Document:

<PAGE>   1
                                                                    Exhibit 10.1

                        SETTLEMENT AGREEMENT

      THIS SETTLEMENT AGREEMENT ("Agreement"), effective July 26, 2001, is by
and between Nova Biomedical Corporation, a Massachusetts corporation having its
principal place of business in Waltham, Massachusetts ("Nova"), and i-STAT
Corporation, a Delaware corporation having its principal place of business in
East Windsor, New Jersey ("i-STAT").

      WHEREAS:

      (1) Nova is the owner of United States Patent No. 4,686,479 issued August
11, 1987 ("the Patent");

      (2) Nova and i-STAT are currently parties litigant in a certain civil
action pending in the United States District Court for the District of
Massachusetts, entitled Nova Biomedical Corporation v. i-STAT Corporation, Civil
Action No. 95-11396-RGS ("the Lawsuit");

      (3) In the Lawsuit, Nova has alleged that i-STAT is and has been
infringing the Patent;

      (4) In the Lawsuit, i-STAT has denied infringement and has asserted a
counterclaim against Nova alleging that the Patent is invalid and that it has
not been infringed;

      (5) The parties to this Settlement Agreement recognize the uncertainty of
the outcome of disputed, complex litigation like the Lawsuit, and have
independently concluded, with the benefit of advice of counsel, that their
respective self-interests would be best served by compromising and concluding
all disputes currently existing between them, and thereby terminating the
Lawsuit;

      NOW, THEREFORE, the undersigned parties to this Settlement Agreement
herewith mutually agree and contract with each other, for good and reciprocal
consideration given and received, as follows:
<PAGE>   2
      1.    Dismissal of Lawsuit.  Pursuant to Fed. R. Civ. P.
41(a)(1)(ii), Nova and i-STAT will cause their respective counsel to
sign and file with the Court no later than July 27, 2001 a
stipulation of dismissal with prejudice in the form attached hereto
as Exhibit A.

      2.    Exchange of Mutual Releases.

            (a)   Simultaneously with the execution of this
Agreement, Nova will execute and deliver to i-STAT a release in the form
attached as Exhibit B.

            (b) Simultaneously with the execution of this Agreement, i-STAT will
execute and deliver to Nova a release in the form attached as Exhibit C.

      3.    License Agreement.  Simultaneously with the execution of
this Agreement, Nova and i-STAT will execute a Nonexclusive License
Agreement in the form attached hereto as Exhibit D (the "License
Agreement").

      4.    Confidentiality.

            (a) Nova and i-STAT shall continue to be bound by and comply with
the terms of the Stipulated Protective Order previously executed in the Lawsuit;
and

            (b) Simultaneously with the execution of this Agreement, i-STAT and
Nova will issue separate press releases in the forms attached hereto as Exhibit
E.

      5.    Payment.

            (a) No later than July 26, 2001, i-STAT shall pay the sum of Six And
One-Half Million U.S. Dollars ($6,500,000) to Nova by wire transfer pursuant to
the following instructions:

      Bank:

      Credit To:
<PAGE>   3
      ABA No.:
      Swift Code:
      Credit Account No.:

            (b) Simultaneously with the execution of this Agreement, Nova and
i-STAT will execute a Secured Promissory Note in the amount of Three And
One-Half Million U.S. Dollars ($3,500,000) in the form attached hereto as
Exhibit F, and a Security Agreement in the form attached hereto as Exhibit G.

      6.    Assignment.

            (a) The terms of this Agreement shall be binding upon and inure to
the benefit of the parties hereto, their respective successors, heirs, and valid
assigns.

            (b) Except as specifically provided in the Secured Promissory Note
attached hereto as Exhibit F, no party shall assign any of its rights or
obligations hereunder to any third party without first obtaining the written
consent of the other party hereto; provided, however, that in the event of (i)
an assignment in connection with a sale or transfer of all or substantially all
of the business, assets, or operations of the assigning party, or (ii) an
assignment by operation of law as a result of the merger or consolidation of the
assigning party, no such consent shall be required if the assignee shall agree
in writing to be bound by the terms hereof, and, in the case of an assignment by
i-STAT, if i-STAT shall pay Nova within five business days, by wire transfer to
an account designated by Nova, any and all remaining unpaid quarterly
installments provided for in the Secured Promissory Note being executed
simultaneously herewith.

            (c)(i) In the event of the purchase of shares of capital stock of
i-STAT, in a single transaction or in a series of related transactions, that
results in the holding of beneficial interest in at least 51% of the voting
power of the outstanding securities of i-STAT by a single
<PAGE>   4
person or entity or by an affiliated group of persons or entities, i-STAT shall
pay Nova, by wire transfer to an account designated by Nova within five business
days after i-STAT's receipt of notice of such holding of beneficial interest,
any and all remaining unpaid quarterly installments provided for in the Secured
Promissory Note being executed simultaneously herewith.

            (c)(ii) i-STAT shall also prepay the Secured Promissory Note (1) in
full or in part, upon the incurrence of any indebtedness to the extent required
by Paragraph 5.9(ii) of the Security Agreement and (2) upon its sale of capital
stock of i-STAT, in one or more transactions, for an aggregate purchase price
that, when added to the principal amount of indebtedness referenced in Clause
(1) of this subparagraph, exceeds $20 million.

      7. Acknowledgment of Validity. i-STAT acknowledges and agrees that the
Patent, and each of its claims, is valid and enforceable; provided, however,
that no such acknowledgment and agreement shall apply or be deemed to have been
made with respect to any assertion of the Patent by Nova against i-STAT,
including for royalties, regarding any Other New Method (as defined in the
License Agreement).

      8.    Notice.  Notice under this Agreement shall be sent by
overnight or first class mail, return receipt or other proof of
delivery requested, to the following:

      If to Nova:

            Frank C. Manganaro
            President
            Nova Biomedical Corporation
            200 Prospect Street

            Waltham, Massachusetts  02454

                  - and  -

            John J. Regan, Esq.
            Hale and Dorr LLP
            60 State Street
            Boston, Massachusetts  02109
<PAGE>   5
      If to i-STAT:

            William P. Moffitt
            President and Chief Executive Officer
            i-STAT Corporation
            104 Windsor Center Drive
            East Windsor, New Jersey  08520

                  - and -

            Robert L. Sherman, Esq.
            Paul, Hastings, Walker & Janofsky LLP
            75 E. 55th Street
            New York, New York  10022

      9.    Governing Law.  This Agreement shall be interpreted in
accordance with and governed by the law of the Commonwealth of
Massachusetts.

      10. Enforcement of Agreement. Nova and i-STAT agree that the United States
District Court for the District of Massachusetts shall be the proper and
exclusive forum for any action to collect payment of the amounts contained in
paragraph 5 of this Settlement Agreement and paragraph 5(a) of the License
Agreement, as well as for any action to enforce the final decision of any
arbitration brought in accordance with Paragraph 11 of this Settlement Agreement
with respect to this Agreement, the License Agreement, the Secured Promissory
Note attached as Exhibit F hereto, and the Security Agreement attached as
Exhibit G hereto (collectively, the "Settlement Documents"). Each party agrees
to remain subject to the personal jurisdiction of that Court for such purposes.
If, for some reason, that federal court is found to lack jurisdiction, then the
state courts of the Commonwealth of Massachusetts, Suffolk County, shall be the
proper and exclusive forum for any action brought pursuant to this paragraph,
and the parties agree to be subject to the personal jurisdiction of that state
court for such purposes.
<PAGE>   6
The prevailing party in any action brought to collect payment under the
Settlement Documents shall be entitled to recover its costs, including
reasonable attorneys' fees, from the other party.

      11. Alternative Dispute Resolution. Nova and i-STAT agree that all future
disputes, claims, questions, or disagreements between them regarding the Patent
or the Settlement Documents, other than any action of the type set forth in
Paragraph 10 above, shall be resolved in the following manner. First, the party
that believes that it is aggrieved shall put in writing to the other party the
substance of its grievance within thirty (30) days of discovery thereof. Then,
the parties shall use their best efforts to settle the dispute, claim, question,
or disagreement. To this end, the parties shall consult and negotiate with each
other in good faith and, recognizing their mutual interest, attempt to reach a
just and equitable solution satisfactory to both parties. If the parties do not
reach such a solution within a period of thirty (30) days from the time of
receipt of the grievance letter, then, upon notice of either party to the other
within thirty (30) days thereafter, all disputes, claims, questions, or
differences shall be finally settled by arbitration administered by the American
Arbitration Association in accordance with the provisions of its Commercial
Arbitration Rules, or such other body or arbitrator(s) as the parties agree
upon. In the event that any party's claim exceeds $1,000,000, exclusive of
interest, it shall have the right to have the dispute heard and determined by
three arbitrators. The award of the arbitrator(s) shall be accompanied by a
reasoned opinion. Nova and i-STAT also agree to use their best efforts to settle
any other dispute or disagreement (not related to the Patent) by first providing
written notice of any such dispute or disagreement and then consulting and
negotiating in good faith for not less than thirty (30) business days before
commencing any legal action.

      12.   Miscellaneous.
<PAGE>   7
            (a) This Agreement is entered into by the parties hereto for the
purposes of settling and compromising the Lawsuit. Other than the qualified
acknowledgment set forth in paragraph 7, neither the fact of a party's entry
into this Agreement nor the terms hereof constitute an admission by either party
hereto of liability or of the validity of any claim, argument, or defense
asserted or that could have been asserted by the other party in the Lawsuit.

            (b) This Agreement represents the entire agreement between Nova and
i-STAT with respect to the subject matter of this Agreement and supersedes all
prior agreements, proposals, or understandings, whether written or oral, between
Nova and i-STAT with respect to that subject matter.

            (c) Nova and i-STAT each represents to the other that it is duly
existing; that it has the full power and authority to enter into this Agreement;
that there are no other persons whose consent to this Agreement or whose joinder
herein is necessary to make effective the provisions of this Agreement; that
this Agreement does not and will not interfere with any other agreement to which
it is party; and that it will not enter into any agreement the execution and/or
performance of which would violate or interfere with this Agreement.

            (d) No modification or amendment to this Agreement will be valid or
binding except if stated in writing and executed by duly authorized
representatives of Nova and i-STAT.

            (e) No waiver of, failure of a party to object to, or failure of a
party to take affirmative action with respect to any default, term, or condition
of this Agreement, or any breach thereof, shall be deemed to imply or constitute
a waiver of any other like default, term, or condition of this Agreement or
subsequent breach thereof.
<PAGE>   8
            (f) If one or more provisions of this Agreement are ruled wholly or
partly invalid or unenforceable by a court, arbitrator, or governmental body of
competent jurisdiction, then the validity and enforceability of all other
provisions of this Agreement shall be unaffected.

            (g) Each party represents that it has had the opportunity to be
represented by counsel of its own choice in negotiating this Agreement. This
Agreement shall therefore be deemed to have been negotiated and prepared at the
joint request, direction, and instruction of each of the parties, at arm's
length, with the advice and participation of counsel, and will be interpreted in
accordance with its terms without favor to either party.

            (h) This Agreement may be signed in counterparts, each of which
shall be deemed an original hereof, but all of which together shall constitute
one and the same instrument.

            (i) This Agreement shall be effective when executed by the duly
authorized representatives of Nova and i-STAT.

      IN WITNESS WHEREOF, each party has caused two original copies
of this Agreement to be executed on its behalf by its duly
authorized officer as of the day and year aforesaid.

NOVA BIOMEDICAL CORPORATION               i-STAT CORPORATION

By:                                       By:
   ---------------------------               -----------------------------------
      John Wallace                           William P. Moffitt
      Chief Operating Officer                   President and CEO

Date:                                           Date:
      ------------------------                        --------------------------
<PAGE>   9
                                    EXHIBIT A
                          UNITED STATES DISTRICT COURT

                            DISTRICT OF MASSACHUSETTS

------------------------------------
                                    )
NOVA BIOMEDICAL CORPORATION,        )
                                    )
                   Plaintiff,       )        Civil Action No. 95-11396-RGS
                                    )
             v.                     )
                                    )
i-STAT CORPORATION,                 )
                                    )
                   Defendant.       )
------------------------------------)

                            STIPULATION OF DISMISSAL

         Pursuant to Federal Rule of Civil Procedure 41(a)(1)(ii), the
plaintiff, Nova Biomedical Corporation, and the defendant, i-STAT Corporation,
hereby stipulate that, having reached a settlement of their disputes, all claims
and counterclaims in this action shall be, and hereby are, dismissed with
prejudice, without right of appeal, and without costs to either party. Each
party shall bear its own attorneys' fees and experts' fees.

NOVA BIOMEDICAL CORPORATION                i-STAT CORPORATION

By its attorneys,                          By its attorneys,

---------------------------------          ------------------------------
John J. Regan (BBO # 415120)               Robert L. Sherman (pro hac vice)
Hale and Dorr LLP                          Paul, Hastings, Walker & Janofsky LLP
60 State Street                            399 Park Avenue
Boston, Massachusetts  02109               New York, New York 10022
(617) 526-6000                             (212) 318-6000

Dated: July __, 2001
<PAGE>   10
                                    EXHIBIT B

                                     RELEASE

         Nova Biomedical Corporation, a Massachusetts corporation having its
principal place of business in Waltham, Massachusetts, for and in consideration
of the settlement of Nova Biomedical Corporation v. i-STAT Corporation, Civil
Action No. 95-11396-RGS (U.S.D.C., D. Mass.), the payment of $6,500,000, the
receipt of a promissory note in the amount of $3,500,000, and other good and
valuable consideration, the receipt of which is acknowledged, hereby remises,
releases, waives, acquits, and forever discharges, and covenants not to sue, for
itself, its parent, subsidiary, and divisional entities, past and present, and
their successors, predecessors, and assigns (collectively, the "Releasing
Party"), i-STAT Corporation, a Delaware corporation having its principal place
of business in East Windsor, New Jersey, and its parent, subsidiary, and
divisional entities, and their officers, directors, stockholders, agents,
employees, successors, assigns, attorneys, suppliers, distributors, and
customers, and the heirs, executors, and administrators of any such released
individuals (collectively, the "Released Party"), all debts, demands, claims,
actions, causes of action, suits, dues, sums of money, accounts, reckonings,
bonds, covenants, contracts, controversies, agreements, promises, judgments,
omissions, variances, damages, executions, and liabilities, both in law and in
equity, federal and state, which did arise or could have arisen out of the
allegations made by, or which could have been made by, any party in a certain
civil action in the United States District Court for the District of
Massachusetts entitled Nova Biomedical Corporation v. i-STAT Corporation, Civil
Action No. 95-11396-RGS, including any claims for infringement of U.S. Patent
No. 4,686,479 and any continuation, continuation-in-part, division, reissue,
certificate of reexamination, or foreign equivalent thereto, which the Releasing
Party now has or ever had, from the beginning of the
<PAGE>   11
world to the date hereof, against the Released Party, except for any royalty
payments that may be due under the Nonexclusive License Agreement effective July
26, 2001 between Nova Biomedical Corporation and i-STAT Corporation.

         The undersigned represents and warrants that it has been represented at
all times by counsel of its own choice, that it has had the opportunity to read
and discuss this Release with its legal counsel, that it has voluntarily signed
and entered into this Release, without coercion or duress, that it has full
corporate power and authority to execute this Release on its own behalf, and
that it has not relied upon any representations of the Released Party in
connection with this Release.

         It is understood and agreed that this Release, any consideration given
or accepted in connection with it, and the covenants made in it, are all made,
given, and accepted in settlement and compromise of disputed claims.

         This Release and all claims arising therefrom shall be governed by the
laws of the Commonwealth of Massachusetts.

         This Release is and shall be deemed jointly drafted and written by all
parties to it, and shall not be construed or interpreted against the party
originating or preparing it.
<PAGE>   12
         IN WITNESS WHEREOF, Nova Biomedical Corporation has hereunto set its
hand and seal effective this 26th day of July, 2001, by its duly authorized
representative.
                                            NOVA BIOMEDICAL CORPORATION
Signed and Sealed
In the Presence of:

_____________________________               By: ________________________________
                                                John Wallace
                                                Chief Operating Officer
<PAGE>   13
                                    EXHIBIT C

                                     RELEASE

         i-STAT Corporation, a Delaware corporation having its principal place
of business in East Windsor, New Jersey, for and in consideration of the
settlement of Nova Biomedical Corporation v. i-STAT Corporation, Civil Action
No. 95-11396-RGS (U.S.D.C., D. Mass.), and other good and valuable
consideration, the receipt of which is acknowledged, hereby remises, releases,
waives, acquits, and forever discharges, and covenants not to sue, for itself,
its parent, subsidiary, and divisional entities, past and present, and their
successors, predecessors, and assigns (collectively, the "Releasing Party"),
Nova Biomedical Corporation, a Massachusetts corporation having its principal
place of business in Waltham, Massachusetts, and its parent, subsidiary, and
divisional entities, and their officers, directors, stockholders, agents,
employees, successors, assigns, attorneys, suppliers, distributors, and
customers, and the heirs, executors, and administrators of any such released
individuals (collectively, the "Released Party"), all debts, demands, claims,
actions, causes of action, suits, dues, sums of money, accounts, reckonings,
bonds, covenants, contracts, controversies, agreements, promises, judgments,
omissions, variances, damages, executions, and liabilities, both in law and in
equity, federal and state, which did arise or could have arisen out of the
allegations made by, or which could have been made by, any party in a certain
civil action in the United States District Court for the District of
Massachusetts entitled Nova Biomedical Corporation v. i-STAT Corporation, Civil
Action No. 95-11396-RGS, including any claims for a declaratory judgment of
invalidity or unenforceability of U.S. Patent No. 4,686,479 and any
continuation, continuation-in-part, division, reissue, certificate of
reexamination, or foreign equivalent thereto, which the Releasing
<PAGE>   14
Party now has or ever had, from the beginning of the world to the date hereof,
against the Released Party.

