Document:

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                                                                     EXHIBIT 4.4
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                             KERR-MCGEE CORPORATION

                                       TO

                                 CITIBANK, N.A.,
                                   AS TRUSTEE

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

                          THIRD SUPPLEMENTAL INDENTURE

                             DATED NOVEMBER 1, 1999

                    SUPPLEMENTING AND AMENDING THE INDENTURE
                           DATED AS OF AUGUST 1, 1982

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                  THIS THIRD SUPPLEMENTAL INDENTURE, dated November 1, 1999
(hereinafter called the "Supplemental Indenture"), is between KERR-McGEE
CORPORATION, a Delaware corporation (hereinafter called the "Company"), and
CITIBANK, N.A., a national banking association duly organized and existing under
the laws of the United States of America, as Trustee under the Indenture
referred to below (hereinafter called the "Trustee").

                                    RECITALS

                  The Company and the Trustee are parties to an Indenture, dated
as of August 1, 1982, as amended (the "Indenture"), relating to the issuance
from time to time by the Company of its Securities on terms to be specified at
the time of issuance. Capitalized terms used herein and not otherwise defined
shall have the meanings assigned to them in the Indenture.

                  The Company has duly authorized the creation of a series of
its Securities denominated its "Floating Rate Notes due 2001" (such Securities
being referred to herein as the "Notes").

                  The Company has duly authorized the execution and delivery of
this Supplemental Indenture in order to provide for the issuance of the Notes.

                  The Company has requested the Trustee and the Trustee has
agreed to join with it in the execution and delivery of this Supplemental
Indenture.

                  Section 901(f) of the Indenture provides that the Company,
acting pursuant to a Board Resolution, and the Trustee, at any time and from
time to time, may enter into an indenture supplemental to the Indenture to make
such provisions in regard to matters or questions arising under the Indenture
which shall not adversely affect the interests of any Holders of Securities.

                  The Company has determined that this Supplemental Indenture
complies with Section 901(f) and does not require the consent of any Holders of
Securities. On the basis of the foregoing, the Trustee has determined that this
Supplemental Indenture is in form satisfactory to it.

                  The Company has furnished the Trustee with an Officer's
Certificate and an Opinion of Counsel complying with the requirements of Section
905 of the Indenture, stating that the execution of this Supplemental Indenture
is authorized or permitted by the Indenture, and has

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                                                                               2

delivered to the Trustee a Board Resolution authorizing the execution and
delivery of this Supplemental Indenture, together with such other documents as
may have been required by Section 102 of the Indenture.

                  All things necessary to make this Supplemental Indenture a
legal, valid and binding agreement of the Company and the Trustee and a valid
amendment of and supplement to the Indenture have been done.

                  The entry into this Supplemental Indenture by the parties
hereto is in all respects authorized by the provisions of the Indenture.

                  The Company has duly authorized the execution and delivery of
this Supplemental Indenture, and all things necessary have been done to make the
Notes, when executed by the Company and authenticated and delivered hereunder
and duly issued by the Company, the valid obligations of the Company, and to
make this Supplemental Indenture a valid agreement of the Company, in accordance
with their and its terms.

                  NOW THEREFORE:

                  It is mutually covenanted and agreed, for the equal and
proportionate benefit of all Holders of the Notes, as follows:

                                    ARTICLE I

                  Section I.1.  Definitions.

                  For all purposes of the Indenture and this Supplemental
Indenture as they relate to the Notes, 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;

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

                  (3) capitalized terms used but not defined herein are used as
         they are defined in the Indenture.

                  "Applicable Procedures" means, with respect to any transfer or
transaction involving a Regulation S Global Note or beneficial interest therein,
the rules and procedures of

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                                                                               3

the Depositary for such Global Note, Euroclear and Cedel, in each case to the
extent applicable to such transaction and as in effect from time to time.

                  "Cedel" means Cedel Bank, S.A., or any successor securities
clearing agency.

                  "Depositary" means The Depository Trust Company, its nominees
and their respective successors.

                  "Euroclear" means the Euroclear Clearance System or any
successor securities clearing agency.

                  "Global Notes Legend" means the legend set forth under that
caption in Exhibit B to this Third Supplemental Indenture.

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

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

                  "Regulation S Notes" means all Notes offered and sold outside
the United States in reliance on Regulation S.

                  "Restricted Period", with respect to any Notes, means the
period of 40 consecutive days beginning on and including the later of (a) the
day on which such Notes are first offered to persons other than distributors (as
defined in Regulation S under the Securities Act) in reliance on Regulation S,
notice of which day shall be promptly given by the Company to the Trustee, and
(b) the issue date with respect to such Notes.

                  "Restricted Notes Legend" means the legend set forth in
Section 2.03.

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

                  "Rule 144A Notes" means all Notes offered and sold to QIBs in
reliance on Rule 144A.

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

                  Section I.2.  Effect of Headings.

                  The Article and Section headings herein are for convenience
only and shall not affect the construction hereof.

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                                                                               4

                  Section I.3.  Successors and Assigns.

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

                  Section I.4.  Separability.

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

                  Section I.5.  Conflict with Trust Indenture Act.

                  If any provision hereof limits, qualifies or conflicts with
another provision hereof which is required to be included in this Supplemental
Indenture by any of the provisions of the Trust Indenture Act of 1939, as
amended, such required provisions shall control.

                  Section I.6.  Benefits of Supplemental Indenture.

                  Nothing in this Supplemental Indenture, expressed or implied,
shall give to any person, other than the parties hereto and their successors
hereunder, and the Holders of the Notes any benefit or any legal or equitable
right, remedy or claim under this Supplemental Indenture.

                  Section I.7.  Application of Supplemental Indenture.

                  This Supplemental Indenture shall take effect on the date
hereof, and shall apply only to the Notes. This Supplemental Indenture shall
have no effect on any other Securities, whether originally issued prior to the
date hereof or thereafter. If any provision of this Supplemental Indenture is
inconsistent with any provision of the Indenture, then, to the extent permitted
by the Indenture, the provision in this Supplemental Indenture shall control.

                  Section I.8.  Governing Law.

                  THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE DEEMED TO
BE A CONTRACT MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND THIS SUPPLEMENTAL
INDENTURE AND EACH SUCH NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

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                                                                               5

                                   ARTICLE II
                                    The Notes

                 Section II.1.  Title and Terms.

                 There is hereby created under the Indenture a series of
Securities known and designated as the "Floating Rate Notes due 2001" of the
Company. The aggregate principal amount of Notes that may be authenticated and
delivered under this Supplemental Indenture is limited to $200,000,000 million,
except for Notes authenticated and delivered upon reregistration of, transfer
of, or in exchange for, or in lieu of, other Notes pursuant to Section 305, 306,
307, 904 and 1103 of the Indenture.

                  The Notes shall be initially issued in the form of a Global
Security and the Depositary for the Notes shall be The Depository Trust Company,
New York, New York.

                  The form of Notes attached hereto as Exhibit A is hereby
adopted, as a form of Securities of a series that consists of Notes. Certain
terms of the Notes are set forth in the form of the Notes.

                  Section II.2.  Form and Dating.

                  Rule 144A Notes shall be issued initially in the form of one
or more permanent Global Securities in definitive, fully registered form
(collectively, the "Rule 144A Global Note") and Regulation S Notes shall be
issued initially in the form of one or more Global Securities (collectively, the
"Regulation S Global Note"), in each case without interest coupons and bearing
the Global Notes Legend and Restricted Notes Legend. Beneficially ownership
interests in the Regulation S Global Note shall not be exchangeable for
interests in the Rule 144A Global Note until the expiration of the Restricted
Period. The Rule 144A Global Note, and the Regulation S Global Note are each
referred to herein as a "Global Note" and are collectively referred to herein as
"Global Notes". The aggregate principal amount of the Global Notes may from time
to time be increased or decreased by adjustments made on the records of the
Trustee and the Depositary or its nominee and on the schedules thereto as
hereinafter provided.

                  Section II.3.  Transfer and Exchange.

                  (a) A transferor of a beneficial interest in a Global Note
shall deliver a written order given in accordance with the Depositary's
procedures containing information regarding the participant account of the
Depositary to be credited with a beneficial interest in such Global Note or
another Global Note and such account shall be credited in accordance with such
order with a beneficial interest in the applicable Global Note and the account
of the Person making the transfer shall be debited by an amount equal to the
beneficial interest in the Global Note being transferred. Transfers by an owner
of a beneficial interest in the Rule 144A Global Note to a transferee who takes
delivery of such interest through the Regulation S Global Note, whether before
or after the expiration of the Restricted Period, shall be made only upon
receipt by the Trustee of a certification from the transferor in the form
provided on the reverse side of the Note

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                                                                               6

to the effect that such transfer is being made in accordance with Regulation S
or (if available) Rule 144 under the Securities Act and that, if such transfer
is being made prior to the expiration of the Restricted Period, the interest
transferred shall be held immediately thereafter through Euroclear or Cedel.

                  If the proposed transfer is a transfer of a beneficial
interest in one Global Note to a beneficial interest in another Global Note, the
Securities Registrar shall reflect on its books and records the date and an
increase in the principal amount of the Global Note to which such interest is
being transferred in an amount equal to the principal amount of the interest to
be so transferred, and the Securities Registrar shall reflect on its books and
records the date and a corresponding decrease in the principal amount of Global
Note from which such interest is being transferred.

                  (b) Restrictions on Transfer of Regulation S Global Note. (i)
Prior to the expiration of the Restricted Period, interests in the Regulation S
Global Note may only be held through Euroclear or Cedel. During the Restricted
Period, beneficial ownership interests in the Regulation S Global Note may only
be sold, pledged or transferred through Euroclear or Cedel in accordance with
the Applicable Procedures and only (1) to the Company, (2) in a transaction
entitled to an exemption from registration provided by Rule 144 under the
Securities Act, (3) so long as the security is eligible for resale pursuant to
Rule 144A under the Securities Act, to a person who the seller reasonably
believes is a QIB within the meaning of Rule 144A purchasing for its own account
or for the account of a QIB to whom notice is given that the resale, pledge or
other transfer is being made in reliance on Rule 144A or (4) in an offshore
transaction in accordance with 904 of Regulation S under the Securities Act.
Prior to the expiration of the Restricted Period, transfers by an owner of a
beneficial interest in the Regulation S Global Note to a transferee who takes
delivery of such interest through the Rule 144A Global Note shall be made only
in accordance with Applicable Procedures and upon receipt by the Trustee of a
written certification from the transferor of the beneficial interest
substantially in the form provided on the reverse side of the Note to the effect
that such transfer is being made to a QIB within the meaning of Rule 144A in a
transaction meeting the requirements of Rule 144A. Such written certification
shall no longer be required after the expiration of the Restricted Period.

                  (ii) Upon the expiration of the Restricted Period, beneficial
ownership interests in the Regulation S Global Note shall be transferable in
accordance with applicable law and the other terms of the Indenture.

                  (c) Legend.

                  (i) Each Note certificate evidencing the Global Notes (and all
Notes issued in exchange therefor or in substitution thereof) shall bear a
legend in substantially the following form (each defined term in the legend
being defined as such for purposes of the legend only):

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                                                                               7

                  THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"). THE HOLDER HEREOF, BY PURCHASING
THIS SECURITY, AGREES FOR THE BENEFIT OF THE COMPANY THAT THIS SECURITY MAY NOT
BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED OTHER THAN (1) TO THE COMPANY, (2)
IN A TRANSACTION ENTITLED TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144
UNDER THE SECURITIES ACT, (3) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON WHOM
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR
OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS INDICATED BY THE BOX
CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS
SECURITY) OR (4) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT (AS INDICATED BY THE BOX CHECKED BY THE
TRANSFEROR ON THE CERTIFICATE OF TRANSFER ON THE REVERSE OF THIS SECURITY)."

                  (ii) Upon a sale or transfer after the expiration of the
Restricted Period of any Note acquired pursuant to Regulation S, all
requirements that such Initial Note bear the Restricted Notes Legend shall cease
to apply and the requirements requiring any such Initial Note be issued in
global form shall continue to apply.

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                                                                               8

                                   ARTICLE III
                                  Miscellaneous

                  Section III.1.  Confirmation of Indenture.

                  The Indenture, as supplemented and amended by this
Supplemental Indenture and all other indentures supplemental thereto, is in all
respects ratified and confirmed, and the Indenture, this Supplemental Indenture
and all indentures supplemental thereto shall be read, taken and construed as
one and the same instrument.

