Document:

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                                                                    Exhibit 4.14

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                    PREFERRED SECURITIES GUARANTEE AGREEMENT

                               HALLIBURTON COMPANY

                                       AND

                              JPMORGAN CHASE BANK,

                    AS PREFERRED SECURITIES GUARANTEE TRUSTEE

                          ___% PREFERRED SECURITIES OF

                           HALLIBURTON CAPITAL TRUST I

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                             Dated as of ______, ___

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                                TABLE OF CONTENTS

                                    ARTICLE I

                         DEFINITIONS AND INTERPRETATION

SECTION 1.1 Definitions and Interpretation.1

                                   ARTICLE II

                               TRUST INDENTURE ACT

SECTION 2.1 Trust Indenture Act; Application ...............................   5
SECTION 2.2 Lists of Holders of Securities .................................   5
SECTION 2.3 Reports by the Preferred Securities Guarantee Trustee ..........   6
SECTION 2.4 Periodic Reports to Preferred Securities Guarantee Trustee .....   6
SECTION 2.5 Evidence of Compliance with Conditions Precedent ...............   6
SECTION 2.6 Events of Default; Waiver ......................................   6
SECTION 2.7 Event of Default; Notice .......................................   6
SECTION 2.8 Conflicting Interests ..........................................   7

                                   ARTICLE III

                            POWERS, DUTIES AND RIGHTS

                    OF PREFERRED SECURITIES GUARANTEE TRUSTEE

SECTION 3.1 Powers and Duties of the Preferred Securities Guarantee
            Trustee ........................................................   7
SECTION 3.2 Certain Rights of Preferred Securities Guarantee Trustee .......   8
SECTION 3.3 Not Responsible for Recitals or Issuance of Preferred
            Securities Guarantee ...........................................  10

                                   ARTICLE IV

                     PREFERRED SECURITIES GUARANTEE TRUSTEE

SECTION 4.1 Preferred Securities Guarantee Trustee; Eligibility ............  11
SECTION 4.2 Appointment, Removal and Resignation of Preferred Securities
            Guarantee Trustee ..............................................  11
SECTION 4.3 Compensation and Expenses of Trustee ...........................  12

                                    ARTICLE V

                                    GUARANTEE

SECTION 5.1 Guarantee ......................................................  12
SECTION 5.2 Waiver of Notice and Demand ....................................  13
SECTION 5.3 Obligations Not Affected .......................................  13
SECTION 5.4 Rights of Holders ..............................................  14
SECTION 5.5 Guarantee of Payment ...........................................  14
SECTION 5.6 Subrogation ....................................................  14
SECTION 5.7 Independent Obligations ........................................  15

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                                   ARTICLE VI

                   LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 6.1 Limitation of Transactions .....................................  15
SECTION 6.2 Ranking ........................................................  15

                                   ARTICLE VII

                                   TERMINATION

SECTION 7.1 Termination ....................................................  16

                                  ARTICLE VIII

                                 INDEMNIFICATION

SECTION 8.1 Exculpation ....................................................  16
SECTION 8.2 Indemnification ................................................  16

                                   ARTICLE IX

                                  MISCELLANEOUS

SECTION 9.1 Successors and Assigns .........................................  17
SECTION 9.2 Amendments .....................................................  17
SECTION 9.3 Notices ........................................................  17
SECTION 9.4 Benefit ........................................................  18
SECTION 9.5 GOVERNING LAW ..................................................  18

                                      -ii-

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                    PREFERRED SECURITIES GUARANTEE AGREEMENT

     THIS GUARANTEE AGREEMENT (this "Preferred Securities Guarantee"), dated as
of ______, ___, is executed and delivered by Halliburton Company, a Delaware
corporation (the "Guarantor"), and JPMorgan Chase Bank, a New York banking
corporation, as trustee (the "Preferred Securities Guarantee Trustee"), for the
benefit of the Holders (as defined herein) from time to time of the Preferred
Securities (as defined herein) of Halliburton Capital Trust I, a Delaware
statutory business trust (the "Issuer").

     WHEREAS, pursuant to the Declaration (as defined herein) the Issuer is
issuing on the date hereof $______ in aggregate liquidation amount of its ____%
Preferred Securities (collectively the "Preferred Securities") having a
liquidation amount $____ per Preferred Security.

     WHEREAS, as incentive for the Holders to purchase the Preferred Securities,
the Guarantor desires irrevocably and unconditionally to agree, to the extent
set forth in this Preferred Securities Guarantee, to pay to the Holders the
Guarantee Payments (as defined below) and to make certain other payments on the
terms and conditions set forth herein.

     WHEREAS, the Guarantor is executing and delivering a guarantee agreement
(the "Common Securities Guarantee"), with substantially identical terms to this
Preferred Securities Guarantee, for the benefit of the holders of the Common
Securities (as defined herein), except that, if an Event of Default (as defined
in the Declaration) has occurred and is continuing, the rights of holders of the
Common Securities to receive Guarantee Payments under the Common Securities
Guarantee are subordinated, to the extent and in the manner set forth in the
Common Securities Guarantee, to the rights of holders of Preferred Securities to
receive Guarantee Payments under this Preferred Securities Guarantee.

     NOW, THEREFORE, in consideration of the purchase by each Holder, which
purchase the Guarantor hereby acknowledges shall benefit the Guarantor, the
Guarantor executes and delivers this Preferred Securities Guarantee for the
benefit of the Holders.

                                   ARTICLE I
                         DEFINITIONS AND INTERPRETATION

SECTION 1.1 Definitions and Interpretation.

     In this Preferred Securities Guarantee, unless the context otherwise
requires:

     (a) capitalized terms defined in the Declaration as at the date of
execution of this Preferred Securities Guarantee have the same meaning when used
in this Preferred Securities Guarantee unless otherwise defined in this
Preferred Securities Guarantee;

     (b) other capitalized terms used in this Preferred Securities Guarantee but
not defined in the preamble above have the respective meanings assigned to them
in this Section 1.1;

     (c) a term defined anywhere in this Preferred Securities Guarantee has the
same meaning throughout;

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     (d) all references to "the Preferred Securities Guarantee" or "this
Preferred Securities Guarantee" are to this Preferred Securities Guarantee as
modified, supplemented or amended from time to time;

     (e) all references in this Preferred Securities Guarantee to "Articles" and
"Sections" are to Articles and Sections of this Preferred Securities Guarantee,
unless otherwise specified;

     (f) a term defined in the Trust Indenture Act has the same meaning when
used in this Preferred Securities Guarantee, unless otherwise defined in this
Preferred Securities Guarantee or unless the context otherwise requires; and

     (g) a reference to the singular includes the plural and vice versa.

     "Affiliate" has the same meaning as given to that term in Rule 405 under
the Securities Act of 1933, as amended, or any successor rule thereunder.

     "Business Day" means any day other than a Saturday or a Sunday, or a day on
which banking institutions in New York, New York or Houston, Texas are
authorized or required by law or executive order to close.

     "Common Securities" means the securities representing common undivided
beneficial interests in the assets of the Issuer.

     "Corporate Trust Office" means the office of the Preferred Securities
Guarantee Trustee at which the corporate trust business of the Preferred
Securities Guarantee Trustee shall, at any particular time, be principally
administered, which office at the date of execution of this Agreement is located
at 600 Travis Street, 11th Floor, Houston, Texas 77002.

     "Covered Person" means any Holder or beneficial owner of Preferred
Securities.

     "Debentures" means the series of [junior] subordinated debt securities of
the Guarantor designated the[ ____% Debentures due _____, ___,] held by the
Property Trustee (as defined in the Declaration) of the Issuer.

     "Declaration" means the Amended and Restated Declaration of Trust, dated as
of ______, ___, as amended, modified or supplemented from time to time, among
the trustees named therein, and the Guarantor, as sponsor, made for the benefit
of the holders from time to time of undivided beneficial ownership interests in
the assets of the Issuer.

     "Event of Default" means [(a)] a default by the Guarantor on any of its
payment or other obligations under this Preferred Securities Guarantee [or (b)
if applicable, the failure by the Guarantor to deliver [other securities of
Guarantor] upon an appropriate election by the Holders of Preferred Securities
to exchange the Preferred Securities for [such securities]]; provided, however,
that with respect to a default other than a default in payment of any Guarantee
Payment, the Guarantor shall have received notice of such default and shall not
have cured such default within 60 days after receipt of such notice.

                                       -2-

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     "Guarantee Payments" means the following payments or distributions, without
duplication, with respect to the Preferred Securities, to the extent not paid or
made by the Issuer: (i) any accumulated and unpaid Distributions (as defined in
the Declaration) that are required to be paid on such Preferred Securities to
the extent the Issuer has funds on hand legally available therefor at such time,
(ii) the redemption price, including all accumulated and unpaid Distributions to
the date of redemption (the "Redemption Price") to the extent the Issuer has
funds on hand legally available therefor at such time, with respect to any
Preferred Securities called for redemption by the Issuer, and (iii) upon a
voluntary or involuntary dissolution, winding up or liquidation of the Issuer
(other than in connection with the distribution of Debentures to the Holders in
exchange for Preferred Securities [or an exchange of all the Trust Securities
for other securities of the Guarantor] as provided in the Declaration), the
lesser of (a) the aggregate of the liquidation amount and all accumulated and
unpaid Distributions on the Preferred Securities to the date of payment, to the
extent the Issuer has funds on hand legally available therefor, and (b) the
amount of assets of the Issuer remaining available for distribution to Holders
in liquidation of the Issuer after satisfaction of liabilities to creditors of
the Issuer as required by applicable law. If an Event of Default has occurred
and is continuing, no Guarantee Payments under the Common Securities Guarantee
with respect to the Common Securities or any guarantee payment under any Other
Guarantees shall be made until the Holders shall be paid in full the Guarantee
Payments to which they are entitled under this Preferred Securities Guarantee.

     "Holder" shall mean any holder, as registered on the books and records of
the Issuer, of any Preferred Securities; provided, however, that, in determining
whether the holders of the requisite percentage of Preferred Securities have
given any request, notice, consent or waiver hereunder, "Holder" shall not
include the Guarantor or any Person known to a Responsible Officer of the
Preferred Securities Guarantee Trustee to be an Affiliate of the Guarantor and
provided further, that in determining whether the Holders of the requisite
liquidation amount of Preferred Securities have voted on any matter provided for
in the Guarantee, then for the purpose of such determination only (and not for
any other purposes hereunder), if the Preferred Securities remain in the form of
one or more Global Preferred Security (as defined in the Declaration), the term
"Holders" shall mean the holder of the Global Preferred Security acting at the
direction of the Preferred Security Beneficial Owners (as defined in the
Declaration).

     "Indemnified Person" means the Preferred Securities Guarantee Trustee, any
Affiliate of the Preferred Securities Guarantee Trustee, or any officers,
directors, shareholders, members, partners, employees, representatives,
nominees, custodians or agents of the Preferred Securities Guarantee Trustee.

     "Indenture" means the [Subordinated Indenture dated as of January 2, 1991
between the Guarantor (the "Debenture Issuer") and Texas Commerce Bank National
Association (now JPMorgan Chase Bank)] [the Junior Subordinated Indenture dated
as of November 29, 2001 between the Guarantor (the "Debenture Issuer") and
JPMorgan Chase Bank], as trustee (the "Indenture Trustee"), and any indenture
supplemental thereto, pursuant to which the Debentures are to be issued to the
Property Trustee (as defined in the Declaration) of the Issuer.

     "Indenture Event of Default" shall mean any event specified in Section 5.1
of the Indenture.

                                       -3-

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     "Majority in liquidation amount of the Preferred Securities" means, except
as provided by the Declaration or by the Trust Indenture Act, a vote by
Holder(s) of more than 50% of the aggregate liquidation amount of all
outstanding Preferred Securities voting together as a class. In determining
whether the Holders of the requisite amount of the Preferred Securities have
voted, Preferred Securities that are owned by the Guarantor or any Affiliate of
the Guarantor shall be disregarded for the purpose of any such determination
period.

     "Officers' Certificate" means, with respect to the Guarantor, a certificate
signed by any of the Chairman of the Board, a Vice Chairman of the Board, the
Chief Executive Officer, the President or a Vice President and by the Treasurer,
an Assistant Treasurer, the Secretary or an Assistant Secretary of the
Guarantor. Any Officers' Certificate delivered with respect to compliance with a
condition or covenant provided for in this Preferred Securities Guarantee (other
than pursuant to Section 314(d)(4) of the Trust Indenture Act) shall include:

     (a) a statement that each officer signing the Officers' Certificate has
read the covenant or condition and the definitions relating thereto;

     (b) a brief statement of the nature and scope of the examination or
investigation undertaken by each officer on behalf of such Person in rendering
the Officers' Certificates;

     (c) a statement that each such officer has made such examination or
investigation as, in such officer's opinion, is necessary to enable such officer
to express an informed opinion as to whether or not such covenant or condition
has been complied with; and

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

     "Other Debentures" means all [junior] subordinated debentures issued by the
Guarantor from time to time and sold to trusts to be established by the
Guarantor (if any), in each case similar to the Issuer.