         The undersigned represents and warrants that it has been represented at
all times by counsel of its own choice, that it has had the opportunity to read
and discuss this Release with its legal counsel, that it has voluntarily signed
and entered into this Release, without coercion or duress, that it has full
corporate power and authority to execute this Release on its own behalf, and
that it has not relied upon any representations of the Released Party in
connection with this Release.

         It is understood and agreed that this Release, any consideration given
or accepted in connection with it, and the covenants made in it, are all made,
given, and accepted in settlement and compromise of disputed claims.

         This Release and all claims arising therefrom shall be governed by the
laws of the Commonwealth of Massachusetts.

         This Release is and shall be deemed jointly drafted and written by all
parties to it, and shall not be construed or interpreted against the party
originating or preparing it.

         IN WITNESS WHEREOF, i-STAT Corporation has hereunto set its hand and
seal effective this 26th day of July, 2001, by its duly authorized
representative.

Signed and Sealed                           i-STAT CORPORATION
In the Presence of:

_____________________________               By: ________________________________
<PAGE>   15
                                    EXHIBIT D

                         NONEXCLUSIVE LICENSE AGREEMENT

         THIS NONEXCLUSIVE LICENSE AGREEMENT ("Agreement"), effective July 26,
2001, is by and between Nova Biomedical Corporation, a Massachusetts corporation
having its principal place of business in Waltham, Massachusetts ("Nova"), and
i-STAT Corporation, a Delaware corporation having its principal place of
business in East Windsor, New Jersey ("i-STAT").

         WHEREAS, Nova represents and warrants that it is the owner of the
entire right, title, and interest in and to United States Patent No. 4,686,479
issued August 11, 1987 on U.S. Application Serial No. 757,573 and any foreign
equivalents thereof (collectively, the "Patent");

         WHEREAS, i-STAT desires to obtain a license to practice the inventions
claimed in the Patent, and Nova desires to grant such a license to i-STAT;

         NOW, THEREFORE, for good and valuable consideration - including the
mutual covenants, rights, and obligations set forth herein and in the Settlement
Agreement of even date by and between Nova and i-STAT - Nova and i-STAT hereby
covenant and agree as follows:

         1. Definitions. For purposes of this Agreement, the following words and
phrases shall have the following meanings:

                  (a) "Designated Account" shall mean:

         Bank:

         Credit To:
         ABA No.:
         Swift Code:

<PAGE>   16
         Credit Account No.:  9373878095

                  (b) "Invoice Price" shall mean i-STAT's invoiced sale price of
products using the Licensed Method.

                  (c) "Licensed Products" shall mean:

                           (i) any analyzer made, used, sold, offered for sale,
or imported by i-STAT with an algorithm or software to determine hematocrit
using the Licensed Methods, including, but not limited to, the "i-STAT(R)
System," the "i-STAT(R) Portable Clinical Analyzer," or the "i-STAT 1"; and

                           (ii) any cartridge made, sold, offered for sale, or
imported by i-STAT that is used with any of the analyzers described in
subparagraph (i) of this paragraph (c) in determining hematocrit using the
Licensed Methods.

                  (d) "Licensed Methods" shall mean:

                           (i) any method that i-STAT has used for determining
hematocrit in its commercially-available analyzers from the issuance of the
Patent through and including December 31, 2000, including, but not limited to,
any method for determining hematocrit used in the "i-STAT(R) System," the
"i-STAT(R) Portable Clinical Analyzer," or the "i-STAT 1"; and

                           (ii) any method for determining hematocrit claimed in
the Patent.

                  (e) "New Methods" shall mean the methods for determining
hematocrit described in Exhibit 1 hereto.

                  (f) "New Products" shall mean:

                           (i) any analyzer made, used, sold, offered for sale,
or imported by i-STAT with an algorithm or software to determine hematocrit
using the New Methods; and
<PAGE>   17
                           (ii) any cartridge made, sold, offered for sale, or
imported by i-STAT that is used with any of the analyzers described in
subparagraph (i) of this paragraph (f) in determining hematocrit using the New
Methods.

                  (g) "Other New Method" shall mean any method for determining
hematocrit other than the Licensed Methods or New Methods.

                  (h) "Patent" shall mean United States Patent No. 4,686,479 and
any foreign equivalent, continuation, continuation-in-part, division, reissue,
or certificate of reexamination thereto.

                  (i) "Payment Period" means the period commencing on January 1,
2001 and ending on the next March 31, June 30, September 30, or December 31,
whichever occurs first, and then each three (3) month period thereafter.

         2.       Grant and Term.

                  (a) Nova hereby grants to i-STAT a worldwide, non-exclusive,
non-transferable license under the Patent to make or have made Licensed
Products, to use, sell, offer for sale, and import Licensed Products made by or
for i-STAT, and to practice Licensed Methods with Licensed Products made by or
for i-STAT.

                  (b) The license granted hereunder shall be effective as of the
date of issuance of the Patent and shall extend until the expiration of the
Patent.

         3.       Covenant Not To Sue.

                  (a) In exchange for the royalty payments described in
Paragraph 5(a) and for other good and valuable consideration, Nova hereby
covenants and agrees that it will not bring suit against i-STAT for infringement
of the Patent on account of the manufacture of Licensed Products, the use, sale,
offer for sale, or importation of Licensed Products made by i-STAT, or
<PAGE>   18
the practice of Licensed Methods using Licensed Products made by i-STAT. Nova
further covenants and agrees that it will not bring suit for infringement of the
Patent against any present, former, or future direct or indirect suppliers,
customers, or distributors of i-STAT on account of the use, sale, offer for
sale, or importation of Licensed Products made by i-STAT or the practice of
Licensed Methods using Licensed Products made by i-STAT.

                  (b) Nova hereby covenants and agrees that it will not bring
suit against i-STAT for infringement of the Patent on account of the manufacture
of New Products, the use, sale, offer for sale, or importation of New Products
made by i-STAT, or the practice of New Methods using New Products made by
i-STAT. Nova further covenants and agrees that it will not bring suit for
infringement of the Patent against any present, former, or future direct or
indirect suppliers, customers, or distributors of i-STAT on account of the use,
sale, offer for sale, or importation of New Products made by i-STAT or the
practice of New Methods using New Products made by i-STAT.

         4.       Other New Method

         i-STAT may develop an Other New Method in the future. So as to enable
the parties to consummate this Agreement, Nova and i-STAT agree to the
following:

                  (a) At the time that i-STAT makes a payment under Paragraph
5(a) for a Payment Period ending September 30, 2001 and thereafter in which it
markets, sells, offers for sale, or otherwise distributes an Other New Method,
i-STAT will provide Nova with documents sufficient to enable Nova to analyze the
function and design of the Other New Method, including at least the following,
but excluding information that pertains to the performance characteristics of
the Other New Method: (i) the source code for the Other New Method, but
excluding the actual numeric values of calculation parameters; (ii) the user or
operator manual (or the most
<PAGE>   19
complete available drafts thereof) for the Other New Method or for the analyzer
using the Other New Method; (iii) the algorithm for the determination of
hematocrit in the Other New Method, but excluding the actual numeric values of
calculation parameters; and (iv) all submissions made by i-STAT to the U.S. Food
and Drug Administration concerning the Other New Method, with information
pertaining to the performance of the Other New Method redacted. The parties
agree that the documents produced hereunder are highly confidential, and Nova
will treat all such documents in the manner required by the terms of the
Stipulated Protective Order previously executed in the Lawsuit. As part of the
Stipulated Protective Order, Nova agrees that under no circumstances will the
information provided by i-STAT under this paragraph (i) be made available to any
former, present, or future direct or indirect sales agent, customer, and/or
distributor of Nova; or (ii) be used in any communication, written or oral, with
the U.S. Food and Drug Administration or any foreign regulatory representative.

                  (b) If Nova believes, after reviewing the documents provided
by i-STAT pursuant to Paragraph 4(a) above, that the Other New Method infringes
the Patent, then, as Nova's exclusive remedy against i-STAT under the Patent,
Nova may initiate the alternative dispute resolution procedures set forth in
Paragraph 11 of the Settlement Agreement being executed contemporaneously
herewith. If, after any arbitration, the arbitrator(s) determines that the
method challenged by Nova infringes the Patent, then that method shall be
considered one of the Licensed Methods, and the requirements of Paragraph 5
below, including the payment of royalties, shall apply to:

                           (i) any analyzer made, used, sold, offered for sale,
or imported by i-STAT with an algorithm or software to determine hematocrit
using that method; and

                           (ii) any cartridge made, sold, offered for sale, or
imported by i-STAT that is
<PAGE>   20
used with any of the analyzers described in subparagraph (i) of this paragraph
(b) in determining hematocrit using that method.

         In any arbitration pursuant to Paragraph 11 of the Settlement Agreement
being executed contemporaneously herewith, no inference will be drawn in favor
of or against either party by virtue of the inclusion of the New Methods in this
License Agreement.

         5.       Royalty Payment and Audit Rights.

                  (a) In exchange for the license granted under Paragraph 2(a),
i-STAT agrees to pay Nova a royalty for each and every Licensed Product sold in
the United States by or on behalf of i-STAT for the period from January 1, 2001
through the expiration of the Patent or such time as the Patent may be
judicially declared invalid, whichever comes first. Such royalty for Licensed
Products shall be equal to the amount that is 4% of the Invoice Price for such
Licensed Products. Within forty-five days (45) after the end of each Payment
Period, i-STAT shall:

                                    (i) deliver to Nova a written report
         describing, for the applicable Payment Period: the number and full
         description of each Licensed Product sold by or on behalf of i-STAT
         during the Payment Period; the Invoice Price for each Licensed Product;
         and the total royalty due under this paragraph; and

                                    (ii) pay to Nova, by wire transfer to the
         Designated Account, the total royalty due for the Payment Period under
         this paragraph. Notwithstanding anything in this agreement to the
         contrary, with respect to the Payment Period commencing January 1, 2001
         and ending March 31, 2001, i-STAT's duties pursuant to (i) and (ii) of
         this paragraph shall be performed no later than August 15, 2001.
<PAGE>   21
                  (b) Upon reasonable notice to i-STAT, and not more than twice
per calendar year during normal business hours, Nova may have a representative
of its outside auditing firm inspect the books and records of i-STAT relating to
the manufacture and sale of Licensed Products and i-STAT's payment of royalties
thereon.

 Such auditor shall be given access to i-STAT's books and records only after
agreeing in writing to be bound by the Stipulated Protective Order previously
executed in the Lawsuit.

                  (c) Notwithstanding anything in this Agreement to the
contrary, i-STAT shall have no obligation to pay Nova any royalty in connection
with the manufacture and sale by or on behalf of i-STAT of New Products.

         6. Representation and Warranty of Nova. Nova represents and warrants
that it has the right to grant the license granted herein.

         7. Marking. i-STAT agrees that any and all Licensed Products made,
sold, or offered for sale or imported into the United States by or on behalf of
i-STAT will be marked to the extent required by the provisions of 35
U.S.C.Section 287.

         8. Assignment.

                  (a) The terms of this Agreement shall be binding upon and
inure to the benefit of the parties hereto, their respective successors, heirs,
and valid assigns.

                  (b) No party shall assign any of its rights or obligations
hereunder to any third party without first obtaining the written consent of the
other party hereto; provided, however, that in the event of (i) an assignment in
connection with a sale or transfer of all or substantially all of the business,
assets, or operations of the assigning party, or (ii) an assignment by operation
of law as a result of the merger or consolidation of the assigning party, no
such consent shall be required if the assignee shall agree in writing to be
bound by the terms hereof.
<PAGE>   22
         9. Notice. Notice under this Agreement shall be sent by overnight or
first class mail, return receipt or other proof of delivery requested, to the
following:

         If to Nova:

                  Frank C. Manganaro
                  President
                  Nova Biomedical Corporation
                  200 Prospect Street
                  Waltham, Massachusetts  02454

                           - and  -

                  John J. Regan, Esq.
                  Hale and Dorr LLP
                  60 State Street
                  Boston, Massachusetts  02109

         If to i-STAT:

                  William P. Moffitt
                  President and Chief Executive Officer
                  i-STAT Corporation
                  104 Windsor Center Drive
                  East Windsor, New Jersey  08520

                           - and -

                  Robert L. Sherman, Esq.
                  Paul, Hastings, Walker & Janofsky LLP
                  75 E. 55th Street
                  New York, New York  10022

         10. Governing Law. This Agreement shall be interpreted in accordance
with and governed by the law of the Commonwealth of Massachusetts.

         11. Enforcement of Agreement. Nova and i-STAT agree that the United
States District Court for the District of Massachusetts shall be the proper and
exclusive forum for any action to enforce any final decision of an arbitrator
brought with respect to this Agreement and any action to collect payments under
paragraph 5(a) of this Agreement. Each party agrees to
<PAGE>   23
remain subject to the personal jurisdiction of that Court for such purposes. If,
for some reason, that federal court is found to lack jurisdiction, then the
state courts of the Commonwealth of Massachusetts, Suffolk County, shall be the
proper and exclusive forum for any action to enforce this Agreement, and the
parties agree to be subject to the personal jurisdiction of that state court for
such purposes. The prevailing party in any action brought to collect payment
under this Agreement shall be entitled to recover its costs, including
reasonable attorneys' fees, from the other party.

         12.      Miscellaneous.

                  (a) This Agreement represents the entire agreement between
Nova and i-STAT with respect to the subject matter of this Agreement and
supersedes all prior agreements, proposals, or understandings, whether written
or oral, between Nova and i-STAT with respect to that subject matter.

                  (b) Nova and i-STAT each represents to the other that it is
duly existing; that it has the full power and authority to enter into this
Agreement; that there are no other persons whose consent to this Agreement or
whose joinder herein is necessary to make effective the provisions of this
Agreement; that this Agreement does not and will not interfere with any other
agreement to which it is party and that it will not enter into any agreement the
execution and/or performance of which would violate or interfere with this
Agreement.

                  (c) No modification or amendment to this Agreement will be
valid or binding except by written agreement executed by duly authorized
representatives of Nova and i-STAT.

                  (d) No waiver of, failure of a party to object to, or failure
of a party to take affirmative action with respect to any default, term, or
condition of this Agreement, or any
<PAGE>   24
breach thereof, shall be deemed to imply or constitute a waiver of any other
like default, term, or condition of this Agreement or subsequent breach thereof.

                  (e) If one or more provisions of this Agreement are ruled
wholly or partly invalid or unenforceable by a court, arbitrator, or
governmental body of competent jurisdiction, then the validity and
enforceability of all other provisions of this Agreement shall be unaffected.

                  (f) Each party represents that it has had the opportunity to
be represented by counsel of its own choice in negotiating this Agreement. This
Agreement shall therefore be deemed to have been negotiated and prepared at the
joint request, direction, and instruction of each of the parties, at arms
length, with the advice and participation of counsel, and will be interpreted in
accordance with its terms without favor to either party.

                  (g) This Agreement may be signed in counterparts, each of
which shall be deemed an original hereof, but all of which together shall
constitute one and the same instrument.

                  (h) This Agreement shall be effective when executed by the
duly authorized representatives of Nova and i-STAT.

         IN WITNESS WHEREOF, each party has caused two original copies of this
Agreement to be executed on its behalf by its duly authorized officer effective
as of the day and year aforesaid.

NOVA BIOMEDICAL CORPORATION                 i-STAT CORPORATION

By:                                         By:
     ---------------------------------             -----------------------------
     John Wallace                                  William P. Moffitt
     Chief Operating Officer                       President and CEO

Date: _________________________________ Date: _________________________________
<PAGE>   25
                                    EXHIBIT E

                             (Intentionally Omitted)
<PAGE>   26
                                    EXHIBIT F

                             SECURED PROMISSORY NOTE

                                                                   July 26, 2001

$3,500,000

                                                          Waltham, Massachusetts

         FOR VALUE RECEIVED, i-STAT Corporation (the "Maker") promises to pay to
Nova Biomedical Corporation ("Nova"), or order, at the offices of 200 Prospect
Street, Waltham, Massachusetts 02454, or at such other place as the holder of
this Note may designate in writing, the principal sum of Three Million Five
Hundred Thousand Dollars ($3,500,000), together with interest on the unpaid
principal balance of this Note from time to time outstanding at the per annum
rate reported in The Wall Street Journal on the tenth (10th) day of each month
on which a Payment Date occurs (or if The Wall Street Journal is not published
on such day, the next succeeding day on which it is published) as the one month
London Interbank Offered Rate ("LIBOR Rate") plus 3.25% until paid in full. The
interest rate on this Note shall change when and as there is any change in the
LIBOR Rate. The yearly rate of interest to which the interest rate payable
hereunder and calculated by reference to the LIBOR Rate is equivalent is such
interest rate multiplied by the actual number of days in the year for which the
calculation is made (365 or 366) and divided by 360.

