation procedures,
shall allocate the Employer Contribution and the forfeitures among the Members
who are in the employ of the Employer at the end of the Plan Year (even if the
Member has less than 501 Hours of Service in the Plan Year), in proportion to
each Member's Annual Compensation as compared to the total Annual Compensation
of all Members for that Plan Year until each Non-Key Employee Member has had an
amount equal to the lesser of (i) the highest rate of Contribution applicable to
any Key Employee, or (ii) 3% of his Annual Compensation allocated to his
Account. At that time, any more Employer Contributions or forfeitures shall be
allocated under the normal allocation procedures described earlier in this Plan.
Salary Deferral Contributions and Employer Matching Contributions made on behalf
of Key Employees are included in determining the highest rate of Employer
Contributions. Salary Deferral Contributions made on behalf of Non-Key Employees
shall not be included in determining the minimum contribution required under
this Section. Employer Matching Contributions and amounts that may be treated as
Section 401(k) Contributions or Section 401(m) Contributions, other than
Qualified Nonelective Employer Contributions, made on behalf of Non-Key
Employees may not be included in determining the minimum contribution required
under this Section to the extent that they are treated as Section 401(m)
Contributions or Section 401(k) Contributions for purposes of the Actual
Deferral Percentage test or the Contribution Percentage test.

                  In applying this restriction the following rules shall apply:

                  (a) Each Employee who is eligible for membership (without
         regard to whether he has made mandatory contributions, if any are
         required, or whether his compensation is less than a stated amount)
         shall be entitled to receive an allocation under this Section.

                  (b) All defined contribution plans required to be included in
         the Aggregation Group shall be treated as one plan for purposes of
         meeting the 3% maximum. This required aggregation shall not apply if
         this Plan is also required to be included in an

                                      IX-2
<PAGE>   52

         Aggregation Group which includes a defined benefit plan and this Plan
         enables that defined benefit plan to meet the requirements of sections
         401(a)(4) or 410 of the Code.

         9.5 COVERAGE UNDER MULTIPLE TOP-HEAVY PLANS. If this Plan is a
Top-Heavy Plan, it must meet the vesting and benefit requirements described in
this Article without taking into account contributions or benefits under Chapter
2 of the Code (relating to tax on self-employment income), Chapter 21 of the
Code (relating to Federal Insurance Contributions Act), Title II of the Social
Security Act or any other Federal or State law.

         If a Non-Key Employee is covered by both a Top-Heavy defined
contribution plan and a defined benefit plan, he shall receive the defined
benefit minimum, offset by the benefits provided under the defined contribution
plan.

                                      IX-3
<PAGE>   53

                                   ARTICLE X

                           ADMINISTRATION OF THE PLAN

         10.1 APPOINTMENT, TERM OF SERVICE & REMOVAL. The Board of Directors
shall appoint a Committee to administer this Plan. The members shall serve until
their resignation, death or removal. Any member may resign at any time by
mailing a written resignation to the Board of Directors. Any member may be
removed by the Board of Directors, with or without cause. Vacancies may be
filled by the Board of Directors from time to time.

         10.2 POWERS. The Committee is a fiduciary. It has the exclusive
responsibility for the general administration of the Plan and Trust, and has all
powers necessary to accomplish that purpose, including but not limited to the
following rights, powers, and authorities:

                  (a) to make rules for administering the Plan and Trust so long
         as they are not inconsistent with the terms of the Plan;

                  (b) to construe all provisions of the Plan and Trust;

                  (c) to correct any defect, supply any omission, or reconcile
         any inconsistency which may appear in the Plan or Trust;

                  (d) to select, employ, and compensate at any time any
         consultants, actuaries, accountants, attorneys, and other agents and
         employees the Committee believes necessary or advisable for the proper
         administration of the Plan and Trust; any firm or person selected may
         be a disqualified person but only if the requirements of section
         4975(d) of the Code have been met;

                  (e) to determine all questions relating to eligibility, Active
         Service, Compensation, allocations and all other matters relating to
         the amount of benefits and any one or more Members' or Former Members'
         entitlement to benefits and to determine when it is required under the
         Plan to treat a Former Member as a Member;

                  (f) to determine all controversies relating to the
         administration of the Plan and Trust, including but not limited to any
         differences of opinion arising between an Employer and the Trustee or a
         Member or Former Member, or any combination of them and any questions
         it believes advisable for the proper administration of the Plan and
         Trust;

                  (g) to direct or to appoint an investment manager or managers
         who can direct the Trustee in all matters relating to the investment,
         reinvestment and management of the Trust Fund;

                  (h) to direct the Trustee in all matters relating to the
         payment of Plan benefits;

                  (i) to delegate any clerical or recordation duties of the
         Committee as the Committee believes is advisable to properly administer
         the Plan and Trust; and

                                      X-1
<PAGE>   54

                  (j) to make any other determination of any fact or any
         decision as to any aspect of the administration of the Plan and Trust
         that is appropriate in its general administration of the Plan and
         Trust.