     "Other Guarantees" means all guarantees to be issued by the Guarantor with
respect to capital securities (if any) similar to the Preferred Securities
issued by other trusts to be established by the Guarantor (if any), in each case
similar to the Issuer.

     "Person" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association, or government or any
agency or political subdivision thereof, or any other entity of whatever nature.

     "Preferred Securities Guarantee Trustee" means JPMorgan Chase Bank, a New
York banking corporation, until a Successor Preferred Securities Guarantee
Trustee has been appointed and has accepted such appointment pursuant to the
terms of this Preferred Securities Guarantee and thereafter means each such
Successor Preferred Securities Guarantee Trustee.

                                       -4-

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     "Responsible Officer" means, with respect to the Preferred Securities
Guarantee Trustee, any officer within the Corporate Trust Office of the
Preferred Securities Guarantee Trustee with direct responsibility for the
administration of this Preferred Securities Guarantee and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of that officer's knowledge of and familiarity with
the particular subject.

     "Successor Preferred Securities Guarantee Trustee" means a successor
Preferred Securities Guarantee Trustee possessing the qualifications to act as
Preferred Securities Guarantee Trustee under Section 4.1.

     "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended
from time to time, or any successor legislation.

     "Trust Securities" means the Common Securities and the Preferred
Securities, collectively.

                                   ARTICLE II

                               TRUST INDENTURE ACT

SECTION 2.1 Trust Indenture Act; Application.

     (a) This Preferred Securities Guarantee is subject to the provisions of the
Trust Indenture Act that are required to be part of this Preferred Securities
Guarantee and shall, to the extent applicable, be governed by such provisions.

     (b) If and to the extent that any provision of this Preferred Securities
Guarantee limits, qualifies or conflicts with the duties imposed by Section 310
to 317, inclusive, of the Trust Indenture Act, such imposed duties shall
control.

SECTION 2.2 Lists of Holders of Securities.

     (a) The Guarantor shall provide the Preferred Securities Guarantee Trustee
(unless the Preferred Securities Guarantee Trustee is otherwise the registrar of
the Preferred Securities) with a list, in such form as the Preferred Securities
Guarantee Trustee may reasonably require, of the names and addresses of the
Holders ("List of Holders") as of such date, (i) within 14 days after each
record date for payment of Distributions (as defined in the Declaration), and
(ii) at any other time within 30 days of receipt by the Guarantor of a written
request for a List of Holders as of a date no more than 14 days before such List
of Holders is given to the Preferred Securities Guarantee Trustee, provided,
that the Guarantor shall not be obligated to provide such List of Holders at any
time that the Guarantor certifies in writing to the Preferred Securities
Guarantee Trustee that the List of Holders does not differ from the most recent
List of Holders given to the Preferred Securities Guarantee Trustee by the
Guarantor. The Preferred Securities Guarantee Trustee may destroy any List of
Holders previously given to it on receipt of a new List of Holders.

     (b) The Preferred Securities Guarantee Trustee shall comply with its
obligations under Sections 311(a), 311(b) and Section 312(b) of the Trust
Indenture Act.

                                       -5-

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SECTION 2.3 Reports by the Preferred Securities Guarantee Trustee.

     Within 60 days after _______ of each year, commencing ___ __, ____, the
Preferred Securities Guarantee Trustee shall provide to the Holders such reports
as are required by Section 313 of the Trust Indenture Act, if any, in the form
and in the manner provided by Section 313 of the Trust Indenture Act. The
Preferred Securities Guarantee Trustee shall also comply with the other
requirements of Section 313 of the Trust Indenture Act.

SECTION 2.4 Periodic Reports to Preferred Securities Guarantee Trustee.

     The Guarantor shall provide to the Preferred Securities Guarantee Trustee
such documents, reports and information as required by Section 314 (if any) and
the compliance certificate required by Section 314 of the Trust Indenture Act in
the form, in the manner and at the times required by Section 314 of the Trust
Indenture Act. Delivery of such reports, information and documents to the
Preferred Securities Guarantee Trustee is for informational purposes only and
the Preferred Securities Guarantee Trustee's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Guarantor's
compliance with any of its covenants hereunder (as to which the Preferred
Securities Guarantee Trustee is entitled to rely exclusively on Officers'
Certificates).

SECTION 2.5 Evidence of Compliance with Conditions Precedent.

     The Guarantor shall provide to the Preferred Securities Guarantee Trustee
such evidence of compliance with any conditions precedent, if any, provided for
in this Preferred Securities Guarantee that relate to any of the matters set
forth in Section 314(c) of the Trust Indenture Act. Any certificate or opinion
required to be given by an officer pursuant to Section 314(c)(1) may be given in
the form of an Officers' Certificate.

SECTION 2.6 Event of Default; Waiver.

     The Holders of a Majority in liquidation amount of Preferred Securities
may, by vote, on behalf of all Holders, waive any past Event of Default and its
consequences. Upon such waiver, any such Event of Default shall cease to exist,
and any Event of Default arising therefrom shall be deemed to have been cured,
for every purpose of this Preferred Securities Guarantee, but no such waiver
shall extend to any subsequent or other default or Event of Default or impair
any right consequent thereon.

SECTION 2.7 Event of Default; Notice.

     (a) The Preferred Securities Guarantee Trustee shall, within 90 days after
the occurrence of an Event of Default with respect to this Preferred Securities
Guarantee actually known to a Responsible Officer, mail by first class postage
prepaid, to all Holders, notices of all such Events of Default, unless such
defaults have been cured before the giving of such notice, provided, that,
except in the case of default in the payment of any Guarantee Payment, the
Preferred Securities Guarantee Trustee shall be protected in withholding such
notice if and so long as the board of directors, the executive committee, or a
trust committee of directors and/or a

                                       -6-

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Responsible Officer in good faith determines that the withholding of such notice
is in the interests of the Holders.

     (b) The Preferred Securities Guarantee Trustee shall not be deemed to have
knowledge of any Event of Default unless the Preferred Securities Guarantee
Trustee shall have received written notice from the Guarantor, or a Responsible
Officer charged with the administration of this Preferred Securities Guarantee
shall have obtained actual knowledge, of such Event of Default.

SECTION 2.8 Conflicting Interests.

     The Declaration shall be deemed to be specifically described in this
Preferred Securities Guarantee for the purposes of clause (i) of the first
proviso contained in Section 310(b) of the Trust Indenture Act.

                                  ARTICLE III

                            POWERS, DUTIES AND RIGHTS

                    OF PREFERRED SECURITIES GUARANTEE TRUSTEE

SECTION 3.1 Powers and Duties of the Preferred Securities Guarantee Trustee.

     (a) This Preferred Securities Guarantee shall be held by the Preferred
Securities Guarantee Trustee for the benefit of the Holders, and the Preferred
Securities Guarantee Trustee shall not transfer this Preferred Securities
Guarantee to any Person except a Holder exercising his or her rights pursuant to
Section 5.4(b) or to a Successor Preferred Securities Guarantee Trustee on
acceptance by such Successor Preferred Securities Guarantee Trustee of its
appointment to act as Successor Preferred Securities Guarantee Trustee. The
right, title and interest of the Preferred Securities Guarantee Trustee shall
automatically vest in any Successor Preferred Securities Guarantee Trustee, and
such vesting and succession of title shall be effective whether or not
conveyancing documents have been executed and delivered pursuant to the
appointment of such Successor Preferred Securities Guarantee Trustee.

     (b) If an Event of Default actually known to a Responsible Officer has
occurred and is continuing, the Preferred Securities Guarantee Trustee shall
enforce this Preferred Securities Guarantee for the benefit of the Holders.

     (c) The Preferred Securities Guarantee Trustee, before the occurrence of
any Event of Default and after the curing of all Events of Default that may have
occurred, shall undertake to perform only such duties as are specifically set
forth in this Preferred Securities Guarantee, and no implied covenants shall be
read into this Preferred Securities Guarantee against the Preferred Securities
Guarantee Trustee. In case an Event of Default has occurred (that has not been
cured or waived pursuant to Section 2.6) and is actually known to a Responsible
Officer, the Preferred Securities Guarantee Trustee shall exercise such of the
rights and powers vested in it by this Preferred Securities Guarantee, and use
the same degree of care and skill in its exercise thereof, as a prudent person
would exercise or use under the circumstances in the conduct of his or her own
affairs.

                                       -7-

<PAGE>

     (d) No provision of this Preferred Securities Guarantee shall be construed
to relieve the Preferred Securities Guarantee Trustee from liability for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

          (i) prior to the occurrence of any Event of Default and after the
curing or waiving of all such Events of Default that may have occurred:

               (A) the duties and obligations of the Preferred Securities
Guarantee Trustee shall be determined solely by the express provisions of this
Preferred Securities Guarantee, and the Preferred Securities Guarantee Trustee
shall not be liable except for the performance of such duties and obligations as
are specifically set forth in this Preferred Securities Guarantee, and no
implied covenants or obligations shall be read into this Preferred Securities
Guarantee against the Preferred Securities Guarantee Trustee; and

               (B) in the absence of bad faith on the part of the Preferred
Securities Guarantee Trustee, the Preferred Securities Guarantee Trustee may
conclusively rely, as to the truth of the statements and the correctness of the
opinions expressed therein, upon any certificates or opinions furnished to the
Preferred Securities Guarantee Trustee and conforming to the requirements of
this Preferred Securities Guarantee; but in the case of any such certificates or
opinions that by any provision hereof are specifically required to be furnished
to the Preferred Securities Guarantee Trustee, the Preferred Securities
Guarantee Trustee shall be under a duty to examine the same to determine whether
or not they conform to the requirements of this Preferred Securities Guarantee;

          (ii) the Preferred Securities Guarantee Trustee shall not be liable
for any error of judgment made in good faith by a Responsible Officer, unless it
shall be proved that the Preferred Securities Guarantee Trustee was negligent in
ascertaining the pertinent facts upon which such judgment was made;

          (iii) the Preferred Securities Guarantee Trustee shall not be liable
with respect to any action taken or omitted to be taken by it in good faith in
accordance with the direction of the Holders of a Majority in liquidation amount
of the Preferred Securities relating to the time, method and place of conducting
any proceeding for any remedy available to the Preferred Securities Guarantee
Trustee, or exercising any trust or power conferred upon the Preferred
Securities Guarantee Trustee under this Preferred Securities Guarantee; and

          (iv) no provision of this Preferred Securities Guarantee shall require
the Preferred Securities Guarantee Trustee to expend or risk its own funds or
otherwise incur personal financial liability in the performance of any of its
duties or in the exercise of any of its rights or powers, if the Preferred
Securities Guarantee Trustee shall have reasonable grounds for believing that
the repayment of such funds or liability is not reasonably assured to it under
the terms of this Preferred Securities Guarantee or indemnity, reasonably
satisfactory to the Preferred Securities Guarantee Trustee, against such risk or
liability is not reasonably assured to it.

SECTION 3.2 Certain Rights of Preferred Securities Guarantee Trustee.

     (a) Subject to the provisions of Section 3.1:

                                       -8-

<PAGE>

          (i) The Preferred Securities Guarantee Trustee may conclusively rely,
and shall be fully protected in acting or refraining from acting, upon any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document believed by it to be genuine and to have
been signed, sent or presented by the proper party or parties.

          (ii) Any direction or act of the Guarantor contemplated by this
Preferred Securities Guarantee may be sufficiently evidenced by an Officers'
Certificate.

          (iii) Whenever, in the administration of this Preferred Securities
Guarantee, the Preferred Securities Guarantee Trustee shall deem it desirable
that a matter be proved or established before taking, suffering or omitting any
action hereunder, the Preferred Securities Guarantee Trustee (unless other
evidence is herein specifically prescribed) may, in the absence of bad faith on
its part, request and conclusively rely upon an Officers' Certificate which,
upon receipt of such request, shall be promptly delivered by the Guarantor.

          (iv) The Preferred Securities Guarantee Trustee shall have no duty to
see to any recording, filing or registration of any instrument (or any
rerecording, refiling or registration thereof).

          (v) The Preferred Securities Guarantee Trustee may consult with
counsel of its selection, and the advice or opinion of such counsel with respect
to legal matters shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith
and in accordance with such advice or opinion. Such counsel may be counsel to
the Guarantor or any of its Affiliates and may include any of its employees. The
Preferred Securities Guarantee Trustee shall have the right at any time to seek
instructions concerning the administration of this Preferred Securities
Guarantee from any court of competent jurisdiction.