         Principal shall be paid in four (4) equal quarterly installments of
Eight Hundred Seventy-Five Thousand Dollars ($875,000) on the 14th day of each
September, December, March, and June (each, a "Payment Date"), beginning on
September 14, 2001 and ending on June 14, 2002 (the "Maturity Date"). Accrued
interest shall be paid on each Payment Date and on the Maturity Date. This Note
is also immediately payable in full, together with all interest accrued hereon,
as provided in paragraph 6(b) of that certain Settlement Agreement, of even date
herewith, between the Maker and Nova (as amended, supplemented or otherwise
modified from time to time, the "Settlement Agreement").

         Interest on this Note shall be computed on the basis of a year of 360
days for the actual number of days elapsed. All payments by the Maker under this
Note shall be in immediately available funds.

         Payment of this Note is secured by a security interest in certain
property of the Maker pursuant to a Security Agreement dated July 26, 2001 (the
"US Security Agreement") and a guaranty by and a security interest in certain
property of i-STAT Canada Limited pursuant to a Guarantee and a Security
Agreement, each of even date herewith (and, together with the US Security
Agreement, the "Security Documents").

         This Note shall become immediately due and payable without notice or
demand upon the occurrence at any time of any of the following events of default
(individually, an "Event of Default" and collectively, "Events of Default"):

         (1) default in the payment or performance of any term hereunder,
including the payment when due of any principal or interest under this Note, and
the continuance of such default for one (1) business day; or

         (2) the occurrence of any Default (as defined in any of the Security
Documents); or

         (3) the liquidation, termination of existence or dissolution of the
Maker, or the appointment of a receiver or custodian for the Maker or any part
of its property; or
<PAGE>   27
         (4) the institution by or against the Maker or any endorser or
guarantor of this Note of any proceedings under the United States Bankruptcy
Code or any other federal or state bankruptcy, reorganization, receivership,
insolvency, or other similar law affecting the rights of creditors generally or
the making by the Maker or any endorser or guarantor of this Note of a
composition or an assignment or trust mortgage for the benefit of creditors.

         Upon the occurrence of an Event of Default, the holder shall have then,
or at any time thereafter, all of the rights and remedies afforded by the
Uniform Commercial Code as from time to time in effect in the Commonwealth of
Massachusetts or afforded by other applicable law.

         Every amount overdue under this Note shall bear interest from and after
the date on which such amount first became overdue at an annual rate of interest
of four percent (4%) in excess of the rate otherwise applicable to this Note.
Such interest on overdue amounts under this Note shall be payable on demand and
shall accrue until the obligation of the Maker with respect to the payment of
such interest has been discharged (whether before or after judgment).

         In no event shall any interest charged, collected, or reserved under
this Note exceed the maximum rate then permitted by applicable law and if any
such payment is paid by the Maker, then such excess sum shall be credited by the
holder as a payment of principal.

         All payments by the Maker under this Note shall be made without
set-off, defense, or counterclaim. All payments by the Maker under this Note
shall be free and clear and without any deduction or withholding for any taxes
or fees of any nature whatever, unless the obligation to make such deduction or
withholding is imposed by law.

         This Note, together with all rights under the Security Documents, may
be assigned at any time by the holder and the Maker shall take all actions
necessary to confirm in the successor holder all rights and remedies under the
Security Documents.

         Whenever any amount is paid under this Note, all or part of the amount
paid may be applied to principal, or interest in such order and manner as shall
be determined by the holder in its sole discretion.

         No reference in this Note to the Security Documents, the Settlement
Agreement, or any guaranty shall impair the obligation of the Maker, which is
absolute and unconditional, to pay all amounts under this Note strictly in
accordance with the terms of this Note.

         The Maker agrees to pay on demand all reasonable costs of collection,
including reasonable attorneys' fees, incurred by the holder in enforcing the
obligations of the Maker under this Note.

         No delay or omission on the part of the holder in exercising any right
under this Note or the Security Documents shall operate as a waiver of such
right or of any other right of such holder, nor shall any delay, omission, or
waiver on any one occasion be deemed a bar to or waiver of the same or any other
right on any future occasion. The Maker and every endorser or guarantor,
regardless of the time, order, or place of signing waives presentment, demand,
protest, and notices of every kind. Every endorser or guarantor assents to any
extension or postponement
<PAGE>   28
of the time of payment or any other indulgence, to any substitution, exchange,
or release of collateral, and to the addition or release of any other party or
person primarily or secondarily liable.

         This Note may be prepaid in whole or in part at any time or from time
to time. Any such prepayment shall be without premium or penalty.

         None of the terms or provisions of this Note may be excluded, modified,
or amended except by a written instrument duly executed on behalf of the holder
and the Maker expressly referring to this Note and setting forth the provision
so excluded, modified, or amended.

         All rights and obligations hereunder shall be governed by the laws of
the Commonwealth of Massachusetts and this Note is executed as an instrument
under seal.

ATTEST:                                      i-STAT CORPORATION

By:  _______________________                 By:  __________________________
     Name:                                        Name:
                                                  Title:
<PAGE>   29
                                    EXHIBIT G

                               SECURITY AGREEMENT

         This Security Agreement (this "Agreement") is made as of this 26th day
of July, 2001 by and between i-STAT Corporation, a Delaware corporation having
its principal place of business at 104 Windsor Center Drive, East Windsor, New
Jersey 08520 (the "Debtor"), and Nova Biomedical Corporation, a Massachusetts
corporation, having its principal place of business at 200 Prospect Street,
Waltham, Massachusetts 02454 (the "Secured Party").

         1. SECURITY INTEREST. The Debtor, for valuable consideration, receipt
of which is acknowledged, hereby grants to the Secured Party, a security
interest in Debtor's now owned or hereafter acquired:

         (a)      accounts and accounts receivable, including, but not limited
                  to, all accounts as defined in Section 9-102(a)(2) of the
                  Uniform Commercial Code as enacted in the Commonwealth of
                  Massachusetts, whether or not adopted by any other relevant
                  jurisdiction, all rights of the Debtor to payment for goods
                  sold or leased or for services rendered; all obligations owing
                  to the Debtor evidenced by an instrument or chattel paper
                  arising from the sale or lease of goods or the rendering of
                  services; all rights of the Debtor to payment under a contract
                  not yet earned by performance; all other obligations owing to
                  the Debtor of any kind or nature arising from the sale or
                  lease of goods or the rendering of services, including all
                  writings, if any, evidencing the same; and any and all
                  proceeds of any of the foregoing (collectively the "Accounts
                  Receivable"); and
<PAGE>   30
         (b)      all records and computer programs and contracts with third
                  party service providers in any manner relating to the billing
                  and collection of the Accounts Receivable; and

         (c)      all inventory, including, but not limited to, all supplies,
                  raw materials, work in process, finished goods and merchandise
                  (collectively, the "Inventory"); and

         (d)      all other personal property of the Debtor, including, without
                  limitation, all goods (including all equipment and accessories
                  thereto), deposit accounts, letter of credit rights, security
                  and all other investment properties, supporting obligations,
                  general intangibles (including payment intangibles); and

all products and proceeds of the above, including insurance proceeds
(collectively, the "Collateral"). Notwithstanding the foregoing, Collateral
shall not include (i) any patents, patent applications, trademarks, trademark
applications, copyrights, copyright applications, software, engineering
drawings, service marks, trade secrets, and or other intellectual property
(collectively, the "Intellectual Property") or (ii) any contracts, licenses,
permits or agreements (a) pursuant to which the Debtor possesses, uses or has
the authority to possess or use the Intellectual Property of others or (b) if
the granting of a security interest therein would violate any enforceable
provision of such contract, license, permit or agreement, but Collateral shall,
in each case, include any and all rights to payment under all such contracts,
licenses, permits and agreements, including all Accounts Receivable and payment
intangibles, and all proceeds thereof.

         2. OBLIGATIONS SECURED. The security interest granted hereby secures
payment and performance of all debts, loans and liabilities hereunder and all
other debts and liabilities of Debtor to the Secured Party of every kind and
description, whether now existing or
<PAGE>   31
hereafter arising in connection with that certain Secured Promissory Note dated
of even date herewith by the Debtor in favor of the Secured Party (the "Note"),
including, without limitation, all interest, fees, charges and expenses
(collectively, the "Obligations").

         3. SEPARATE ASSIGNMENTS. Debtor agrees to execute and deliver
assignments and such other documents and instruments as the Secured Party may
reasonably request with respect hereto.

         4. DEBTOR'S REPRESENTATIONS AND WARRANTIES. Debtor represents and
warrants that:

         4.1 Incorporation. Debtor is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and is
duly qualified and in good standing in all states where the failure to so
qualify would have a material adverse effect on its business or properties;
Debtor has the corporate power to own its property and conduct its business as
presently conducted.

         4.2 Authorization. The execution, delivery and performance hereof are
within the Debtor's corporate powers, have been duly authorized by a resolution
(a copy of which is delivered herewith) are not in contravention of law nor of
the terms of Debtor's articles of organization, charter, or other incorporation
papers or by-laws, nor of any indenture, agreement or undertaking to which the
Debtor is a party or by which it is bound.

         4.3 Records. All incorporation papers and all amendments thereto of
Debtor have been duly filed and are in proper order. All books, records and
reports of Debtor, including but not limited to its minute books, by-laws,
certificates of condition and books of account, are accurate and up to date and
will be so maintained.
<PAGE>   32
         4.4 Litigation. No litigation is either threatened, contemplated or
pending to Debtor's knowledge, that could reasonably be expected to materially
and adversely affect Debtor's financial condition except as disclosed to the
Secured Party in writing.

         4.5 Places of Business; Inventory; Equipment. Debtor's only place of
business is as follows: 104 Windsor Center Drive, East Windsor, New Jersey
08520. All Inventory of the Debtor is located at the locations listed on
Schedule 4.5A. All Equipment of the Debtor is located at the locations listed on
Schedule 4.5B.

         4.6 Accounts Receivable. Debtor keeps its records concerning its
Accounts Receivable solely at 104 Windsor Center Drive, East Windsor, New Jersey
08520 (the "New Jersey Office"). All billings with respect to the Accounts
Receivable are generated by and sent from the New Jersey Office. All invoices
and contracts under which the Accounts Receivable are payable direct the account
debtor to make payment to the New Jersey Office. Exhibit A attached hereto sets
forth a true, correct and complete list of all Accounts Receivable, including an
aging thereof as of June 30, 2001. Except as set forth in Exhibit A, all
Accounts Receivable arose out of the sales of inventory or services in the
ordinary course of business and are collectible in the face value thereof within
90 days of the date of invoice, using normal collection procedures, net of the
reserve for doubtful accounts as set forth thereon, which reserve is adequate
and was calculated in accordance with generally accepted accounting principles
consistently applied. The amount of the Debtor's Accounts Receivable from time
to time meeting the foregoing standard is hereinafter referred to as the "Gross
Accounts Receivable." The amount of the Debtor's Gross Accounts Receivable from
time to time, net of any contractual adjustments and deferred revenue
amortization due Abbott Laboratories and any other customer, is hereinafter
referred to as the "Accounts Receivable Balance."
<PAGE>   33
         4.7 Office. Debtor's chief executive office is located at 104 Windsor
Center Drive, East Windsor, New Jersey 08520.

         4.8 Changes. Debtor will give the Secured Party written notice within
ten (10) days after any change in the location of its chief executive office or
the location of its Inventory or Equipment, or of any new office where the
records of its accounts are kept or where it conducts the billing or collection
of the Accounts Receivable.

         4.9 Financial Statements. Debtor's balance sheet and statement of
profit and loss dated March 31, 2001, heretofore delivered to the Secured Party
are the latest available quarterly financial statements and fairly represent
Debtor's financial condition as of the date of this Agreement. Except as
disclosed to the Secured Party in writing, as of the date hereof, Debtor owns
all of its personal property and has good, clear and marketable title thereto,
free and clear of all liens and encumbrances, and there are no outstanding
commitments of Debtor relative to the purchase, sale, mortgage or lease of said
property, other than in the usual course of business.

         4.10 Opinion. The Secured Party shall receive from Debtor's counsel an
opinion with respect to the transactions contemplated by the Agreement
reasonably satisfactory to the Secured Party's counsel.

         4.11 Subsidiary. i-STAT Canada Limited, an Ontario corporation, is a
wholly-owned subsidiary of the Debtor.

         5. GENERAL OBLIGATIONS OF DEBTOR.

         5.1 Financing Statements. Debtor agrees to execute one or more
financing statements for filing in all public offices wherever filing is
required by applicable law to perfect a security interest or is deemed by the
Secured Party to be necessary or desirable and to execute such other
<PAGE>   34
documents as the Secured Party shall reasonably request with respect to the
Secured Party's security interest hereunder.

         5.2 Insurance. Debtor agrees to keep all the Collateral insured with
coverages in amounts not less than usually carried by one engaged in a like
business, naming the Secured Party as a loss payee, and payable to the Secured
Party and Debtor, as their interests may appear.

         5.3 Inspection. Debtor will keep accurate and complete records of the
Collateral. No more than twice in any twelve (12) month period (on three (3)
days' prior notice) prior to the occurrence of a Default, and at any time and
from time to time on (with or without notice) and after the occurrence of a
Default, the Secured Party or any of its agents shall have the right to inspect
the Collateral wherever located and to visit Debtor's place or places of
business, at intervals to be determined by the Secured Party and without
Debtor's hindrance or delay, to inspect, audit, check and make extracts from any
copies of books, records, journals, orders, receipts and correspondence that
relate to the Collateral or to the general financial condition of Debtor. At
Debtor's request, the Secured Party will conduct such inspection through (i)
Secured Party's agent (who may be the Secured Party's accountants) or (ii) a
mutually acceptable third party who agrees, in each case, to keep confidential
any of the Debtor's proprietary information pursuant to a mutually acceptable
confidentiality agreement (a "Verification Agent"). Debtor shall pay for any and
all inspections after the occurrence of a Default (including any actions under
the last sentence of Section 5.19) and all inspections by a Verification Agent
designated under clause (ii) of the prior sentence. Unless the Debtor makes
provision for timely copying on site, the Secured Party (or its Verification
Agent) may temporarily remove any of the Debtor's records for the purpose of
having copies made thereof.
<PAGE>   35
         5.4 Negative Pledge. Debtor will not assign any Accounts Receivable or
other Collateral to any person other than the Secured Party, nor create or
permit to be created any lien, encumbrance or security interest of any kind on
any of its Collateral other than (i) for the benefit of the Secured Party, (ii)
on equipment purchased after the date hereof to secure indebtedness permitted
under Section 5.9(i), (iii) existing liens listed on Schedule 5.4, (iv)
mechanics', carriers', warehousemen's, workmen's, repairmen's or other like
statutory liens incurred in the ordinary course of business, or (v) deposits or
pledges made in connection with, or to secure payment of, workmen's
compensation, unemployment insurance, old age, pension or other social security
obligations, unless authorized by the Secured Party in writing.

         5.5 Existence. Debtor will maintain its corporate existence in good
standing and, except where the failure to so comply would not have a material
adverse effect on the Debtor, its properties or prospects, comply with all laws
and regulations of the United States or any State or political subdivision
thereof, or of any governmental authority which may have jurisdiction over it or
its business.

         5.6 Taxes. Debtor will pay all real and personal property taxes,
assessments and charges as well as all franchise, income, unemployment, old age
benefit, withholding, sales and other taxes assessed against it, or payable by
it when and as due, provided, however, that the Debtor may defer the payment of
such amounts (i) that are being contested in good faith by appropriate
proceedings, (ii) as to which the Debtor has established appropriate reserves
under generally accepted accounting procedures, and (iii) the nonpayment of
which does not and will not result in the attachment or imposition of any lien
or charge on the Collateral.

         5.7 Dividends. Debtor will pay no dividends either in cash or kind on
any class of its capital stock (other than dividends payable solely in common
stock or preferred stock of the
<PAGE>   36
Debtor) nor make any distribution on account of its stock, nor redeem, purchase
or otherwise acquire directly or indirectly any of its stock.

         5.8 Loans. Debtor will not make any loans or advances to any
individual, firm or corporation, including without limitation, its officers and
employees; provided, however, that Debtor may make advances to its employees,
including its officers, (i) with respect to expenses incurred by such employees
in the usual course of Debtor's business when such expenses are reimbursable by
Debtor, (ii) to purchase common stock of the Debtor, and (iii) in anticipation
of tax refunds to employees who have been relocated to another tax jurisdiction,
in accordance with past practice, and (iv) in an additional amount not to exceed
$250,000.

         5.9 Indebtedness. Debtor will not create, incur, assume or suffer to
exist, or permit any subsidiary of Debtor to create, incur, assume or suffer to
exist, any liability with respect to any indebtedness at any time while any
amounts remain outstanding under the Note, provided, however, that (i) the
Debtor and its subsidiary may incur up to $10,000,000 from and after the date of
this Agreement pursuant to capital leases or other purchase money financing for
the purchase of capital equipment, and (ii) the Debtor and its subsidiary may
incur additional unsecured indebtedness, all net proceeds of which are
simultaneously applied to the payment of the principal due under the Note, and
the interest accrued thereon, in inverse order of maturity.

         5.10 Securities. Debtor will not invest in or purchase any stock or
securities of any individual, firm or corporation, provided, however, that the
Debtor may make investments solely by the issuance of its own common stock.

         5.11 Merger. Debtor will not merge or consolidate or be merged or
consolidated with or into any other corporation, provided, however, that the
Debtor may merge or consolidate with another corporation if (i) the Debtor is
the survivor, (ii) the only merger consideration payable by
<PAGE>   37
the Debtor is common stock of the Debtor, and (iii) the Debtor is in compliance
with all of its covenants in this Agreement prior to and after giving effect to
such merger or consolidation.