         10.3 ORGANIZATION. The Committee may select, from among its members, a
chairman, and may select a secretary. The secretary need not be a member of the
Committee. The secretary shall keep all records, documents and data pertaining
to its administration of the Plan and Trust.

         10.4 QUORUM AND MAJORITY ACTION. A majority of the Committee
constitutes a quorum for the transaction of business. The vote of a majority of
the members present at any meeting shall decide any question brought before that
meeting. In addition, the Committee may decide any question by a vote, taken
without a meeting, of a majority of its members.

         10.5 SIGNATURES. The chairman, the secretary and any one or more of the
members of the Committee to which the Committee has delegated the power shall
each, severally, have the power to execute any document on behalf of the
Committee, and to execute any certificate or other written evidence of the
action of the Committee. The Trustee, after it is notified of any delegation of
power in writing, shall accept and may rely upon any document executed by the
appropriate member or members as representing the action of the Committee until
the Committee files a written revocation of that delegation of power with the
Trustee.

         10.6 DISQUALIFICATION OF COMMITTEE MEMBER. A member of the Committee
who is also a Member of this Plan shall not vote or act upon any matter relating
solely to himself.

         10.7 DISCLOSURE TO MEMBERS. The Committee shall make available to each
Member and Beneficiary for his examination those records, documents and other
data required under ERISA, but only at reasonable times during business hours.
No Member or Beneficiary has the right to examine any data or records reflecting
the compensation paid to any other Member or Beneficiary. The Committee is not
required to make any other data or records available other than those required
by ERISA.

         10.8 STANDARD OF PERFORMANCE. The Committee and each of its members:
(a) shall use the care, skill, prudence and diligence under the circumstances
then prevailing that a prudent man, acting in a like capacity and familiar with
such matters, would use in conducting his business as the administrator of the
Plan, (b) shall, when exercising its power to direct investments, diversify the
investments of the Plan so as to minimize the risk of large losses, unless under
the circumstances it is clearly prudent not to do so, and (c) shall otherwise
comply with the provisions of this Plan and ERISA.

         10.9 LIABILITY OF COMMITTEE AND LIABILITY INSURANCE. No member of the
Committee shall be liable for any act or omission of any other member of the
Committee, the Trustee, any investment manager appointed by the Committee or any
other agent appointed by the Committee unless required by the terms of ERISA or
another applicable state or federal law under which liability cannot be waived.
No member of the Committee shall be liable for any act or omission of his own
unless required by ERISA or another applicable state or federal law under which
liability cannot be waived.

                                      X-2
<PAGE>   55

         If the Committee directs the Trustee to do so, it may purchase out of
the Trust Fund insurance for the members of the Committee, for any other
fiduciaries appointed by the Committee and for the Trust Fund itself to cover
liability or losses occurring because of the act or omission of any one or more
of the members of the Committee or any other fiduciary appointed under this
Plan. But, that insurance must permit recourse by the insurer against the
members of the Committee or the other fiduciaries concerned if the loss is
caused by breach of a fiduciary obligation by one or more members of the
Committee or other fiduciary.

         10.10 EXEMPTION FROM BOND. No member of the Committee is required to
give bond for the performance of his duties unless required by a law which
cannot be waived.

         10.11 COMPENSATION. The Committee shall serve without compensation but
shall be reimbursed by the Employer for all expenses properly incurred in the
performance of their duties unless the Sponsor elects to have those expenses
paid from the Trust Fund. Each Employer shall pay that part of the expense as
determined by the Committee in its sole judgment.

         10.12 PERSONS SERVING IN DUAL FIDUCIARY ROLES. Any person, group of
persons, corporations, firm or other entity, may serve in more than one
fiduciary capacity with respect to this Plan, including serving as both Trustee
and as a member of the Committee.

         10.13 ADMINISTRATOR. For all purposes of ERISA, the administrator of
the Plan is the Sponsor. The administrator has the final responsibility for
compliance with all reporting and disclosure requirements imposed under all
applicable federal or state laws and regulations.