                  Section III.2.  Concerning the Trustee.

                  The Trustee assumes no duties, responsibilities or liabilities
by reason of this Supplemental Indenture other than as set forth in the
Indenture.

                  The recitals contained herein shall be taken as the statements
of the Company, and the Trustee assumes no responsibility for the correctness of
same, except for the recital indicating the Trustee's approval of the form of
this Third Supplemental Indenture. The Trustee makes no representation as to the
validity of this Third Supplemental Indenture.

                  The Trustee accepts the trust created by the Indenture, as
supplemented by this Third Supplemental Indenture, and agrees to perform the
same upon the terms and conditions in the Indenture, as supplemented by this
Third Supplemental Indenture.

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

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

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                                                                               9

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

                                      KERR-McGEE CORPORATION

                                      By:
                                         ----------------------------------
                                         John C. Linehan
                                         Executive Vice President and
                                         Chief Financial Officer

                                      By:
                                         ----------------------------------
                                         John M. Rauh
                                         Vice President and Treasurer

[CORPORATE SEAL]

Attest:
       ---------------------------
       Name:
       Title:

                                      CITIBANK, N.A.,
                                      as Trustee

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

Attest:
       ---------------------------
       Name:
       Title:

<PAGE>   11

STATE OF OKLAHOMA     )
                      )  SS.:
COUNTY OF OKLAHOMA    )

                  On the 1st day of November, 1999, before me personally came
John C. Linehan , to me known, who, being by me duly sworn, did depose and say
that he is the Executive Vice President and Chief Financial Officer of
KERR-McGEE CORPORATION, one of the corporations described in and which executed
the foregoing instrument; that she/he knows the seal of said corporation; that
the seal affixed to said instrument is such corporate seal; that it was so
affixed by authority of the Board of Directors of said corporation, and that
she/he signed her/his name thereto by like authority.

                                         ---------------------------
                                         Notary Public

My Commission Expires:

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

STATE OF OKLAHOMA        )
                         )  SS.:
COUNTY OF OKLAHOMA       )

                  On the 1st day of November, 1999, before me personally came
John M. Rauh , to me known, who, being by me duly sworn, did depose and say that
he is the Vice President and Treasurer of KERR-McGEE CORPORATION, one of the
corporations described in and which executed the foregoing instrument; that
she/he knows the seal of said corporation; that the seal affixed to said
instrument is such corporate seal; that it was so affixed by authority of the
Board of Directors of said corporation, and that she/he signed her/his name
thereto by like authority.

                                             ---------------------------
                                             Notary Public

My Commission Expires:

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

<PAGE>   12

STATE OF NEW YORK      )
                       )   SS.:
COUNTY OF NEW YORK     )

                  On the ___ day of __________, 1999, before me personally came
____________, to me known, who, being by me duly sworn, did depose and say that
she/he is the _________ of CITIBANK, N.A., one of the corporations described in
and which executed the foregoing instrument; that she/he knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Board of Directors of said
corporation, and that she/he signed her/his name thereto by like authority.

                                         -----------------------
                                         Notary Public

SEAL

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                                                                       EXHIBIT A

                             KERR-McGEE CORPORATION

                     Floating Rate Note due November 1, 2001

                                                                $
Number R-1                                                      CUSIP ________

                  KERR-McGEE CORPORATION, a Delaware corporation (hereinafter
called the "Company", which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay
to CEDE & CO. or registered assigns, the principal sum of One Hundred Fifty
Million Dollars on November 1, 2001 and to pay interest thereon from the later
of November 1, 1999 or from the most recent Interest Payment Date to which
interest has been paid or duly provided for quarterly in arrears on February 1,
May 1, August 1 and November 1 of each year, commencing February 1, 2000, at the
rates determined quarterly as described on the reverse hereof until the
principal hereof is paid or made available for payment. The interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date will, as
provided in said Indenture, be paid to the Person in whose name this Note (or
one or more Predecessor Securities) is registered at the close of business on
the Regular Record Date for such interest, which shall be the 15th calendar day
next preceding such Interest Payment Date. Any such interest not so punctually
paid or duly provided for shall forthwith cease to be payable to the registered
holder on such Regular Record Date, and may be paid to the Person in whose name
this Note (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee. Payment of the principal of and interest on this Note
will be made at the office or agency of the Company maintained for that purpose
in the Borough of Manhattan, the City and State of New York, in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that payment
of interest may be made at the option of the Company by check mailed to the
address of the Person entitled thereto as such address shall appear on the
Security Register or, at the option of the Company, by wire transfer to an
account designated by such Person in a bank located in the United States of
America.

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

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

<PAGE>   14

                                                                              13

                  IN WITNESS WHEREOF, the Company has caused this instrument to
be duly executed under its corporate seal by the manual or facsimile signatures
of its officers thereunto duly authorized.

                                           KERR-McGEE CORPORATION

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

                                           Attest:

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

                                           [CORPORATE SEAL]

Trustee's Certificate of Authentication

This is one of the series of Debt Securities
issued under the within mentioned Indenture.

Date of Authentication:

         CITIBANK, N.A.,
           as Trustee

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

<PAGE>   15

                            [Form of Reverse of Note]

                             KERR-McGEE CORPORATION

                    Floating Rate Notes due November 1, 2001

                  This Note is one of a duly authorized issue of notes of the
Company designated the Floating Rate Notes due November 1, 2001, of the Company,
limited in aggregate principal amount of $200,000,000 (herein called the
"Notes"), issued and to be issued under an Indenture dated as of August 1, 1982,
between the Company and Citibank, N.A., as Trustee (herein called the "Trustee",
which term includes any successor trustee under the Indenture), as supplemented
by the First Supplemental Indenture dated as of May 7, 1996 and the Third
Supplemental Indenture dated as of November 1, 1999 (said Indenture, as so
supplemented, herein called the "Indenture"), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties, obligations and immunities
thereunder of the Company, the Trustee and the Holders of the Notes, and of the
terms upon which the Notes are, and are to be, authenticated and delivered.

                  The Notes may be redeemed on any quarterly interest payment
date on or after May 1, 2000 at the option of the Company, in whole but not in
part, at a redemption price equal to 100% of the principal amount of the Notes
plus accrued interest thereon to the redemption date.

                  The Notes will bear interest for each interest period at a per
annum rate determined by Citibank, N.A., or its successor appointed by the
Company, acting as calculation agent. The interest rate will be equal to LIBOR
(as defined below) on the second London business day (as defined below)
immediately preceding the first day of such interest period (an "interest
determination date") plus 0.50%; provided, however, that in certain
circumstances described below, the interest rate will be determined in an
alternative manner without reference to LIBOR. Promptly upon such determination,
the calculation agent will notify the Trustee of the interest rate for the new
interest period. Notwithstanding the foregoing, the interest rate for the period
from November 1, 1999 to January 31, 2000 shall be 6.7025%.

                  For purposes of this calculation, "London business day" is
defined as a day on which dealings in deposits in U.S. dollars are transacted,
or with respect to any future date, are expected to be transacted, in the London
interbank market.

                  "LIBOR" for any interest determination date will be the
offered rate for deposits in U.S. dollars having an index maturity of three
months for a period commencing on the second London business day immediately
following the interest determination date ("three month deposits") in amounts of
not less than $1,000,000, as such rate appears on Telerate Page 3750 (as defined
below), or a successor reporter of such rates selected by the calculation agent
and

<PAGE>   16

acceptable to The Company at approximately 11:00 a.m., London time, on the
interest determination date (the "reported rate").

                  "Telerate Page 3750" means the display designated on page
"3750" on Dow Jones Markets Limited (or such other page as may replace the 3750
page on that service or such other service or services as may be nominated by
the British Bankers' Association for the purpose of displaying London interbank
offered rates for U.S. dollar deposits).

                  If the following circumstances exist on any interest
determination date, the calculation agent shall determine the interest rate for
the Notes as follows:

                  (i) In the event the reported rate cannot be determined as of
                  approximately 11:00 a.m. London time on an interest
                  determination date, the calculation agent shall request the
                  principal London offices of each of four major banks in the
                  London interbank market selected by the calculation agent
                  (after consultation with Kerr-McGee) to provide a quotation of
                  the rate (a "rate quotation") at which three month deposits in
                  amounts of not less than $1,000,000 are offered by it to prime
                  banks in the London interbank market, as of approximately
                  11:00 a.m. London time on such interest determination date,
                  that is representative of single transactions at such time
                  ("representative amounts"). If at least two rate quotations
                  are provided, the interest rate will be the arithmetic mean of
                  the rate quotations obtained by the calculation agent, plus
                  0.50%.

                  (ii) In the event the reported rate cannot be determined and
                  there are fewer than two rate quotations, the interest rate
                  will be the arithmetic mean of the rates quoted at
                  approximately 11:00 a.m. New York City time on such interest
                  determination date, by three major banks in New York City,
                  selected by the calculation agent (after consultation with
                  Kerr-McGee), for loans in representative amounts in U.S.
                  dollars to leading European banks, having an index maturity of
                  three months for a period commencing on the second London
                  business day immediately following such interest determination
                  date, plus 0.50%; provided, however, that if fewer than three
                  banks selected by the calculation agent are quoting such
                  rates, the interest rate for the applicable period will be the
                  same as the interest rate in effect for the immediately
                  preceding interest period.

                  Upon the request of the holder of any Note, the calculation
agent will provide to such holder the interest rate in effect on the date of
such request and, if determined, the interest rate for the next interest period.

                  Interest on the Notes will be calculated on the basis of the
actual number of days for which interest is payable in the relevant interest
period, divided by 360. All dollar amounts resulting from such calculation will
be rounded, if necessary, to the nearest cent with one-half cent rounded upward.

<PAGE>   17
                                                                               3

                  The Notes are subject to the provisions of the Indenture
relating to defeasance of the entire indebtedness represented by the Notes.

                  If any Event of Default, as defined in the Indenture, with
respect to the Notes shall occur and be continuing, the principal of all the
Notes may be declared due and payable in the manner and with the effect provided
in the Indenture. The Notes are subject to the provisions of the Indenture
relating to defeasance of the entire indebtedness represented by the Notes.

                  The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company with respect to the Notes and the rights of the
Holders of the Notes under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in aggregate principal
amount of the Outstanding Notes. The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount of
the Notes at the time Outstanding, on behalf of the Holders of all the Notes, to
waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note shall be conclusive and binding
upon such Holder and upon all future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange here for or in lieu
hereof, whether or not notation of such consent or waiver is made upon this
Note.

                  Holders of Notes may not enforce their rights pursuant to the
Indenture or the Notes except as provided in the Indenture. No reference herein
to the Indenture and no provision of this Note or of the Indenture shall alter
or impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of and interest on this Note at the times, place, and rate,
and in the coin or currency, herein prescribed.

                  As provided in the Indenture and subject to certain
limitations therein set forth, this Note is transferable on the Security
Register of the Company, upon surrender of this Note for registration of
transfer at the office of the Company maintained for such purpose in the Borough
of Manhattan, the City and State of New York, duly endorsed, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed, by the Holder hereof or such Holder's attorney
duly authorized in writing, and thereupon one or more new Notes of like
aggregate principal amount of such denominations as are authorized for Notes and
of a like Stated Maturity and with like terms and conditions will be issued in
the name of the designated transferee or transferees.

                  The Notes are issuable in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Notes are
exchangeable for other Notes of like aggregate principal amount and of a like
Stated Maturity and with like terms and conditions, as requested by the Holder
surrendering the same.

<PAGE>   18
                                                                               4

                  No service charge shall be made for any registration or
transfer or exchange of Notes, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection therewith.

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

                  All terms used in this Note which are defined in the Indenture
shall have the meanings assigned to them therein.

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

<PAGE>   19
                                                                               5

                  The following abbreviations, when used in the inscription on
the face of the within Note, shall be construed as though they were written out
in full according to applicable laws or regulations.

<TABLE>
-------------------------------------------------------------------------------------------------------
<S>               <C>                          <C>                      <C>
TEN COM --        as tenants in common         UNIF GIFT MIN Act --     _______ Custodian _______
TEN ENT --        as tenants by the                                     (Cust)
JT TEN --         entireties                                            (Minor)
                  as joint tenants with                                 under Uniform Gifts to Minors
                  right of survivorship and                             Act
                  not as tenants in common                              ---------------------------
                                                                        (State)
-------------------------------------------------------------------------------------------------------
</TABLE>

                Additional abbreviations may also be used though
                              not in the above list

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

          FOR VALUE RECEIVED the undersigned hereby sells, assigns and
                                 transfers unto

PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE

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

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

               (Name and Address of Assignee, including zip code,
                         must be printed or typewritten)

the within Note, and all rights thereunder, hereby irrevocably constituting and
appointing ______________ Attorney to transfer said Note on the books of the
Company, with full power of substitution in the premises.