         5.12 Sales. Debtor will not sell or dispose of any of its assets except
in the ordinary and usual course of its business.

         5.13 Guaranty. Debtor will not enter into any agreement of guaranty of
the obligation of any individual, partnership, trust or corporation or other
entity, including affiliates, except guaranties of indebtedness permitted under
Section 5.9.

         5.14 Government Accounts. Debtor will immediately notify the Secured
Party if any of Debtor's Accounts Receivable arise out of the Debtor's contracts
with the United States, any state or municipality, or any department, agency or
instrumentality thereof, and execute any instruments and take any steps required
by the Secured Party in order that all monies due and to become due under such
contracts shall be assigned to the Secured Party.

         5.15 Reimbursement. Debtor will reimburse the Secured Party on demand
for any sums paid or advanced by the Secured Party to satisfy any tax, lien or
security interest or other encumbrance on the Collateral, provided, however,
that the Secured Party shall not be obligated to make any such payments or
deposits. Any such sums paid or advanced by the Secured Party shall be deemed
secured by the Collateral and constitute part of the Obligations.

         5.16 Quarterly Report. Debtor will furnish the Secured Party within
fifty (50) days after the close of each of the first three quarterly periods of
Debtor's fiscal year a balance sheet and statement of profit and loss reflecting
the financial condition of Debtor at the end of such period and the results of
its operation during such period (which may be the financial statements filed by
the Debtor with the Securities and Exchange Commission for so long as the Debtor
is a reporting company), such balance sheet and statement of profit and loss to
be certified by
<PAGE>   38
Debtor's President or Chief Financial Officer as fairly presenting its financial
condition at the end of such period and the results of its operations during
such period in accordance with generally accepted accounting principles
consistently applied (other than the omission of footnotes).

         5.17 Annual Report. Debtor will furnish the Secured Party annually,
within ninety-five (95) days after the close of each fiscal year, with a full
and complete signed copy of the audited report or reports of certified public
accountants (which may be the financial statements filed by the Debtor with the
Securities and Exchange Commission for so long as the Debtor is a reporting
company), which report or reports shall include a consolidated balance sheet of
Debtor as at the end of such year and a statement of profit and loss of Debtor
reflecting its operations during such year, such report or reports shall bear
the certificate of such certified public accountants.

         5.18 Aging; Inventory. Debtor, on or before the twentieth day after the
close of each calendar month, will deliver to the Secured Party a recapitulation
report in the form of Exhibit A, certified by the Debtor's President or Chief
Financial Officer, setting forth the Accounts Receivable Balance and the
Debtor's Gross Accounts Receivable as of the close of such calendar month,
including the total amount due from each account debtor, and the related aging
for such account debtor and such other information as the Secured Party shall
reasonably request. Debtor, on or before the twentieth day after the close of
each calendar month, will deliver to the Secured Party a report on the Debtor's
Inventory summarizing that total Inventory held by the Debtor at the end of such
month and the portion thereto constituting raw materials, work in process and
finished goods.
<PAGE>   39
         5.19 Contractors. Debtor has simultaneously herewith delivered to the
Secured Party copies of all contracts and agreements between the Debtor (or any
affiliated entities) and Abbott Laboratories (or any affiliated entities) (the
"Abbott Contracts"). The Debtor agrees that it shall not alter its contractual
relationship under any of the Abbott Contracts in any manner which would reduce
the amounts payable thereunder or the terms, amount or frequency of payment
thereunder or in any manner affect the Secured Party's rights to or interest in
the Collateral or would otherwise have a material adverse effect on the Debtor
or its financial condition, without in each case the prior written consent of
the Secured Party. On and after the occurrence of a Default, Debtor hereby
authorizes the Secured Party (or at Debtor's request, a Verification Agent) to
obtain from Debtor's contractors (including accountants and computer service
bureaus) any and all information regarding the Collateral, instructs all such
contractors to provide such information to the Secured Party and/or a
Verification Agent.

         5.20 Continuing Representations. Debtor further warrants and represents
that each of the Obligations secured hereby and each of the warranties and
representations made herein is true and correct as of this date in all material
respects. The warranties and representations herein are continuing. In the event
that any obligation, representation or warranty is no longer true or correct,
Debtor will immediately notify the Secured Party in writing.

         6. DEFAULT. Debtor shall be in default under this Agreement upon the
happening of any of the following events or conditions, without demand or notice
from the Secured Party (individually, a "Default" and collectively, "Defaults"):

         6.1 Failure of Debtor to pay when due any Obligation, whether by
maturity, acceleration or otherwise and the continuance of such failure for one
(1) business day;
<PAGE>   40
         6.2 Failure of Debtor to perform any of its agreements or covenants in
Section 4.8 and Sections 5.1 through 5.20 of this Agreement

         6.3 Failure of Debtor to perform any of its other agreements or
covenants in this Agreement which is not remedial within thirty (30) days of the
occurrence thereof;

         6.4 Any representation or warranty of the Debtor in this Agreement
being untrue or incorrect in any material respect on the date made;

         6.5 Failure of the Debtor to perform any of its agreements, warranties
or representations in any other agreement reflecting an aggregate principal
amount of indebtedness in excess of $250,000.00 with any other person or
organization for borrowed money or lease of real or personal property;

         6.6 Material loss or theft, substantial damage or destruction or
unauthorized sale or encumbrance of any material portion of the Collateral in
excess of reasonably expected recoveries under insurance policies, or the making
of any levy on, or seizure or attachment of a material portion of the
Collateral;

         6.7 Dissolution or termination of existence of the Debtor, or the
appointment of a custodian or receiver of any part of Debtor's property, or an
assignment or trust mortgage for the benefit of creditors by Debtor, or the
commencement of any proceeding under any bankruptcy or insolvency laws by or
against Debtor, or service upon the Secured Party of any writ, summons, or
process designed to affect any account or property of Debtor; or

         6.8 Any default by the Debtor under, or any material change in
(including, without limitation, with respect to scope of services, payment
amounts, terms of payments or termination of), any Abbott Contract.
<PAGE>   41
         7. SECURED PARTY'S RIGHTS UPON DEFAULT. The Secured Party shall upon
Default and at any time thereafter, without presentment, demand, notice, protest
or advertisement of any kind have the following rights in addition to all other
rights hereunder:

         7.1 Acceleration. The Secured Party may make all Obligations under this
Agreement or the Note immediately due and payable without presentment, demand,
protest, hearing or notice of any kind and may exercise the rights of a secured
party under law or under the terms of this or any other agreement related hereto
with the Debtor.

         7.2 Possession. The Secured Party may enter and take possession of all
Collateral and the premises on which they are located and sell, lease or license
the Collateral to third persons or associations without being liable to Debtor
on account of any losses, damage or depreciation that may occur as a result
thereof so long as the Secured Party shall act reasonably and in good faith; and
at the Secured Party's option and without notice to Debtor (except as
specifically herein provided) the Secured Party may sell, lease, assign and
deliver the whole or any part of the Collateral, or any substitute therefor or
any addition thereto, at public or private sale, for cash, upon credit, or for
future delivery, at such prices and upon such terms as the Secured Party deems
advisable, including without limitation, the right to sell or lease in
conjunction with other property, real or personal, and allocate the sale or
lease proceeds among the items of property sold without the necessity of the
Collateral being present at any such sale or lease, or in view of prospective
purchasers thereof. The Secured Party shall give Debtor at least ten (10) days'
by hand delivery at or by United States first-class mail, postage prepaid (in
which event notice shall be deemed to have been given when so deposited in the
mail), to the address specified herein, of the time and place of any public or
private sale or other disposition unless the Collateral is perishable, threatens
to decline speedily in value, or is the type customarily sold in a
<PAGE>   42
recognized market. Upon such sale, the Secured Party may become the purchaser of
the whole or any part of the Collateral, discharged from all claims and free
from any right of redemption. In case of any such sale by the Secured Party of
all or any of said Collateral on credit or for future delivery, property so sold
may be retained by the Secured Party until the selling price is paid by the
purchaser. The Secured Party shall incur no liability in case of the failure of
the purchaser to take up and pay for the property so sold. In case of any such
failure, the said property may again be sold.

         7.3 Assemblage. Debtor will assemble the Collateral in a single
location at a place to be designated by the Secured Party and make the
Collateral at all times secure and available to the Secured Party.

         7.4 Power of Attorney and Notification. On and after the occurrence of
a Default, the Secured Party may notify account debtors that Collateral has been
assigned to the Secured Party and that payments shall be made directly to the
Secured Party. Upon request of the Secured Party, Debtor will so notify such
account debtors and will indicate on all billings to such account debtors that
their accounts must be paid to the Secured Party. Debtor does hereby appoint the
Secured Party and its agents as Debtor's attorney-in-fact, to be exercised from
and after the occurrence of a Default: to collect, compromise, endorse, sell or
otherwise deal with the Collateral or proceeds thereof in its own name or in the
name of the Debtor; to endorse the name of Debtor upon any notes, checks,
drafts, money orders, or other instruments, documents, receipts or Collateral
that may come into its possession and to apply the same in full or part payment
of any amounts owing to the Secured Party; to sign and endorse the name of
Debtor upon any documents, instruments, drafts against account debtors,
assignments, verifications and notices in connection with Accounts Receivable,
and any instrument or document relating
<PAGE>   43
thereto or to Debtor's rights therein; and to give written notice to any office
and officials of the United States Post Office (with concurrent notice thereof
to the Debtor, provided, however, that the failure to give such notice shall not
affect the validity of Secured Party's action under this clause) to effect such
change or changes of address that all mail addressed to Debtor may be delivered
directly to the Secured Party. Debtor hereby grants to its said attorney-in-fact
full power to do any and all things necessary to be done in and about the
premises in connection with the foregoing as fully and effectually as Debtor
might or could do, and hereby ratifies all that its attorney-in-fact shall
lawfully do or cause to be done by virtue hereof. This power of attorney is
coupled with an interest and is irrevocable for the term of this Agreement for
all transactions hereunder and thereafter as long as Debtor may be indebted to
the Secured Party in connection with the Note.

         8. DEBTOR'S OBLIGATION TO PAY EXPENSES OF SECURED PARTY. Debtor shall
pay to the Secured Party on demand any and all reasonable counsel fees and other
reasonable expenses incurred by the Secured Party in connection with the
enforcement of the Obligations, this Agreement or any documents relating
thereto, and any and all expenses (including, but not limited to, a collection
charge on all accounts collected, all reasonable attorney's fees and expenses,
and all other expenses of like or unlike nature) that may be incurred or paid by
the Secured Party to obtain or enforce payment of any Account against the
Account debtor, Debtor or any guarantor or surety of Debtor, or in the
prosecution or defense of any action or concerning any matter growing out of the
enforcement of this Agreement, the Obligations, the Collateral or any of the
Secured Party's rights or interests therein or thereto, including (without
limiting the generality of the foregoing) any counsel fees or expenses incurred
<PAGE>   44
in any bankruptcy or insolvency proceedings. All such expenses may be added to
the principal amount in respect of the Note and shall constitute part of the
Obligations secured hereby.

         9. WAIVERS. Debtor waives demand, presentment, protest, notice of
nonpayment and all other notices. No delay or omission by the Secured Party in
exercising any rights shall operate as a waiver of such right or any other
right. Waiver on any one occasion shall not be construed as a bar to or waiver
of any right or remedy on any future occasion. All of the Secured Party's rights
and remedies, whether evidenced hereby or by any other agreement, instrument or
paper, shall be cumulative and may be exercised singularly or concurrently.

         10. CONSTRUCTION. The laws of the Commonwealth of Massachusetts and the
Uniform Commercial Code, as enacted and amended from time to time in the
Commonwealth of Massachusetts shall govern the construction of this Agreement
and the rights and duties of the parties hereto; this Agreement shall be deemed
to be under seal and executed as of the day and date referred to above.

                                             i-STAT CORPORATION
 Attest:

 ____________________                        By: ___________________________
                                                 Name:
                                                 Title:

                                             NOVA BIOMEDICAL CORPORATION

                                             By: ___________________________
                                                 Name:
                                                 Title:<PAGE>   1
                                                                    EXHIBIT 4.10

                           LIBERTY MEDIA CORPORATION,

                                     Issuer

                                       to

                              The Bank of New York,

                                     Trustee

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

                                    INDENTURE
                                 ---------------

                          Dated as of ___________, 2001

                          Subordinated Debt Securities
<PAGE>   2
                         Reconciliation and tie between
             Trust Indenture Act of 1939 (the "Trust Indenture Act")
                                  and Indenture

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

<S>                                                                           <C>
      Section 310(a)(1)...................................................         607
       (a)(2).............................................................         607
       (b)................................................................         608
      Section 312(a) .....................................................         701
       (b)................................................................         702
       (c)................................................................         702
      Section 313(a)......................................................         703
       (b)(2).............................................................         703
       (c)................................................................         703
       (d)................................................................         703
      Section 314(a) .....................................................         704
       (c)(1) ............................................................         102
       (c)(2) ............................................................         102
       (e)................................................................         102
       (f)................................................................         102
      Section 316(a) (last sentence) .....................................         101
       (a)(1)(A)..........................................................    502, 512
       (a)(1)(B)..........................................................         513
       (b)................................................................         508
      Section 317(a)(1)...................................................         503
      (a)(2) .............................................................         504
      (b).................................................................        1003
      Section 318(a) .....................................................         108
</TABLE>

Note:.This reconciliation and tie shall not, for any purpose, be deemed to be
part of the Indenture.
<PAGE>   3
                                TABLE OF CONTENTS

                                   ARTICLE ONE

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

<TABLE>
<S>                                                                              <C>
 Section 101 Definitions; Rules of Construction...............................    1

 Section 102 Compliance Certificates and Opinions.............................   12

 Section 103 Form of Documents Delivered to Trustee...........................   12

 Section 104 Acts of Holders..................................................   13

 Section 105 Notices, etc., to Trustee and Company............................   15

 Section 106 Notice to Holders of Securities; Waiver..........................   15

 Section 107 Language of Notices..............................................   16

 Section 108 Conflict with Trust Indenture Act................................   16

 Section 109 Effect of Headings and Table of Contents.........................   16

 Section 110 Successors and Assigns...........................................   16

 Section 111 Separability Clause..............................................   16

 Section 112 Benefits of Indenture............................................   16

 Section 113 Governing Law....................................................   17

 Section 114 Legal Holidays...................................................   17

 Section 115 Counterparts.....................................................   17

 Section 116 Judgment Currency................................................   17

 Section 117 No Security Interest Created.....................................   18

 Section 118 Limitation on Individual Liability...............................   18

                                   ARTICLE TWO

                                SECURITIES FORMS

 Section 201 Forms Generally..................................................   18

 Section 202 Form of Trustee's Certificate of Authentication..................   19

 Section 203 Securities in Global Form........................................   19

                                  ARTICLE THREE

                                 THE SECURITIES

 Section 301 Amount Unlimited; Issuable in Series.............................   20

 Section 302 Currency; Denominations..........................................   23
</TABLE>

                                       i
<PAGE>   4
<TABLE>
<S>                                                                             <C>
 Section 303 Execution, Authentication, Delivery and Dating...................   24

 Section 304 Temporary Securities.............................................   26

 Section 305 Registration, Transfer and Exchange..............................   26

 Section 306 Mutilated, Destroyed, Lost and Stolen Securities.................   30

 Section 307 Payment of Interest and Certain Additional Amounts;
   Rights to Interest and Certain Additional Amounts Preserved................   31

 Section 308 Persons Deemed Owners............................................   33

 Section 309 Cancellation.....................................................   33

 Section 310 Computation of Interest..........................................   33

 Section 311 CUSIP Numbers....................................................   34

                                  ARTICLE FOUR

                     SATISFACTION AND DISCHARGE OF INDENTURE

 Section 401 Satisfaction and Discharge.......................................   34

 Section 402 Defeasance and Covenant Defeasance...............................   35

 Section 403 Application of Trust Money.......................................   39

                                  ARTICLE FIVE

                                    REMEDIES

 Section 501 Events of Default................................................   40

 Section 502 Acceleration of Maturity; Rescission and Annulment...............   42

 Section 503 Collection of Indebtedness and Suits for Enforcement by Trustee..   42

 Section 504 Trustee May File Proofs of Claim.................................   43

 Section 505 Trustee May Enforce Claims without Possession of
   Securities or Coupons......................................................   44

 Section 506 Application of Money Collected...................................   44

 Section 507 Limitations on Suits.............................................   45

 Section 508 Unconditional Right of Holders to Receive Principal and any
   Premium, Interest and Additional Amounts...................................   45

 Section 509 Restoration of Rights and Remedies...............................   45

 Section 510 Rights and Remedies Cumulative...................................   46

 Section 511 Delay or Omission Not Waiver.....................................   46

 Section 512 Control by Holders of Securities.................................   46

 Section 513 Waiver of Past Defaults..........................................   46

 Section 514 Waiver of Stay or Extension Laws.................................   47

 Section 515 Undertaking for Costs............................................   47
</TABLE>

                                       ii
<PAGE>   5
                                   ARTICLE SIX

                                   THE TRUSTEE

<TABLE>
<S>                                                                              <C>
 Section 601 Certain Rights of Trustee........................................   47

 Section 602 Notice of Defaults...............................................   49

 Section 603 Not Responsible for Recitals or Issuance of Securities...........   49

 Section 604 May Hold Securities..............................................   50

 Section 605 Money Held in Trust..............................................   50

 Section 606 Compensation and Reimbursement...................................   50

 Section 607 Corporate Trustee Required; Eligibility..........................   51