         10.14 STANDARD OF JUDICIAL REVIEW OF COMMITTEE ACTIONS. The Committee
has full and absolute discretion in the exercise of each and every aspect of the
rights, power, authority and duties retained or granted it under the Plan,
including without limitation, the authority to determine all facts, to interpret
this Plan, to apply the terms of this Plan to the facts determined, to make
decisions based upon those facts and to make any and all other decisions
required of it by this Plan, such as the right to benefits, the correct amount
and form of benefits, the determination of any appeal, the review and correction
of the actions of any prior administrative committee, and the other rights,
powers, authority and duties specified in this Article and elsewhere in this
Plan. Notwithstanding any provision of law, or any explicit or implicit
provision of this document, any action taken, or finding, interpretation, ruling
or decision made by the Committee in the exercise of any of its rights, powers,
authority or duties under this Plan shall be final and conclusive as to all
parties, including without limitation all Members, Former Members and
Beneficiaries, regardless of whether the Committee or one or more of its members
may have an actual or potential conflict of interest with respect to the subject
matter of the action, finding, interpretation, ruling or decision. No final
action, finding, interpretation, ruling or decision of the Committee shall be
subject to de novo review in any judicial proceeding. No final action, finding,
interpretation, ruling or decision of the Committee may be set aside unless it
is held to have been arbitrary and capricious by a final judgment of a court
having jurisdiction with respect to the issue.

                                      X-3
<PAGE>   56

                                   ARTICLE XI

                          TRUST FUND AND CONTRIBUTIONS

         11.1 FUNDING OF PLAN. This Plan shall be funded by one or more separate
Trusts. If more than one Trust is used, each Trust shall be designated by the
name of the Plan followed by a number assigned by the Committee at the time the
Trust is established.

         11.2 INCORPORATION OF TRUST. Each Trust is a part of this Plan. All
rights or benefits which accrue to a person under this Plan shall be subject
also to the terms of the agreements creating the Trust or Trusts and any
amendments to them which are not in direct conflict with this Plan.

         11.3 AUTHORITY OF TRUSTEE. Each Trustee shall have full title and legal
ownership of the assets in the separate Trust which, from time to time, is in
his separate possession. No other Trustee shall have joint title to or joint
legal ownership of any asset in one of the other Trusts held by another Trustee.
Each Trustee shall be governed separately by the trust agreement entered into
between the Employer and that Trustee and the terms of this Plan without regard
to any other agreement entered into between any other Trustee and the Employer
as a part of this Plan.

         11.4 ALLOCATION OF RESPONSIBILITY. To the fullest extent permitted
under section 405 of ERISA, the agreements entered into between the Employer and
each of the Trustees shall be interpreted to allocate to each Trustee its
specific responsibilities, obligations and duties so as to relieve all other
Trustees from liability either through the agreement, Plan or ERISA, for any act
of any other Trustee which results in a loss to the Plan because of his act or
failure to act.

                                      XI-1
<PAGE>   57

                                  ARTICLE XII

                       ADOPTION OF PLAN BY OTHER EMPLOYERS

         12.1 ADOPTION PROCEDURE. Any business organization may, with the
approval of the Board of Directors, adopt this Plan by:

                  (a) adopting a resolution or executing a consent of the board
         of directors of the adopting Employer or executing an adoption
         instrument (approved by the board of directors of the adopting
         Employer) agreeing to be bound as an Employer by all the terms,
         conditions and limitations of this Plan except those, if any,
         specifically described in the adoption instrument; and

                  (b) providing all information required by the Committee and
         the Trustee.

         An adoption may be retroactive to the beginning of a Plan Year if these
conditions are complied with on or before the last day of that Plan Year.

         12.2 NO JOINT VENTURE IMPLIED. The document which evidences the
adoption of the Plan by an Employer shall become a part of this Plan. However,
neither the adoption of this Plan and its related Trust Fund by an Employer nor
any act performed by it in relation to this Plan and its related Trust Fund
shall ever create a joint venture or partnership relation between it and any
other Employer.

         12.3 ALL TRUST ASSETS AVAILABLE TO PAY ALL BENEFITS. The Accounts of
Members employed by the Employers which adopt this Plan shall be commingled for
investment purposes. All assets in the Trust Fund shall be available to pay
benefits to all Members employed by any Employer which is an Affiliated Employer
with the first Employer.

         12.4 QUALIFICATION A CONDITION PRECEDENT TO ADOPTION AND CONTINUED
PARTICIPATION. The adoption of this Plan and the Trust or Trusts used to fund
this Plan by a business organization is contingent upon and subject to the
express condition precedent that the initial adoption meets all statutory and
regulatory requirements for qualification of the Plan and the exemption of the
Trust or Trusts and that the Plan and the Trust or Trusts that are applicable to
it continue in operation to maintain their qualified and exempt status. In the
event the adoption fails to initially qualify and be exempt, the adoption shall
fail retroactively for failure to meet the condition precedent and the portion
of the Trust Fund applicable to the adoption shall be immediately returned to
the adopting business organization and the adoption shall be void ab initio. In
the event the adoption as to a given business organization later becomes
disqualified and loses its exemption for any reason, the adoption shall fail
retroactively for failure to meet the condition precedent and the portion of the
Trust Fund allocable to the adoption by that business organization shall be
immediately spun off, retroactively as of the last date for which the Plan
qualified, to a separate Trust for its sole benefit and an identical but
separate Plan shall be created, retroactively effective as of the last date the
Plan as adopted by that business organization qualified, for the benefit of the
Members covered by that adoption.