         Dated:

     NOTICE: The signature to this assignment must correspond with the name as
it appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatever.

<PAGE>   20

                SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

                  The initial principal amount of this Global Note is $[      ].
The following increases or decreases in this Global Note have been made:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
                                                                                                  Signature of
                          Amount of decrease     Amount of increase     Principal amount of    authorized officer
        Date of           in Principal Amount    in Principal Amount     this Global Note        of signatory of
       Exchange           of this Global Note    of this Global Note      following such        Trustee or Notes
                                                                       decrease or increase         Custodian
------------------------ ---------------------- ---------------------- ---------------------- ----------------------
<S>                      <C>                    <C>                    <C>                    <C>
</TABLE>

<PAGE>   21

                  CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR
                 REGISTRATION OF TRANSFER RESTRICTED SECURITIES

This certificate relates to $_______ principal amount of Notes held in (check
applicable space) _____ book-entry or ___ definitive form by the undersigned.

The undersigned has requested the Trustee by written order to exchange or
register the transfer of a Note or Notes.

In connection with any transfer of any of the Notes evidenced by this
certificate occurring prior to the expiration of the period referred to in Rule
144(k) under the Securities Act, the undersigned confirms that such Notes are
being transferred in accordance with its terms:

CHECK ONE BOX BELOW

         (1)      -   to the Company; or

         (2)      -   to the Securities Registrar for the registration in the
                      name of the Holder, without transfer; or

         (3)      -   inside the United States to a "qualified institutional
                      buyer" (as defined in Rule 144A under the Securities Act
                      of 1933) that purchases for its own account or for the
                      account of a qualified institutional buyer to whom notice
                      is given that such transfer is being made in reliance on
                      Rule 144A, in each case pursuant to and in compliance with
                      Rule 144A under the Securities Act of 1933; or

         (4)      -   outside the United States in an offshore transaction
                      within the meaning of Regulation S under the Securities
                      Act in compliance with Rule 904 under the Securities Act
                      of 1933 and such Note shall be held immediately after the
                      transfer through Euroclear and Cedel until the expiration
                      of the Restricted Period (as defined in the Indenture); or

         (5)      -   pursuant to another available exemption from registration
                      provided by Rule 144 under the Securities Act of 1933.

         Unless one of the boxes is checked, the Trustee will refuse to register
         any of the Notes evidenced by this certificate in the name of any
         Person other than the registered holder thereof; provided, however,
         that if box (4) or (5) is checked, the Trustee may require, prior to
         registering any such transfer of the Notes, such legal opinions,
         certifications and other information as the Company has reasonably
         requested to confirm that such transfer

<PAGE>   22

         is being made pursuant to an exemption from or in a transaction not
         subject to, the registration requirements of the Securities Act of
         1933.

<TABLE>
----------------------------------------------------------- --------------------------------------------------------
<S>                                                         <C>
                                                            -----------------------------------
                                                            Your Signature
----------------------------------------------------------- --------------------------------------------------------

Signature Guarantee:
----------------------------------------------------------- --------------------------------------------------------

Date:
      ---------------------------                           ----------------------------------
Signature must be guaranteed by a                           Signature of Signature
participant in a recognized signature guaranty medallion    Guarantee
program or other signature guarantor acceptable to the
Trustee
----------------------------------------------------------- --------------------------------------------------------
</TABLE>

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

              TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED

                  The undersigned represents and warrants that it is purchasing
this Note for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
9133, and is aware that the sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding the Company as
the undersigned has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying
upon the undersigned's foregoing representations in order to claim the exemption
from registration provided Rule 144A.

Dated:
       ---------------------------          ----------------------------------
                                            NOTICE:   To be executed by an
                                                      executive officer

<PAGE>   23

                                                                       EXHIBIT B

                  THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY, UNLESS AND UNTIL THIS NOTE IS EXCHANGED IN WHOLE OR IN PART FOR
NOTES IN DEFINITIVE FORM.

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"),
TO THE COMPANY OR THE TRUSTEE (EACH AS HEREAFTER DEFINED) FOR REGISTRATION OF
TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.EXHIBIT 4.3

                       INTERNATIONAL SPEEDWAY CORPORATION

                                  $225,000,000

                           7-7/8% Senior Notes Due 2004

                               Purchase Agreement
                                                              New York, New York
                                                                 October 1, 1999

Salomon Smith Barney
First Union Securities, Inc.
As Representatives of the Initial Purchasers
c/o Salomon Smith Barney Inc.
388 Greenwich Street
New York, New York  10013

Ladies and Gentlemen:

                  International Speedway Corporation, a corporation organized
under the laws of Florida (the "Company"), proposes to issue and sell to the
several parties named in Schedule I hereto (the "Initial Purchasers"), for whom
you (the "Representatives") are acting as representatives, $225,000,000
principal amount of its 7-7/8% Senior Notes Due 2004 (the "Securities"). The
Securities are to be issued under an indenture (the "Indenture") to be dated as
of October 6, 1999, between the Company and First Union National Bank, as
trustee (the "Trustee"). The Securities have the benefit of a Registration
Rights Agreement (the "Registration Rights Agreement"), to be dated as of
October 6, 1999, between the Company and the Initial Purchasers, pursuant to
which the Company has agreed to register the Securities under the Act subject to
the terms and conditions therein specified. To the extent there are no
additional parties listed on Schedule I other than you, the term Representatives
as used herein shall mean you as the Initial Purchasers, and the terms
Representatives and Initial Purchasers shall mean either the singular or plural
as the context requires. The use of the neuter in this Agreement shall include
the feminine and masculine wherever appropriate. Certain terms used herein are
defined in Section 17 hereof.

                  The sale of the Securities to the Initial Purchasers will be
made without

<PAGE>

registration of the Securities under the Act in reliance upon exemptions from
the registration requirements of the Act.

                  In connection with the sale of the Securities, the Company has
prepared a preliminary offering memorandum, dated September 24, 1999 (as amended
or supplemented at the Execution Time, including any and all exhibits thereto
and any information incorporated by reference therein, the "Preliminary
Memorandum"), and a final offering memorandum, dated October 1, 1999 (as amended
or supplemented at the Execution Time, including any and all exhibits thereto
and any information incorporated by reference therein, the "Final Memorandum").
Each of the Preliminary Memorandum and the Final Memorandum sets forth certain
information concerning the Company and the Securities. The Company hereby
confirms that it has authorized the use of the Preliminary Memorandum and the
Final Memorandum, and any amendment or supplement thereto, in connection with
the offer and sale of the Securities by the Initial Purchasers. Unless stated to
the contrary, any references herein to the terms "amend", "amendment" or
"supplement" with respect to the Final Memorandum shall be deemed to refer to
and include any information filed under the Exchange Act subsequent to the
Execution Time which is incorporated by reference therein.

         1. REPRESENTATIONS AND WARRANTIES. The Company represents and warrants
to each Initial Purchaser as set forth below in this Section 1 (it being
understood that the use of the term "Person" in this Section 1 shall be deemed
to exclude the Initial Purchasers and their respective Affiliates, as well as
any Person acting on their behalf at their direction).

                  (a) The Preliminary Memorandum, at the date thereof, did not
contain any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading. At the Execution Time, on the
Closing Date (as defined below) and on any settlement date, the Final Memorandum
did not, and will not (and any amendment or supplement thereto, at the date
thereof, at the Closing Date and on any settlement date, will not), contain any
untrue statement of a material fact or omit to state any material fact necessary
to make the statements therein, in the light of the circumstances under which
they were made, not misleading; PROVIDED, HOWEVER, that the Company makes no
representation or warranty as to the information contained in or omitted from
the Preliminary Memorandum or the Final Memorandum, or any amendment or
supplement thereto, in reliance upon and in conformity with information
furnished in writing to the Company by or on behalf of the Initial Purchasers
through the Representatives specifically for inclusion therein.

                  (b) Neither the Company, nor any of its Affiliates, nor any
Person acting on its or their behalf has, directly or indirectly, made offers or
sales of any security, or solicited offers to buy any security, under
circumstances that would require the registration of the Securities under the
Act.

                                      -2-
<PAGE>

                  (c) Neither the Company, nor any of its Affiliates, nor any
Person acting on its or their behalf has engaged in any form of general
solicitation or general advertising (within the meaning of Regulation D) in
connection with any offer or sale of the Securities in the United States.

                  (d) The Securities satisfy the eligibility requirements of
Rule 144A(d)(3) under the Act.

                  (e) Neither the Company, nor any of its Affiliates, nor any
Person acting on its or their behalf has engaged in any directed selling efforts
(within the meaning of Regulation S) with respect to the Securities, and each of
them has complied with the offering restrictions requirement of Regulation S.

                  (f) The Company is not, and after giving effect to the
offering and sale of the Securities and the application of the proceeds thereof
as described in the Final Memorandum will not be, an "investment company" within
the meaning of the Investment Company Act, without taking account of any
exemption arising out of the number of holders of the Company's securities.

                  (g) The Company is subject to and in full compliance with the
reporting requirements of Section 13 or Section 15(d) of the Exchange Act.

                  (h) The Company has not paid or agreed to pay to any Person
any compensation for soliciting another to purchase any of the Securities
(except as contemplated by this Agreement).

                  (i) The Company has not taken, directly or indirectly, any
action designed to cause or which has constituted or which might reasonably be
expected to cause or result, under the Exchange Act or otherwise, in the
stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Securities.

                  (j) The information, if any, provided by the Company pursuant
to Section 5(h) hereof will not, at the date thereof, contain any untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.

                  (k) Each of the Company and its Subsidiaries has been duly
incorporated and is validly existing as a corporation in good standing under the
laws of the jurisdiction in which it is chartered or organized with full
corporate power and authority to own or lease, as the case may be, and to
operate its properties and conduct its business as described in the Final
Memorandum, and is duly qualified to do business as a foreign corporation and is
in good standing under the laws of each jurisdiction which requires such
qualification, except where the failure to so exist or qualify would not have a
material adverse effect on the condition (financial or otherwise),

                                      -3-
<PAGE>

prospects, earnings, business or properties of the Company and its Subsidiaries,
taken as a whole (a "Material Adverse Effect").

                  (l) All the outstanding shares of capital stock of each
Subsidiary have been duly and validly authorized and issued and are fully paid
and nonassessable, and, except as otherwise set forth in the Final Memorandum,
all outstanding shares of capital stock of the Subsidiaries are owned by the
Company either directly or through wholly owned Subsidiaries free and clear of
any perfected security interest or any other security interests, claims, liens
or encumbrances.

                  (m) the Company's authorized equity capitalization is as set
forth in the Final Memorandum.

                  (n) The statements in the Final Memorandum under the headings
"Description of the Notes" and "Exchange Offer; Registration Rights," and under
the heading "Risk Factors" describing certain legal proceedings affecting the
Company, fairly summarize the matters therein described.

                  (o) This Agreement has been duly authorized, executed and
delivered by the Company; the Indenture has been duly authorized and, assuming
due authorization, execution and delivery thereof by the Trustee, when executed
and delivered by the Company, will constitute a legal, valid, binding instrument
enforceable against the Company in accordance with its terms (subject, as to the
enforcement of remedies, to applicable bankruptcy, reorganization, insolvency,
moratorium or other laws affecting creditors' rights generally from time to time
in effect and to general principles of equity, and subject, as to the
enforcement of rights of indemnity and contribution, to applicable federal and
state securities laws and principles of public policy); the Securities have been
duly authorized, and, when executed and authenticated in accordance with the
provisions of the Indenture and delivered to and paid for by the Initial
Purchasers, will have been duly executed and delivered by the Company and will
constitute the legal, valid and binding obligations of the Company entitled to
the benefits of the Indenture (subject, as to the enforcement of remedies, to
applicable bankruptcy, insolvency, moratorium or other laws affecting creditors'
rights generally from time to time in effect and to general principles of
equity, and subject, as to the enforcement of rights of indemnity and
contribution, to applicable federal and state securities laws and principles of
public policy); and the Registration Rights Agreement has been duly authorized
and, when executed and delivered by the Company, will constitute the legal,
valid, binding and enforceable instrument of the Company (subject, as to the
enforcement of remedies, to applicable bankruptcy, reorganization, insolvency,
moratorium or other laws affecting creditors' rights generally from time to time
in effect and to general principles of equity, and subject, as to the
enforcement of rights of indemnity and contribution, to applicable federal and
state securities laws and principles of public policy).