 Section 608 Resignation and Removal; Appointment of Successor................   51

 Section 609 Acceptance of Appointment by Successor...........................   53

 Section 610 Merger, Conversion, Consolidation or Succession to Business......   54

 Section 611 Appointment of Authenticating Agent..............................   54

                                  ARTICLE SEVEN

                HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

 Section 701 Company to Furnish Trustee Names and Addresses of Holders........   56

 Section 702 Preservation of Information; Communications to Holders...........   56

 Section 703 Reports by Trustee...............................................   57

 Section 704 Reports by Company; Rule 144A Information........................   57

                                  ARTICLE EIGHT

                         CONSOLIDATION, MERGER AND SALES

 Section 801 Company May Consolidate, Etc., Only on Certain Terms.............   58

 Section 802 Successor Person Substituted for Company.........................   59

                                  ARTICLE NINE

                             SUPPLEMENTAL INDENTURES

 Section 901 Supplemental Indentures without Consent of Holders...............   59

 Section 902 Supplemental Indentures With Consent of Holders..................   60

 Section 903 Execution of Supplemental Indentures.............................   62

 Section 904 Effect of Supplemental Indentures................................   62

 Section 905 Reference in Securities to Supplemental Indentures...............   62
</TABLE>

                                      iii
<PAGE>   6
<TABLE>
<S>                                                                               <C>
 Section 906 Conformity with Trust Indenture Act..............................    62

 Section 907 Notice of Supplemental Indenture.................................    62

                                   ARTICLE TEN

                                    COVENANTS

 Section 1001 Payment of Principal, any Premium, Interest and
   Additional Amounts.........................................................    62

 Section 1002 Maintenance of Office or Agency.................................    63

 Section 1003 Money for Securities Payments to Be Held in Trust...............    64

 Section 1004 Additional Amounts..............................................    65

 Section 1005 Corporate Existence.............................................    66

 Section 1006 Waiver of Certain Covenants.....................................    66

 Section 1007 Company Statement as to Compliance; Notice of Certain Defaults..    66

 Section 1008 Calculation of Original Issue Discount..........................    67

                                 ARTICLE ELEVEN

                            REDEMPTION OF SECURITIES

 Section 1101 Applicability of Article........................................    67

 Section 1102 Election to Redeem; Notice to Trustee...........................    67

 Section 1103 Selection by Trustee of Securities to be Redeemed...............    68

 Section 1104 Notice of Redemption............................................    68

 Section 1105 Deposit of Redemption Price.....................................    70

 Section 1106 Securities Payable on Redemption Date...........................    70

 Section 1107 Securities Redeemed in Part.....................................    71

                                 ARTICLE TWELVE

                                  SINKING FUNDS

 Section 1201 Applicability of Article........................................    71

 Section 1202 Satisfaction of Sinking Fund Payments with Securities...........    71

 Section 1203 Redemption of Securities for Sinking Fund.......................    72

                                ARTICLE THIRTEEN

                       REPAYMENT AT THE OPTION OF HOLDERS

 Section 1301 Applicability of Article........................................    72
</TABLE>

                                       iv
<PAGE>   7
<TABLE>
<S>                                                                              <C>
                                ARTICLE FOURTEEN

                        SECURITIES IN FOREIGN CURRENCIES

 Section 1401 Applicability of Article........................................    73

                                 ARTICLE FIFTEEN

                        MEETINGS OF HOLDERS OF SECURITIES

 Section 1501 Purposes for Which Meetings May Be Called.......................    73

 Section 1502 Call, Notice and Place of Meetings..............................    73

 Section 1503 Persons Entitled to Vote at Meetings............................    74

 Section 1504 Quorum; Action..................................................    74

 Section 1505 Determination of Voting Rights; Conduct and
   Adjournment of Meetings....................................................    75

 Section 1506 Counting Votes and Recording Action of Meetings.................    76

                                 ARTICLE SIXTEEN

                                  SUBORDINATION

 Section 1601 Securities Subordinated to Senior Debt..........................    76

 Section 1602 Company Not to Make Payments with Respect to Securities
   in Certain Circumstances...................................................    77

 Section 1603 Securities Subordinated to Prior Payment of All Senior
   Debt on Dissolution, Liquidation or Reorganization of Company..............    78

 Section 1604 Holder of Securities to be Subrogated to Right of Holders
   of Senior Debt.............................................................    79

 Section 1605 Obligation of the Company Unconditional.........................    79

 Section 1606 Trustee Entitled to Assume Payments Not Prohibited in
   Absence of Notice..........................................................    80

 Section 1607 Application by Trustee of Monies or Government Obligations
   Deposited with It..........................................................    80

 Section 1608 Subordination Rights Not Impaired by Acts or Omissions of
   Company or Holders of Senior Debt..........................................    81

 Section 1609 Holders of Securities Authorize Trustee to Effectuate
   Subordination of Securities................................................    81

 Section 1610 Right of Trustee to Hold Senior Debt............................    81

 Section 1611 Article Sixteen Not to Prevent Events of Default................    81
</TABLE>

                                       v
<PAGE>   8
      INDENTURE, dated as of ________, 2001 (the "Indenture"), among LIBERTY
MEDIA CORPORATION, a corporation duly organized and existing under the laws of
Delaware (hereinafter called the "Company"), having its principal executive
office located at 9197 South Peoria Street, Englewood, Colorado 80112, and The
Bank of New York, a New York banking corporation (hereinafter called the
"Trustee"), having its Corporate Trust Office located at 101 Barclay Street, New
York, New York 10286.

                                    RECITALS

      The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its subordinated
unsecured debentures, notes or other evidences of Indebtedness (hereinafter
called the "Securities"), unlimited as to principal amount, to bear such rates
of interest, to mature at such time or times, to be issued in one or more series
and to have such other provisions as shall be fixed as hereinafter provided.

      The Company has duly authorized the execution and delivery of this
Indenture. All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done

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

      NOW, THEREFORE, THIS INDENTURE WITNESSETH:

      For and in consideration of the premises and the purchase of the
Securities by the Holders (as herein defined) thereof, it is mutually covenanted
and agreed, for the equal and proportionate benefit of all Holders of the
Securities or of any series thereof and any Coupons (as herein defined) as
follows:

                                  ARTICLE ONE

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 101 Definitions; Rules of Construction

      Except as otherwise expressly provided in or pursuant to this Indenture or
unless the context otherwise requires, for all purposes of this Indenture:

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

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

      (3) all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with generally accepted accounting principles
and, except as otherwise

                                       1
<PAGE>   9
herein expressly provided, the terms "generally accepted accounting principles"
or "GAAP" with respect to any computation required or permitted hereunder shall
mean such accounting principles as are generally accepted at the date of such
computation;

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

      (5) the word "or" is always used inclusively (for example, the phrase "A
or B" means "A or B or both", not "either A or B but not both").

      (6) provisions apply to successive events and transactions;

      (7) the masculine gender includes the feminine and the neuter; and

      (8) references to agreements and other instruments include subsequent
amendments thereto.

      Certain terms used principally in certain Articles hereof are defined in
those Articles.

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

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

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

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

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

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

                                       2
<PAGE>   10
      "Board of Directors" means the board of directors of the Company or any
committee of that board duly authorized to act generally or in any particular
respect for the Company hereunder.

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

      "Business Day", with respect to any Place of Payment or other location,
means, unless otherwise specified with respect to any Securities pursuant to
Section 301, any day other than a Saturday, Sunday or other day on which banking
institutions in such Place of Payment or other location are authorized or
obligated by law, regulation or executive order to close.

      "Closing Price" means, with respect to any security on any date of
determination, the closing sale price (or, if no closing sale price is reported,
the last reported sale price) of such security on the NYSE on such date or, if
such security is not listed for trading on the NYSE on such date, as reported in
the composite transactions (or comparable system) for the principal United
States national or regional securities exchange on which such security is so
listed or a recognized international securities exchange, or, if such security
is not listed on a U.S. national or regional securities exchange or on a
recognized international securities exchange, as reported by the Nasdaq Stock
Market, or, if such security is not so reported, the last quoted bid price for
such security in the over-the-counter market as reported by the National
Quotation Bureau or similar organization, or, if such bid price is not
available, the market value of such security on such date as determined by a
nationally recognized independent investment banking firm retained for this
purpose by the Company; provided that, (1) with respect to options, warrants and
other rights to purchase Marketable Securities, the Closing Price shall be the
value of the underlying Marketable Security determined as aforesaid minus the
exercise price and (2) with respect to securities exchangeable for or
convertible into Marketable Securities, the Closing Price shall be the Closing
Price of the exchangeable or convertible security determined as aforesaid or, if
it has no Closing Price, the fully converted value based upon the Closing Price
of the underlying Marketable Security determined as aforesaid.

      "Commission" means the Securities and Exchange Commission, as from time to
time constituted, created under the Exchange Act.

      "Common Stock" includes any stock of any class of the Company which has no
preference in respect of dividends or of amounts payable in the event of any
voluntary or involuntary liquidation, dissolution or winding up of the Company.

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

      "Company Request" and "Company Order" mean, respectively, a written
request or order, as the case may be, signed in the name of the Company by the
Chairman of the Board of

                                       3
<PAGE>   11
Directors, a Vice Chairman, the President or a Vice President, and by the
Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary, of
the Company, and delivered to the Trustee.

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

      "Corporate Trust Office" means the principal corporate trust office of the
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of original execution of this Indenture
is located at 101 Barclay Street, Floor 21 West, New York, New York 10286.

      "Corporation" includes corporations and limited liability companies and,
except for purposes of Article Eight, associations, companies (other than
limited liability companies) and business trusts.

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

      "Currency", with respect to any payment, deposit or other transfer in
respect of the principal of or any premium or interest on or any Additional
Amounts with respect to any Security, means Dollars or the Foreign Currency, as
the case may be, in which such payment, deposit or other transfer is required to
be made by or pursuant to the terms hereof or such Security and, with respect to
any other payment, deposit or transfer pursuant to or contemplated by the terms
hereof or such Security, means Dollars.

      "CUSIP number" means the alphanumeric designation assigned to a Security
by Standard & Poor's Corporation, CUSIP Service Bureau.

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

      "Dollars" or "$" means a dollar or other equivalent unit of legal tender
for payment of public or private debts in the United States of America.

       "Event of Default" has the meaning specified in Section 501.

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

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

      "GAAP" means such accounting principles as are generally accepted in the
United States of America as of the date or time of any computation required
hereunder.

                                       4
<PAGE>   12
      "Government Obligations" means securities which are (i) direct obligations
of the United States of America or the other government or governments in the
confederation which issued the Foreign Currency in which the principal of or any
premium or interest on any Security or any Additional Amounts in respect thereof
shall be payable, in each case where the payment or payments thereunder are
supported by the full faith and credit of the United States or such government
or governments or (ii) obligations of a Person controlled or supervised by and
acting as an agency or instrumentality of the United States of America or such
other government or governments, in each case where the timely payment or
payments thereunder are unconditionally guaranteed as a full faith and credit
obligation by the United States of America or such other government or
governments, and which, in the case of (i) or (ii), are not callable or
redeemable at the option of the issuer or issuers thereof, and shall also
include a depository receipt issued by a bank or trust company as custodian with
respect to any such Government Obligation or a specific payment of interest on
or principal of or other amount with respect to any such 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 Government
Obligation or the specific payment of interest on or principal of or other
amount with respect to the Government Obligation evidenced by such depository
receipt.

      "Holder", in the case of any Registered Security, means the Person in
whose name such Security is registered in the Security Register and, in the case
of any Bearer Security, means the bearer thereof and, in the case of any Coupon,
means the bearer thereof.

      "Indebtedness" of any Person means:

            (1) any indebtedness of such Person (i) for borrowed money or (ii)
      evidenced by a note, debenture or similar instrument (including a purchase
      money obligation) given in connection with the acquisition of any property
      or assets, including securities;

            (2) any guarantee by such Person of any indebtedness of others
      described in the preceding clause (1); and

            (3) any amendment, renewal, extension or refunding of any such
      indebtedness or guarantee.

      "Indenture" means this instrument as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof and, with respect to any
Security, by the terms and provisions of such Security and any Coupon
appertaining thereto established pursuant to Section 301 (as such terms and
provisions may be amended pursuant to the applicable provisions hereof);
provided, however, that, if at any time more than one Person is acting as
Trustee under this instrument, "Indenture" shall mean, with respect to any one
or more series of Securities for which such Person is Trustee, this instrument
as originally executed or as it may from time to time be supplemented or amended
by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof and shall include the terms of those particular
series of Securities for which such Person is Trustee established pursuant to
Section 301, exclusive, however, of any

                                       5
<PAGE>   13
provisions or terms which relate solely to other series of Securities for which
such Person is not Trustee, regardless of when such terms or provisions were
adopted.

      "Independent Public Accountants" means accountants or a firm of
accountants that, with respect to the Company and any other obligor under the
Securities or the Coupons, are independent public accountants within the meaning
of the Securities Act of 1933, as amended, and the rules and regulations
promulgated by the Commission thereunder, who may be the independent public
accountants regularly retained by the Company or who may be other independent
public accountants. Such accountants or firm shall be entitled to rely upon any
Opinion of Counsel as to the interpretation of any legal matters relating to
this Indenture or certificates required to be provided hereunder.

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

      "Interest", with respect to any Original Issue Discount Security which by
its terms bears interest only after Maturity, means interest payable after
Maturity and, when used with respect to a Security which provides for the
payment of Additional Amounts pursuant to Section 1004, includes such Additional
Amounts.

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

      "Judgment Currency" has the meaning specified in Section 116.

      "Legal Holidays" has the meaning specified in Section 114.

      "Marketable Securities" means any securities listed on a U.S. national
securities exchange or reported by the Nasdaq Stock Market or listed on a
recognized international securities exchange or traded in the over-the-counter
market and quoted by at least two broker-dealers as reported by the National
Quotation Bureau or similar organization, including as Marketable Securities
options, warrants and other rights to purchase, and securities exchangeable for
or convertible into, Marketable Securities.

      "Material Subsidiary" means, at any relevant time, any Subsidiary that
meets any of the following conditions:

            (1) the Company's and its other Subsidiaries' investments in and
      advances to the Subsidiary exceed 10% of the total consolidated assets of
      the Company and its Subsidiaries; or

            (2) the Company's and its other Subsidiaries' proportionate share of
      the total assets (after intercompany eliminations) of the Subsidiary
      exceeds 10% of the total consolidated assets of the Company and its
      Subsidiaries; or

                                       6
<PAGE>   14
            (3) the Company's and its other Subsidiaries' proportionate share of
      the total revenues (after intercompany eliminations) of the Subsidiary
      exceeds 10% of the total consolidated revenue of the Company and its
      Subsidiaries; or

            (4) the Company's and its other Subsidiaries' equity in the income
      from continuing operations before income taxes, extraordinary items and
      cumulative effect of a change in accounting principle of the Subsidiary
      exceeds 10% of such income of the Company and its Subsidiaries;

            all as calculated by reference to the then latest fiscal year-end
      accounts (or consolidated fiscal year-end accounts, as the case may be) of
      such Subsidiary and the then latest audited consolidated fiscal year-end
      accounts of the Company and its Subsidiaries.

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

      "Nasdaq Stock Market" means the Nasdaq Stock Market, a subsidiary of the
National Association of Securities Dealers, Inc.

      "New York Banking Day" has the meaning specified in Section 116.

      "NYSE" means the New York Stock Exchange, Inc.

      "Office" or "Agency", with respect to any Securities, means an office or
agency of the Company maintained or designated in a Place of Payment for such
Securities pursuant to Section 1002 or any other office or agency of the Company
maintained or designated for such Securities pursuant to Section 1002 or, to the
extent designated or required by Section 1002 in lieu of such office or agency,
the Corporate Trust Office of the Trustee.

      "Officers' Certificate" means a certificate signed by the Chairman of the
Board, a Vice Chairman, the President or a Vice President, and by the Treasurer,
an Assistant Treasurer, the Secretary or an Assistant Secretary of the Company,
that, if applicable, complies with the requirements of Section 314(e) of the
Trust Indenture Act and is delivered to the Trustee.

      "Opinion of Counsel" means a written opinion of counsel, who may be an
employee of or counsel for the Company or other counsel who shall be reasonably
acceptable to the Trustee, that, if required by the Trust Indenture Act,
complies with the requirements of Section 314(e) of the Trust Indenture Act.

      "Original Issue Discount Security" means a Security issued pursuant to
this Indenture which provides, at any time prior to the final Stated Maturity of
such Security, for declaration of an amount less than the principal face amount
thereof to be due and payable upon acceleration pursuant to Section 502.