                                     XII-1
<PAGE>   58

                                  ARTICLE XIII

                     AMENDMENT AND WITHDRAWAL OR TERMINATION

                               PART A.  AMENDMENT

         13.1 RIGHT TO AMEND. The Sponsor has the sole right to amend this Plan.
An amendment may be made by adopting a resolution or executing a consent of the
Board of Directors, or by the appropriate officer of the Sponsor executing an
amendment document.

         13.2 LIMITATION ON AMENDMENTS. No amendment shall:

                  (a) vest in an Employer any interest in the Trust Fund;

                  (b) cause or permit the Trust Fund to be diverted to any
         purpose other than the exclusive benefit of the present or future
         Members and their Beneficiaries except under the circumstances
         described in Section 4.21;

                  (c) decrease the Account of any Member or eliminate an
         optional form of payment as to amounts then accrued;

                  (d) increase substantially the duties or liabilities of the
         Trustee without its written consent; or

                  (e) change the vesting schedule to one which would result in
         the nonforfeitable percentage of the Account derived from Employer
         Contributions (determined as of the later of the date of the adoption
         of the amendment or of the effective date of the amendment) of any
         Member being less than the nonforfeitable percentage computed under the
         Plan without regard to the amendment. If the Plan's vesting schedule is
         amended, if the Plan is amended in any other way that affects the
         computation of the Member's nonforfeitable percentage, or if the Plan
         is deemed amended by an automatic change to or from a Top-Heavy vesting
         schedule, each Member with at least three years of Service may elect,
         within a reasonable period after the adoption of the amendment or the
         change, to have the nonforfeitable percentage computed under the Plan
         without regard to the amendment or the change. The election period
         shall begin no later than the date the amendment is adopted or deemed
         to be made and shall end no later than the latest of the following
         dates: (1) 60 days after the date the amendment is adopted or deemed to
         be made, (2) 60 days after the date the amendment becomes effective, or
         (3) 60 days after the day the Member is issued written notice of the
         amendment.

         13.3 EACH EMPLOYER DEEMED TO ADOPT AMENDMENT UNLESS REJECTED. Each
Employer shall be deemed to have adopted any amendment made by the Sponsor
unless the Employer notifies the Committee of its rejection in writing within 30
days after it is notified of the amendment. A rejection shall constitute a
withdrawal from this Plan by that Employer unless the Sponsor acquiesces in the
rejection.

                                     XIII-1
<PAGE>   59

         13.4 AMENDMENT APPLICABLE ONLY TO MEMBERS STILL EMPLOYED UNLESS
AMENDMENT SPECIFICALLY PROVIDES OTHERWISE. No benefit for any person who died,
retired, became disabled or separated shall be affected by a subsequent
amendment unless the amendment specifically provides otherwise and the person
consents to its application. Instead, those persons who died, retired, became
disabled or separated prior to the execution of an amendment shall be entitled
to the benefit as adjusted from time to time as was provided by the Plan at the
time the person first became entitled to his benefit.

         13.5 MANDATORY AMENDMENTS. The Contributions of each Employer to this
Plan are intended to be:

                  (a) deductible under the applicable provisions of the Code;

                  (b) except as otherwise prescribed by applicable law, exempt
         from the Federal Social Security Act;

                  (c) except as otherwise prescribed by applicable law, exempt
         from withholding under the Code; and

                  (d) excludable from any Employee's regular rate of pay, as
         that term is defined under the Fair Labor Standards Act of 1938, as
         amended.

         The Sponsor shall make any amendment necessary to carry out this
intention, and it may be made retroactively.

                       PART B.  WITHDRAWAL OR TERMINATION

         13.6 WITHDRAWAL OF EMPLOYER. An Employer may withdraw from this Plan
and its related Trust Fund if the Sponsor does not acquiesce in its rejection of
an amendment or by giving written notice of its intent to withdraw to the
Committee. The Committee shall then determine the portion of the Trust Fund that
is attributable to the Members employed by the withdrawing Employer and shall
notify the Trustee to segregate and transfer those assets to the successor
Trustee or Trustees when it receives a designation of the successor from the
withdrawing Employer.

         A withdrawal shall not terminate the Plan and its related Trust Fund
with respect to the withdrawing Employer, if the Employer either appoints a
successor Trustee or Trustees and reaffirms this Plan and its related Trust Fund
as its new and separate plan and trust intended to qualify under section 401(a)
of the Code, or establishes another plan and trust intended to qualify under
section 401(a) of the Code.