          (vi) The Preferred Securities Guarantee Trustee shall be under no
obligation to exercise any of the rights or powers vested in it by this
Preferred Securities Guarantee at the request or direction of any Holder, unless
such Holder shall have provided to the Preferred Securities Guarantee Trustee
such security and indemnity, reasonably satisfactory to the Preferred Securities
Guarantee Trustee, against the costs, expenses (including attorneys' fees and
expenses and the expenses of the Preferred Securities Guarantee Trustee's
agents, nominees or custodians) and liabilities that might be incurred by it in
complying with such request or direction, including such reasonable advances as
may be requested by the Preferred Securities Guarantee Trustee; provided that,
nothing contained in this Section 3.2(a)(vi) shall be taken to relieve the
Preferred Securities Guarantee Trustee, upon the occurrence of an Event of
Default known to the Preferred Securities Guarantee Trustee, of its obligation
to exercise the rights and powers vested in it by this Preferred Securities
Guarantee.

          (vii) The Preferred Securities Guarantee Trustee shall not be bound to
make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document, but the Preferred Securities Guarantee

                                       -9-

<PAGE>

Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit.

          (viii) The Preferred Securities Guarantee Trustee may execute any of
the trusts or powers hereunder or perform any duties hereunder either directly
or by or through agents, nominees, custodians or attorneys, and the Preferred
Securities Guarantee Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it
hereunder.

          (ix) Any action taken by the Preferred Securities Guarantee Trustee or
its agents hereunder shall bind the Holders, and the signature of the Preferred
Securities Guarantee Trustee or its agents alone shall be sufficient and
effective to perform any such action. No third party shall be required to
inquire as to the authority of the Preferred Securities Guarantee Trustee so to
act or as to its compliance with any of the terms and provisions of this
Preferred Securities Guarantee, both of which shall be conclusively evidenced by
the Preferred Securities Guarantee Trustee's or its agent's taking such action.

          (x) Whenever in the administration of this Preferred Securities
Guarantee the Preferred Securities Guarantee Trustee shall deem it desirable to
receive instructions with respect to enforcing any remedy or right or taking any
other action hereunder, the Preferred Securities Guarantee Trustee (i) may
request instructions from the Holders of a Majority in liquidation amount of the
Preferred Securities, (ii) may refrain from enforcing such remedy or right or
taking such other action until such instructions are received, and (iii) shall
be protected in conclusively relying on or acting in accordance with such
instructions.

          (xi) The Preferred Securities Guarantee Trustee shall not be liable
for any action taken, suffered, or omitted to be taken by it in good faith,
without negligence, and reasonably believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Preferred Securities
Guarantee.

     (b) No provision of this Preferred Securities Guarantee shall be deemed to
impose any duty or obligation on the Preferred Securities Guarantee Trustee to
perform any act or acts or exercise any right, power, duty or obligation
conferred or imposed on it in any jurisdiction in which it shall be illegal, or
in which the Preferred Securities Guarantee Trustee shall be unqualified or
incompetent in accordance with applicable law, to perform any such act or acts
or to exercise any such right, power, duty or obligation. No permissive power or
authority available to the Preferred Securities Guarantee Trustee shall be
construed to be a duty.

SECTION 3.3 Not Responsible for Recitals or Issuance of Preferred Securities
            Guarantee.

     The recitals contained in this Preferred Securities Guarantee shall be
taken as the statements of the Guarantor, and the Preferred Securities Guarantee
Trustee does not assume any responsibility for their correctness. The Preferred
Securities Guarantee Trustee makes no representation as to the validity or
sufficiency of this Preferred Securities Guarantee.

                                       -10-

<PAGE>

                                   ARTICLE IV
                     PREFERRED SECURITIES GUARANTEE TRUSTEE

SECTION 4.1 Preferred Securities Guarantee Trustee; Eligibility.

     (a) There shall at all times be a Preferred Securities Guarantee Trustee
which shall:

          (i) not be an Affiliate of the Guarantor; and

          (ii) be a corporation organized and doing business under the laws of
the United States of America or any State or Territory thereof or of the
District of Columbia, or a corporation or Person permitted by the Securities and
Exchange Commission to act as an institutional trustee under the Trust Indenture
Act, authorized under such laws to exercise corporate trust powers, having a
combined capital and surplus of at least 50 million U.S. dollars ($50,000,000),
and subject to supervision or examination by Federal, State, Territorial or
District of Columbia authority. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of the
supervising or examining authority referred to above, then, for the purposes of
this Section 4.1(a)(ii), the combined capital and surplus of such corporation
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published.

     (b) If at any time the Preferred Securities Guarantee Trustee shall cease
to be eligible so to act under Section 4.1(a), the Preferred Securities
Guarantee Trustee shall immediately resign in the manner and with the effect set
out in Section 4.2(c).

     (c) If the Preferred Securities Guarantee Trustee has or shall acquire any
"conflicting interest" within the meaning of Section 310(b) of the Trust
Indenture Act, the Preferred Securities Guarantee Trustee and Guarantor shall in
all respects comply with the provisions of Section 310(b) of the Trust Indenture
Act.

SECTION 4.2 Appointment, Removal and Resignation of Preferred Securities
            Guarantee Trustee.

     (a) Subject to Section 4.2(b), the Preferred Securities Guarantee Trustee
may be appointed or removed without cause at any time by the Guarantor except
during an Event of Default.

     (b) The Preferred Securities Guarantee Trustee shall not be removed in
accordance with Section 4.2(a) until a Successor Preferred Securities Guarantee
Trustee has been appointed and has accepted such appointment by written
instrument executed by such Successor Preferred Securities Guarantee Trustee and
delivered to the Guarantor.

     (c) The Preferred Securities Guarantee Trustee shall hold office until a
Successor Preferred Securities Guarantee Trustee shall have been appointed or
until its removal or resignation. The Preferred Securities Guarantee Trustee may
resign from office (without need for prior or subsequent accounting) by an
instrument in writing executed by the Preferred Securities Guarantee Trustee and
delivered to the Guarantor, which resignation shall not take effect until a
Successor Preferred Securities Guarantee Trustee has been appointed and has
accepted such

                                       -11-

<PAGE>

appointment by instrument in writing executed by such Successor Preferred
Securities Guarantee Trustee and delivered to the Guarantor and the resigning
Preferred Securities Guarantee Trustee.

     (d) If no Successor Preferred Securities Guarantee Trustee shall have been
appointed and accepted appointment as provided in this Section 4.2 within 60
days after delivery of an instrument of removal or resignation, the Preferred
Securities Guarantee Trustee resigning or being removed may petition any court
of competent jurisdiction for appointment of a Successor Preferred Securities
Guarantee Trustee. Such court may thereupon, after prescribing such notice, if
any, as it may deem proper, appoint a Successor Preferred Securities Guarantee
Trustee.

     (e) No Preferred Securities Guarantee Trustee shall be liable for the acts
or omissions to act of any Successor Preferred Securities Guarantee Trustee.

     (f) Upon termination of this Preferred Securities Guarantee or removal or
resignation of the Preferred Securities Guarantee Trustee pursuant to this
Section 4.2, the Guarantor shall pay to the Preferred Securities Guarantee
Trustee all amounts due to the Preferred Securities Guarantee Trustee accrued to
the date of such termination, removal or resignation.

SECTION 4.3 Compensation and Expenses of Trustee.

     The Guarantor covenants and agrees to pay to the Preferred Securities
Guarantee Trustee from time to time, and the Preferred Securities Guarantee
Trustee shall be entitled to, such compensation as shall be agreed to in writing
between the Guarantor and the Preferred Securities Guarantee Trustee (which
shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust), and the Guarantor will pay or reimburse the
Preferred Securities Guarantee Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Preferred
Securities Guarantee Trustee in accordance with any of the provisions of this
Preferred Securities Guarantee (including the reasonable compensation and the
expenses and disbursements of its counsel and of all persons not regularly in
its employ) except any such expense, disbursement or advance as may arise from
its negligence or bad faith. The Guarantor also covenants to indemnify each of
the Preferred Securities Guarantee Trustee or any predecessor Preferred
Securities Guarantee Trustee (and its officers, agents, directors and employees)
for, and to hold it harmless against, any and all loss, damage, claim, liability
or expense including taxes (other than taxes based on the income of the
Preferred Securities Guarantee Trustee) incurred without negligence or bad faith
on the part of the Preferred Securities Guarantee Trustee and arising out of or
in connection with the acceptance or administration of this Preferred Securities
Guarantee, including the costs and expenses (including reasonable legal fees and
expenses) of defending itself against, or investigating, any claim of liability
in the premises. This provision of this Section 4.3 shall survive the
resignation or removal of the Preferred Securities Guarantee Trustee and the
termination of this Guarantee.

                                    ARTICLE V
                                    GUARANTEE

SECTION 5.1 Guarantee.

     The Guarantor irrevocably and unconditionally agrees to pay in full to the
Holders the Guarantee Payments (without duplication of amounts theretofore paid
by the Issuer), as and when due, regardless of any defense, right of set off or
counterclaim that the Issuer may have or assert. The Guarantor's obligation to
make a Guarantee Payment may be satisfied by direct

                                       -12-

<PAGE>

payment of the required amounts by the Guarantor to the Holders or by causing
the Issuer to pay such amounts to the Holders.

SECTION 5.2 Waiver of Notice and Demand.

     The Guarantor hereby waives notice of acceptance of this Preferred
Securities Guarantee and of any liability to which it applies or may apply,
presentment, demand for payment, any right to require a proceeding first against
the Issuer or any other Person before proceeding against the Guarantor, protest,
notice of nonpayment, notice of dishonor, notice of redemption and all other
notices and demands. Notwithstanding anything to the contrary herein, the
Guarantor retains all of its rights under the Indenture to extend the interest
payment period on the [Junior] Subordinated Debentures and the Guarantor shall
not be obligated hereunder to make any Guarantee Payment during any extended
Interest Payment Period (as defined in the Indenture) with respect to the
Distributions (as defined in the Declaration) on the Preferred Securities.

SECTION 5.3 Obligations Not Affected.

     The obligations, covenants, agreements and duties of the Guarantor under
this Preferred Securities Guarantee shall be absolute and unconditional and
shall remain in full force and effect until the entire liquidation amount of all
outstanding Preferred Securities shall have been paid and such obligation shall
in no way be affected or impaired by reason of the happening from time to time
of any of the following:

     (a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Issuer of any express or implied agreement,
covenant, term or condition relating to the Preferred Securities to be performed
or observed by the Issuer;

     (b) the extension of time for the payment by the Issuer of all or any
portion of the Distributions, Redemption Price, Liquidation Distribution or any
other sums payable under the terms of the Preferred Securities or the extension
of time for the performance of any other obligation under, arising out of, or in
connection with, the Preferred Securities (other than an extension of time for
payment of Distributions, Redemption Price, Liquidation Distribution or other
sum payable that results from the extension of any interest payment period on
the Debentures permitted by the Indenture);

     (c) any failure, omission, delay or lack of diligence on the part of the
Property Trustee or the Holders to enforce, assert or exercise any right,
privilege, power or remedy conferred on the Property Trustee or the Holders
pursuant to the terms of the Preferred Securities, or any action on the part of
the Issuer granting indulgence or extension of any kind;

     (d) the voluntary or involuntary liquidation, dissolution, sale of any
collateral, receivership, insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, arrangement, composition or readjustment of debt of,
or other similar proceedings affecting, the Issuer or any of the assets of the
Issuer;

     (e) any invalidity of, or defect or deficiency in, the Preferred
Securities;

                                       -13-

<PAGE>

     (f) the settlement or compromise of any obligation guaranteed hereby or
hereby incurred; or

     (g) any other circumstance whatsoever that might otherwise constitute a
legal or equitable discharge or defense of a guarantor, it being the intent of
this Section 5.3 that the obligations of the Guarantor with respect to the
Guarantee Payments shall be absolute and unconditional under any and all
circumstances.

     There shall be no obligation of the Holders to give notice to, or obtain
consent of, the Guarantor with respect to the happening of any of the foregoing.

SECTION 5.4 Rights of Holders.

     (a) The Holders of a Majority in liquidation amount of the Preferred
Securities have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the Preferred Securities Guarantee
Trustee in respect of this Preferred Securities Guarantee or exercising any
trust or power conferred upon the Preferred Securities Guarantee Trustee under
this Preferred Securities Guarantee.