                  (p) No consent, approval, authorization, filing with or order
of any court or

                                      -4-
<PAGE>

governmental agency or body is required to be obtained or filed, as applicable,
by the Company or any Subsidiary in connection with the transactions
contemplated herein or in the Indenture or the Registration Rights Agreement,
except such as will be obtained under the Act and the Trust Indenture Act and
such as may be required under the blue sky laws of any jurisdiction in
connection with the purchase and distribution of the Securities by the Initial
Purchasers in the manner contemplated herein and in the Final Memorandum and the
Registration Rights Agreement.

                  (q) Neither the execution and delivery of the Indenture, this
Agreement or the Registration Rights Agreement, the issue and sale of the
Securities, nor the consummation of any other of the transactions herein or
therein contemplated, nor the fulfillment of the terms hereof or thereof will
conflict with, result in a breach or violation or imposition of any lien, charge
or encumbrance upon any property or assets of the Company or any of its
Subsidiaries pursuant to (i) the charter or by-laws of the Company or any of its
Subsidiaries; (ii) the terms of any indenture, contract, lease, mortgage, deed
of trust, note agreement, loan agreement or other agreement, obligation,
condition, covenant or instrument to which the Company or any of its
Subsidiaries is a party or bound or to which its or their property is subject,
other than conflicts, breaches, violations or liens that, individually or in the
aggregate, would not have a Material Adverse Effect; or (iii) any statute, law,
rule, regulation, judgment, order or decree applicable to the Company or any of
its Subsidiaries of any court, regulatory body, administrative agency,
governmental body, arbitrator or other authority having jurisdiction over the
Company or any of its Subsidiaries or any of its or their properties, other than
violations that, individually or in the aggregate, would not have a Material
Adverse Effect.

                  (r) (i) The selected financial data set forth under the
captions "Offering Memorandum Summary--Summary Financial Information" and
"Selected Financial Data" in the Final Memorandum fairly present, on the basis
stated in the Final Memorandum, the information included therein; (ii) the pro
forma financial statements included in the Final Memorandum include assumptions
that provide a reasonable basis for presenting the significant effects directly
attributable to the transactions and events described therein, the related pro
forma adjustments give appropriate effect to those assumptions, and the pro
forma adjustments reflect the proper application of those adjustments to the
historical financial statement amounts in the pro forma financial statements
included in the Final Memorandum; (iii) the pro forma financial statements
included in the Final Memorandum comply as to form in all material respects with
the applicable accounting requirements of Regulation S-X under the Act; and (iv)
the pro forma adjustments have been properly applied to the historical amounts
in the compilation of those statements.

                  (s) Except as set forth in or contemplated in the Final
Memorandum, no action, suit or proceeding by or before any court or governmental
agency, authority or body or any arbitrator involving the Company or any of its
Subsidiaries or its or their property is pending or, to the best knowledge of
the Company, threatened that (i) could reasonably be expected to

                                      -5-
<PAGE>

have a material adverse effect on the performance of this Agreement, the
Indenture or the Registration Rights Agreement, or the consummation of any of
the transactions contemplated hereby or thereby; or (ii) could reasonably be
expected to have a Material Adverse Effect, whether or not arising from
transactions in the ordinary course of business.

                  (t) Each of the Company and each of its Subsidiaries owns or
leases all such properties as are necessary to the conduct of its operations as
presently conducted.

                  (u) Neither the Company nor any Subsidiary is in violation or
default of (i) any provision of its charter or bylaws; (ii) the terms of any
indenture, contract, lease, mortgage, deed of trust, note agreement, loan
agreement or other agreement, obligation, condition, covenant or instrument to
which it is a party or bound or to which its property is subject, other than
violations or defaults that, individually or in the aggregate, would not have a
Material Adverse Effect; or (iii) any statute, law, rule, regulation, judgment,
order or decree applicable to the Company or any of its Subsidiaries of any
court, regulatory body, administrative agency, governmental body, arbitrator or
other authority having jurisdiction over the Company or such Subsidiary or any
of its properties, as applicable, other than violations or defaults that,
individually or in the aggregate, would not have a Material Adverse Effect.

                  (v) Each of Ernst & Young LLP, the accountants who have
certified certain financial statements of the Company and its consolidated
subsidiaries, and Deloitte & Touche LLP, the accountants who have certified
certain financial statements of Penske Motorsports, Inc. ("Penske") and its
consolidated subsidiaries, are independent public accountants with respect to
the Company within the meaning of the Act and the applicable published rules and
regulations thereunder.

                  (w) There are no stamp or other issuance or transfer taxes or
duties or other similar fees or charges required to be paid in connection with
the execution and delivery of this Agreement or the issuance or sale by the
Company of the Securities.

                  (x) The Company has filed all foreign, federal, state and
local tax returns that are required to be filed or has requested extensions
thereof (except in any case in which the failure so to file would not have a
Material Adverse Effect), whether or not arising from transactions in the
ordinary course of business, except as set forth in or contemplated in the Final
Memorandum (exclusive of any amendment or supplement thereto) and has paid all
taxes required to be paid by it and any other assessment, fine or penalty levied
against it, to the extent that any of the foregoing is due and payable, except
for any such assessment, fine or penalty that is currently being contested in
good faith or as would not have a Material Adverse Effect, whether or not
arising from transactions in the ordinary course of business, except as set
forth in or contemplated in the Final Memorandum.

                  (y) No labor problem or dispute with the employees of the
Company or any of

                                      -6-
<PAGE>

its Subsidiaries exists or, to the best knowledge of the Company, is threatened
or imminent, and the Company is not aware of any existing or imminent labor
disturbance by the employees of any of its or its Subsidiaries' principal
suppliers, contractors or customers, that could have a Material Adverse Effect,
whether or not arising from transactions in the ordinary course of business,
except as set forth in or contemplated in the Final Memorandum.

                  (z) The Company and each of its Subsidiaries are insured by
insurers of recognized financial responsibility against such losses and risks
and in such amounts as are prudent and customary in the businesses in which they
are engaged; all policies of insurance and fidelity or surety bonds insuring the
Company or any of its Subsidiaries or their respective businesses, assets,
employees, officers and directors are in full force and effect; the Company and
its Subsidiaries are in compliance with the terms of such policies and
instruments in all material respects; and there are no claims by the Company or
any of its Subsidiaries under any such policy or instrument as to which any
insurance company is denying liability or defending under a reservation of
rights clause, other than claims that, individually or in the aggregate, if so
denied, would not have a Material Adverse Effect; neither the Company nor any
such Subsidiary has been refused any insurance coverage sought or applied for;
and neither the Company nor any such Subsidiary has any reason to believe that
it will not be able to renew its existing insurance coverage as and when such
coverage expires or to obtain similar coverage from similar insurers as may be
necessary to continue its business at a cost that would not have a Material
Adverse Effect, except as set forth in or contemplated in the Final Memorandum.

                  (aa) No Subsidiary of the Company is currently prohibited,
directly or indirectly, from paying any dividends to the Company, from making
any other distribution on such Subsidiary's capital stock, from repaying to the
Company any loans or advances to such Subsidiary from the Company or from
transferring any of such Subsidiary's property or assets to the Company or any
other subsidiary of the Company, except as described in or contemplated by the
Final Memorandum.

                  (bb) The Company and its Subsidiaries possess all licenses,
certificates, permits and other authorizations issued by the appropriate
federal, state or foreign regulatory authorities necessary to conduct their
respective businesses, except where the failure to possess any of the foregoing
would not have a Material Adverse Effect, and neither the Company nor any such
Subsidiary has received any notice of proceedings relating to the revocation or
modification of any such certificate, authorization or permit which, singly or
in the aggregate, if the subject of an unfavorable decision, ruling or finding,
would have a Material Adverse Effect, except as set forth in or contemplated in
the Final Memorandum.

                  (cc) The Company and each of its Subsidiaries maintain a
system of internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with management's
general or specific authorizations; (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with generally

                                      -7-
<PAGE>

accepted accounting principles and to maintain asset accountability; (iii)
access to assets is permitted only in accordance with management's general or
specific authorization; and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.

                  (dd) The Company and its Subsidiaries (i) are in compliance
with any and all applicable foreign, federal, state and local laws and
regulations relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants or
contaminants ("Environmental Laws"); (ii) have received and are in compliance
with all permits, licenses or other approvals required of them under applicable
Environmental Laws to conduct their respective businesses; and (iii) have not
received notice of any actual or potential liability for the investigation or
remediation of any disposal or release of hazardous or toxic substances or
wastes, pollutants or contaminants, except where such non-compliance with
Environmental Laws, failure to receive required permits, licenses or other
approvals, or liability would not, individually or in the aggregate, have a
Material Adverse Effect, except as set forth in or contemplated in the Final
Memorandum; and, except as set forth in the Final Memorandum, neither the
Company nor any of the Subsidiaries has been named as a "potentially responsible
party" under the Comprehensive Environmental Response, Compensation, and
Liability Act of 1980, as amended.

                  (ee) In the ordinary course of its business, the Company
periodically reviews the effect of Environmental Laws on the business,
operations and properties of the Company and its Subsidiaries, in the course of
which it identifies and evaluates associated costs and liabilities (including,
without limitation, any capital or operating expenditures required for clean-up,
closure of properties or compliance with Environmental Laws, or any permit,
license or approval, any related constraints on operating activities and any
potential liabilities to third parties); on the basis of such review, the
Company has reasonably concluded that such associated costs and liabilities
would not, singly or in the aggregate, have a Material Adverse Effect, except as
set forth in or contemplated in the Final Memorandum.

                  (ff) Each of the Company and its Subsidiaries has fulfilled
its obligations, if any, under the minimum funding standards of Section 302 of
the United States Employee Retirement Income Security Act of 1974, as amended
("ERISA"), and the regulations and published interpretations thereunder with
respect to each "plan" (as defined in Section 3(3) of ERISA and such regulations
and published interpretations) in which employees of the Company and its
Subsidiaries are eligible to participate and each such plan is in compliance in
all material respects with the presently applicable provisions of ERISA and such
regulations and published interpretations; the Company and its Subsidiaries have
not incurred any unpaid liability to the Pension Benefit Guaranty Corporation
(other than for the payment of premiums in the ordinary course) or to any such
plan under Title IV of ERISA.

                  (gg) The Company and its Subsidiaries have implemented a
comprehensive,

                                      -8-
<PAGE>

detailed program to analyze and address the risk that the computer hardware and
software used by them may be unable to recognize and properly execute
date-sensitive functions involving certain dates prior to and any dates after
December 31, 1999 (the "Year 2000 Problem"), and have determined that such risk
will be remedied on a timely basis without material expense and will not have a
material adverse effect upon the financial condition and results of operations
of the Company and its Subsidiaries, taken as a whole; and the Company believes,
after due inquiry, that each material supplier, vendor, customer or financial
service organization used or serviced by the Company and its Subsidiaries has
remedied or will remedy on a timely basis the Year 2000 Problem, except to the
extent that a failure to remedy by any such supplier, vendor, customer or
financial service organization would not have a Material Adverse Effect. The
Company is in compliance with the Commission's staff legal bulletin No. 5 dated
January 12, 1998 related to Year 2000 compliance.

                  (hh) The Company and its Subsidiaries own or possess all
patent, trademarks, trademark registration, service marks, service mark
registrations, trade names, copyrights, licenses, inventions, trade secrets and
rights described in the Final Memorandum as being owned by them, or any of them,
or necessary for the conduct of their respective businesses, and the Company is
not aware of any claim to the contrary or any challenge by any other Person to
the rights of the Company or any of its Subsidiaries with respect to the
foregoing.

                  (ii) The Company has complied with all provisions of Florida
Statutes 517.075, relating to issuers doing business with Cuba.

                  Any certificate signed by any officer of the Company and
delivered to the Representatives or counsel for the Underwriters in connection
with the offering of the Securities shall be deemed a representation and
warranty by the Company, as to matters covered thereby, to each Initial
Purchaser.