                                       7
<PAGE>   15
      "Outstanding", when used with respect to any Securities, means, as of the
date of determination, all such Securities theretofore authenticated and
delivered under this Indenture, except:

            (a) any such Security theretofore cancelled by the Trustee or the
      Security Registrar or delivered to the Trustee or the Security Registrar
      for cancellation;

            (b) any such Security for whose payment at the Maturity thereof
      money in the necessary amount has been theretofore deposited pursuant
      hereto (other than pursuant to Section 402) with the Trustee or any Paying
      Agent (other than the Company) in trust or set aside and segregated in
      trust by the Company (if the Company shall act as its own Paying Agent)
      for the Holders of such Securities and any Coupons appertaining thereto,
      provided that, if such Securities are to be redeemed, notice of such
      redemption has been duly given pursuant to this Indenture or provision
      therefor satisfactory to the Trustee has been made and provided further
      that the Trustee or Paying Agent or the Company (if it is acting as its
      own Paying Agent) is not restricted in applying such money by Article
      Sixteen (in which case such Securities shall be deemed to be Outstanding);

            (c) any such Security with respect to which the Company has effected
      defeasance or covenant defeasance pursuant to the terms hereof, except to
      the extent provided in Section 402;

            (d) any such Security which has been paid pursuant to Section 306 or
      in exchange for or in lieu of which other Securities have been
      authenticated and delivered pursuant to this Indenture, unless there shall
      have been presented to the Trustee proof satisfactory to it that such
      Security is held by a bona fide purchaser in whose hands such Security is
      a valid obligation of the Company; and

            (e) any such Security converted or exchanged as contemplated by this
      Indenture into Common Stock or other securities, cash or other property,
      if the terms of such Security provide for such conversion or exchange
      pursuant to Section 301;

provided, however, that in determining whether the Holders of the requisite
principal amount of Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or are present at
a meeting of Holders of Securities for quorum purposes, (i) the principal amount
of an Original Issue Discount Security that may be counted in making such
determination and that shall be deemed to be Outstanding for such purposes shall
be equal to the amount of the principal thereof that pursuant to the terms of
such Original Issue Discount Security would be declared (or shall have been
declared to be) due and payable upon a declaration of acceleration thereof
pursuant to Section 502 at the time of such determination, and (ii) the
principal amount of any Indexed Security that may be counted in making such
determination and that shall be deemed outstanding for such purpose shall be
equal to the principal face amount of such Indexed Security at original
issuance, unless otherwise provided in or pursuant to this Indenture, and (iii)
the principal amount of a Security denominated in a Foreign Currency shall be
the Dollar equivalent, determined on the date of original issuance of such
Security, of the principal amount (or, in the case of an Original Issue Discount
Security, the Dollar equivalent on the date of original issuance of such
Security of the amount determined as

                                       8
<PAGE>   16
provided in (i) above) of such Security, and (iv) Securities owned by the
Company or any other obligor upon the Securities or any Affiliate of the Company
or such other obligor, shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Trustee shall be protected in making any
such determination or relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which a Responsible
Officer of the Trustee actually knows to be so owned shall be so disregarded.
Securities so owned which shall have been pledged in good faith may be regarded
as Outstanding if the pledgee establishes to the satisfaction of the Trustee (A)
the pledgee's right so to act with respect to such Securities and (B) that the
pledgee is not the Company or any other obligor upon the Securities or any
Coupons appertaining thereto or an Affiliate of the Company or such other
obligor.

      "Paying Agent" means any Person authorized by the Company to pay the
principal of, or any premium or interest on, or any Additional Amounts with
respect to, any Security or any Coupon on behalf of the Company.

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

      "Place of Payment", with respect to any Security, means the place or
places where the principal of, or any premium or interest on, or any Additional
Amounts with respect to such Security are payable as provided in or pursuant to
this Indenture or such Security.

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

      "Redemption Date", with respect to any Security or portion thereof to be
redeemed, means each date fixed for such redemption by or pursuant to this
Indenture or such Security.

      "Redemption Price", with respect to any Security or portion thereof to be
redeemed, means the price at which it is to be redeemed as determined by or
pursuant to this Indenture or such Security.

      "Registered Security" means any Security established pursuant to Section
201 which is registered in the Security Register.

      "Regular Record Date" for the interest payable on any Registered Security
on any Interest Payment Date therefor means the date, if any, specified in or
pursuant to this Indenture or such Security as the "Regular Record Date".

      "Required Currency" has the meaning specified in Section 116.

                                       9
<PAGE>   17
      "Responsible Officer" means any officer of the Trustee in its Corporate
Trust Office and also means, with respect to a particular corporate trust
matter, any other officer of the Trustee to whom such matter is referred because
of his knowledge of and familiarity with the particular subject.

      "Security" or "Securities" means any note or notes, bond or bonds,
debenture or debentures, or any other evidences of Indebtedness, as the case may
be, authenticated and delivered under this Indenture; provided, however, that,
if at any time there is more than one Person acting as Trustee under this
Indenture, "Securities", with respect to any such Person, shall mean Securities
authenticated and delivered under this Indenture, exclusive, however, of
Securities of any series as to which such Person is not Trustee.

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

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

      "Stated Maturity", with respect to any Security or any installment of
principal thereof or interest thereon or any Additional Amounts with respect
thereto, means the date established by or pursuant to this Indenture or such
Security as the fixed date on which the principal of such Security or such
installment of principal or interest is, or such Additional Amounts are, due and
payable.

      "Subsidiary" means any corporation, association, limited liability
company, partnership or other business entity of which a majority of the total
voting power of the capital stock or other interests (including partnership
interests) entitled (without regard to the incurrence of a contingency) to vote
in the election of directors, managers, or trustees thereof is at the time
owned, directly or indirectly, by (i) the Company, (ii) the Company and one or
more of its Subsidiaries or (iii) one or more Subsidiaries of the Company.

      "Trading Day" means, with respect to any security the Closing Price of
which is being determined, a day on which there is trading on the United States
national or regional securities exchange or recognized international securities
exchange, in the Nasdaq Stock Market or in over-the-counter market used to
determine such Closing Price.

      "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended,
and any reference herein to the Trust Indenture Act or a particular provision
thereof shall mean such Act or provision, as the case may be, as amended or
replaced from time to time or as supplemented from time to time by rules or
regulations adopted by the Commission under or in furtherance of the purposes of
such Act or provision, as the case may be.

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

                                       10
<PAGE>   18
      "United States", except as otherwise provided in or pursuant to this
Indenture or any Security, means the United States of America (including the
states thereof and the District of Columbia), its territories and possessions
and other areas subject to its jurisdiction.

      "United States Alien", except as otherwise provided in or pursuant to this
Indenture or any Security, means any Person who, for United States Federal
income tax purposes, is a foreign corporation, a non-resident alien individual,
a non-resident alien fiduciary of a foreign estate or trust, or a foreign
partnership one or more of the members of which is, for United States Federal
income tax purposes, a foreign corporation, a non-resident alien individual or a
non-resident alien fiduciary of a foreign estate or trust.

      "U.S. Depository" or "Depository" means, with respect to any Security
issuable or issued in the form of one or more global Securities, the Person
designated as U.S. Depository or Depository by the Company in or pursuant to
this Indenture, which Person must be, to the extent required by applicable law
or regulation, a clearing agency registered under the Exchange Act and, if so
provided with respect to any Security, any successor to such Person. If at any
time there is more than one such Person, "U.S. Depository" or "Depository" shall
mean, with respect to any Securities, the qualifying entity which has been
appointed with respect to such Securities.

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

      "Voting Stock" means stock of a Corporation of the class or classes having
general voting power under ordinary circumstances to elect at least a majority
of the board of directors, managers or trustees of such Corporation provided
that, for the purposes hereof, stock which carries only the right to vote
conditionally on the happening of an event shall not be considered voting stock
whether or not such event shall have happened.

Section 102 Compliance Certificates and Opinions

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

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

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

                                       11
<PAGE>   19
      (2) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based;

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

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

Section 103 Form of Documents Delivered to Trustee

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

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

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

Section 104 Acts of Holders

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

                                       12
<PAGE>   20
instruments and any such record (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments or so voting at any such meeting. Proof of
execution of any such instrument or of a writing appointing any such agent, or
of the holding by any Person of a Security, shall be sufficient for any purpose
of this Indenture and (subject to Section 315 of the Trust Indenture Act)
conclusive in favor of the Trustee and the Company and any agent of the Trustee
or the Company, if made in the manner provided in this Section. The record of
any meeting of Holders of Securities shall be proved in the manner provided in
Section 1506.

      Without limiting the generality of this Section 104, unless otherwise
provided in or pursuant to this Indenture, a Holder, including a U.S. Depository
that is a Holder of a global Security, may make, give or take, by a proxy or
proxies, duly appointed in writing, any request, demand, authorization,
direction, notice, consent, waiver or other Act provided in or pursuant to this
Indenture or the Securities to be made, given or taken by Holders, and a U.S.
Depository that is a Holder of a global Security may provide its proxy or
proxies to the beneficial owners of interests in any such global Security
through such U.S. Depository's standing instructions and customary practices.

      The Trustee shall fix a record date for the purpose of determining the
Persons who are beneficial owners of interest in any permanent global Security
held by a U.S. Depository entitled under the procedures of such U.S. Depository
to make, give or take, by a proxy or proxies duly appointed in writing, any
request, demand, authorization, direction, notice, consent, waiver or other Act
provided in or pursuant to this Indenture to be made, given or taken by Holders.
If such a record date is fixed, the Holders on such record date or their duly
appointed proxy or proxies, and only such Persons, shall be entitled to make,
give or take such request, demand, authorization, direction, notice, consent,
waiver or other Act, whether or not such Holders remain Holders after such
record date. No such request, demand, authorization, direction, notice, consent,
waiver or other Act shall be valid or effective if made, given or taken more
than 90 days after such record date.

      (2) The fact and date of the execution by any Person of any such
instrument or writing referred to in this Section 104 may be proved in any
reasonable manner which the Trustee deems sufficient and in accordance with such
reasonable rules as the Trustee may determine; and the Trustee may in any
instance require further proof with respect to any of the matters referred to in
this Section.

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

      (4) The ownership, principal amount and serial numbers of Bearer
Securities held by any Person, and the date of the commencement and the date of
the termination of holding the same, may be proved by the production of such
Bearer Securities or by a certificate executed, as depositary, by any trust
company, bank, banker or other depositary reasonably acceptable to the Company,
wherever situated, if such certificate shall be deemed by the Company and the
Trustee to be satisfactory, showing that at the date therein mentioned such
Person had on deposit with such depositary, or exhibited to it, the Bearer
Securities therein described; or such facts may be

                                       13
<PAGE>   21
proved by the certificate or affidavit of the Person holding such Bearer
Securities, if such certificate or affidavit is deemed by the Trustee to be
satisfactory. The Trustee and the Company may assume that such ownership of any
Bearer Security continues until (1) another certificate or affidavit bearing a
later date issued in respect of the same Bearer Security is produced, (2) such
Bearer Security is produced to the Trustee by some other Person, (3) such Bearer
Security is surrendered in exchange for a Registered Security or (4) such Bearer
Security is no longer Outstanding. The ownership, principal amount and serial
numbers of Bearer Securities held by the Person so executing such instrument or
writing and the date of the commencement and the date of the termination of
holding the same may also be proved in any other manner which the Company and
the Trustee deem sufficient.

      (5) If the Company shall solicit from the Holders of any Registered
Securities any request, demand, authorization, direction, notice, consent,
waiver or other Act, the Company may at its option (but is not obligated to), by
Board Resolution, fix in advance a record date for the determination of Holders
of Registered Securities entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other Act. If such a record date is fixed,
such request, demand, authorization, direction, notice, consent, waiver or other
Act may be given before or after such record date, but only the Holders of
Registered Securities of record at the close of business on such record date
shall be deemed to be Holders for the purpose of determining whether Holders of
the requisite proportion of Outstanding Securities have authorized or agreed or
consented to such request, demand, authorization, direction, notice, consent,
waiver or other Act, and for that purpose the Outstanding Securities shall be
computed as of such record date; provided that no such authorization, agreement
or consent by the Holders of Registered Securities shall be deemed effective
unless it shall become effective pursuant to the provisions of this Indenture
not later than six months after the record date.

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

Section 105 Notices, etc. to Trustee and Company

      Any request, demand, authorization, direction, notice, consent, waiver or
other Act of Holders or other document provided or permitted by this Indenture
to be made upon, given or furnished to, or filed with,

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

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

                                       14
<PAGE>   22
Section 106 Notice to Holders of Securities; Waiver

      Except as otherwise expressly provided in or pursuant to this Indenture,
where this Indenture provides for notice to Holders of Securities of any event,

      (1) such notice shall be sufficiently given to Holders of Registered
Securities if in writing and mailed, first-class postage prepaid, to each Holder
of a Registered Security affected by such event, at his address as it appears in
the Security Register, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such notice; and

      (2) such notice shall be sufficiently given to Holders of Bearer
Securities, if any, if published in an Authorized Newspaper in The City of New
York and, if such Securities are then listed on any stock exchange outside the
United States, in an Authorized Newspaper in such city as the Company shall
advise the Trustee that such stock exchange so requires, on a Business Day at
least twice, the first such publication to be not earlier than the earliest date
and the second such publication not later than the latest date prescribed for
the giving of such notice.

      In any case where notice to Holders of Registered Securities is given by
mail, neither the failure to mail such notice, nor any defect in any notice so
mailed, to any particular Holder of a Registered Security shall affect the
sufficiency of such notice with respect to other Holders of Registered
Securities or the sufficiency of any notice to Holders of Bearer Securities
given as provided herein. Any notice which is mailed in the manner herein
provided shall be conclusively presumed to have been duly given or provided. In
the case by reason of the suspension of regular mail service or by reason of any
other cause it shall be impracticable to give such notice by mail, then such
notification as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder.

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

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

Section 107 Language of Notices

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

                                       15
<PAGE>   23
Section 108 Conflict with Trust Indenture Act

      If any provision hereof limits, qualifies or conflicts with any duties
under any required provision of the Trust Indenture Act, such required provision
shall control.

Section 109 Effect of Headings and Table of Contents.

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

Section 110 Successors and Assigns

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

Section 111 Separability Clause

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

Section 112 Benefits of Indenture

      Nothing in this Indenture, any Security or any Coupon, express or implied,
shall give to any Person, other than the parties hereto, any Security Registrar,
any Paying Agent, any Authentication Agent and their successors hereunder and
the Holders of Securities or Coupons, any benefit or any legal or equitable
right, remedy or claim under this Indenture.

Section 113 Governing Law

      This Indenture, the Securities and any Coupons shall be governed by and
construed in accordance with the laws of the State of New York applicable to
agreements made or instruments entered into and, in each case, performed in said
state.

Section 114 Legal Holidays

      Unless otherwise specified in or pursuant to this Indenture or any
Securities, in any case where any Interest Payment Date, Stated Maturity or
Maturity of any Security, or the last date on which a Holder has the right to
convert or exchange Securities of a series that are convertible or exchangeable,
shall not be a Business Day (a "Legal Holiday") at any Place of Payment, then
(notwithstanding any other provision of this Indenture, any Security or any
Coupon other than a provision in any Security or Coupon that specifically states
that such provision shall apply in lieu hereof) payment need not be made at such
Place of Payment on such date, and such Securities need not be converted or
exchanged on such date but such payment may be made, and such Securities may be
converted or exchanged, on the next succeeding day that is a Business Day at
such Place of Payment with the same force and effect as if made on the Interest
Payment Date or at the Stated Maturity or Maturity or on such last day for
conversion or exchange, and no interest shall accrue on the amount payable on
such date or at such time for the period from and after such Interest Payment
Date, Stated Maturity, Maturity or last day for conversion or exchange, as the
case may be, to the next succeeding Business Day.

                                       16
<PAGE>   24
Section 115 Counterparts

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

Section 116 Judgment Currency

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

Section 117 No Security Interest Created

      Nothing in this Indenture or in any Securities, express or implied, shall
be construed to constitute a security interest under the Uniform Commercial Code
or similar legislation, as now or hereafter enacted and in effect in any
jurisdiction where property of the Company or its Subsidiaries is or may be
located.

Section 118 Limitation on Individual Liability

      No recourse under or upon any obligation, covenant or agreement contained
in this Indenture or in any Security, or for any claim based thereon or
otherwise in respect thereof, shall be had against any incorporator,
shareholder, officer or director, as such, past, present or future, of the
Company, either directly or through the Company, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise; it being expressly understood that this Indenture and the
obligations issued hereunder are solely corporate obligations, and that no such
personal liability whatever shall attach to, or is or shall be incurred by, the
incorporators, shareholders, officers or directors, as such, of the Company, or
any of them, because of the creation of the indebtedness hereby authorized, or
under or by reason of the obligations, covenants or agreements contained in this
Indenture or in any Security or implied therefrom; and that any and all such
personal liability of every name and nature, either at common law or in equity
or by constitution or statute, of, and any and all such rights and claims

                                       17
<PAGE>   25
against, every such incorporator, shareholder, officer or director, as such,
because of the creation of the indebtedness hereby authorized, or under or by
reason of the obligations, covenants or agreements contained in this Indenture
or in any Security or implied therefrom, are hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture and the issuance of such Security.

                                  ARTICLE TWO

                                SECURITIES FORMS

Section 201 Forms Generally

      Each Registered Security, Bearer Security, Coupon and temporary or
permanent global Security issued pursuant to this Indenture shall be in the form
established by or pursuant to a Board Resolution and set forth in an Officers'
Certificate, or established in one or more indentures supplemental hereto, shall
have such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by or pursuant to this Indenture or any indenture
supplemental hereto and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may,
consistently herewith, be determined by the officers executing such Security or
Coupon as evidenced by their execution of such Security or Coupon.

      Unless otherwise provided in or pursuant to this Indenture or any
Securities, the Securities shall be issuable in registered form without Coupons
and shall not be issuable upon the exercise of warrants.