         The determination of the Committee, in its sole discretion, of the
portion of the Trust Fund that is attributable to the Members employed by the
withdrawing Employer shall be final and binding upon all parties. The Trustee's
transfer of those assets to the designated successor Trustee shall relieve the
Trustee of any further obligation, liability or duty to the withdrawing
Employer, the Members employed by that Employer and their Beneficiaries, and the
successor Trustee or Trustees.

                                     XIII-2
<PAGE>   60

         13.7 TERMINATION OF PLAN. The Sponsor may terminate this Plan and its
related Trust Fund with respect to all Employers by executing and delivering to
the Committee and the Trustee, a notice of termination, specifying the date of
termination. Any Employer may terminate this Plan and its related Trust Fund
with respect to itself by executing and delivering to the Trustee a notice of
termination, specifying the date of termination. Likewise, this Plan and its
related Trust Fund shall automatically terminate with respect to any Employer if
there is a general assignment by that Employer to or for the benefit of its
creditors, or a liquidation or dissolution of that Employer without a successor.
Upon the termination of this Plan as to an Employer, the Trustee shall, subject
to the provisions of Section 13.9, distribute to each Member employed by the
terminating Employer the amount certified by the Committee to be due the Member.

         The Employer should apply to the Internal Revenue Service for a
determination letter with respect to its termination, and the Trustee should not
distribute the Trust Funds until a determination is received. However, should it
decide that a distribution before receipt of the determination letter is
necessary or appropriate it should retain sufficient assets to cover any tax
that may become due upon that determination.

         13.8 100% VESTING REQUIRED ON PARTIAL OR COMPLETE TERMINATION OR
COMPLETE DISCONTINUANCE. Without regard to any other provision of this Plan, if
there is a partial or total termination of this Plan or there is a complete
discontinuance of the Employer's Contributions, each of the affected Members
shall immediately become 100% vested in his Account as of the end of the last
Plan Year for which a substantial Employer Contribution was made and in any
amounts later allocated to his Account. If the Employer then resumes making
substantial Contributions at any time, the appropriate vesting schedule shall
again apply to all amounts allocated to each affected Member's Account beginning
with the Plan Year for which they were resumed.

         13.9 DISTRIBUTION UPON TERMINATION. A Member may receive a distribution
on account of termination of this Plan if neither the Employer nor any
Affiliated Employer establishes or maintains a successor plan within the period
ending 12 months after all assets are distributed from the Plan. A successor
plan for this purpose is any other defined contribution plan except: (a) an
employee stock ownership plan as defined in sections 4975(e) or 409 of the Code,
(b) a simplified employee pension plan as defined in section 408(k) of the Code,
or (c) or a defined contribution plan in which fewer than 2% of the Members of
this Plan were eligible to participate during the 24 month period beginning 12
months before the time of this Plan's termination. Any distribution on account
of the termination of this Plan, must be made only in the form of a lump sum
payment or a Direct Rollover, as elected by the Member. If a Member is given the
opportunity but fails to make an election as to the form of distribution, he
shall be deemed to have elected a lump sum distribution.

                                     XIII-3
<PAGE>   61

                                  ARTICLE XIV

               SALE OF EMPLOYER OR SUBSTANTIALLY ALL OF ITS ASSETS

         14.1 CONTINUANCE PERMITTED UPON SALE OR TRANSFER OF ASSETS. An
Employer's participation in this Plan and its related Trust Fund shall not
automatically terminate if it consolidates or merges and is not the surviving
corporation, sells substantially all of its assets, is a party to a
reorganization and its Employees and substantially all of its assets are
transferred to another entity, liquidates, or dissolves, if there is a successor
organization. Instead, the successor may assume and continue this Plan and its
related Trust Fund by executing a direction, entering into a contractual
commitment or adopting a resolution providing for the continuance of the Plan
and its related Trust Fund. Only upon the successor's rejection of this Plan and
its related Trust Fund or its failure to respond to the Employer's, the
Sponsor's or the Trustee's request that it affirm its assumption of this Plan
within 90 days of the request shall this Plan automatically terminate. In that
event the appropriate portion of the Trust Fund shall be distributed exclusively
to the Members or their Beneficiaries as soon as administratively feasible. If
there is a disposition to an unrelated entity of substantially all of the assets
used by the Employer in a trade or business or a disposition by the Employer of
its interest in a subsidiary, the Employer may make a lump sum distribution from
the Plan if it continues the Plan after the disposition; but the distribution
can only be made for those Members who continue employment with the acquiring
entity.

         14.2 DISTRIBUTIONS UPON DISPOSITION OF ASSETS OR A SUBSIDIARY. A Member
employed by an Employer that is a corporation is entitled to receive a lump sum
distribution of his interest in his Accounts in the event of the sale or other
disposition by the Employer of at least 85% of all of the assets used by the
Employer in a trade or business to an unrelated corporation if (a) the Employer
continues to maintain the Plan after the disposition and (b) in connection with
the disposition the Member is transferred to the employ of the corporation
acquiring the assets.