         2. PURCHASE AND SALE. Subject to the terms and conditions and in
reliance upon the representations and warranties herein set forth, the Company
agrees to sell to each Initial Purchaser, and each Initial Purchaser agrees,
severally and not jointly, to purchase from the Company, at a purchase price of
99.245% of the principal amount thereof, the principal amount of Securities set
forth opposite such Initial Purchaser's name in Schedule I hereto.

         3. DELIVERY AND PAYMENT. Delivery of and payment for the Securities
shall be made at 10:00 A.M., New York City time, on October 6, 1999, or at such
time on such later date (not later than October 15, 1999) as the Representatives
shall designate, which date and time may be postponed by agreement between the
Representatives and the Company or as provided in Section 9 hereof (such date
and time of delivery and payment for the Securities being herein called the
"Closing Date"). Delivery of the Securities shall be made to the Representatives
for the respective accounts of the several Initial Purchasers against payment by
the several Initial Purchasers through the Representatives of the purchase price
thereof to or upon the order of the

                                      -9-
<PAGE>

Company by wire transfer payable in same-day funds to the account specified by
the Company. Delivery of the Securities shall be made through the facilities of
The Depository Trust Company unless the Representatives shall otherwise
instruct.

         4. OFFERING BY INITIAL PURCHASERS. Each Initial Purchaser, severally
and not jointly, represents and warrants to and agrees with the Company that:

                  (a) It has not offered or sold, and will not offer or sell,
any Securities except (i) to those it reasonably believes to be qualified
institutional buyers (as defined in Rule 144A under the Act) and that, in
connection with each such sale, it has taken or will take reasonable steps to
ensure that the purchaser of such Securities is aware that such sale is being
made in reliance on Rule 144A; (ii) to other institutional "accredited
investors" (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D) who
provide to it and to the Company a letter in the form of Exhibit A hereto; or
(iii) in accordance with the restrictions set forth in Exhibit B hereto.

                  (b) Neither it nor any Person acting on its behalf has made or
will make offers or sales of the Securities in the United States by means of any
form of general solicitation or general advertising (within the meaning of
Regulation D) in the United States or under circumstances that would require
registration of the Securities under the Act.

         5. AGREEMENTS. The Company agrees with each Initial Purchaser that:

                  (a) The Company will furnish to each Initial Purchaser and to
counsel for the Initial Purchasers, without charge, during the period referred
to in paragraph (c) below, as many copies of the Final Memorandum and any
amendments and supplements thereto as it may reasonably request.

                  (b) The Company will not amend or supplement the Final
Memorandum, other than by filing documents under the Exchange Act that are
incorporated by reference therein, without the prior written consent of the
Representatives; PROVIDED, HOWEVER, that, prior to the completion of the
distribution of the Securities by the Initial Purchasers (as determined by the
Representatives), the Company will not file any document under the Exchange Act
that is incorporated by reference in the Final Memorandum unless, prior to such
proposed filing, the Company has furnished the Representatives with a copy of
such document for their review and the Representatives have not reasonably
objected to the filing of such document. The Company will promptly advise the
Representatives when any document filed under the Exchange Act that is
incorporated by reference in the Final Memorandum shall have been filed with the
Commission.

                  (c) If at any time prior to the completion of the sale of the
Securities by the Initial Purchasers (as determined by the Representatives), any
event occurs as a result of which

                                      -10-
<PAGE>

the Final Memorandum, as then amended or supplemented, would include any untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading, or if it should be necessary to amend or supplement
the Final Memorandum to comply with applicable law, the Company promptly (i)
will notify the Representatives of any such event; (ii) subject to the
requirements of paragraph (b) of this Section 5, will prepare an amendment or
supplement that will correct such statement or omission or effect such
compliance; and (iii) will supply any supplemented or amended Final Memorandum
to the several Initial Purchasers and counsel for the Initial Purchasers without
charge in such quantities as you may reasonably request.

                  (d) The Company will arrange, if necessary, for the
qualification of the Securities for sale by the Initial Purchasers under the
laws of such jurisdictions as the Representatives may designate and will
maintain such qualifications in effect so long as required for the sale of the
Securities; PROVIDED that in no event shall the Company be obligated to qualify
to do business in any jurisdiction where it is not now so qualified or to take
any action that would subject it to service of process in suits, other than
those arising out of the offering or sale of the Securities, in any jurisdiction
where it is not now so subject. The Company will promptly advise the
Representatives of the receipt by the Company of any notification with respect
to the suspension of the qualification of the Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose.

                  (e) The Company will not, and will not permit any of its
Affiliates to, resell any Securities that have been acquired by any of them.

                  (f) Neither the Company, nor any of its Affiliates, nor any
Person acting on its or their behalf at its or their direction will, directly or
indirectly, make offers or sales of any security, or solicit offers to buy any
security, under circumstances that would require the registration of the
Securities under the Act.

                  (g) Neither the Company, nor any of its Affiliates, nor any
Person acting on its or their behalf at its or their direction will engage in
any form of general solicitation or general advertising (within the meaning of
Regulation D) in connection with any offer or sale of the Securities in the
United States.

                  (h) So long as any of the Securities are "restricted
securities" within the meaning of Rule 144(a)(3) under the Act, the Company
will, during any period in which it is not subject to and in compliance with
Section 13 or 15(d) of the Exchange Act or it is not exempt from such reporting
requirements pursuant to and in compliance with Rule 12g3-2(b) under the
Exchange Act, provide to each holder of such restricted securities and to each
prospective purchaser (as designated by such holder) of such restricted
securities, upon the request of such holder or prospective purchaser, any
information required to be provided by Rule 144A(d)(4) under the Act. This
covenant is intended to be for the benefit of the holders, and the prospective

                                      -11-
<PAGE>

purchasers designated by such holders, from time to time of such restricted
securities.

                  (i) Neither the Company, nor any of its Affiliates, nor any
Person acting on its or their behalf at its or their discretion will engage in
any directed selling efforts (within the meaning of Regulation S) with respect
to the Securities, and each of them will comply with the offering restrictions
requirement of Regulation S.

                  (j) The Company will cooperate with the Representatives and
use its best efforts to permit the Securities to be eligible for clearance and
settlement through The Depository Trust Company.

                  (k) The Company will not for a period of 7 days following the
Execution Time, without the prior written consent of Salomon Smith Barney,
offer, sell or contract to sell, or otherwise dispose of (or enter into any
transaction which is designed to, or might reasonably be expected to, result in
the disposition (whether by actual disposition or effective economic disposition
due to cash settlement or otherwise) by the Company or any Affiliate of the
Company or any Person in privity with the Company or any Affiliate of the
Company), directly or indirectly, or announce the offering of, any debt
securities issued or guaranteed by the Company (other than the Securities).

                  (l) The Company will not take, directly or indirectly, any
action designed to or which has constituted or which might reasonably be
expected to cause or result, under the Exchange Act or otherwise, in
stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Securities.

                  (m) In connection with any disposition of Securities pursuant
to a transaction made in compliance with paragraph 6(a), paragraph 6(d) or
paragraph 6(f) of Exhibit A, the Company will reissue certificates evidencing
such Securities without the legend referred to in paragraph 5 of Exhibit A
(provided, in the case of a transaction made in compliance with paragraph 6(f)
of Exhibit A, that the legal opinion referred to therein so permits).

                  (n) The Company agrees to pay the costs and expenses relating
to the following matters: (i) the preparation of the Indenture and the
Registration Rights Agreement, the issuance of the Securities and the fees of
the Trustee; (ii) the preparation, printing or reproduction of the Preliminary
Memorandum and Final Memorandum and each amendment or supplement to either of
them; (iii) the printing (or reproduction) and delivery (including postage, air
freight charges and charges for counting and packaging) of such copies of the
Preliminary Memorandum and Final Memorandum, and all amendments or supplements
to either of them, as may, in each case, be reasonably requested for use in
connection with the offering and sale of the Securities; (iv) the preparation,
printing, authentication, issuance and delivery of certificates for the
Securities, including any stamp or transfer taxes in connection with the
original issuance and sale of the Securities; (v) the printing (or reproduction)
and delivery of this Agreement, any blue

                                      -12-
<PAGE>

sky memorandum and all other agreements or documents printed (or reproduced) and
delivered in connection with the offering of the Securities; (vi) any
registration or qualification of the Securities for offer and sale under the
securities or blue sky laws of the several states (including filing fees and the
reasonable fees and expenses of one counsel for the Initial Purchasers relating
to such registration and qualification); (vii) admitting the Securities for
trading in the PORTAL Market; (viii) the transportation and other expenses
incurred by or on behalf of Company representatives (which shall not include the
Representatives or the Initial Purchasers) in connection with presentations to
prospective purchasers of the Securities; (ix) the fees and expenses of the
Company's accountants and the fees and expenses of counsel (including local and
special counsel) for the Company; and (x) all other costs and expenses incident
to the performance by the Company of its obligations hereunder.

         6. CONDITIONS TO THE OBLIGATIONS OF THE INITIAL PURCHASERS. The
obligations of the Initial Purchasers to purchase the Securities shall be
subject to the accuracy of the representations and warranties on the part of the
Company contained herein at the Execution Time, the Closing Date and any
settlement date pursuant to Section 3 hereof, to the accuracy of the statements
of the Company made in any certificates pursuant to the provisions hereof, to
the performance by the Company of its obligations hereunder and to the following
additional conditions:

                  (a) The Company shall have requested and caused Greenberg
Traurig, P.A., counsel for the Company, to furnish to the Representatives its
opinion, dated the Closing Date and addressed to the Representatives, to the
effect that:

                           (i) the Company and each of its Subsidiaries
                  (individually, a "Subsidiary" and collectively, the
                  "Subsidiaries") has been duly incorporated and is validly
                  existing as a corporation in good standing under the laws of
                  the jurisdiction in which it is chartered or organized, with
                  full corporate power and authority to own or lease, as the
                  case may be, and to operate its properties and conduct its
                  business as described in the Final Memorandum, and, to the
                  knowledge of such counsel, is duly qualified to do business as
                  a foreign corporation and is in good standing under the laws
                  of each jurisdiction which requires such qualification, except
                  where the failure so to qualify would not have, individually
                  or in the aggregate, a Material Adverse Effect;

                           (ii) all the outstanding shares of capital stock of
                  the Company and each Subsidiary have been duly and validly
                  authorized and issued and are fully paid and nonassessable,
                  and, except as otherwise set forth in the Final Memorandum,
                  all outstanding shares of capital stock of the Subsidiaries
                  are owned by the Company either directly or through wholly
                  owned Subsidiaries, to the knowledge of such counsel, free and
                  clear of any security interest and, to the knowledge of such
                  counsel, after due inquiry, any other security interests,
                  claims, liens or

                                      -13-
<PAGE>

                  encumbrances;

                           (iii) the Company's authorized equity capitalization
                  is as set forth in the Final Memorandum;

                           (iv) the Indenture has been duly authorized, executed
                  and delivered, and constitutes a legal, valid and binding
                  instrument enforceable against the Company in accordance with
                  its terms (subject, as to the enforcement of remedies, to
                  applicable bankruptcy, reorganization, insolvency, moratorium
                  or other laws affecting creditors' rights generally from time
                  to time in effect and to general principles of equity, and
                  subject, as to the enforcement of rights of indemnity or
                  contribution, to applicable federal or state securities laws
                  or principles of public policy); the Securities have been duly
                  and validly authorized and, when executed and authenticated in
                  accordance with the provisions of the Indenture and delivered
                  to and paid for by the Initial Purchasers under this
                  Agreement, will constitute legal, valid and binding
                  obligations of the Company entitled to the benefits of the
                  Indenture (subject, as to the enforcement of remedies, to
                  applicable bankruptcy, reorganization, insolvency, moratorium
                  or other laws affecting creditors' rights generally from time
                  to time in effect and to general principles of equity, and
                  subject, as to the enforcement of rights of indemnity or
                  contribution, to applicable federal or state securities laws
                  or principles of public policy); the Registration Rights
                  Agreement has been duly authorized, executed and delivered and
                  constitutes the legal, valid, binding and enforceable
                  instrument of the Company (subject, as to the enforcement of
                  remedies, to applicable bankruptcy, reorganization,
                  insolvency, moratorium or other laws affecting creditors'
                  rights generally from time to time in effect and to general
                  principles of equity, and subject, as to the enforcement of
                  rights of indemnity or contribution, to applicable federal or
                  state securities laws or principles of public policy); and the
                  statements set forth under the heading "Description of the
                  Notes" and "Exchange Offer/ Registration Rights" in the Final
                  Memorandum, insofar as such statements purport to summarize
                  certain provisions of the Securities, the Indenture and the
                  Registration Rights Agreement, provide a fair summary of such
                  provisions;