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

Section 202 Form of Trustee's Certificate of Authentication

      Subject to Section 611, the Trustee's certificate of authentication shall
be in substantially the following form:

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

                                          THE BANK OF NEW YORK, as Trustee

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

                                       18
<PAGE>   26
Section 203 Securities in Global Form

      Unless otherwise provided in or pursuant to this Indenture or any
Securities, the Securities shall not be issuable in temporary or permanent
global form. If Securities of a series shall be issuable in global form, any
such Security may provide that it or any number of such Securities shall
represent the aggregate amount of all Outstanding Securities of such series (or
such lesser amount as is permitted by the terms thereof) from time to time
endorsed thereon and may also provide that the aggregate amount of Outstanding
Securities represented thereby may from time to time be increased or reduced to
reflect exchanges. Any endorsement of any Security in global form to reflect the
amount, or any increase or decrease in the amount, or changes in the rights of
Holders, of Outstanding Securities represented thereby shall be made in such
manner and by such Person or Persons as shall be specified therein or in the
Company Order to be delivered pursuant to Section 303 or Section 304 with
respect thereto. Subject to the provisions of Section 303 and, if applicable,
Section 304, the Trustee shall deliver and redeliver any Security in permanent
global form in the manner and upon instructions given by the Person or Persons
specified therein or in the applicable Company Order. If a Company Order
pursuant to Section 303 or Section 304 has been, or simultaneously is,
delivered, any instructions by the Company with respect to a Security in global
form shall be in writing but need not be accompanied by or contained in an
Officers' Certificate and need not be accompanied by an Opinion of Counsel.

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

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

                                 ARTICLE THREE

                                 THE SECURITIES

Section 301 Amount Unlimited; Issuable in Series

      The aggregate principal amount of Securities which may be authenticated
and delivered under this Indenture is unlimited. The Securities may be issued in
one or more series. With respect to any Securities to be authenticated and
delivered hereunder, there shall be established in or pursuant to a Board
Resolution and set forth in an Officers' Certificate, or established in one or
more indentures supplemental hereto,

      (1) the title of such Securities and the series in which such Securities
shall be included;

                                       19
<PAGE>   27
      (2) any limit upon the aggregate principal amount of the Securities of
such title or the Securities of such series which may be authenticated and
delivered under this Indenture (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of,
other Securities of such series pursuant to Section 304, Section 305, Section
306, Section 905 or Section 1107, upon repayment in part of any Registered
Security of such series pursuant to Article Thirteen, upon surrender in part of
any Registered Security for conversion or exchange into Common Stock or other
securities, cash or other property pursuant to its terms, or pursuant to the
terms of such Securities);

      (3) if such Securities are to be issuable as Registered Securities, as
Bearer Securities or alternatively as Bearer Securities and Registered
Securities, and whether the Bearer Securities are to be issuable with Coupons,
without Coupons or both, and any restrictions applicable to the offer, sale or
delivery of the Bearer Securities and the terms, if any, upon which Bearer
Securities may be exchanged for Registered Securities and vice versa;

      (4) if any of such Securities are to be issuable in global form, when any
of such Securities are to be issuable in global form and (i) whether such
Securities are to be issued in temporary or permanent global form or both, (ii)
whether beneficial owners of interests in any such global Security may exchange
such interests for Securities of the same series and of like tenor and of any
authorized form and denomination, and the circumstances under which any such
exchanges may occur, if other than in the manner specified in Section 305, and
(iii) the name of the Depository or the U.S. Depository, as the case may be,
with respect to any global Security;

      (5) if any of such Securities are to be issuable as Bearer Securities or
in global form, the date as of which any such Bearer Security or global Security
shall be dated (if other than the date of original issuance of the first of such
Securities to be issued);

      (6) if any of such Securities are to be issuable as Bearer Securities,
whether interest in respect of any portion of a temporary Bearer Security in
global form payable in respect of an Interest Payment Date therefor prior to the
exchange, if any, of such temporary Bearer Security for definitive Securities
shall be paid to any clearing organization with respect to the portion of such
temporary Bearer Security held for its account and, in such event, the terms and
conditions (including any certification requirements) upon which any such
interest payment received by a clearing organization will be credited to the
Persons entitled to interest payable on such Interest Payment Date;

      (7) the date or dates, or the method or methods, if any, by which such
date or dates shall be determined, on which the principal and premium, if any,
of such Securities is payable;

      (8) the rate or rates at which such Securities shall bear interest, if
any, or the method or methods, if any, by which such rate or rates are to be
determined, the date or dates, if any, from which such interest shall accrue or
the method or methods, if any, by which such date or dates are to be determined,
the Interest Payment Dates, if any, on which such interest shall be payable and
the Regular Record Date, if any, for the interest payable on Registered
Securities on any Interest Payment Date, whether and under what circumstances
Additional Amounts on such Securities or any of them shall be payable, the
notice, if any, to Holders regarding the determination of interest on a floating
rate Security and the manner of giving such notice, and the

                                       20
<PAGE>   28
basis upon which interest shall be calculated if other than that of a 360-day
year of twelve 30-day months;

      (9) if in addition to or other than the Borough of Manhattan, The City of
New York, the place or places where the principal of, any premium and interest
on or any Additional Amounts with respect to such Securities shall be payable,
any of such Securities that are Registered Securities may be surrendered for
registration of transfer or exchange, any of such Securities may be surrendered
for conversion or exchange and notices or demands to or upon the Company in
respect of such Securities and this Indenture may be served, the extent to
which, or the manner in which, any interest payment or Additional Amounts on a
global Security on an Interest Payment Date, will be paid and the manner in
which any principal of or premium, if any, on any global Security will be paid;

      (10) whether any of such Securities are to be redeemable at the option of
the Company and, if so, the date or dates on which, the period or periods within
which, the price or prices at which and the other terms and conditions upon
which such Securities may be redeemed, in whole or in part, at the option of the
Company;

      (11) whether the Company is obligated to redeem or purchase any of such
Securities pursuant to any sinking fund or analogous provision or at the option
of any Holder thereof and, if so, the date or dates on which, the period or
periods within which, the price or prices at which and the other terms and
conditions upon which such Securities shall be redeemed or purchased, in whole
or in part, pursuant to such obligation, and any provisions for the remarketing
of such Securities so redeemed or purchased;

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

      (13) whether the Securities of the series will be convertible into shares
of Common Stock and/or exchangeable for other securities, cash or other
property, and if so, the terms and conditions upon which such Securities will be
so convertible or exchangeable, and any deletions from or modifications or
additions to this Indenture to permit or to facilitate the issuance of such
convertible or exchangeable Securities or the administration thereof;

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

      (15) if other than Dollars, the Foreign Currency in which payment of the
principal of, any premium or interest on or any Additional Amounts with respect
to any of such Securities shall be payable;

      (16) if the principal of, any premium or interest on or any Additional
Amounts with respect to any of such Securities are to be payable, at the
election of the Company or a Holder thereof or otherwise, in Dollars or in a
Foreign Currency other than that in which such Securities are stated to be
payable, the date or dates on which, the period or periods within which, and the

                                       21
<PAGE>   29
other terms and conditions upon which, such election may be made, and the time
and manner of determining the exchange rate between the Currency in which such
Securities are stated to be payable and the Currency in which such Securities or
any of them are to be paid pursuant to such election, and any deletions from or
modifications of or additions to the terms of this Indenture to provide for or
to facilitate the issuance of Securities denominated or payable, at the election
of the Company or a Holder thereof or otherwise, in a Foreign Currency;

      (17) whether the amount of payments of principal of, any premium or
interest on or any Additional Amounts with respect to such Securities may be
determined with reference to an index, formula or other method or methods (which
index, formula or method or methods may be based, without limitation, on one or
more Currencies, commodities, equity indices or other indices), and, if so, the
terms and conditions upon which and the manner in which such amounts shall be
determined and paid or be payable;

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

      (19) whether either or both of Section 402(2) relating to defeasance or
Section 402(3) relating to covenant defeasance shall not be applicable to the
Securities of such series, or any covenants in addition to those specified in
Section 402(3) relating to the Securities of such series which shall be subject
to covenant defeasance, and, if the Securities of such series are subject to
repurchase or repayment at the option of the Holders thereof, whether the
Company's obligation to repurchase or repay such Securities will be subject to
defeasance or covenant defeasance, and any deletions from, or modifications or
additions to, the provisions of Article Four in respect of the Securities of
such series;

      (20) whether any of such Securities are to be issuable upon the exercise
of warrants, and the time, manner and place for such Securities to be
authenticated and delivered;

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

      (22) if there is more than one Trustee, the identity of the Trustee and,
if not the Trustee, the identity of each Security Registrar, Paying Agent or
Authenticating Agent with respect to such Securities; and

      (23) any other terms of such Securities and any deletions from or
modifications or additions to this Indenture in respect of such Securities.

      All Securities of any one series and all Coupons, if any, appertaining to
Bearer Securities of such series shall be substantially identical except as to
Currency of payments due thereunder, denomination and the rate of interest, or
method of determining the rate of interest, if any, Maturity, and the date from
which interest, if any, shall accrue and except as may otherwise be provided by
the Company in or pursuant to the Board Resolution and set forth in the
Officers' Certificate or in any indenture or indentures supplemental hereto
pertaining to such series of

                                       22
<PAGE>   30
Securities. The terms of the Securities of any series may provide, without
limitation, that the Securities shall be authenticated and delivered by the
Trustee on original issue from time to time upon telephonic or written order of
persons designated in the Officers' Certificate or supplemental indenture
(telephonic instructions to be promptly confirmed in writing by such person) and
that such persons are authorized to determine, consistent with such Officers'
Certificate or any applicable supplemental indenture, such terms and conditions
of the Securities of such series as are specified in such Officers' Certificate
or supplemental indenture. All Securities of any one series need not be issued
at the same time and, unless otherwise so provided by the Company, a series may
be reopened for issuances of additional Securities of such series or to
establish additional terms of such series of Securities. If any of the terms of
the Securities of any series shall be established by action taken by or pursuant
to a Board Resolution, the Board Resolution shall be delivered to the Trustee at
or prior to the delivery of the Officers' Certificate setting forth the terms of
such series.

Section 302 Currency; Denominations

      Unless otherwise provided in or pursuant to this Indenture, the principal
of, any premium and interest on and any Additional Amounts with respect to the
Securities shall be payable in Dollars. Unless otherwise provided in or pursuant
to this Indenture, Registered Securities denominated in Dollars shall be
issuable in registered form without Coupons in denominations of $1,000 and any
integral multiple thereof, and the Bearer Securities denominated in Dollars
shall be issuable in the denomination of $5,000. Securities not denominated in
Dollars shall be issuable in such denominations as are established with respect
to such Securities in or pursuant to this Indenture.

Section 303 Execution, Authentication, Delivery and Dating

      Securities shall be executed on behalf of the Company by its Chairman of
the Board, one of its Vice Chairmen, its President, its Treasurer or one of its
Vice Presidents attested by its Secretary or one of its Assistant Secretaries.
Coupons shall be executed on behalf of the Company by the Treasurer or any
Assistant Treasurer of the Company. The signature of any of these officers on
the Securities or any Coupons appertaining thereto may be manual or facsimile.

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

      At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities, together with any Coupons
appertaining thereto, executed by the Company, to the Trustee for authentication
and, provided that the Board Resolution and Officers' Certificate or
supplemental indenture or indentures with respect to such Securities referred to
in Section 301 and a Company Order for the authentication and delivery of such
Securities have been delivered to the Trustee, the Trustee in accordance with
the Company Order and subject to the provisions hereof and of such Securities
shall authenticate and deliver such Securities. In authenticating such
Securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities and any Coupons appertaining thereto, the Trustee

                                       23
<PAGE>   31
shall be entitled to receive, and (subject to Sections 315(a) through 315(d) of
the Trust Indenture Act) shall be fully protected in relying upon,

      (1) an Opinion of Counsel to the effect that:

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

            (b) all conditions precedent to the authentication and delivery of
      such Securities and Coupons, if any, appertaining thereto, have been
      complied with and that such Securities, and Coupons, when completed by
      appropriate insertions, executed under the Company's corporate seal and
      attested by duly authorized officers of the Company, delivered by duly
      authorized officers of the Company to the Trustee for authentication
      pursuant to this Indenture, and authenticated and delivered by the Trustee
      and issued by the Company in the manner and subject to any conditions
      specified in such Opinion of Counsel, will constitute legally valid and
      binding obligations of the Company, enforceable against the Company in
      accordance with their terms, except as enforcement thereof may be subject
      to or limited by bankruptcy, insolvency, reorganization, moratorium,
      arrangement, fraudulent conveyance, fraudulent transfer or other similar
      laws relating to or affecting creditors' rights generally, and subject to
      general principles of equity (regardless of whether enforcement is sought
      in a proceeding in equity or at law) and will entitle the Holders thereof
      to the benefits of this Indenture; such Opinion of Counsel need express no
      opinion as to the availability of equitable remedies;

            (c) all laws and requirements in respect of the execution and
      delivery by the Company of such Securities and Coupons, if any, have been
      complied with;

and, to the extent that this Indenture is required to be qualified under the
Trust Indenture Act in connection with the issuance of such Securities, to the
further effect that:

            (d) this Indenture has been qualified under the Trust Indenture Act;
      and

      (2) an Officers' Certificate stating that all conditions precedent to the
execution, authentication and delivery of such Securities and Coupons, if any,
appertaining thereto, have been complied with and that, to the best knowledge of
the Persons executing such certificate, no event which is, or after notice or
lapse of time would become, an Event of Default with respect to any of the
Securities shall have occurred and be continuing.

      If all the Securities of any series are not to be issued at one time, it
shall not be necessary to deliver an Opinion of Counsel and an Officers'
Certificate at the time of issuance of each Security, but such opinion and
certificate, with appropriate modifications, shall be delivered at or before the
time of issuance of the first Security of such series. After any such first
delivery, any separate request by the Company that the Trustee authenticate
Securities of such series for original issue will be deemed to be a
certification by the Company that all conditions precedent provided for in this
Indenture relating to authentication and delivery of such Securities continue to
have been complied with.

                                       24
<PAGE>   32
      The Trustee shall not be required to authenticate or to cause an
Authenticating Agent to authenticate any Securities if the issue of such
Securities pursuant to this Indenture will affect the Trustee's own rights,
duties or immunities under the Securities and this Indenture or otherwise in a
manner which is not reasonably acceptable to the Trustee or if the Trustee,
being advised by counsel, determines that such action may not lawfully be taken.

      Each Registered Security shall be dated the date of its authentication.
Each Bearer Security and any Bearer Security in global form shall be dated as of
the date specified in or pursuant to this Indenture.

      No Security or Coupon appertaining thereto shall be entitled to any
benefit under this Indenture or be valid or obligatory for any purpose, unless
there appears on such Security a certificate of authentication substantially in
the form provided for in Section 202 or Section 611 executed by or on behalf of
the Trustee or by the Authenticating Agent by the manual signature of one of its
authorized officers. Such certificate upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated
and delivered hereunder. Except as permitted by Section 305 or Section 306, the
Trustee shall not authenticate and deliver any Bearer Security unless all
Coupons appertaining thereto then matured have been detached and cancelled.

Section 304 Temporary Securities

      Pending the preparation of definitive Securities, the Company may execute
and deliver to the Trustee and, upon Company Order, the Trustee shall
authenticate and deliver, in the manner provided in Section 303, temporary
Securities in lieu thereof which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued, in registered form or, if authorized in or pursuant to this
Indenture, in bearer form with one or more Coupons or without Coupons and with
such appropriate insertions, omissions, substitutions and other variations as
the officers of the Company executing such Securities may determine, as
conclusively evidenced by their execution of such Securities. Such temporary
Securities may be in global form.

      Except in the case of temporary Securities in global form, which shall be
exchanged in accordance with the provisions thereof, if temporary Securities are
issued, the Company shall cause definitive Securities to be prepared without
unreasonable delay. After the preparation of definitive Securities of the same
series and containing terms and provisions that are identical to those of any
temporary Securities, such temporary Securities shall be exchangeable for such
definitive Securities upon surrender of such temporary Securities at an Office
or Agency for such Securities, without charge to any Holder thereof. Upon
surrender for cancellation of any one or more temporary Securities (accompanied
by any unmatured Coupons appertaining thereto), the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor a like principal
amount of definitive Securities of authorized denominations of the same series
and containing identical terms and provisions; provided, however, that no
definitive Bearer Security, except as provided in or pursuant to this Indenture,
shall be delivered in exchange for a temporary Registered Security; and
provided, further, that a definitive Bearer Security shall be delivered in
exchange for a temporary Bearer Security only in compliance with the conditions
set forth in or pursuant to this Indenture. Unless otherwise provided in or
pursuant to this Indenture with respect to a temporary global Security, until so
exchanged the temporary Securities of any

                                       25
<PAGE>   33
series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of such series.

Section 305 Registration, Transfer and Exchange

      With respect to the Registered Securities of each series, if any, the
Company shall cause to be kept a register (each such register being herein
sometimes referred to as the "Security Register") at an Office or Agency for
such series in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of the Registered
Securities of such series and of transfers of the Registered Securities of such
series. Such Office or Agency shall be the "Security Registrar" for that series
of Securities. Unless otherwise specified in or pursuant to this Indenture or
the Securities, the Trustee shall be the initial Security Registrar for each
series of Securities. The Company shall have the right to remove and replace
from time to time the Security Registrar for any series of Securities; provided
that no such removal or replacement shall be effective until a successor
Security Registrar with respect to such series of Securities shall have been
appointed by the Company and shall have accepted such appointment by the
Company. In the event that the Trustee shall not be or shall cease to be the
Security Registrar with respect to a series of Securities, it shall have the
right to examine the Security Register for such series at all reasonable times.
There shall be only one Security Register for each series of Securities.