         A Member employed by an Employer that is a corporation is entitled to
receive a lump sum distribution of his interest in his Accounts in the event of
the sale or other disposition by the Employer of its interest in a subsidiary
(within the meaning of section 409(d)(3) of the Code) to an unrelated entity or
individual if (a) the Employer continues to maintain the Plan after the
disposition and (b) in connection with the disposition the Member continues
employment with the subsidiary.

         The selling Employer is treated as continuing to maintain the Plan
after the disposition only if the purchaser does not maintain the Plan after the
disposition. A purchaser is considered to maintain the Plan if it adopts the
Plan, becomes an employer whose employees accrue benefits under the Plan, or if
the Plan is merged or consolidated with, or any assets or liabilities are
transferred from the Plan to a plan maintained by the purchaser in a transaction
subject to section 414(l)(1) of the Code.

         An unrelated corporation, entity or individual is one that is not
required to be aggregated with the selling Employer under section 414(b), (c),
(m), or (o) of the Code after the sale or other disposition.

                                     XIV-1
<PAGE>   62

         If a Member's Account balance is or is deemed to be $5,000.00 or less
determined under the rules set out in Section 6.11, the Committee will direct
the Trustee to pay to the Member a lump sum cash distribution of his Account
balance as soon as administratively practicable following the disposition and
any Internal Revenue Service approval of the distribution that the Committee
deems advisable to obtain.

         If it is or is deemed to be more than $5,000.00 at the date of the
disposition, he may elect (a) to receive a lump sum cash distribution of his
Account balance as soon as administratively practicable following the
disposition and receipt of any Internal Revenue Service approval of the
distribution that the Committee deems advisable to obtain, or (b) he may elect
to defer receipt of his vested Account balance until the first day of the month
coincident with or next following the date that he attains age 65. In the manner
and at the time required under Department of Treasury regulations, the Committee
will provide the Member with a notice of his right to defer receipt of his
Account balance.

         However, no distribution shall be made to a Member under this Section
after the end of the second calendar year following the calendar year in which
the disposition occurred. In addition, no distribution shall be made under this
Section unless it is a lump sum distribution within the meaning of section
402(d)(4) of the Code, without regard to subparagraphs (A)(i) through (iv), (B),
and (F) of that section.

                                     XIV-2
<PAGE>   63

                                   ARTICLE XV

                                  MISCELLANEOUS

         15.1 PLAN NOT AN EMPLOYMENT CONTRACT. The adoption and maintenance of
this Plan and its related Trust Fund is not a contract between any Employer and
its Employees which gives any Employee the right to be retained in its
employment. Likewise, it is not intended to interfere with the rights of any
Employer to discharge any Employee at any time or to interfere with the
Employee's right to terminate his employment at any time.

         15.2 BENEFITS PROVIDED SOLELY FROM TRUST. All benefits payable under
this Plan shall be paid or provided for solely from the Trust Fund. No Employer
assumes any liability or responsibility to pay any benefit provided by the Plan.

         15.3 ANTI-ALIENATION PROVISION. No principal or income payable or to
become payable from the Trust Fund shall be subject: to anticipation or
assignment by a Member or by a Beneficiary to attachment by, interference with,
or control of any creditor of a Member or Beneficiary, or to being taken or
reached by any legal or equitable process in satisfaction of any debt or
liability of a Member or Beneficiary prior to its actual receipt by the Member
or Beneficiary. An attempted conveyance, transfer, assignment, mortgage, pledge,
or encumbrance of the Trust Fund, any part of it, or any interest in it by a
Member or Beneficiary prior to distribution shall be void, whether that
conveyance, transfer, assignment, mortgage, pledge, or encumbrance is intended
to take place or become effective before or after any distribution of Trust
assets or the termination of this Trust Fund itself. The Trustee shall never
under any circumstances be required to recognize any conveyance, transfer,
assignment, mortgage, pledge or encumbrance by a Member or Beneficiary of the
Trust Fund, any part of it, or any interest in it, or to pay any money or thing
of value to any creditor or assignee of a Member or Beneficiary for any cause
whatsoever. The prohibitions against the alienation of a Member's Account shall
not apply to:

                  (a) qualified domestic relations orders or domestic relations
         orders entered into prior to January 1, 1985, or

                  (b) any offset of a Member's Account under the Plan that the
         Member is ordered to pay to the Plan if (i) the order arises under a
         judgment of conviction of a crime involving the Plan, a civil judgment
         (including a consent decree) is entered by a court in connection with a
         violation (or alleged violation) of part 4 of subtitle B of title I of
         ERISA, or is pursuant to a settlement agreement between the Secretary
         of Labor and the Member, or between the Pension Benefit Guaranty
         Corporation and the Member, in connection with a violation (or alleged
         violation) of part 4 of such subtitle by a fiduciary or any other
         person, (ii) the judgment, order, decree or settlement agreement
         expressly provides for the offset of all or a part of the amount
         ordered or required to be paid to the Plan against the Member's Account
         balance under the Plan, and (iii) in a case in which the survivor
         annuity requirements of Section 401(a)(11) of the Code apply with
         respect to distributions, the requirements of Section
         401(a)(13)(C)(iii) of the Code are satisfied.