                           (v) to the knowledge of such counsel, there is no
                  pending or threatened action, suit or proceeding by or before
                  any court or governmental agency, authority or body or any
                  arbitrator involving the Company or any of its Subsidiaries or
                  its or their property that (A) is not adequately disclosed in
                  the Final Memorandum, except in each case for such proceedings
                  that, if the subject of an unfavorable decision, ruling or
                  finding would not singly or in the aggregate, result in a
                  Material Adverse Effect, or (B) challenges any of the
                  trademarks or service marks of the Company or its Subsidiaries
                  described in the Final

                                      -14-
<PAGE>

                  Memorandum;

                           (vi) such counsel has no reason to believe that at
                  the Execution Time and on the Closing Date the Final
                  Memorandum contained or contains any untrue statement of a
                  material fact or omitted or omits to state any material fact
                  necessary to make the statements therein, in the light of the
                  circumstances under which they were made, not misleading (in
                  each case, other than the financial statements and other
                  financial information and statistical data contained therein,
                  as to which such counsel need express no opinion);

                           (vii) this Agreement has been duly authorized,
                  executed and delivered by the Company;

                           (viii) no consent, approval, authorization, filing
                  with or order of any court or governmental agency or body is
                  required to be obtained or filed, as applicable, by the
                  Company or any Subsidiary in connection with the transactions
                  contemplated herein or in the Indenture and the Registration
                  Rights Agreement, except such as will be obtained under the
                  Act and the Trust Indenture Act and such as may be required
                  under the blue sky or securities laws of any jurisdiction in
                  connection with the purchase and sale of the Securities by the
                  Initial Purchasers in the manner contemplated in this
                  Agreement and the Final Memorandum and the Registration Rights
                  Agreement and such other approvals (specified in such opinion)
                  as have been obtained (it being understood that such counsel
                  need not express any opinion regarding blue sky or state
                  securities laws);

                           (ix) neither the execution and delivery of the
                  Indenture, this Agreement or the Registration Rights
                  Agreement, the issue and sale of the Securities, nor the
                  consummation of any other of the transactions herein or
                  therein contemplated, nor the fulfillment of the terms hereof
                  or thereof will conflict with, result in a breach or violation
                  of, or imposition of any lien, charge or encumbrance upon any
                  property or asset of the Company or its Subsidiaries pursuant
                  to, (i) the charter or by-laws of the Company or its
                  Subsidiaries; (ii) the terms of any indenture, contract,
                  lease, mortgage, deed of trust, note agreement, loan agreement
                  or other agreement, obligation, condition, covenant or
                  instrument to which, to the knowledge of such counsel, the
                  Company or any of its Subsidiaries is a party or bound or to
                  which its respective property is subject, which breach,
                  violation or imposition, individually or in the aggregate,
                  would have a Material Adverse Effect; or (iii) any statute,
                  law, rule, regulation (assuming compliance with applicable
                  blue sky and state securities laws), judgment, order or decree
                  applicable to the Company or any of its Subsidiaries of any
                  court, regulatory body, administrative agency, governmental
                  body, arbitrator or other authority

                                      -15-
<PAGE>

                  having jurisdiction over the Company, any of its Subsidiaries
                  or any of their respective properties, which breach, violation
                  or imposition, individually or in the aggregate, would have a
                  Material Adverse Effect;

                           (x) assuming the accuracy of the representations and
                  warranties and compliance with the agreements contained
                  herein, no registration of the Securities under the Act, and
                  no qualification of an indenture under the Trust Indenture
                  Act, are required for the offer and sale by the Initial
                  Purchasers of the Securities in the manner contemplated by
                  this Agreement; and

                           (xi) the Company is not and, after giving effect to
                  the offering and sale of the Securities and the application of
                  the proceeds thereof as described in the Final Memorandum,
                  will not be an "investment company" as defined in the
                  Investment Company Act without taking account of any exemption
                  arising out of the number of holders of the Company's
                  securities.

                  In rendering such opinion, such counsel may rely (A) as to
matters involving the application of laws of any jurisdiction other than the
jurisdiction of incorporation of the Company, the State of New York or the
Federal laws of the United States, to the extent they deem proper and specified
in such opinion, upon the opinion of other counsel of good standing whom they
believe to be reliable and who are satisfactory to counsel for the Initial
Purchasers; and (B) as to matters of fact, to the extent they deem proper, on
certificates of responsible officers of the Company and public officials.
References to the Final Memorandum in this Section 6(a) include any amendment or
supplement thereto at the Closing Date.

                  (b) The Representatives shall have received from Akerman,
Senterfitt & Eidson, P.A., counsel for the Initial Purchasers, such opinion or
opinions, dated the Closing Date and addressed to the Representatives, with
respect to the issuance and sale of the Securities, the Indenture, the
Registration Rights Agreement, the Final Memorandum (as amended or supplemented
at the Closing Date) and other related matters as the Representatives may
reasonably require, and the Company shall have furnished to such counsel such
documents as they reasonably request for the purpose of enabling them to pass
upon such matters.

                  (c) The Company shall have furnished to the Representatives a
certificate of the Company, signed by the Chairman of the Board or the President
and the principal financial or accounting officer of the Company, dated the
Closing Date, to the effect that the signers of such certificate have carefully
examined the Final Memorandum, any amendment or supplement to the Final
Memorandum and this Agreement and that:

                           (i) the representations and warranties of the Company
                  in this Agreement are true and correct in all material
                  respects on and as of the Closing Date with the same effect as
                  if made on the Closing Date, and the Company has

                                      -16-
<PAGE>

                  complied with all the agreements and satisfied all the
                  conditions on its part to be performed or satisfied hereunder
                  at or prior to the Closing Date; and

                           (ii) since the date of the most recent financial
                  statements included in the Final Memorandum, there has been no
                  material adverse change in the condition (financial or
                  otherwise), prospects, earnings, business or properties of the
                  Company and its Subsidiaries, taken as a whole, whether or not
                  arising from transactions in the ordinary course of business,
                  except as set forth in or contemplated by the Final
                  Memorandum.

                  (d) At the Execution Time and at the Closing Date, the Company
shall have requested and caused Ernst & Young LLP to furnish to the
Representatives letters, dated respectively as of the Execution Time and as of
the Closing Date, in form and substance satisfactory to the Representatives,
confirming that they are independent accountants within the meaning of the Act
and the Exchange Act and the applicable rules and regulations thereunder, that
they have performed a review of the unaudited interim financial information of
the Company for the six-month period ended May 31, 1999 and as at May 31, 1999,
and stating in effect that:

                           (i) in their opinion the pro forma financial
                  statements included or incorporated in the Final Memorandum
                  and reported on by them comply as to form in all material
                  respects with the applicable accounting requirements of the
                  Exchange Act and the related published rules and regulations
                  thereunder;

                           (ii) on the basis of a reading of the latest
                  unaudited financial statements made available by the Company
                  and its subsidiaries; their limited review in accordance with
                  the standards established under Statement on Auditing
                  Standards No. 71, of the unaudited interim financial
                  information for the six-month period ended May 31, 1999, and
                  as at May 31, 1999, as indicated in their report dated October
                  1, 1999; carrying out certain specified procedures (but not an
                  examination in accordance with generally accepted auditing
                  standards) which would not necessarily reveal matters of
                  significance with respect to the comments set forth in such
                  letter; a reading of the minutes of the meetings of the
                  stockholders, directors and any committees of the Company and
                  the Subsidiaries; and inquiries of certain officials of the
                  Company who have responsibility for financial and accounting
                  matters of the Company and its subsidiaries as to transactions
                  and events subsequent to November 30, 1998, nothing came to
                  their attention which caused them to believe that:

                                    (A) any unaudited financial statements
                           included or incorporated in the Final Memorandum do
                           not comply in form in all material respects with
                           applicable accounting requirements and with the
                           published rules and regulations of the Commission
                           with respect to financial statements

                                      -17-
<PAGE>

                           included or incorporated in quarterly reports on Form
                           10-Q under the Exchange Act; and said unaudited
                           financial statements are not in conformity with
                           generally accepted accounting principles applied on a
                           basis substantially consistent with that of the
                           audited financial statements included or incorporated
                           in the Final Memorandum; or

                                    (B) with respect to the period subsequent to
                           May 31, 1999, there were any changes, at a specified
                           date not more than five days prior to the date of the
                           letter, in the long-term debt of the Company and its
                           subsidiaries or capital stock of the Company or
                           decreases in the consolidated net current assets or
                           shareholders' equity of the Company and its
                           subsidiaries as compared with the amounts shown on
                           the May 31, 1999 unaudited pro-forma consolidated
                           balance sheet included or incorporated in the Final
                           Memorandum, or for the period from June 1, 1999 to
                           such specified date there were any decreases, as
                           compared with the corresponding period in the
                           preceding year, in consolidated net sales or in the
                           total or per share amounts of net income of the
                           Company and its subsidiaries, except in all instances
                           for changes or decreases set forth in such letter, in
                           which case the letter shall be accompanied by an
                           explanation by the Company as to the significance
                           thereof unless said explanation is not deemed
                           necessary by the Representatives; or

                                    (C) the information included under the
                           headings "Offering Memorandum Summary--Summary
                           Financial Information" and "Selected Financial Data"
                           is not in conformity with the disclosure requirements
                           of Regulation S-K;

                           (iii) they have performed certain other specified
                  procedures as a result of which they determined that certain
                  information of an accounting, financial or statistical nature
                  (which is limited to accounting, financial or statistical
                  information derived from the general accounting records of the
                  Company and its subsidiaries) set forth in the Final
                  Memorandum, including the information set forth under the
                  captions "Offering Memorandum Summary--Summary Financial
                  Information," "Capitalization," Selected Financial Data," "Pro
                  Forma Financial Data" and "Management's Discussion and
                  Analysis of Financial Condition and Results of Operations" in
                  the Final Memorandum, agrees with the accounting records of
                  the Company and its subsidiaries, excluding any questions of
                  legal interpretation;

                           (iv) on the basis of a reading of the unaudited pro
                  forma financial statements (the "pro forma financial
                  statements") included or incorporated in the

                                      -18-
<PAGE>

                  Final Memorandum; carrying out certain specified procedures;
                  inquiries of certain officials of the Company and Penske who
                  have responsibility for financial and accounting matters; and
                  proving the arithmetic accuracy of the application of the pro
                  forma adjustments to the historical amounts in the pro forma
                  financial statements, nothing came to their attention which
                  caused them to believe that the pro forma financial statements
                  do not comply in form in all material respects with the
                  applicable accounting requirements of Rule 11-02 of Regulation
                  S-X or that the pro forma adjustments have not been properly
                  applied to the historical amounts in the compilation of such
                  statements.

                  References to the Final Memorandum in this Section 6(d)
include any amendment or supplement thereto at the date of the applicable
letter.

                  (e) At the Execution Time and at the Closing Date, the Company
shall have requested and caused Deloitte & Touche LLP to furnish to the
Representatives letters, dated respectively as of the Execution Time and as of
the Closing Date, in form and substance satisfactory to the Representatives,
confirming that they are independent accountants within the meaning of the Act
and the Exchange Act and the applicable rules and regulations thereunder, that
they have performed a review of the unaudited interim financial information of
Penske for the six-month period ended June 30, 1999 and as at June 30, 1999, and
stating in effect that:

                           (i) in their opinion the pro forma financial
                  statements included or incorporated in the Final Memorandum
                  and reported on by them comply as to form in all material
                  respects with the applicable accounting requirements of the
                  Exchange Act and the related published rules and regulations
                  thereunder;

                           (ii) they have performed certain other specified
                  procedures as a result of which they determined that certain
                  information of an accounting, financial or statistical nature
                  (which is limited to accounting, financial or statistical
                  information derived from the general accounting records of
                  Penske and its subsidiaries) set forth in the Final
                  Memorandum, including the information set forth under the
                  captions "Offering Memorandum Summary--Summary Financial
                  Information," "Capitalization," Selected Financial Data," "Pro
                  Forma Financial Data" and "Management's Discussion and
                  Analysis of Financial Condition and Results of Operations" in
                  the Final Memorandum, agrees with the accounting records of
                  the Company and its subsidiaries, excluding any questions of
                  legal interpretation;

                           (iii) on the basis of a reading of the unaudited pro
                  forma financial statements (the "pro forma financial
                  statements") included or incorporated in the Final Memorandum;
                  carrying out certain specified procedures; inquiries of
                  certain officials of the Company and Penske who have
                  responsibility for financial and

                                      -19-
<PAGE>

                  accounting matters; and proving the arithmetic accuracy of the
                  application of the pro forma adjustments to the historical
                  amounts in the pro forma financial statements, nothing came to
                  their attention which caused them to believe that the pro
                  forma financial statements do not comply in form in all
                  material respects with the applicable accounting requirements
                  of Rule 11-02 of Regulation S-X or that the pro forma
                  adjustments have not been properly applied to the historical
                  amounts in the compilation of such statements.