     (b) If the Preferred Securities Guarantee Trustee fails to enforce such
Preferred Securities Guarantee, any Holder may institute a legal proceeding
directly against the Guarantor to enforce its rights under this Preferred
Securities Guarantee, without first instituting a legal proceeding against the
Issuer, the Preferred Securities Guarantee Trustee or any other person or
entity. Notwithstanding the foregoing, if the Guarantor has failed to make a
Guarantee Payment, a Holder may directly institute a proceeding in such Holder's
own name against the Guarantor for enforcement of the Preferred Securities
Guarantee for such payment. The Guarantor waives any right or remedy to require
that any action be brought first against the Issuer or any other person or
entity before proceeding directly against the Guarantor.

SECTION 5.5 Guarantee of Payment.

     This Preferred Securities Guarantee creates a guarantee of payment and not
of collection.

SECTION 5.6 Subrogation.

     The Guarantor shall be subrogated to all (if any) rights of the Holders
against the Issuer in respect of any amounts paid to such Holders by the
Guarantor under this Preferred Securities Guarantee; provided, however, that the
Guarantor shall not (except to the extent required by mandatory provisions of
law) be entitled to enforce or exercise any right that it may acquire by way of
subrogation or any indemnity, reimbursement or other agreement, in all cases as
a result of payment under this Preferred Securities Guarantee, if, at the time
of any such payment, any amounts are due and unpaid under this Preferred
Securities Guarantee. If any amount shall be paid to the Guarantor in violation
of the preceding sentence, the Guarantor agrees to hold such amount in trust for
the Holders and to pay over such amount to the Holders.

                                       -14-

<PAGE>

SECTION 5.7 Independent Obligations.

     The Guarantor acknowledges that its obligations hereunder are independent
of the obligations of the Issuer with respect to the Preferred Securities, and
that the Guarantor shall be liable as principal and as debtor hereunder to make
Guarantee Payments pursuant to the terms of this Preferred Securities Guarantee
notwithstanding the occurrence of any event referred to in subsections (a)
through (g), inclusive, of Section 5.3 hereof.

                                   ARTICLE VI
                    LIMITATION OF TRANSACTIONS; SUBORDINATION

SECTION 6.1 Limitation of Transactions.

     So long as any Preferred Securities remain outstanding, the Guarantor shall
not (i) declare or pay any dividends or distributions on, or redeem, purchase,
acquire, or make a liquidation payment with respect to, any of the Guarantor's
capital stock (which includes common and preferred stock) (other than (a)
dividends or distributions in shares of, or options, warrants, rights to
subscribe for or purchase shares of, common stock of the Guarantor, (b) any
declaration of a dividend in connection with the implementation of a
stockholders' rights plan, or the issuance of stock under any such plan in the
future, or the redemption or repurchase of any such rights pursuant thereto, (c)
as a result of a reclassification of the Guarantor's capital stock or the
exchange or the conversion of one class or series of the Guarantor's capital
stock for another class or series of the Guarantor's capital stock, (d) the
purchase of fractional interests in shares of the Guarantor's capital stock
pursuant to the conversion or exchange provisions of such capital stock or the
security being converted or exchanged, and (e) purchases of the Guarantor's
common stock related to the issuance of the Guarantor's common stock or rights
under any of the Guarantor's benefit plans for its directors, officers,
employees or any of the Guarantor's dividend reinvestment plans), (ii) make any
payment of principal of, or premium, if any, or interest on or repay, repurchase
or redeem any debt securities of the Guarantor (including any Other Debentures)
that rank pari passu with or junior in right of payment to the Debentures or
(iii) make any guarantee payments with respect to any guarantee (other than
payments under the Preferred Securities Guarantee) by the Guarantor of the debt
securities of any subsidiary of the Guarantor (including Other Guarantees) if
such guarantee ranks pari passu with or junior in right of payment to the
Debentures if at any such time (1) there shall have occurred any event of which
the Guarantor has actual knowledge that (a) with the giving of notice or the
lapse of time, or both, would constitute an Indenture Event of Default and (b)
in respect of which the Guarantor shall not have taken reasonable steps to cure,
(2) an Indenture Event of Default shall have occurred and be continuing, (3)
such Debentures are held by the Property Trustee, the Guarantor shall be in
default with respect to its payment of any obligations under this Preferred
Securities Guarantee or (4) the Guarantor shall have given notice of its
election of the exercise of its right to extend the interest payment period
pursuant to Section 15.6 of the Indenture or any such extension period shall
have commenced and be continuing.

SECTION 6.2 Ranking.

     This Preferred Securities Guarantee shall constitute an unsecured
obligation of the Guarantor and will rank (i) subordinate and junior in right of
payment to [Senior] [Superior] Indebtedness (as

                                       -15-

<PAGE>

defined in the Indenture), to the same extent and in the same manner that the
Debentures are subordinated to [Senior] [Superior] Indebtedness pursuant to the
Indenture, and (ii) pari passu with the Debentures and any Other Guarantee.

                                   ARTICLE VII
                                   TERMINATION

SECTION 7.1 Termination.

     This Preferred Securities Guarantee shall terminate and be of no further
force and effect (i) upon full payment of the Redemption Price (as defined in
Annex I to the Declaration) of all Preferred Securities or (ii), upon
liquidation of the Issuer, the full payment of the amounts payable with respect
to the Preferred Securities in accordance with the Declaration or the
distribution of the Debentures to the Holders and the holders of the Common
Securities [or exchange of all the Trust Securities for [other securities of the
Guarantor as provided in the Declaration]]. Notwithstanding the foregoing, this
Preferred Securities Guarantee will continue to be effective or will be
reinstated, as the case may be, if at any time any Holder must restore payment
of any sums paid under the Preferred Securities or under this Preferred
Securities Guarantee.

                                  ARTICLE VIII
                                 INDEMNIFICATION

SECTION 8.1 Exculpation.

     (a) No Indemnified Person shall be liable, responsible or accountable in
damages or otherwise to the Guarantor or any Covered Person for any loss, damage
or claim incurred by reason of any act or omission performed or omitted by such
Indemnified Person in good faith in accordance with this Preferred Securities
Guarantee and in a manner that such Indemnified Person reasonably believed to be
within the scope of the authority conferred on such Indemnified Person by this
Preferred Securities Guarantee or by law, except that an Indemnified Person
shall be liable for any such loss, damage or claim incurred by reason of such
Indemnified Person's negligence or willful misconduct with respect to such acts
or omissions.

     (b) An Indemnified Person shall be fully protected in relying in good faith
upon the records of the Guarantor and upon such information, opinions, reports
or statements presented to the Guarantor by any Person as to matters the
Indemnified Person reasonably believes are within such other Person's
professional or expert competence and who has been selected with reasonable care
by or on behalf of the Guarantor, including information, opinions, reports or
statements as to the value and amount of the assets, liabilities, profits,
losses, or any other facts pertinent to the existence and amount of assets from
which Distributions to Holders might properly be paid.

SECTION 8.2 Indemnification.

     The Guarantor agrees to indemnify each Indemnified Person for, and to hold
each Indemnified Person harmless against, any and all loss, liability, damage,
claim or expense incurred without negligence or bad faith on its part, arising
out of or in connection with the acceptance or administration of the trust or
trusts hereunder, including the costs and expenses

                                       -16-

<PAGE>

(including reasonable legal fees and expenses) of defending itself against, or
investigating, any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder. The provisions in this
Section 8.2 shall survive the termination of this Preferred Securities Guarantee
and the resignation or removal of the Preferred Securities Guarantee Trustee.

                                   ARTICLE IX
                                  MISCELLANEOUS

SECTION 9.1 Successors and Assigns.

     All guarantees and agreements contained in this Preferred Securities
Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
then outstanding.

SECTION 9.2 Amendments.

     Except with respect to any changes that do not materially adversely affect
the rights of Holders (in which case no consent of Holders will be required),
this Preferred Securities Guarantee may only be amended with the prior approval
of the Holders of a Majority in liquidation amount of the Preferred Securities.
The provisions of the Declaration with respect to consents to amendments thereof
(whether at a meeting or otherwise) shall apply to the giving of such approval.

SECTION 9.3 Notices.

     All notices provided for in this Preferred Securities Guarantee shall be in
writing, duly signed by the party giving such notice, and shall be delivered,
telecopied or mailed by first class mail, as follows:

     (a) If given to the Issuer, in care of the Administrative Trustee at the
mailing address set forth below (or such other address as the Issuer may give
notice of to the Holders and the Preferred Securities Guarantee Trustee):

     Halliburton Capital Trust I
     c/o Halliburton Company
     3600 Lincoln Plaza
     500 North Akard Street
     Dallas, Texas 75201
     Attention:  Chief Financial Officer
     Telecopy:  (214) 978-2334

     (b) If given to the Preferred Securities Guarantee Trustee, at the
Preferred Securities Guarantee Trustee's mailing address set forth below (or
such other address as the Preferred Securities Guarantee Trustee may give notice
of to the Holders and the Issuer):

                                       -17-

<PAGE>

     JPMorgan Chase Bank
     600 Travis Street
     11th Floor
     Houston, Texas 77002
     Attention: Institutional Trust Services
     Telecopy: (713) 577-5200

     (c) If given to the Guarantor, at the Guarantor's mailing address set forth
below (or such other address as the Guarantor may give notice of to the Holders
and the Preferred Securities Guarantee Trustee):

     Halliburton Company
     3600 Lincoln Plaza
     500 North Akard Street
     Dallas, Texas 75201
     Attention: Chief Financial Officer
     Telecopy: (214) 978-2783

     (d) If given to any Holder, at the address set forth on the books and
records of the Issuer.

     All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid except that if a notice or other document is refused delivery or
cannot be delivered because of a changed address of which no notice was given,
such notice or other document shall be deemed to have been delivered on the date
of such refusal or inability to deliver.

SECTION 9.4 Benefit.

     This Preferred Securities Guarantee is solely for the benefit of the
Holders and, subject to Section 3.1(a), is not separately transferable from the
Preferred Securities.

SECTION 9.5 GOVERNING LAW.

     THIS PREFERRED SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                                       -18-

<PAGE>

     THIS PREFERRED SECURITIES GUARANTEE is executed as of the day and year
first above written.

                              HALLIBURTON COMPANY,
                              as Guarantor

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

                              JPMorgan Chase Bank,
                              as Preferred Securities Guarantee
                              Trustee

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

                                       -19-<PAGE>

                                                                    Exhibit 4.20

                     [FIRST][SECOND] SUPPLEMENTAL INDENTURE
                       dated as of ________________, 200_

                                     between

                              HALLIBURTON COMPANY,
                                   (as Issuer)

                                       and

                               JPMORGAN CHASE BANK
                                  (as Trustee)

<PAGE>

         This [First] [Second] Supplemental Indenture dated as of _____________,
200_ (this "Supplemental Indenture") is between Halliburton Company, a
corporation incorporated and existing under the laws of the State of Delaware
(the "Issuer"), and JPMorgan Chase Bank [(formerly Texas Commerce Bank National
Association)], a New York banking corporation, as trustee (the "Trustee").

                                   RECITALS:

         The Issuer and the Trustee have heretofore executed and delivered that
certain [Subordinated Indenture dated as of January 2, 1991, as supplemented and
amended by the First Supplemental Indenture dated as of December 12, 1996]
[Junior Subordinated Indenture dated as of November 29, 2001] (the "Original
Indenture").

         As of the date hereof, the Issuer has issued no Securities pursuant to
the Original Indenture.

         The Issuer desires to designate a class of Securities under the
Indenture as the [__% _________ Debentures Due _________ ] (the "Debentures")
and, pursuant to Section 2.3 of the Indenture, to provide the terms of the
Debentures pursuant to this Supplemental Indenture and, with respect to the
Debentures, to add certain provisions to the Original Indenture.

         The Issuer has duly authorized the execution and delivery of this
Supplemental Indenture.

         The Issuer has provided to the Trustee an Officers' Certificate and an
Opinion of Counsel, as such terms are defined in the Original Indenture, to the
effect that this Supplemental Indenture complies with the provisions of Section
8.1 of the Original Indenture relating to amendments and supplements of the
Original Indenture without a vote of Securityholders.

         As of the date hereof, the Issuer and the Trustee have executed and
delivered this Supplemental Indenture for the purposes specified above.

         NOW, THEREFORE, in consideration of the premises, the covenants herein
contained and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged by the parties hereto, the parties hereto
covenant and agree as follows:

                                   ARTICLE I

         Section 1.01 Definition of Indenture. As used hereinafter, the term
"Indenture" shall mean the Original Indenture as supplemented by this
Supplemental Indenture.

         Section 1.02 Definitions Specifically Applicable to Debentures. The
following terms shall have the meanings set forth herein when used with respect
to the Debentures and shall be deemed to form a part of Section 1.1 of the
Indenture for purposes of the application of the terms and provisions of this
Supplemental Indenture:

               (a)  "Additional Sums" shall have the meaning set forth in
Section 2.03(c).