                                      XV-1
<PAGE>   64

         15.4 REQUIREMENTS UPON MERGER OR CONSOLIDATION OF PLANS. This Plan
shall not merge or consolidate with or transfer any assets or liabilities to any
other plan unless each Member would (if the Plan then terminated) receive a
benefit immediately after the merger, consolidation, or transfer which is equal
to or greater than the benefit he would have been entitled to receive
immediately before the merger, consolidation, or transfer (if the Plan had then
terminated).

         15.5 GENDER AND NUMBER. If the context requires it, words of one gender
when used in this Plan shall include the other genders, and words used in the
singular or plural shall include the other.

         15.6 SEVERABILITY. Each provision of this Agreement may be severed. If
any provision is determined to be invalid or unenforceable, that determination
shall not affect the validity or enforceability of any other provision.

         15.7 GOVERNING LAW; PARTIES TO LEGAL ACTIONS. The provisions of this
Plan shall be construed, administered, and governed under the laws of the State
of Texas and, to the extent applicable, by the laws of the United States. The
Trustee or any Employer may at any time initiate a legal action or proceeding
for the settlement of the account of the Trustee, or for the determination of
any question or for instructions. The only necessary parties to that action or
proceeding are the Trustee and the Employer concerned. However, any other person
or persons may be included as parties defendant at the election of the Trustee
and the Employer.

                                      XV-2
<PAGE>   65

                                  ARTICLE XVI

                    VOTING OF COMPANY STOCK AND TENDER OFFERS

         16.1 VOTING OF COMPANY STOCK. The Sponsor may, in its sole discretion,
pass through voting rights relating to Company Stock credited to Members'
Accounts; should these voting rights be passed through, the rules outlined in
this Section 16.1 shall govern the exercise of such rights. When the Sponsor
files preliminary or final proxy solicitation materials with the Securities and
Exchange Commission, the Sponsor or its designee shall cause a copy of all
materials to be simultaneously sent to the Trustee. Based on these materials,
the Sponsor or its designee shall prepare a voting instruction form. At the time
of mailing of notice of each annual or special stockholders' meeting of the
Sponsor, the Sponsor or its designee shall cause a copy of the notice and all
proxy solicitation materials to be sent to each Member with an interest in
Company Stock held in the Trust, together with the foregoing voting instruction
form to be returned to the Trustee or its designee. The form shall show the
number of full and fractional shares of the Company Stock credited to each
Member's Account. The Sponsor or its designee shall provide the Trustee with a
copy of any materials provided to the Members and shall certify to the Trustee
that the materials have been mailed or otherwise sent to the Members.

         Each Member with an interest in Company Stock held in the Trust shall
have the right to direct the Trustee as to the manner in which the Trustee is to
vote the number of shares of the Company Stock reflecting such Member's
proportional interest in the Company Stock held in the Trust (both vested and
unvested). Directions from a Member to the Trustee concerning the voting of the
Company Stock shall be communicated in writing, or by mailgram or similar means
to the Committee which will in turn notify the Trustee. These directions shall
be held in confidence by the Committee and the Trustee and shall not be divulged
to the Sponsor, or any officer or employee thereof, or any other person (except
to the extent such officer, employee or other person is a Committee member or
its designee). Upon its receipt of the directions, the Trustee shall vote the
shares of the Company Stock reflecting the Member's proportional interest in the
Company Stock held in the Trust as directed by the Member. The Trustee shall
vote shares of the Company Stock reflecting such Member's proportional interest
in the Company Stock held in the Trust (both vested and unvested) for which it
has received no directions from the Member in the same proportion on each issue
as it votes those shares for which it received voting directions from Members.
The Trustee shall vote shares of the Company Stock not credited to Members'
Accounts in the same proportion on each issue as it votes those shares credited
to Members' Accounts for which it received voting directions from Members.