                  References to the Final Memorandum in this Section 6(e)
include any amendment or supplement thereto at the date of the applicable
letter.

                  (f) Subsequent to the Execution Time or, if earlier, the dates
as of which information is given in the Final Memorandum (exclusive of any
amendment or supplement thereto), there shall not have been (i) any change or
decrease specified in the letter or letters referred to in paragraph (d) of this
Section 6; or (ii) any change, or any development involving a prospective
change, in or affecting the condition (financial or otherwise), prospects,
earnings, business or properties of the Company and its Subsidiaries, taken as a
whole, whether or not arising from transactions in the ordinary course of
business, except as set forth in or contemplated in the Final Memorandum
(exclusive of any amendment or supplement thereto) the effect of which, in any
case referred to in clause (i) or (ii) above, is, in the sole judgment of the
Representatives, so material and adverse as to make it impractical or
inadvisable to market the Securities as contemplated by the Final Memorandum
(exclusive of any amendment or supplement thereto).

                  (g) Subsequent to the Execution Time, there shall not have
been any decrease in the rating of any of the Company's debt securities by any
"nationally recognized statistical rating organization" (as defined for purposes
of Rule 436(g) under the Act) or any notice given of any intended or potential
decrease in any such rating or of a possible change in any such rating that does
not indicate the direction of the possible change.

                  (h) Prior to the Closing Date, the Company shall have
furnished to the Representatives such further information, certificates and
documents as the Representatives may reasonably request.

                  If any of the conditions specified in this Section 6 shall not
have been fulfilled in all material respects when and as provided in this
Agreement, or if any of the opinions and certificates mentioned above or
elsewhere in this Agreement shall not be in all material respects reasonably
satisfactory in form and substance to the Representatives and counsel for the
Initial Purchasers, this Agreement and all obligations of the Initial Purchasers
hereunder may be canceled at, or at any time prior to, the Closing Date by the
Representatives. Notice of such cancellation shall be given to the Company in
writing or by telephone or facsimile confirmed in writing.

                                      -20-
<PAGE>

                  The documents required to be delivered by this Section 6 will
be delivered at the office of counsel for the Company in New York, New York, on
the Closing Date.

         7. REIMBURSEMENT OF EXPENSES. If the sale of the Securities provided
for herein is not consummated because any condition to the obligations of the
Initial Purchasers set forth in Section 6 hereof is not satisfied, because of
any termination pursuant to Section 10 hereof or because of any refusal,
inability or failure on the part of the Company to perform any agreement herein
or comply with any provision hereof other than by reason of a default by any of
the Initial Purchasers, the Company will reimburse the Initial Purchasers
severally through Salomon Smith Barney on demand for all reasonable
out-of-pocket expenses (including reasonable fees and disbursements of counsel)
that shall have been incurred by them in connection with the proposed purchase
and sale of the Securities.

         8. INDEMNIFICATION AND CONTRIBUTION.

                  (a) The Company agrees to indemnify and hold harmless each
Initial Purchaser, the directors, officers, employees and agents of each Initial
Purchaser and each Person who controls any Initial Purchaser within the meaning
of either the Act or the Exchange Act against any and all losses, claims,
damages or liabilities, joint or several, to which they or any of them may
become subject under the Act, the Exchange Act or other Federal or state
statutory law or regulation, at common law or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of a material
fact contained in the Preliminary Memorandum, the Final Memorandum (or in any
supplement or amendment thereto) or any information provided by the Company to
any holder or prospective purchaser of Securities pursuant to Section 5(h), or
in any amendment thereof or supplement thereto, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading, and agrees to
reimburse each such indemnified party, as incurred, for any legal or other
expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; PROVIDED, HOWEVER,
that the Company will not be liable in any such case to the extent that any such
loss, claim, damage or liability arises out of or is based upon any such untrue
statement or alleged untrue statement or omission or alleged omission made in
the Preliminary Memorandum or the Final Memorandum, or in any amendment thereof
or supplement thereto, in reliance upon and in conformity with written
information furnished to the Company by or on behalf of any Initial Purchasers
through the Representatives specifically for inclusion therein. This indemnity
agreement will be in addition to any liability which the Company may otherwise
have.

                  (b) Each Initial Purchaser severally and not jointly agrees to
indemnify and hold harmless the Company, each of its directors, each of its
officers, and each Person who

                                      -21-
<PAGE>

controls the Company within the meaning of either the Act or the Exchange Act,
to the same extent as the foregoing indemnity from the Company to each Initial
Purchaser, but only with reference to written information relating to such
Initial Purchaser furnished to the Company by or on behalf of such Initial
Purchaser through the Representatives specifically for inclusion in the
Preliminary Memorandum or the Final Memorandum (or in any amendment or
supplement thereto). This indemnity agreement will be in addition to any
liability which any Initial Purchaser may otherwise have. The Company
acknowledges that the statements set forth in the last paragraph of the cover
page regarding the delivery of the Securities and, under the heading "Plan of
Distribution", (i) the sentences related to concessions and reallowances; (ii)
the paragraph related to the delivery of the Securities; and (iii) the paragraph
related to stabilization, syndicate covering transactions and penalty bids in
the Preliminary Memorandum and the Final Memorandum, constitute the only
information furnished in writing by or on behalf of the Initial Purchasers for
inclusion in the Preliminary Memorandum or the Final Memorandum (or in any
amendment or supplement thereto).

                  (c) Promptly after receipt by an indemnified party under this
Section 8 of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party
under this Section 8, notify the indemnifying party in writing of the
commencement thereof; but the failure so to notify the indemnifying party (i)
will not relieve it from liability under paragraph (a) or (b) above unless and
to the extent it did not otherwise learn of such action and such failure results
in the forfeiture by the indemnifying party of substantial rights and defenses;
and (ii) will not, in any event, relieve the indemnifying party from any
obligations to any indemnified party other than the indemnification obligation
provided in paragraph (a) or (b) above. The indemnifying party shall be entitled
to appoint counsel of the indemnifying party's choice at the indemnifying
party's expense to represent the indemnified party in any action for which
indemnification is sought (in which case the indemnifying party shall not
thereafter be responsible for the fees and expenses of any separate counsel
retained by the indemnified party or parties except as set forth below);
PROVIDED, HOWEVER, that such counsel shall be satisfactory to the indemnified
party. Notwithstanding the indemnifying party's election to appoint counsel to
represent the indemnified party in an action, the indemnified party shall have
the right to employ separate counsel (including local counsel), and the
indemnifying party shall bear the reasonable fees, costs and expenses of such
separate counsel if (i) the use of counsel chosen by the indemnifying party to
represent the indemnified party would present such counsel with a conflict of
interest; (ii) the actual or potential defendants in, or targets of, any such
action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be legal
defenses available to it and/or other indemnified parties which are different
from or additional to those available to the indemnifying party; (iii) the
indemnifying party shall not have employed counsel satisfactory to the
indemnified party to represent the indemnified party within a reasonable time
after notice of the institution of such action; or (iv) the indemnifying party
shall authorize the indemnified party to employ separate

                                      -22-
<PAGE>

counsel at the expense of the indemnifying party. An indemnifying party will
not, without the prior written consent of the indemnified parties, settle or
compromise or consent to the entry of any judgment with respect to any pending
or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action)
unless such settlement, compromise or consent includes an unconditional release
of each indemnified party from all liability arising out of such claim, action,
suit or proceeding.

                  (d) In the event that the indemnity provided in paragraph (a)
or (b) of this Section 8 is unavailable to or insufficient to hold harmless an
indemnified party for any reason, the Company and the Initial Purchasers agree
to contribute to the aggregate losses, claims, damages and liabilities
(including legal or other expenses reasonably incurred in connection with
investigating or defending same) (collectively "Losses") to which the Company
and one or more of the Initial Purchasers may be subject in such proportion as
is appropriate to reflect the relative benefits received by the Company on the
one hand and by the Initial Purchasers on the other from the offering of the
Securities; PROVIDED, HOWEVER, that in no case shall any Initial Purchaser
(except as may be provided in any agreement among the Initial Purchasers
relating to the offering of the Securities) be responsible for any amount in
excess of the purchase discount or commission applicable to the Securities
purchased by such Initial Purchaser hereunder. If the allocation provided by the
immediately preceding sentence is unavailable for any reason, the Company and
the Initial Purchasers shall contribute in such proportion as is appropriate to
reflect not only such relative benefits but also the relative fault of the
Company on the one hand and of the Initial Purchasers on the other in connection
with the statements or omissions which resulted in such Losses, as well as any
other relevant equitable considerations. Benefits received by the Company shall
be deemed to be equal to the total net proceeds from the offering (before
deducting expenses) received by it, and benefits received by the Initial
Purchasers shall be deemed to be equal to the total purchase discounts and
commissions in each case set forth on the cover of the Final Memorandum.
Relative fault shall be determined by reference to, among other things, whether
any untrue or any alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information provided by the
Company on the one hand or the Initial Purchasers on the other, the intent of
the parties and their relative knowledge, information and opportunity to correct
or prevent such untrue statement or omission. The Company and the Initial
Purchasers agree that it would not be just and equitable if contribution were
determined by pro rata allocation or any other method of allocation which does
not take account of the equitable considerations referred to above.
Notwithstanding the provisions of this paragraph (d), no Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section 8, each Person who
controls an Initial Purchaser within the meaning of either the Act or the
Exchange Act and each director, officer, employee and agent of an Initial
Purchaser shall have the same rights to contribution as such Initial Purchaser,
and each Person who controls the Company within the

                                      -23-
<PAGE>

meaning of either the Act or the Exchange Act and each officer and director of
the Company shall have the same rights to contribution as the Company, subject
in each case to the applicable terms and conditions of this paragraph (d).

         9. DEFAULT BY AN INITIAL PURCHASER. If any one or more Initial
Purchasers shall fail to purchase and pay for any of the Securities agreed to be
purchased by such Initial Purchaser hereunder and such failure to purchase shall
constitute a default in the performance of its or their obligations under this
Agreement, the remaining Initial Purchasers shall be obligated severally to take
up and pay for (in the respective proportions which the amount of Securities set
forth opposite their names in Schedule I hereto bears to the aggregate amount of
Securities set forth opposite the names of all the remaining Initial Purchasers)
the Securities which the defaulting Initial Purchaser or Initial Purchasers
agreed but failed to purchase; PROVIDED, HOWEVER, that in the event that the
aggregate amount of Securities which the defaulting Initial Purchaser or Initial
Purchasers agreed but failed to purchase shall exceed 10% of the aggregate
amount of Securities set forth in Schedule I hereto, the remaining Initial
Purchasers shall have the right to purchase all, but shall not be under any
obligation to purchase any, of the Securities, and if such nondefaulting Initial
Purchasers do not purchase all the Securities, this Agreement will terminate
without liability to any nondefaulting Initial Purchaser or the Company. In the
event of a default by any Initial Purchaser as set forth in this Section 9, the
Closing Date shall be postponed for such period, not exceeding five Business
Days, as the Representatives shall determine in order that the required changes
in the Final Memorandum or in any other documents or arrangements may be
effected. Nothing contained in this Agreement shall relieve any defaulting
Initial Purchaser of its liability, if any, to the Company or any nondefaulting
Initial Purchaser for damages occasioned by its default hereunder.

         10. TERMINATION. This Agreement shall be subject to termination in the
absolute discretion of the Representatives, by notice given to the Company prior
to delivery of and payment for the Securities, if at any time prior to such time
(i) trading in the Company's Common Stock shall have been suspended by the
Commission or the Nasdaq National Market, or trading in securities generally on
the New York Stock Exchange or the Nasdaq National Market shall have been
suspended or limited or minimum prices shall have been established on such
Exchange or the Nasdaq National Market; (ii) a banking moratorium shall have
been declared either by Federal or New York State authorities; or (iii) there
shall have occurred any outbreak or escalation of hostilities, declaration by
the United States of a national emergency or war or other calamity or crisis the
effect of which on financial markets is such as to make it, in the sole judgment
of the Representatives, impracticable or inadvisable to proceed with the
offering or delivery of the Securities as contemplated by the Final Memorandum
(exclusive of any amendment or supplement thereto).