<PAGE>

               (b)  "Certificated Debentures" shall mean those Debentures issued
in fully registered certificated form not otherwise in global form.

               (c)  "Common Securities" shall mean the common securities of the
Trust representing undivided beneficial interests in the assets of the Trust
that, subject to the exceptions set forth in the Declaration, rank pari passu
with Preferred Securities issued by the the Trust.

               (d)  "Common Securities Guarantee" shall mean any guarantee that
the Issuer may enter into with any Person or Persons that operates directly or
indirectly for the benefit of holders of Common Securities of the Trust.

               (e)  "Common Stock" shall mean the Common Stock, par value $2.50,
of the Issuer or any other class of stock resulting from changes or
reclassifications of such Common Stock consisting solely of changes in par
value, or from par value to no par value, or from no par value to par value.

               (f)  "Comparable Treasury Issue" means the United States Treasury
security selected by the Reference Treasury Dealer as having a maturity
comparable to the remaining term of the Debentures to be redeemed that would be
utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Securities.

               (g)  "Comparable Treasury Price" means, with respect to any
redemption date, (i) the average of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
on the third Business Day preceding such redemption date, as set forth in the
daily statistical release (or any successor release) published by the Federal
Reserve Bank of New York and designated "Composite 3:30 p.m. Quotations for U.S.
Government Securities" or (ii) if such release (or any successor release) is not
published or does not contain such prices on such Business Day, the average of
the Reference Treasury Dealer Quotations for such redemption date.

               (h)  "Compounded Interest" shall have the meaning set forth in
Section 15.5 of the Indenture.

               (i)  "Coupon Rate" shall have the meaning set forth in Section
2.03(a).

               (j)  "Creditor" shall have the meaning set forth in Section 3.9
of the Indenture.

               (k)  ["Debenture Register" shall mean (i), prior to a Dissolution
Event, the list of holders of the Debentures provided to the Trustee pursuant to
Section 2.8 of the Indenture and (ii), following a Dissolution Event, any
security register maintained by a security registrar for the Debentures
appointed by the Issuer following the execution of a supplemental indenture
providing for transfer procedures as provided for in Section 2.02(a).]

<PAGE>

               (l)  "Declaration" means the Declaration of Trust of Halliburton
Capital Trust I, dated as of November __, 2001, as amended by the Amended and
Restated Declaration of Trust dated ___________, and as thereafter amended from
time to time.

               (m)  "Defaulted Interest" shall have the meaning set forth in
Section 2.04(a).

               (n)  "Deferred Interest" shall have the meaning set forth in
Section 15.5 of the Indenture.

               (o)  "Direct Action" shall have the meaning set forth in Section
11.11 of the Indenture.

               (p)  "Dissolution Event" means the liquidation of the Trust
pursuant to the Declaration, and the distribution of the Debentures held by the
Property Trustee to the holders of the Trust Securities issued by the Trust pro
rata in accordance with the Declaration.

               (q)  "Extended Interest Payment Period" shall have the meaning
set forth in Section 15.5 of the Indenture.

               (r)  "Interest Payment Date" shall have the meaning set forth in
Section 2.03(a).

               (s)  "Optional Redemption Price" means the greater of (i) 100% of
the principal amount of the Debentures to be redeemed plus accrued and unpaid
interest thereon (including Additional Sums, if any) to the date of redemption
and (ii) the sum of the present values of the remaining scheduled payments of
principal of the Debentures to be redeemed and interest thereon (including
Additional Sums if any) discounted to the date of redemption, on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day months), at the
Treasury Rate plus ___ basis points plus accrued and unpaid interest thereon to
the date of redemption.

               (t)  "Investment Company Event" means the receipt by the Trust
and the Issuer of an opinion of counsel experienced in such matters to the
effect that, as a result of the occurrence of a change in law or regulation or a
written change (including any announced prospective change) in interpretation or
application of law or regulation by any legislative body, court, governmental
agency or regulatory authority, there is more than an insubstantial risk that
the Trust is or will be considered an "investment company" that is required to
be registered under the Investment Company Act of 1940, as amended (the
"Investment Company Act"), which change or prospective change becomes effective
or would become effective, as the case may be, on or after the date of the
original issuance of the Preferred Securities.

               (u)  "Other Debentures" means all [junior subordinated]
debentures issued by the Issuer from time to time and sold to trusts to be
established by the Issuer (if any), in each case similar to the Trust.

<PAGE>

               (v)  "Other Guarantees" means all guarantees to be issued by the
Issuer with respect to preferred securities (if any) and issued to other trusts
to be established by the Issuer (if any), in each case similar to the Trust.

               (w)  "Predecessor Debenture" of any particular Debenture means
every previous Debenture evidencing all or a portion of the same debt as that
evidenced by such particular Debenture; and, for the purposes of this
definition, any Debenture authenticated and delivered under Section 2.9 of the
Indenture in lieu of a lost, destroyed or stolen Debenture shall be deemed to
evidence the same debt as the lost, destroyed or stolen Debenture.

               (x)  "Preferred Securities" shall mean the securities
representing undivided beneficial interests in the assets of the Trust that,
subject to the exceptions set forth in the Declaration, rank pari passu with the
Common Securities issued by the Trust.

               (y)  "Preferred Securities Guarantee" shall mean any guarantee
that the Issuer may enter into with JPMorgan Chase Bank, a New York banking
corporation, or other Persons that operates directly or indirectly for the
benefit of holders of Preferred Securities of the Trust.

               (z)  "Property Trustee" shall have the same meaning as set forth
in the Declaration.

               (aa) "Reference Treasury Dealer" means ________________ and its
successors; provided however, that if ___________________  shall cease to be a
primary U.S. Government securities dealer in the City of New York (a "Primary
Treasury Dealer"), the Issuer shall substitute therefor another Primary Treasury
Dealer.

               (bb) "Reference Treasury Dealer Quotations" means, with respect
to the Reference Treasury Dealer and any redemption date, the average, as
determined by the Trustee, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by the Reference Treasury Dealer at 5:00 p.m.,
New York City time, on the third Business Day preceding such redemption date.

               (cc) "Special Event" means either an Investment Company Event or
a Tax Event.

               (dd) "Special Event Redemption Price" shall mean, with respect to
any redemption of the Securities following a Special Event, an amount in cash
equal to 100% of the principal amount of the Securities to be redeemed plus
accrued and unpaid interest thereon (including Additional Sums, if any) to the
date of redemption.

               (ee) "Tax Event" shall mean the receipt by the Trust and the
Issuer of an opinion of counsel experienced in such matters to the effect that,
as a result of any amendment to, or change (including any announced prospective
change) in, the laws or any regulations thereunder of the United States or any
political subdivision or taxing authority thereof or therein or as a result of
any official administrative pronouncement or judicial decision interpreting or
applying such laws or regulations, which amendment or change is effective or
which

<PAGE>

pronouncement or decision is announced on or after _____________, ____,
there is more than an insubstantial risk that (i) the Trust is, or will be
within 90 days of the date of such opinion, subject to United States Federal
income tax with respect to income received or accrued on the Securities, (ii)
interest payable by the Issuer on the Securities is not, or within 90 days of
the date of such opinion, will not be, deductible by the Issuer, in whole or in
part, for United States Federal income tax purposes, or (iii) the Trust is, or
will be within 90 days of the date of such opinion, subject to more than a de
minimis amount of other taxes, duties or other governmental charges.

               (ff) "Treasury Rate" means, with respect to any redemption date,
the rate per annum equal to the semiannual equivalent yield to maturity of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue
expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for such redemption date.

               (gg) "Trust" shall mean the Halliburton Capital Trust I
established pursuant to the Declaration.

               (hh) "Trust Securities" shall mean the Preferred Securities and
the Common Securities, collectively.

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

         Section 1.03 Other Definitions. Other capitalized terms used but not
defined herein are defined in the Original Indenture and are used herein with
the meanings ascribed to them therein.

         Section 1.04 Form of Documents Delivered to Trustee.

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

<PAGE>

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

                                   ARTICLE II

         Pursuant to Section 2.3 of the Original Indenture, the following
provisions of this Article II shall apply, and shall only apply, to the series
of Securities designated as provided below and referred to herein as the
Debentures: .

         Section 2.01.  Establishment of Series.

               (a) the designation of the Securities of the series shall be [__%
 __________ Debentures Due _________];

               (b) [commencing _________, ______, the Debentures shall be
convertible into Common Stock of the Issuer at the initial Conversion Price of
one share of Common Stock for each $______ in principal amount of Debentures,
all in accordance with Article Thirteen of the Indenture];

               (c) the aggregate principal amount of the Debentures that may be
authenticated and delivered under this Indenture shall be $___________ (except
for Debentures authenticated and delivered upon registration of transfer of, or
in exchange for, or in lieu of, other Debentures pursuant to Section 2.8, 2.9,
2.11. 8.5, 12.3 or 13.2 of the Indenture);

               (d) the Stated Maturity of the Debentures shall be [_______,___];

               (e) the right, if any, of the Issuer to redeem, purchase or repay
the Debentures, in whole or in part, at its option and the period or periods
within which, the price or prices (or the method by which such price or prices
shall be determined or both) at which and any terms and conditions upon which
and the manner in which (to the extent different from the provisions of Article
Twelve of the Original Indenture) Debentures may be so redeemed, purchased or
repaid, in whole or in part, pursuant to any sinking fund or otherwise shall be
as set forth in Article Fifteen of the Indenture;

               (f) the obligation of the Issuer to redeem, purchase or repay
Debentures, in whole or in part, pursuant to any mandatory redemption, sinking
fund or analogous provisions or at the option of a Holder thereof and the period
or periods within which, the price or prices (or the method by which such price
or prices shall be determined or both) at which and any terms and conditions
upon which and the manner in which (to the extent different from the provisions
of Article Twelve of the Original Indenture) Debentures shall be redeemed,
purchased or repaid, in whole or in part, pursuant to such obligation shall be
as set forth in Article Fifteen of the Indenture;

               (g) except as provided in Section 2.02, the Debentures shall be
issued in fully registered certificated form without interest coupons. Principal
of, premium, if any, and interest on the Debentures issued in certificated form
will be payable, the transfer of such Debentures

<PAGE>

will be registrable and such Debentures will be exchangeable for Debentures
bearing identical terms and provisions at the office or agency of the Issuer
maintained for such purpose under Section 4.1 of the Indenture; provided,
however, that payment of interest with respect to Debentures (other than a
Global Security) may be made at the option of the Issuer (i) by check mailed to
the holder at such address as shall appear in the Debenture Register or (ii) by
transfer to an account maintained by the Person entitled thereto; provided that
proper transfer instructions have been received in writing by the relevant
record date. Notwithstanding the foregoing, so long as the holder of any
Debentures is the Property Trustee, the payment of the principal of, premium, if
any, and interest (including Compounded Interest and Additional Sums, if any),
on such Debentures held by the Property Trustee will be made at such place and
to such account as may be designated by the Property Trustee.

               (h) The Debentures will be issued and may be transferred only in
blocks having an aggregate principal amount of not less than $100,000. Any such
transfer of the Debentures in a block having an aggregate principal amount of
less than $100,000 shall be deemed to be void and of no legal effect whatsoever.
Any such transferee shall be deemed not to be a holder of such Debentures for
any purpose, including without limitation the receipt of payments on such
Debentures, and such transferee shall be deemed to have no interest whatsoever
in such Debentures.

               (i) the Trustee shall be the initial authenticating agent,
paying agent, transfer agent and registrar with respect to the Debentures; and

               (j) the provisions of Section 10.1(C) will not be applicable to
the Debentures.

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

         Section 2.02  Global Security.

               (a) In connection with a Dissolution Event,

                   (i) if any Preferred Securities are held in
               book-entry form, the related Certificated Debentures shall be
               presented to the Trustee (if an arrangement with the Depositary
               has been maintained) by the Property Trustee in exchange for one
               or more Global Securities (as may be required pursuant to Section
               2.8 of the Indenture) in an aggregate principal amount equal to
               the aggregate principal amount of all outstanding Debentures, to
               be registered in the name of the Depositary, or its nominee, and
               delivered by the Trustee to the Depositary for crediting to the
               accounts of its participants pursuant to the instructions of the

<PAGE>

               Administrative Trustees; the Issuer upon any such
               presentation shall execute one or more Global Securities in
               such aggregate principal amount and deliver the same to the
               Trustee for authentication and delivery in accordance with
               this Indenture; and payments on the Debentures issued as a
               Global Security will be made to the Depositary; and

                   (ii) if any Preferred Securities are held in
               certificated form, the related Certificated Debentures may be
               presented to the Trustee by the Property Trustee and any
               Preferred Security certificate which represents Preferred
               Securities other than Preferred Securities in book-entry form
               ("Non Book-Entry Preferred Securities") will be deemed to
               represent beneficial interests in Debentures presented to the
               Trustee by the Property Trustee having an aggregate principal
               amount equal to the aggregate liquidation amount of the Non
               Book-Entry Preferred Securities until such Preferred Security
               certificates are presented to the Debenture Registrar for
               transfer or reissuance, at which time such Preferred Security
               certificates will be canceled and a Debenture, registered in
               the name of the holder of the Preferred Security certificate
               or the transferee of the holder of such Preferred Security
               certificate, as the case may be, with an aggregate principal
               amount equal to the aggregate liquidation amount of the
               Preferred Security certificate canceled, will be executed by
               the Issuer and delivered to the Trustee for authentication and
               delivery in accordance with this Indenture. Upon the issuance
               of such Debentures, Debentures with an equivalent aggregate
               principal amount that were presented by the Property Trustee
               to the Trustee will be canceled.