         16.2 TENDER OFFERS. Upon commencement of a tender offer for any
securities held in the Trust that are the Company Stock, the Sponsor or its
designee shall notify each Member of the tender offer and utilize its best
efforts to timely distribute or cause to be distributed to each Member the same
information that is distributed to other stockholders of the Sponsor in
connection with the tender offer, and, after consulting with the Trustee, shall
provide and pay for a means by which the Member may direct the Trustee whether
or not to tender the Company Stock credited to the Member's vested and unvested
Accounts. The Sponsor or its designee shall provide the Trustee with a copy of
any material provided to the Members and shall certify to the Trustee that the
materials have been mailed or otherwise sent to Members.

                                     XVI-1
<PAGE>   66

         Each Member shall have the right to direct the Trustee to tender or not
to tender some or all of the shares of the Company Stock reflecting such
Member's proportional interest in the Company Stock held in the Trust (both
vested and unvested). Directions from a Member to the Trustee concerning the
tender of the Company Stock shall be communicated in writing, or by mailgram or
such similar means as is agreed upon by the Trustee and the Sponsor under the
preceding paragraph. These directions shall be held in confidence by the
Committee and the Trustee and shall not be divulged to the Sponsor, or any
officer or employee thereof, or any other person except to the extent that the
consequences of such directions are reflected in reports regularly communicated
to any such persons in the ordinary course of the performance of the Trustee's
services hereunder and except to the extent such officer, employee or other
person is a Committee member or its designee. The Trustee shall tender or not
tender shares of Company Stock as directed by the Member. To the extent that
Members fail to affirmatively direct the Trustee or fail to issue valid
directions to the Trustee to tender shares of the Company Stock credited to
their Accounts, those Members will be deemed to have instructed the Trustee not
to tender those shares. Accordingly, the Trustee shall not tender shares of
Company Stock credited to a Member's Accounts for which it has received no
directions or invalid directions from the Member.

         The Trustee shall tender that number of shares of the Company Stock not
credited to Members' Accounts which is determined by multiplying the total
number of shares of the Company Stock not credited to Members' accounts by a
fraction of which the numerator is the number of shares of the Company Stock
credited to Members' accounts for which the Trustee has received valid
directions from Members to tender (which directions have not been withdrawn as
of the date of this determination) and of which the denominator is the total
number of shares of the Company Stock credited to Members' Accounts.

         A Member who has directed the Trustee to tender some or all of the
shares of the Company Stock credited to the Member's accounts may, at any time
prior to the tender offer withdrawal date, direct the Trustee to withdraw some
or all of the tendered shares, and the Trustee shall withdraw the directed
number of shares from the tender offer prior to the tender offer withdrawal
deadline. Prior to the withdrawal deadline, if any shares of the Company Stock
not credited to Members' Accounts have been tendered, the Trustee shall
redetermine the number of shares of the Company Stock that would be tendered
under this Section if the date of the foregoing withdrawal were the date of
determination, and withdraw from the tender offer the number of shares of the
Company Stock not credited to Members' Accounts necessary to reduce the amount
of tendered Company Stock not credited to Members' Accounts to the amount so
redetermined. A Member shall not be limited as to the number of directions to
tender or withdraw that the Member may give to the Trustee.

         A direction by a Member to the Trustee to tender shares of the Company
Stock reflecting the Member's proportional interest in the Company Stock held in
the Trust shall not be considered a written election under the Plan by the
Member to withdraw, or have distributed, any or all of his withdrawable shares.
The Trustee shall credit to each proportional interest of the Member from which
the tendered shares were taken the proceeds received by the Trustee in exchange
for the shares of the Company Stock tendered from that interest.

                                     XVI-2
<PAGE>   67

         16.3 SHARES CREDITED. For all purposes of this Article, the number of
shares of the Company Stock deemed "credited" to a Member's Accounts as of the
relevant date (the record date or the date specified in the tender offer) shall
be calculated by reference to the number of shares reflected on the books of the
transfer agent as of the relevant date. In the case of a tender, the number of
shares credited shall be determined as of a date as close as administratively
feasible to the relevant date.

         16.4 CONVERSION. All provisions in this Article shall also apply to any
securities received as a result of a conversion of the Company Stock.

         16.5 NAMED FIDUCIARY. For purposes of ERISA, each Member shall be the
named fiduciary for purposes of Section 403(a)(1) of ERISA in connection with
the exercise of voting and tender offer rights relating to shares of the Company
Stock credited to the Member's Accounts and any shares of the Company Stock not
credited to the Member's Accounts that may be affected by the Member's voting or
tender decision.

                                     XVI-3
<PAGE>   68

         IN WITNESS WHEREOF, EOG Resources, Inc. has caused this Agreement to be
executed this ____ day of ____________ 2001, in multiple counterparts, each of
which shall be deemed to be an original, to be effective the 31st day of August
1999, except for those provisions which have an earlier effective date provided
by law, or as otherwise provided under applicable provisions of this Plan.

                                           EOG RESOURCES, INC.

                                           By___________________________________

                                           Title________________________________

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