         11. REPRESENTATIONS AND INDEMNITIES TO SURVIVE. The respective
agreements, representations, warranties, indemnities and other statements of the
Company or its officers and

                                      -24-
<PAGE>

of the Initial Purchasers set forth in or made pursuant to this Agreement will
remain in full force and effect, regardless of any investigation made by or on
behalf of the Initial Purchasers or the Company or any of the officers,
directors or controlling Persons referred to in Section 8 hereof, and will
survive delivery of and payment for the Securities. The provisions of Sections 7
and 8 hereof shall survive the termination or cancellation of this Agreement.

         12. NOTICES. All communications hereunder will be in writing and
effective only on receipt, and, (i) if sent to the Representatives, will be
mailed, delivered or telefaxed to Salomon Smith Barney at 388 Greenwich Street,
New York, New York 10013, telecopy: (212) 816-7912, Attention: General Counsel,
with a copy to Akerman, Senterfitt & Eidson, P.A., 450 East Las Olas Boulevard,
Suite 950, Fort Lauderdale, Florida 33301-2227, telecopy: (954) 463-2224,
Attention: Donn A. Beloff, Esq.; or (ii) if sent to the Company, will be mailed,
delivered or telefaxed to the Company at 1801 W. International Speedway
Boulevard, Daytona Beach, Florida 32114, telecopy: (904) 947-6537, Attention:
William C. France, Chairman of the Board and Chief Executive Officer, with a
copy to Greenberg Traurig, P.A., 1221 Brickell Avenue, Miami, Florida 33131,
telecopy: (305) 579-0717, Attention: Bruce E. Macdonough, Esq.

         13. SUCCESSORS. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the officers
and directors and controlling Persons referred to in Section 8 hereof, and,
except as expressly set forth in Section 5(h) hereof, no other Person will have
any right or obligation hereunder.

         14. APPLICABLE LAW. This Agreement will be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made
and to be performed within the State of New York.

         15. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall constitute an original and all of which
together shall constitute one and the same instrument.

         16. HEADINGS. The section headings used herein are for convenience only
and shall not affect the construction hereof.

         17. DEFINITIONS. The terms which follow, when used in this Agreement,
shall have the meanings indicated.

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

                  "Affiliate" shall have the meaning specified in Rule 501(b) of
         Regulation D.

                  "Business Day" shall mean any day other than a Saturday, a
         Sunday or a legal holiday or a day on which banking institutions or
         trust companies are authorized or

                                      -25-
<PAGE>

         obligated by law to close in The City of New York.

                  "Commission" shall mean the Securities and Exchange
         Commission.

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

                  "Execution Time" shall mean the date and time that this
         Agreement is executed and delivered by the parties hereto.

                  "Investment Company Act" shall mean the Investment Company Act
         of 1940, as amended, and the rules and regulations of the Commission
         promulgated thereunder.

                  "NASD" shall mean the National Association of Securities
         Dealers, Inc.

                  "Person" shall mean any individual, corporation, company
         (including any limited liability company), association, partnership,
         joint venture, trust, unincorporated organization, government or any
         agency or political subdivision thereof or any other entity.

                  "Regulation D" shall mean Regulation D under the Act.

                  "Regulation S" shall mean Regulation S under the Act.

                  "Subsidiary" or "Subsidiaries" shall have the meaning ascribed
         to the term "Restricted Subsidiary" in the Indenture, but shall only
         include any "Restricted Subsidiary" in existence as of the Execution
         Time.

                  "Trust Indenture Act" shall mean the Trust Indenture Act of
         1939, as amended, and the rules and regulations of the Commission
         promulgated thereunder.

                         [SIGNATURES ON FOLLOWING PAGE]

                                      -26-
<PAGE>

         If the foregoing is in accordance with your understanding of our
agreement, please sign and return to us the enclosed duplicate hereof, whereupon
this letter and your acceptance shall represent a binding agreement among the
Company and the several Initial Purchasers.

                                            Very truly yours,

                                            INTERNATIONAL SPEEDWAY
                                            CORPORATION

                                            By: /S/ JAMES C. FRANCE
                                               ------------------------------
                                                 Name: JAMES C. FRANCE
                                                      -----------------------
                                                 Title: PRESIDENT
                                                       ----------------------

The foregoing Agreement is hereby confirmed and
accepted as of the date first above written.

SALOMON SMITH BARNEY INC.
FIRST UNION SECURITIES, INC.

By:      SALOMON SMITH BARNEY INC.

By: /S/ RICHARD L. MORIARTY
   ---------------------------------
      Name: RICHARD L. MORIARTY
           -------------------------
      Title: MANAGING DIRECTOR
            ------------------------

                                      -27-
<PAGE>

                                   SCHEDULE I

                                                                  PRINCIPAL
                                                               AMOUNT OF NOTES
INITIAL PURCHASERS                                             TO BE PURCHASED
------------------                                             ---------------
Salomon Smith Barney Inc. .......................................$112,500,000
First Union Securities, Inc......................................$ 78,750,000
Banc One Capital Markets, Inc....................................$ 11,250,000
Raymond James & Associates, Inc..................................$ 11,250,000
SunTrust Equitable Securities Corporation........................$ 11,250,000

Total ...........................................................$225,000,000

                                      -28-
<PAGE>
                                                                     EXHIBIT A

         Non-Distribution Letter for Institutional Accredited Investors

                                                         ________________, 1999

Salomon Smith Barney
First Union Securities, Inc.
As Representatives of the
  Initial Purchasers
c/o Salomon Smith Barney Inc.
388 Greenwich Street
New York, New York  10013

International Speedway Corporation
1801 West International Speedway, Boulevard
Daytona Beach, Florida 32114

Re:      Purchase of  $________ principal amount
         of 7_% Senior Notes Due 2004 (the "Securities")
         of International Speedway Corporation (the "Company")(1)

Ladies and Gentlemen:

         In connection with our purchase of the Securities we confirm that:

         1. We understand that the Securities are not being and will not be
registered under the Securities Act of 1933, as amended (the "Act"), and are
being sold to us in a transaction that is exempt from the registration
requirements of the Act.

         2. We acknowledge that (a) neither the Company, nor the Initial
Purchasers (as defined in the Offering Memorandum dated October 1, 1999 relating
to the Securities (the "Final

--------
(1) Each U.S. purchaser, or account for which each U.S. purchaser is acting,
    should purchase at least $250,000 of Securities.

                                      A-1
<PAGE>

Memorandum")) nor any person acting on behalf of the Company or the Initial
Purchasers has made any representation to us with respect to the Company or the
offer or sale of any Securities; and (b) any information we desire concerning
the Company and the Securities or any other matter relevant to our decision to
purchase the Securities (including a copy of the Final Memorandum) is or has
been made available to us.

         3. We have such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of an investment in
the Securities, and we are (or any account for which we are purchasing under
paragraph 4 below is) an institutional "accredited investor" (within the meaning
of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Act) able to bear
the economic risk of investment in the Securities.

         4. We are acquiring the Securities for our own account (or for accounts
as to which we exercise sole investment discretion and have authority to make,
and do make, the statements contained in this letter) and not with a view to any
distribution of the Securities, subject, nevertheless, to the understanding that
the disposition of our property will at all times be and remain within our
control.

         5. We understand that (a) the Securities will be in registered form
only and that any certificates delivered to us in respect of the Securities will
bear a legend substantially to the following effect:

                  "These Securities have not been registered under the
Securities Act of 1933. Further offers or sales of these Securities are subject
to certain restrictions, as set forth in the Offering Memorandum dated October
1, 1999 relating to these Securities."

                  and (b) the Company has agreed to reissue such certificates
without the foregoing legend only in the event of a disposition of the
Securities in accordance with the provisions of paragraph 6 below (provided, in
the case of a disposition of the Securities in accordance with paragraph 6(f)
below, that the legal opinion referred to in such paragraph so permits), or at
our request at such time as we would be permitted to dispose of them in
accordance with paragraph 6(a) below.

         6. We agree that in the event that at some future time we wish to
dispose of any of the Securities, we will not do so unless such disposition is
made in accordance with any applicable securities laws of any state of the
United States and:

                  (a) the Securities are sold in compliance with Rule 144(k)
under the Act; or

                  (b) the Securities are sold in compliance with Rule 144A under
the Act; or

                  (c) the Securities are sold in compliance with Rule 904 of
Regulation S under the Act; or

                                      A-2
<PAGE>

                  (d) the Securities are sold pursuant to an effective
registration statement under the Act; or

                  (e) the Securities are sold to the Company or an affiliate (as
defined in Rule 501(b) of Regulation D) of the Company; or

                  (f) the Securities are disposed of in any other transaction
that does not require registration under the Act, and we theretofore have
furnished to the Company or its designee an opinion of counsel experienced in
securities law matters to such effect or such other documentation as the Company
or its designee may reasonably request.

                                         Very truly yours,

                                         By:____________________________________
                                                  (Authorized Officer)

                                      A-3
<PAGE>
                                                                      EXHIBIT B

                       SELLING RESTRICTIONS FOR OFFERS AND
                         SALES OUTSIDE THE UNITED STATES

         (1) (a) The Securities have not been and will not be registered under
the Act and may not be offered or sold within the United States or to, or for
the account or benefit of, U.S. persons except in accordance with Regulation S
under the Act or pursuant to an exemption from the registration requirements of
the Act. Each Initial Purchaser represents and agrees that, except as otherwise
permitted by Section 4(a)(i) or (ii) of the Agreement to which this is an
exhibit, it has offered and sold the Securities, and will offer and sell the
Securities, (i) as part of their distribution at any time; and (ii) otherwise
until 40 days after the later of the commencement of the offering and the
Closing Date, only in accordance with Rule 903 of Regulation S under the Act.
Accordingly, each Initial Purchaser represents and agrees that neither it, nor
any of its Affiliates nor any person acting on its or their behalf has engaged
or will engage in any directed selling efforts with respect to the Securities,
and that it and they have complied and will comply with the offering
restrictions requirement of Regulation S. Each Initial Purchaser agrees that, at
or prior to the confirmation of sale of Securities (other than a sale of
Securities pursuant to Section 4(a)(i) or (ii) of the Agreement to which this is
an exhibit), it shall have sent to each distributor, dealer or person receiving
a selling concession, fee or other remuneration that purchases Securities from
it during the distribution compliance period a confirmation or notice to
substantially the following effect:

                  "The Securities covered hereby have not been registered under
                  the U.S. Securities Act of 1933 (the "Act") and may not be
                  offered or sold within the United States or to, or for the
                  account or benefit of, U.S. persons (i) as part of their
                  distribution at any time or (ii) otherwise until 40 days after
                  the later of the commencement of the offering and October 6,
                  1999, except in either case in accordance with Regulation S or
                  Rule 144A under the Act. Terms used above have the meanings
                  given to them by Regulation S."

                  (b) Each Initial Purchaser also represents and agrees that it
has not entered and will not enter into any contractual arrangement with any
distributor with respect to the distribution of the Securities, except with its
Affiliates or with the prior written consent of the Company.

                  (c) Terms used in this section have the meanings given to them
by Regulation S.

         (2) Each Initial Purchaser represents and agrees that (i) it has not
offered or sold, and will not offer or sell, in the United Kingdom, by means of
any document, any Securities other than to persons whose ordinary business it is
to buy or sell shares or debentures, whether

                                      B-1
<PAGE>

as principal or as agent (except in circumstances which do not constitute an
offer to the public within the meaning of the Companies Act 1989 of Great
Britain); (ii) it has complied and will comply with all applicable provisions of
the Financial Services Act 1986 of the United Kingdom with respect to anything
done by it in relation to the Securities in, from or otherwise involving the
United Kingdom; and (iii) it has only issued or passed on and will only issue or
pass on in the United Kingdom any document received by it in connection with the
issue of the Securities to a person who is of a kind described in Article 9(3)
of the Financial Services Act 1986 (Investment Advertisements) (Exemptions)
Order 1996 or is a person to whom the document may otherwise lawfully be issued
or passed on.

                                      B-2

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