               (b) The Global Securities shall represent the aggregate amount of
outstanding Debentures from time to time endorsed thereon; provided, that the
aggregate amount of out- standing Debentures represented thereby may from time
to time be reduced or increased, as appropriate, to reflect exchanges and
redemptions. Any endorsement of a Global Security to reflect the amount of any
increase or decrease in the amount of outstanding Debentures represented thereby
shall be made by the Trustee, in accordance with instructions given by the
Issuer as required by this Section 2.02.

               (c) The Global Securities may be transferred, in whole but not in
part, only to the Depositary, another nominee of the Depositary, or to a
successor Depositary selected or approved by the Issuer or to a nominee of such
successor Depositary.

               (d) If at any time the Depositary notifies the Issuer that it is
unwilling or unable to continue as Depositary or the Depositary has ceased to be
a clearing agency registered under the Exchange Act or any applicable statute or
regulation, and a successor Depositary is not appointed by the Issuer within 90
days after the Issuer receives such notice or becomes aware of such condition,
as the case may be, the Issuer will execute, and the Trustee, upon receipt of an
Issuer Order, will authenticate and make available for delivery the Certificated
Debentures, in authorized denominations, and in an aggregate principal amount
equal to the principal amount of the Global Security in exchange for such Global
Security. If there is an Event of Default, the Depositary shall have the right
to exchange the Global Securities for Certificated Debentures. In addition, the
Issuer may at any time determine that the Debentures shall no longer be
represented

<PAGE>

by a Global Security. In the event of such an Event of Default or such a
determination, the Issuer shall execute, and subject to Section 2.8 of the
Indenture, the Trustee, upon receipt of an Officers' Certificate evidencing such
determination by the Issuer and a Issuer Order, shall authenticate and make
available for delivery the Certificated Debentures, in authorized denominations,
and in an aggregate principal amount equal to the principal amount of the Global
Security in exchange for such Global Security. Upon the exchange of the Global
Security for such Certificated Debentures, in authorized denominations, the
Global Security shall be canceled by the Trustee. Such Certificated Debentures
issued in exchange for the Global Security shall be registered in such names and
in such authorized denominations as the Depositary, pursuant to instructions
from its direct or indirect participants or otherwise, shall instruct the
Trustee. The Trustee shall deliver such Certificated Debentures to the
Depositary for delivery to the Persons in whose names such Certificated
Debentures are so registered.

         Section 2.03  Interest

               (a) Each Debenture shall bear interest at the rate of ____% per
annum (the "Coupon Rate") from the most recent date to which interest has been
paid or duly provided for or, if no interest has been paid or duly provided for,
from _______________,____, until the principal thereof becomes due and payable,
and at the Coupon Rate on any overdue principal (and premium, if any) and (to
the extent that payment of such interest is enforceable under applicable law) on
any overdue installment of interest, compounded semi-annually, payable (subject
to the provisions of Article Fifteen of the Indenture) semi-annually in arrears
on _________ and _______ of each year (each, an "Interest Payment Date")
commencing on ___________, ___, to the Person in whose name such Debenture or
any Predecessor Debenture is registered, at the close of business on the regular
record date for such interest installment, which shall be the fifteenth day of
the month immediately preceding the month in which the relevant Interest Payment
Date falls.

               (b) Interest will be computed on the basis of a 360-day year
consisting of twelve 30-day months and, for any period of less than a full
calendar month, the number of days lapsed in such month. If any Interest Payment
Date falls on a day that is not a Business Day, then payment of interest payable
on such date will be made on the next succeeding day that is a Business Day (and
without any interest or other payment in respect of any such delay), except that
if such next succeeding Business Day falls in the next succeeding calendar year,
then such payment shall be made on the immediately preceding Business Day, in
each case with the same force and effect as if made on the date such payment is
otherwise required.

               (c) During such time as the Property Trustee is the holder of any
Debentures, the Issuer shall pay any additional amounts on the Debentures as may
be necessary in order that the amount of Distributions then due and payable by
Trust on the outstanding Trust Securities shall not be reduced as a result of
any additional taxes, duties and other governmental charges to which Trust has
become subject as a result of a Tax Event ("Additional Sums").

               (d) Interest on any Debenture that is payable, and that is
punctually paid or duly provided for, on any Interest Payment Date shall be paid
to the Person in whose name that

<PAGE>

Debenture (or one or more Predecessor Debentures) is registered at the close of
business on the record date for such interest installment.

         Section 2.04      Defaulted Interest.

(a) Any interest on any Debenture that is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called "Defaulted
Interest") shall forthwith cease to be payable to the holder on the relevant
regular record date by virtue of having been such holder; and such Defaulted
Interest shall be paid by the Issuer, at its election, as provided in subsection
(b) or (c) below:

               (b) The Issuer may make payment of any Defaulted Interest on
Debentures to the Persons in whose names such Debentures (or their respective
Predecessor Debentures) are registered at the close of business on a special
record date for the payment of such Defaulted Interest, which shall be fixed in
the following manner: the Issuer shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each such Debenture and the
date of the proposed payment, and at the same time the Issuer shall deposit with
the Trustee an amount of money equal to the aggregate amount proposed to be paid
in respect of such Defaulted Interest or shall make arrangements satisfactory to
the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled
to such Defaulted Interest as in this clause provided. Thereupon the Trustee
shall fix a special record date for the payment of such Defaulted Interest which
shall not be more than 15 nor less than ten days prior to the date of the
proposed payment and not less than ten days after the receipt by the Trustee of
the notice of the proposed payment. The Trustee shall promptly notify the Issuer
of such special record date and, in the name and at the expense of the Issuer,
shall cause notice of the proposed payment of such Defaulted Interest and the
special record date therefor to be mailed, first class postage prepaid, to each
Securityholder at his or her address as it appears in the Debenture Register,
not less than 10 days prior to such special record date. Notice of the proposed
payment of such Defaulted Interest and the special record date therefor having
been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons
in whose names such Debentures (or their respective Predecessor Debentures) are
registered on such special record date and shall be no longer payable pursuant
to the following clause (c).

<PAGE>

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

         Section 2.05    CUSIP Numbers.

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

                                  ARTICLE III

         The following provisions constitute additions to the covenants of the
Issuer contained in Article Three of the Original Indenture that shall apply,
and shall only apply, to the series of Securities designated pursuant to this
Supplemental Indenture and referred to herein as Debentures.

         Section 3.01 Amendment of Section 3.1. Section 3.1 of the Original
Indenture is hereby amended by adding thereto the following sentence: The Issuer
further covenants to pay any and all amounts, including, without limitation,
Additional Sums, as may be required pursuant to Section 2.03(c) of the
[First][Second] Supplemental Indenture dated as of        , 200 , and Compounded
Interest, as may be required pursuant to Section 15.5 of the Indenture.

         Section 3.02    Amendment of Section 3.2.

               (a) Section 3.2 of the Original Indenture is hereby amended by
renumbering the existing provisions of that Section as subsection (a) of Section
3.2 and by adding thereto as a new subsection (b) of Section 3.2 the following
subsection:

               (b) In addition to any such office or agency, the Issuer may from
time to time designate one or more offices or agencies outside the Borough of
Manhattan, The City of New York, where the Debentures may be presented for
payment, registration of transfer and for exchange in the manner provided in
this Indenture, and the Issuer may from time to time rescind such designation,
as the Issuer may deem desirable or expedient; provided, however, that no such
designation or rescission shall in any manner relieve the Issuer of its
obligation to maintain any such office or agency in the Borough of Manhattan,
The City of New York, for the purposes above mentioned. The Issuer shall give to
the Trustee prompt written notice of any such designation or rescission thereof.

<PAGE>

         Section 3.03 Amendment of Article Three. Article Three of the Indenture
is hereby amended by adding thereto the following Sections 3.6 to 3.10,
inclusive:

               Section 3.6. Certificate to Trustee. The Issuer will deliver
         to the Trustee on or before 120 days after the end of each fiscal year
         in each year, commencing with the first fiscal year ending after the
         date hereof, so long as Debentures are outstanding hereunder, an
         Officers' Certificate, one of the signers of which shall be the
         principal executive, principal financial or principal accounting
         officer of the Issuer, stating that in the course of the performance by
         the signers of their duties as officers of the Issuer they would
         normally have knowledge of any default by the Issuer in the performance
         of any covenants contained herein, stating whether or not they have
         knowledge of any such default and, if so, specifying each such default
         of which the signers have knowledge and the nature thereof.

               Section 3.7.  Limitation on Dividends.

               The Issuer will not, and will not permit any subsidiary of the
         Issuer to, (i) declare or pay any dividends or distributions on, or
         redeem, purchase, acquire or make a liquidation payment with respect
         to, any of the Issuer's capital stock (which includes common and
         preferred stock) (other than (a) dividends or distributions in shares
         of, or options, warrants or rights to subscribe for or purchase shares
         of, Common Stock of the Issuer, (b) any declaration of a dividend in
         connection with the implementation of a shareholder's rights plan, any
         issuance of stock under any such plan and any redemption or repurchase
         of any such rights pursuant thereto, (c) as a result of a
         reclassification of the Issuer's capital stock or the conversion or
         exchange of one class or series of the Issuer's capital stock for
         another class or series of the Issuer's capital stock, (d) the purchase
         of fractional interests in shares of the Issuer's capital stock
         pursuant to the conversion or exchange provisions of such capital stock
         or the security being converted or exchanged and (e) purchases of
         Common Stock related to the issuance of Common Stock or rights under
         any of the Issuer's benefit plans for its directors, officers,
         employees or consultants or any of the Issuer's dividend reinvestment
         plans), (ii) make any payment of principal, premium, if any, or
         interest on or repay or repurchase or redeem any debt securities of the
         Issuer (including Other Debentures) that rank pari passu with or junior
         in right of payment to the Debentures or (iii) make any guarantee
         payments with respect to any guarantee by the Issuer (other than
         payments under the Preferred Securities Guarantee) of the debt
         securities of any Subsidiary of the Issuer (including Other Guarantees)
         if such guarantee ranks pari passu or junior in right of payment to the
         Debentures if, in any such case at such time (1) there shall have
         occurred any event of which the Issuer has actual knowledge that (a),
         with the giving of notice or the lapse of time, or both, would
         constitute an Event of Default and (b) in respect of which the Issuer
         shall not have taken reasonable steps to cure, (2) an Event of Default
         hereunder shall have occurred and be continuing, (3) if such Debentures
         are held by the Property Trustee, the Issuer shall be in default with
         respect to its payment obligations under the Preferred Securities
         Guarantee or [(4) the Issuer shall have given notice of its election of
         the exercise of its right to extend the interest payment period
         pursuant to Section 15.6 of the Indenture and any such extension shall
         be continuing].

<PAGE>

               Section 3.8.  Covenants as to Trust.

               If Debentures are issued to the Trust or a trustee of such trust
         in connection with the issuance of Trust Securities by the Trust, for
         so long as such Trust Securities remain outstanding, the Issuer (i)
         will maintain 100% direct or indirect ownership of the Common
         Securities of the Trust; provided, however, that any successor of the
         Issuer, permitted pursuant to Article Nine of the Indenture, may
         succeed to the Issuer's ownership of such Common Securities, (ii) will
         use its reasonable efforts to cause the Trust (a) to remain a business
         trust, except in connection with a distribution of Debentures to the
         holders of Trust Securities in liquidation of the Trust, the
         redemption of all of the Trust Securities of the Trust or certain
         mergers, consolidations or amalgamations, each as permitted by the
         Declaration, and (b) otherwise to continue to be treated as a grantor
         trust and not an association taxable as a corporation for United
         States federal income tax purposes and (iii) will use its reasonable
         efforts to cause each holder of Trust Securities to be treated as
         owning an undivided beneficial interest in the Debentures.

               Section 3.9.  Payment of Trust's Costs and Expenses.

               In connection with the offering, sale and issuance of the
         Debentures to the Trust and in connection with the sale of the Trust
         Securities by the Trust, the Issuer, in its capacity as borrower with
         respect to the Trust Securities, shall:

                        (a) pay all costs and expenses relating to the
               offering, sale and issuance of the Trust Securities and
               compensation of the Trustees in accordance with the provisions
               of Section 10.6 of the Declaration;

                        (b) pay all costs and expenses of the Trust,
               including without limitation costs and expenses relating to
               the organization of the Trust, the offering, sale and issuance
               of the Trust Securities (including commissions to the initial
               purchaser or purchasers in connection therewith), the fees and
               expenses of the Property Trustee and the Delaware Trustee, the
               costs and expenses relating to the operation of the Trust,
               including without limitation costs and expenses of
               accountants, attorneys, statistical or bookkeeping services,
               expenses for printing and engraving and computing or
               accounting equipment, paying agent(s), registrar(s), transfer
               agent(s), duplicating, travel and telephone and other
               telecommunications expenses and costs and expenses incurred in
               connection with the acquisition, financing, and disposition of
               assets of the Trust;

                        (c) be  primarily  and  fully  liable  for any
               indemnification  obligations  arising  with  respect  to the
               Declaration;

                        (d) pay any and all taxes, duties, assessments or
               governmental charges of whatever nature (other than United
               States withholding taxes attributable to the Trust or its
               assets) imposed on the Trust by the United States or any other
               taxing

<PAGE>

               authority and all liabilities, costs and expenses with respect to
               such taxes of the Trust ; and

                        (e) pay all other fees, expenses, debts and
               obligations (other than in respect of principal, interest and
               premium, if any, on the Trust Securities) related to the
               Trust.

               The foregoing obligations of the Issuer are for the benefit
         of, and shall be enforceable by, any person to whom any such debt,
         obligations, costs, expenses and taxes are owed (each, a "Creditor")
         whether or not such Creditor has received notice thereof. Any such
         Creditor may enforce such obligations of the Issuer directly against
         the Issuer, and the Issuer irrevocably waives any right or remedy to
         require that any such Creditor take any action against the Trust or any
         person before proceeding against the Issuer. The Issuer shall execute
         such additional agreements as may be necessary or desirable to give
         full effect to the foregoing.

               Section 3.10.  Payment Upon Resignation or Removal.

               Upon termination of this Indenture or the removal or
         resignation of the Trustee, unless otherwise stated, the Issuer shall
         pay to the Trustee all amounts accrued and owing to the date of such
         termination, removal or resignation. Upon termination of the
         Declaration or the removal or resignation of the Delaware Trustee or
         the Property Trustee, as the case may be, pursuant to Section 5.7 of
         the Declaration, the Issuer shall pay to the Delaware Trustee or the
         Property Trustee, as the case may be, all amounts accrued and owing to
         the date of such termination, removal or resignation.

                                   ARTICLE IV

         The following provisions of this Article IV constitute amendments to
the provisions of Article Five of the Original Indenture that shall apply, and
shall only apply, to the series of Securities designated pursuant to this
Supplemental Indenture and referred to herein as Debentures.

         Section 4.01 Amendment of Section 5.1. Subsections (a) and (b) of
Section 5.1 of the Original Indenture are hereby amended so as to be and read,
in their entirety, as follows:

               (a) default in the payment of any interest (including Compounded
Interest or Additional Sums, if any), upon any Debenture or any Other Debentures
when it becomes due and payable, and continuance of such default for a period of
30 days; provided, however, that a valid extension of an interest payment period
by the Issuer in accordance with the terms hereof shall not constitute a default
in the payment of interest for this purpose; or

               (b) default in the payment of all or any part of the principal of
(or premium, if any, on) any Debenture or any Other Debentures as and when the
same shall become due and payable either at maturity, upon redemption, by
declaration of acceleration of maturity or otherwise.

<PAGE>

         Section 4.02 Further Amendment of Section 5.1. The second sentence of
the second paragraph of Section 5.1 of the Original Indenture is hereby amended
to add the phrase "(including Compounded Interest and Additional Sums, if any)"
after the phrase "all matured installments of interest, if any."

         Section 4.03 Amendment of Section 5.2. The first paragraph of Section
5.2 of the Original Indenture is hereby amended so as to be and read, in its
entirety, as follows:

         The Issuer covenants that:

                   (a) in case default shall be made in the payment of any
         installment of interest (including Compounded Interest and Additional
         Sums, if any) upon any of the Debentures as and when the same shall
         become due and payable, and such default shall have continued for a
         period of 30 days, or

                   (b) in case default shall be made in the payment of the
         principal of or premium, if any, on any of the Debentures as and when
         the same shall have become due and payable, whether at maturity of the
         Debentures or upon redemption or by declaration or otherwise,

         then, upon demand of the Trustee, the Issuer will pay to the Trustee,
         for the benefit of the holders of the Debentures, the whole amount that
         then shall have become due and payable on all such Debentures for
         principal and premium, if any, or interest (including Compounded
         Interest and Additional Sums, if any) or both, as the case may be, with
         interest upon the overdue principal and premium, if any, and (to the
         extent that payment of such interest is enforceable under applicable
         law and, if the Debentures are held by Trust or a trustee of such
         trust, without duplication of any other amounts paid by the Trust or a
         trustee in respect thereof) upon the overdue installments of interest
         (including Compounded Interest and Additional Sums, if any) at the rate
         borne by the Debentures; and, in addition thereto, such further amount
         as shall be sufficient to cover the costs and expenses of collection,
         including a reasonable compensation to the Trustee, its agents,
         attorneys and counsel, and any expenses or liabilities incurred by the
         Trustee hereunder other than through its negligence or bad faith.

         Section 4.04 Further Amendment of Section 5.2. The sentence comprising
the third paragraph of Section 5.2 of the Original Indenture is hereby amended
to add the phrase "(including Compounded Interest and Additional Sums, if any)"
after the phrase "the whole amount of principal and interest, if any."

         Section 4.05 Amendment of Section 5.3. The first paragraph of Section
5.3 of the Original Indenture is hereby amended by adding thereto a new SECOND
subparagraph so as to be and read, in its entirety, as follows and renumbering
the remaining subparagraphs thereof:

         SECOND: To the payment of all [Senior] [Superior] Indebtedness of the
Issuer if and to the extent required by Article XIV;

         Section 4.06   Further Amendment of Section 5.3. The newly renumbered
THIRD paragraph of Section 5.3 of the Original  Indenture is hereby amended by
adding thereto the

<PAGE>

phrase "(including Compounded Interest and Additional Sums, if any)" after the
phrase "to the payment of interest, if any, on the Securities."

         Section 4.07 Final Amendment of Section 5.3. The newly renumbered
FOURTH paragraph of Section 5.3 of the Original Indenture is hereby amended by
adding thereto the phrase "(including Compounded Interest and Additional Sums,
if any)" after the phrase "then owing and unpaid upon the Securities of such
series for principal and interest, if any."

         Section 4.08 Amendment of Section 5.4. Section 5.4 of the Original
Indenture is hereby amended by adding a new third paragraph which shall be and
read, in its entirety, as follows:

         The Issuer and the Trustee acknowledge that pursuant to the
         Declaration, the holders of Preferred Securities are entitled, in the
         circumstances and subject to the limitations set forth therein, to
         commence a Direct Action with respect to any Event of Default under
         this Indenture and the Debentures.

         Section 4.09 Amendment of Section 5.7. The second sentence of Section
5.7 of the Original Indenture is hereby amended so as to be and read as follows:

         Prior to any declaration accelerating the maturity of the Debentures,
         the holders of a majority in aggregate principal amount of the
         Debentures at the time outstanding may on behalf of the holders of all
         of the Debentures waive any past default or Event of Default and its
         consequences except a default (a) in the payment of principal of or
         premium, if any, or interest (including Compounded Interest and
         Additional Sums, if any) on any of the Debentures or (b) in respect of
         covenants or provisions hereof which cannot be modified or amended
         without the consent of the holder of each Debenture affected; provided,
         however, that if the Debentures are held by the Property Trustee, such
         waiver or modification to such waiver shall not be effective until the
         holders of a majority in aggregate liquidation amount of Trust
         Securities shall have consented to such waiver or modification to such
         waiver; and provided further, that, if the consent of the holder of
         each outstanding Debenture is required, such waiver shall not be
         effective until each holder of the Trust Securities shall have
         consented to such waiver.

         Section 4.10 Amendment of Section 5.8. The proviso to Section 5.8 of
the Original Indenture is hereby amended to add the phrase "(including
Compounded Interest and Additional Sums, if any)" after the phrase "except in
the case of default in the payment of the principal of or interest, if any."

         Section 4.11 Further Amendment of Section 5.8. The provisions of
Section 5.8 of the Original Indenture, as amended by Section 4.10, are hereby
amended by recasting such provisions as subsection (a) of Section 5.8 and adding
to Section 5.8 of the Original Indenture the following subsection (b) which
shall be and read, in its entirety, as follows:

               (b) Within five Business Days after the occurrence of any
         Event of Default actually known to the Trustee, the Trustee shall
         transmit notice of such Event of Default to all Securityholders, unless
         such Event of Default shall have been cured or waived.

<PAGE>

         Section 4.12 Amendment of Section 5.9. The second sentence of Section
5.9 of the Original Indenture is hereby amended to add the phrase "(including
Compounded Interest and Additional Sums, if any)" after the phrase "for the
enforcement of the payment of the principal of or interest, if any."

                                   ARTICLE V

         The following provisions of this Article V constitute amendments to the
provisions of Article Eight of the Original Indenture that shall apply, and
shall only apply, to the series of Securities designated pursuant to this
Supplemental Indenture and referred to herein as Debentures.

         Section 5.01 Amendment of Section 8.2. Clause (i)(3) of subsection (a)
of Section 8.2 of the Original Indenture is hereby amended to add the phrase
"(including Compounded Interest)" after the phrase "reduce the rate or extend
the time of payment of interest, if any."

         Section 5.02 Further Amendment of Section 8.2. Subsection (a) of
Section 8.2 of the Original Indenture is hereby amended by deleting the period
at the end thereof and substituting a semicolon therefor and by adding the
following provisos to the end thereof which shall be and read, in its entirety,
as follows:

         provided, however, that if the Debentures are held by the Trust, such
         amendment shall not be effective until the holders of a majority in
         liquidation amount of Trust Securities shall have consented to such
         amendment; and provided, further, that, if the consent of the holder of
         each outstanding Debenture is required, such amendment shall not be
         effective until each holder of the Trust Securities shall have
         consented to such amendment.

                                   ARTICLE VI

         The following provisions of this Article VI constitute amendments to
the provisions of Article Nine of the Original Indenture that shall apply, and
shall only apply, to the series of Securities designated pursuant to this
Supplemental Indenture and referred to herein as Debentures.

         Section 6.01 Amendment of Section 9.1. Subsection (c) of Section 9.1 of
the Original Indenture is hereby amended to add the phrase "(including
Compounded Interest and Additional Sums, if any)" after the phrase "the due and
punctual payment of the principal of and interest, if any."

         Section 6.02 Amendment of Section 9.2. Subsection (a) of Section 9.2 of
the Original Indenture is hereby amended to add the phrase "(including
Compounded Interest and Additional Sums, if any)" after the phrase "of the due
and punctual payment of the principal of and interest, if any."

         Section 6.03 Further Amendment of Section 9.2. The proviso to
subsection (a) of Section 9.2 of the Original Indenture is hereby amended to add
the phrase "(including

<PAGE>

Compounded Interest and Additional Sums, if any)" after the phrase "to the
extent, but only to the extent, of liability to pay the principal of and
interest, if any."

                                  ARTICLE VII

         The following provisions of this Article VII constitute amendments to
the provisions of Article Ten of the Original Indenture that shall apply, and
shall only apply, to the series of Securities designated pursuant to this
Supplemental Indenture and referred to herein as Debentures.

         Section 7.01 Amendment of Subsection (a) of Section 10.1. Clause (i)(1)
of subsection (a) of Section 10.1 of the Original Indenture is hereby amended to
add the phrase "(including Compounded Interest and Additional Sums, if any)"
after the phrase "the Issuer shall have paid or caused to be paid the principal
of and interest, if any."

         Section 7.02 Amendment of Subsection (b) of Section 10.1. Clause (i) of
subsection (b) of Section 10.1 of the Original Indenture is hereby amended to
add the phrase "(including Compounded Interest and Additional Sums, if any)"
after the phrase "the Issuer shall have paid or caused to be paid the principal
of and interest, if any."

         Section 7.03 Further Amendment of Subsection (b) of Section 10.1.
Clause (iii)(2)(A) of subsection (b) of Section 10.1 of the Original Indenture
is hereby amended to add the phrase "(including Compounded Interest and
Additional Sums, if any)" after the phrase "the principal of and interest, if
any."

         Section 7.04 Final Amendment of Subsection (b) of Section 10.1.
Parenthetical clause (3) of subsection (b) of Section 10.1 of the Original
Indenture is hereby amended to add the phrase "(including Compounded Interest
and Additional Sums, if any)" after the phrase "rights of Holders of Securities
of such series to receive payments of principal thereof and interest, if any."

         Section 7.05 Amendment of Subsection (c) of Section 10.1. Parenthetical
clause (3) of subsection (c) of Section 10.1 of the Original Indenture is hereby
amended to add the phrase "(including Compounded Interest and Additional Sums,
if any)" after the phrase "rights of Holders of Securities of such series to
receive payments of principal thereof and interest, if any."

         Section 7.06 Further Amendment of Subsection (c) of Section 10.1.
Clause (i)(1) of subsection (c) of Section 10.1 of the Original Indenture is
hereby amended to add the phrase "(including Compounded Interest and Additional
Sums, if any)" after the phrase "the principal of and interest, if any."

         Section 7.07 Amendment of Section 10.4. Section 10.4 of the Original
Indenture is hereby amended to add the phrase "(including Compounded Interest
and Additional Sums, if any)" after the phrase "Any moneys deposited with or
paid to the Trustee or any Paying Agent for the payment of the principal of or
interest, if any."

<PAGE>

                                  ARTICLE VIII

         The following provisions of this Article VIII constitute amendments to
the provisions of Article Eleven of the Original Indenture that shall apply, and
shall only apply, to the series of Securities designated pursuant to this
Supplemental Indenture and referred to herein as Debentures.

         Section 8.01 Amendment of Article Eleven. Article Eleven of the
Original Indenture is hereby amended to add thereto a new Section 11.11 which
shall be and read, in its entirety, as follows:

                  Section 11.11. Acknowledgment of Rights. The Issuer
         acknowledges that, with respect to any Debentures held by the Trust or
         a trustee of such trust, if the Property Trustee of such the Trust
         fails to enforce its rights under this Indenture as the holder of the
         Debentures held as the assets of the Trust any holder of Preferred
         Securities may, to the full extent permitted by law, institute legal
         proceedings directly against the Issuer to enforce such Property
         Trustee's rights under this Indenture without first instituting any
         legal proceedings against such Property Trustee or any other person or
         entity (a "Direct Action"). Notwithstanding the foregoing, if an Event
         of Default has occurred and is continuing and such event is
         attributable to the failure of the Issuer to pay principal of or
         premium, if any, or interest (including Compounded Interest and
         Additional Sums, if any) on the Debentures when due, the Issuer
         acknowledges that a holder of Preferred Securities may directly
         institute a proceeding for enforcement of payment to such holder of the
         principal of or premium, if any, or interest (including Compounded
         Interest and Additional Sums, if any) on the Debentures having a
         principal amount equal to the aggregate liquidation amount of the
         Preferred Securities of such holder on or after the respective due date
         specified in the Debentures.

                                   ARTICLE IX

         The following provisions of this Article IX constitute provisions of a
new Article Fifteen of the Original Indenture that shall apply, and shall only
apply, to the series of Securities designated pursuant to this Supplemental
Indenture and referred to herein as Debentures.

                                 ARTICLE FIFTEEN

               Section 15.1 Special Event Redemption.

               If, at any time, a Special Event has occurred and is
         continuing then, notwithstanding Section 15.2(a) of the Indenture, the
         Issuer shall have the right but not the obligation, at any time within
         90 days following the occurrence of such Special Event, upon (i) not
         less than 45 days' written notice to the Trustee and (ii) not less than
         30 days' nor more than 60 days' written notice to the Securityholders,
         to redeem the Debentures, in whole (but not in part), at the Special
         Event Redemption Price. Following a Special Event, if the Issuer wishes
         to exercise its right of redemption pursuant to this Section 15.1 of
         the Indenture, the Issuer shall take such action as is necessary to
         promptly determine the Special Event Redemption Price, including
         without limitation the

<PAGE>

         appointment by the Issuer of a Reference Treasury Dealer. The Issuer
         shall provide the Trustee with written notice of the Special Event
         Redemption Price promptly after the calculation thereof, which notice
         shall include any calculation made by the Reference Treasury Dealer in
         connection with the determination of the Special Event Redemption
         Price. The Special Event Redemption Price shall be paid prior to
         12:00 noon, New York City time, on the date of such redemption or such
         earlier time as the Issuer determines, provided that the Issuer shall
         deposit with the Trustee an amount sufficient to pay the Special Event
         Redemption Price by 10:00 a.m., New York City time, on the date such
         Special Event Redemption Price is to be paid.

               Section 15.2 Optional Redemption by Issuer.

                   (a) Subject to the provisions of Article Twelve of the
         Original Indenture, the Issuer shall have the right to redeem the
         Debentures, in whole or in part, from time to time, at a redemption
         price equal to the Optional Redemption Price.

                   (b) If the Debentures are only partially redeemed pursuant to
         this Section 15.2 of the Indenture, the Debentures to be redeemed
         shall be selected on a pro rata basis not more than 60 days prior to
         the date fixed for redemption from the outstanding Debentures not
         previously called for redemption; provided, however, that with respect
         to Securityholders that would be required to hold Debentures with an
         aggregate principal amount of less than $100,000 but more than an
         aggregate principal amount of zero as a result of such pro rata
         redemption, the Issuer shall redeem Debentures of each such
         Securityholder so that after such redemption such Securityholder shall
         hold Debentures either with an aggregate principal amount of at least
         $100,000 or such Securityholder no longer holds any Debentures and
         shall use such method (including, without limitation, by lot) as the
         Issuer shall deem fair and appropriate; and provided, further, that any
         such proration may be made on the basis of the aggregate principal
         amount of Debentures held by each Securityholder and may be made by
         making such adjustments as the Issuer deems fair and appropriate in
         order that only Debentures in denominations of $1,000 or integral
         multiples thereof shall be redeemed. The Optional Redemption Price
         shall be paid prior to 12:00 noon, New York City time, on the date of
         such redemption or at such earlier time as the Issuer determines;
         provided that the Issuer shall deposit with the Trustee an amount
         sufficient to pay the Optional Redemption Price by 10:00 a.m., New York
         City time, on the date such Optional Redemption Price is to be paid.

               Section 15.3  No Sinking Fund.

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

               Section 15.4 Application of Article 12. Any redemption effected
         pursuant to Section 15.1 or 15.2 of the Indenture shall be effected
         in accordance with the provisions of Article Twelve of the Original
         Indenture to the extent that those provisions are not in conflict with
         the provisions of Section 15.1 or 15.2 of the Indenture, as the case
         may be.

<PAGE>

               Section 15.5  Extension of Interest Payment Period.

               So long as no Event of Default has occurred and is continuing,
         the Issuer shall have the right, at any time and from time to time
         during the term of the Debentures, to defer payments of interest by
         extending the interest payment period of such Debentures for a period
         not exceeding ten consecutive semi-annual periods, including the first
         such semi-annual period during such extension period (the "Extended
         Interest Payment Period"), during which Extended Interest Payment
         Period no interest shall be due and payable; provided that no Extended
         Interest Payment Period shall end on a date other than an Interest
         Payment Date or extend beyond the Maturity Date. To the extent
         permitted by applicable law, interest, the payment of which has been
         deferred because of the extension of the interest payment period
         pursuant to this Section 15.5, will bear interest thereon at the
         Coupon Rate compounded semi-annually for each semi-annual period of the
         Extended Interest Payment Period ("Compounded Interest"). At the end of
         the Extended Interest Payment Period, the Issuer shall pay all interest
         accrued and unpaid on the Debentures, including any Additional Sums and
         Compounded Interest (together, "Deferred Interest") that shall be
         payable to the holders of the Debentures in whose names the Debentures
         are registered in the Debenture Register on the first record date
         preceding the end of the Extended Interest Payment Period. Before the
         termination of any Extended Interest Payment Period, the Issuer may
         further defer payments of interest by further extending such period;
         provided that such period, together with all such previous and further
         extensions within such Extended Interest Payment Period, shall not
         exceed ten consecutive semi-annual periods, including the first such
         semi-annual period during such Extended Interest Payment Period, and
         shall not end on a date other than an Interest Payment Date or extend
         beyond the Maturity Date of the Debentures. Upon the termination of any
         Extended Interest Payment Period and the payment of all Deferred
         Interest then due, the Issuer may commence a new Extended Interest
         Payment Period, subject to the foregoing requirements. No interest
         shall be due and payable during an Extended Interest Payment Period,
         except at the end thereof, but the Issuer may prepay at any time all or
         any portion of the interest accrued during an Extended Interest Payment
         Period.

               Section 15.6  Notice of Extension.

                   (a) If the Property Trustee is the only registered holder of
         the Debentures at the time the Issuer selects an Extended Interest
         Payment Period, the Issuer shall give written notice to the
         Administrative Trustees, the Property Trustee and the Trustee of its
         selection of such Extended Interest Payment Period five Business Days
         before the earlier of (i) the next succeeding date on which
         Distributions on the Trust Securities issued by the Trust are payable
         or (ii) the date the Trust is required to give notice of the record
         date, or the date such Distributions are payable, to any national
         securities exchange or to holders of the Preferred Securities issued by
         the Trust, but in any event at least five Business Days before such
         record date.

                   (b) If the Property Trustee is not the only holder of the
         Debentures at the time the Issuer selects an Extended Interest Payment
         Period, the Issuer shall give the

<PAGE>

         holders of the Debentures and the Trustee written notice of its
         selection of such Extended Interest Payment Period at least ten
         Business Days before the earlier of (i) the next succeeding Interest
         Payment Date or (ii) the date the Issuer is required to give notice of
         the record or payment date of such interest payment to any national
         securities exchange.

                   (c) The semi-annual period in which any notice is given
         pursuant to paragraph (a) or (b) of this Section 15.6 of the Indenture
         shall be counted as one of the ten semi-annual periods permitted in the
         maximum Extended Interest Payment Period permitted under Section 15.5
         of the Indenture.

                                    ARTICLE X

         Section 10.01 Effectiveness. This Supplemental Indenture shall, upon
execution and delivery hereof by all the parties hereto, become effective as of
the date hereof. From and after the effectiveness of this Supplemental
Indenture, the Indenture, as hereby supplemented, amended and modified, shall
remain in full force and effect.

         Section 10.02 Conflicts. If any provision of this Supplemental
Indenture shall conflict with any provision of the Original Indenture, the
provision of this Supplemental Indenture shall be deemed to control.

         Section 10.03 References. Each reference in this Supplemental Indenture
to any Article or Section shall mean and be deemed to refer to such Article or
Section of this Supplemental Indenture unless modified by reference to the
Original Indenture, in which case the reference to such Article or Section shall
be to the Original Indenture or unless modified by reference to the Indenture,
in which case the reference to such Article or Section shall be to the Original
Indenture, as modified by this Supplemental Indenture.

         Section 10.04 Benefit. All the covenants, provisions, stipulations and
agreements contained in this Supplemental Indenture are and shall be for the
sole and exclusive benefit of the parties hereto, their successors and assigns,
and of the holders and registered owners from time to time of the Debentures
issued and outstanding from time to time under the Indenture.

         Section 10.05 Counterparts. This Supplemental Indenture may be executed
in any number of counterparts, each of which shall be deemed an original and all
of which taken together shall be deemed to be a single instrument.

         Section 10.06 Governing Law. This Supplemental Indenture shall be
deemed to be a contract under the laws of the State of New York, and for all
purposes shall be construed in accordance with the laws of such state without
regard to principles of conflicts of laws, except as may otherwise be required
by mandatory provisions of law.

         Section 10.07 Headings. The Article and Section headings herein are for
convenience only and shall not affect the construction hereof.

         IN WITNESS WHEREOF, the said Halliburton Company and JPMorgan Chase
Bank have each caused this Supplemental Indenture to be executed in its
corporate name by the

<PAGE>

officer whose name is subscribed below, thereunto duly authorized, and its
corporate seal to be hereunto affixed and, in the case of Halliburton Company,
attested by its Secretary or Assistant Secretary, all as of the day and year
first above written.

                                                HALLIBURTON COMPANY

                                                By  ____________________
Attest:                                         Name:  Lester L.  Coleman
                                                Title:  Executive Vice President
                                                         and General Counsel

By  _____________________
Name:  John M.  Allen
Title:  Assistant Secretary

                                                JPMORGAN CHASE BANK

                                                By  ____________________
                                                Name:  _________________
                                                Title:  __________________

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