      Upon surrender for registration of transfer of any Registered Security of
any series at any Office or Agency for such series, the Company shall execute,
and the Trustee shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more new Registered Securities of the same
series denominated as authorized in or pursuant to this Indenture, of a like
aggregate principal amount bearing a number not contemporaneously outstanding
and containing identical terms and provisions.

      At the option of the Holder, Registered Securities of any series may be
exchanged for other Registered Securities of the same series containing
identical terms and provisions, in any authorized denominations, and of a like
aggregate principal amount, upon surrender of the Securities to be exchanged at
any Office or Agency for such series. Whenever any Registered Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Registered Securities which the Holder making the
exchange is entitled to receive.

      If provided in or pursuant to this Indenture, with respect to Securities
of any series, at the option of the Holder, Bearer Securities of such series may
be exchanged for Registered Securities of such series containing identical
terms, denominated as authorized in or pursuant to this Indenture and in the
same aggregate principal amount, upon surrender of the Bearer Securities to be
exchanged at any Office or Agency for such series, with all unmatured Coupons
and all matured Coupons in default thereto appertaining. If the Holder of a
Bearer Security is unable to produce any such unmatured Coupon or Coupons or
matured Coupon or Coupons in default, such exchange may be effected if the
Bearer Securities are accompanied by payment in funds acceptable to the Company
and the Trustee in an amount equal to the face amount of such missing Coupon or
Coupons, or the surrender of such missing Coupon or Coupons may be waived by the
Company and the Trustee if there is furnished to them such security or indemnity
as they may require to save each of them and any Paying Agent harmless. If
thereafter the

                                       26
<PAGE>   34
Holder of such Bearer Security shall surrender to any Paying Agent any such
missing Coupon in respect of which such a payment shall have been made, such
Holder shall be entitled to receive the amount of such payment; provided,
however, that, except as otherwise provided in Section 1002, interest
represented by Coupons shall be payable only upon presentation and surrender of
those Coupons at an Office or Agency for such series located outside the United
States. Notwithstanding the foregoing, in case a Bearer Security of any series
is surrendered at any such Office or Agency for such series in exchange for a
Registered Security of such series and like tenor after the close of business at
such Office or Agency on (i) any Regular Record Date and before the opening of
business at such Office or Agency on the relevant Interest Payment Date, or (ii)
any Special Record Date and before the opening of business at such Office or
Agency on the related date for payment of Defaulted Interest, such Bearer
Security shall be surrendered without the Coupon relating to such Interest
Payment Date or proposed date of payment, as the case may be (or, if such Coupon
is so surrendered with such Bearer Security, such Coupon shall be returned to
the Person so surrendering the Bearer Security), and interest or Defaulted
Interest, as the case may be, shall not be payable on such Interest Payment Date
or proposed date for payment, as the case may be, in respect of the Registered
Security issued in exchange for such Bearer Security, but shall be payable only
to the Holder of such Coupon when due in accordance with the provisions of this
Indenture.

      If provided in or pursuant to this Indenture with respect to Securities of
any series, at the option of the Holder, Registered Securities of such series
may be exchanged for Bearer Securities upon such terms and conditions as may be
provided in or pursuant to this Indenture with respect to such series.

      Whenever any Securities are surrendered for exchange as contemplated by
the immediately preceding two paragraphs, the Company shall execute, and the
Trustee shall authenticate and deliver, the Securities which the Holder making
the exchange is entitled to receive.

      Notwithstanding the foregoing, except as otherwise provided in or pursuant
to this Indenture, any global Security shall be exchangeable for definitive
Securities only if (i) the Depository is at any time unwilling, unable or
ineligible to continue as Depository and a successor depository is not appointed
by the Company within 90 days of the date the Company is so informed in writing,
(ii) the Depositary ceases to be a clearing agency registered under the Exchange
Act, (iii) the Company executes and delivers to the Trustee a Company Order to
the effect that such global Security shall be so exchangeable or (iv) an Event
of Default has occurred and is continuing with respect to the Securities. If the
beneficial owners of interests in a global Security are entitled to exchange
such interests for definitive Securities as the result of an event described in
clause (i), (ii), (iii) or (iv) of the preceding sentence, then without
unnecessary delay but in any event not later than the earliest date on which
such interests may be so exchanged, the Company shall deliver to the Trustee
definitive Securities in such form and denominations as are required by or
pursuant to this Indenture, and of the same series, containing identical terms
and in aggregate principal amount equal to the principal amount of such global
Security, executed by the Company. On or after the earliest date on which such
interests may be so exchanged, such global Security shall be surrendered from
time to time by the U.S. Depository or such other Depository as shall be
specified in the Company Order with respect thereto, and in accordance with
instructions given to the Trustee and the U.S. Depository or such other
Depository, as the

                                       27
<PAGE>   35
case may be (which instructions shall be in writing but need not be contained in
or accompanied by an Officers' Certificate or be accompanied by an Opinion of
Counsel), as shall be specified in the Company Order with respect thereto to the
Trustee, as the Company's agent for such purpose, to be exchanged, in whole or
in part, for definitive Securities as described above without charge. The
Trustee shall authenticate and make available for delivery, in exchange for each
portion of such surrendered global Security, a like aggregate principal amount
of definitive Securities of the same series of authorized denominations and of
like tenor as the portion of such global Security to be exchanged, which (unless
such Securities are not issuable both as Bearer Securities and as Registered
Securities, in which case the definitive Securities exchanged for the global
Security shall be issuable only in the form in which the Securities are
issuable, as provided in or pursuant to this Indenture) shall be in the form of
Bearer Securities or Registered Securities, or any combination thereof, as shall
be specified by the beneficial owner thereof, but subject to the satisfaction of
any certification or other requirements to the issuance of Bearer Securities;
provided, however, that no such exchanges may occur during a period beginning at
the opening of business 15 days before any selection of Securities of the same
series to be redeemed and ending on the relevant Redemption Date; and provided,
further, that (unless otherwise provided in or pursuant to this Indenture) no
Bearer Security delivered in exchange for a portion of a global Security shall
be mailed or otherwise delivered to any location in the United States. Promptly
following any such exchange in part, such global Security shall be returned by
the Trustee to such Depository or the U.S. Depository, as the case may be, or
such other Depository or U.S. Depository referred to above in accordance with
the instructions of the Company referred to above. If a Registered portion of a
global Security after the close of business at the Office or Agency for such
Security where such exchange occurs on or after (i) any Regular Record Date for
such Security and before the opening of business at such Office or Agency on the
next Interest Payment Date, or (ii) any Special Record Date for such Security
and before the opening of business at such Office or Agency on the related
proposed date for payment of interest or Defaulted Interest, as the case may be,
interest shall not be payable on such Interest Payment Date or proposed date for
payment, as the case may be, in respect of such Registered Security, but shall
be payable on such Interest Payment Date or proposed date for payment, as the
case may be, only to the Person to whom interest in respect of such portion of
such global Security shall be payable in accordance with the provisions of this
Indenture.

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

      Every Registered Security presented or surrendered for registration of
transfer or for exchange or redemption shall (if so required by the Company or
the Security Registrar for such Security) be duly endorsed, or be accompanied by
a written instrument of transfer in form satisfactory to the Company and the
Security Registrar for such Security duly executed by the Holder thereof or his
attorney duly authorized in writing.

      No service charge shall be made for any registration of transfer or
exchange, or redemption of Securities, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge and any other
expenses (including fees and expenses of the Trustee) that may be imposed in
connection with any registration of transfer or exchange of

                                       28
<PAGE>   36
Securities, other than exchanges pursuant to Sections 304, 306 and 1107 not
involving any transfer.

      Except as otherwise provided in or pursuant to this Indenture, the Company
shall not be required (i) to issue, register the transfer of or exchange any
Securities during a period beginning at the opening of business 15 days before
the day of the mailing of a notice of redemption of Securities of like tenor and
the same series under Section 1103 and ending at the close of business on the
day of such mailing, (ii) to register the transfer of or exchange any Registered
Security so selected for redemption in whole or in part, except in the case of
any Security to be redeemed in part, the portion thereof not to be redeemed
(iii) to exchange any Bearer Security so selected for redemption except, to the
extent provided with respect to such Bearer Security, that such Bearer Security
may be exchanged for a Registered Security of like tenor and the same series,
provided that such Registered Security shall be immediately surrendered for
redemption with written instruction for payment consistent with the provisions
of this Indenture or (iv) to issue, register the transfer of or exchange any
Security which, in accordance with its terms, has been surrendered for repayment
at the option of the Holder, except the portion, if any, of such Security not to
be so repaid.

Section 306 Mutilated, Destroyed, Lost and Stolen Securities

      If any mutilated Security or a Security with a mutilated Coupon
appertaining to it is surrendered to the Trustee, subject to the provisions of
this Section 306, the Company shall execute and the Trustee shall authenticate
and deliver in exchange therefor a new Security of the same series containing
identical terms and of like principal amount and bearing a number not
contemporaneously outstanding, with Coupons appertaining thereto corresponding
to the Coupons, if any, appertaining to the surrendered Security.

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

      Notwithstanding the foregoing provisions of this Section 306, in case any
mutilated, destroyed, lost or stolen Security or Coupon has become or is about
to become due and payable, the Company in its discretion may, instead of issuing
a new Security, pay such Security or Coupon; provided, however, that payment of
principal of, any premium or interest on or any Additional Amounts with respect
to any Bearer Securities shall, except as otherwise provided in Section 1002, be
payable only at an Office or Agency for such Securities located outside the
United States and, unless otherwise provided in or pursuant to this Indenture,
any interest on

                                       29
<PAGE>   37
Bearer Securities and any Additional Amounts with respect to such interest shall
be payable only upon presentation and surrender of the Coupons appertaining
thereto.

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

      Every new Security, with any Coupons appertaining thereto issued pursuant
to this Section in lieu of any destroyed, lost or stolen Security, or in
exchange for a Security to which a destroyed, lost or stolen Coupon appertains
shall constitute a separate obligation of the Company, whether or not the
destroyed, lost or stolen Security and Coupons appertaining thereto or the
destroyed, lost or stolen Coupon shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of such series and any
Coupons, if any, duly issued hereunder.

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

Section 307 Payment of Interest and Certain Additional Amounts; Rights to
Interest and Certain Additional Amounts Preserved

      Unless otherwise provided in or pursuant to this Indenture, any interest
on and any Additional Amounts with respect to any Registered Security which
shall be payable, and are punctually paid or duly provided for, on any Interest
Payment Date shall be paid to the Person in whose name such Security (or one or
more Predecessor Securities) is registered as of the close of business on the
Regular Record Date for such interest. Unless otherwise provided in or pursuant
to this Indenture, in case a Bearer Security is surrendered in exchange for a
Registered Security after the close of business at an Office or Agency for such
Security on any Regular Record Date therefor and before the opening of business
at such Office or Agency on the next succeeding Interest Payment Date therefor,
such Bearer Security shall be surrendered without the Coupon relating to such
Interest Payment Date and interest shall not be payable on such Interest Payment
Date in respect of the Registered Security issued in exchange for such Bearer
Security, but shall be payable only to the Holder of such Coupon when due in
accordance with the provisions of this Indenture.

      Unless otherwise provided in or pursuant to this Indenture, any interest
on and any Additional Amounts with respect to any Registered Security which
shall be payable, but shall not be punctually paid or duly provided for, on any
Interest Payment Date for such Registered Security (herein called "Defaulted
Interest") shall forthwith cease to be payable to the Holder thereof on the
relevant Regular Record Date by virtue of having been such Holder; and such
Defaulted Interest may be paid by the Company, at its election in each case, as
provided in clause (1) or (2) below:

      (1) The Company may elect to make payment of any Defaulted Interest to the
Person in whose name such Registered Security (or a Predecessor Security
thereof) shall be registered at

                                       30
<PAGE>   38
the close of business on a Special Record Date for the payment of such Defaulted
Interest, which shall be fixed in the following manner. The Company shall notify
the Trustee in writing of the amount of Defaulted Interest proposed to be paid
on such Registered Security and the date of the proposed payment, and at the
same time the Company shall deposit with the Trustee an amount of money equal to
the aggregate amount proposed to be paid in respect of such Defaulted Interest
or shall make arrangements satisfactory to the Trustee for such deposit on or
prior to the date of the proposed payment, such money when so deposited to be
held in trust for the benefit of the Person entitled to such Defaulted Interest
as in this clause provided. Thereupon, the Trustee shall fix a Special Record
Date for the payment of such Defaulted Interest which shall be not more than 15
days and not less than 10 days prior to the date of the proposed payment and not
less than 10 days after the receipt by the Trustee of the notice of the proposed
payment. The Trustee shall promptly notify the Company of such Special Record
Date and, in the name and at the expense of the Company, shall cause notice of
the proposed payment of such Defaulted Interest and the Special Record Date
therefor to be mailed, first-class postage prepaid, to the Holder of such
Registered Security (or a Predecessor Security thereof) at his address as it
appears in the Security Register not less than 10 days prior to such Special
Record Date. The Trustee may, in its discretion, in the name and at the expense
of the Company, cause a similar notice to be published at least once in an
Authorized Newspaper of general circulation in the Borough of Manhattan, The
City of New York, but such publication shall not be a condition precedent to the
establishment of such Special Record Date. Notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor having been mailed
as aforesaid, such Defaulted Interest shall be paid to the Person in whose name
such Registered Security (or a Predecessor Security thereof) shall be registered
at the close of business on such Special Record Date and shall no longer be
payable pursuant to the following clause (2). In case a Bearer Security is
surrendered at the Office or Agency for such Security in exchange for a
Registered Security after the close of business at such Office or Agency on any
Special Record Date and before the opening of business at such Office or Agency
on the related proposed date for payment of Defaulted Interest, such Bearer
Security shall be surrendered without the Coupon relating to such Defaulted
Interest and Defaulted Interest shall not be payable on such proposed date of
payment in respect of the Registered Security issued in exchange for such Bearer
Security, but shall be payable only to the Holder of such Coupon when due in
accordance with the provisions of this Indenture.

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

      Unless otherwise provided in or pursuant to this Indenture or the
Securities of any particular series pursuant to the provisions of this
Indenture, at the option of the Company, interest on Registered Securities that
bear interest may be paid by mailing a check to the address of the Person
entitled thereto as such address shall appear in the Security Register or by
transfer to an account maintained by the payee with a bank located in the United
States.

      Subject to the foregoing provisions of this Section and Section 305, each
Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any

                                       31
<PAGE>   39
other Security shall carry the rights to interest accrued and unpaid, and to
accrue, which were carried by such other Security.

      In the case of any Registered Security of any series that is convertible,
which Registered Security is converted after any Regular Record Date and on or
prior to the next succeeding Interest Payment Date (other than any Registered
Security with respect to which the Stated Maturity is prior to such Interest
Payment Date), interest with respect to which the Stated Maturity is on such
Interest Payment Date shall be payable on such Interest Payment Date
notwithstanding such conversion, and such interest (whether or not punctually
paid or duly provided for) shall be paid to the Person in whose name that
Registered Security (or one or more predecessor Registered Securities) is
registered at the close of business on such Regular Record Date. Except as
otherwise expressly provided in the immediately preceding sentence, in the case
of any Registered Security which is converted, interest with respect to which
the Stated Maturity is after the date of conversion of such Registered Security
shall not be payable.

Section 308 Persons Deemed Owners

      Prior to due presentment of a Registered Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name such Registered Security is registered in the
Security Register as the owner of such Registered Security for the purpose of
receiving payment of principal of, any premium and (subject to Section 305 and
Section 307) interest on and any Additional Amounts with respect to such
Registered Security and for all other purposes whatsoever, whether or not any
payment with respect to such Registered Security shall be overdue, and none of
the Company, the Trustee or any agent of the Company or the Trustee shall be
affected by notice to the contrary.

      The Company, the Trustee and any agent of the Company or the Trustee may
treat the bearer of any Bearer Security or the bearer of any Coupon as the
absolute owner of such Security or Coupon for the purpose of receiving payment
thereof or on account thereof and for all other purposes whatsoever, whether or
not any payment with respect to such Security or Coupon shall be overdue, and
none of the Company, the Trustee or any agent of the Company or the Trustee
shall be affected by notice to the contrary.

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

Section 309 Cancellation

      All Securities and Coupons surrendered for payment, redemption,
registration of transfer, exchange or conversion or for credit against any
sinking fund payment shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee, and any such Securities and Coupons, as well as
Securities and Coupons surrendered directly to the Trustee for any such

                                       32
<PAGE>   40
purpose, shall be cancelled promptly by the Trustee. The Company may at any time
deliver to the Trustee for cancellation any Securities previously authenticated
and delivered hereunder which the Company may have acquired in any manner
whatsoever, and all Securities so delivered shall be cancelled promptly by the
Trustee. No Securities shall be authenticated in lieu of or in exchange for any
Securities cancelled as provided in this Section, except as expressly permitted
by or pursuant to this Indenture. All cancelled Securities and Coupons held by
the Trustee shall be disposed of by the Trustee in accordance with its customary
procedures.

Section 310 Computation of Interest

      Except as otherwise provided in or pursuant to this Indenture, or in any
Security, interest on the Securities shall be computed on the basis of a 360-day
year of twelve 30-day months.

Section 311 CUSIP Numbers

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

                                  ARTICLE FOUR

                     SATISFACTION AND DISCHARGE OF INDENTURE

Section 401 Satisfaction and Discharge

      Upon the direction of the Company by a Company Order, this Indenture shall
cease to be of further effect with respect to any series of Securities specified
in such Company Order and any Coupons appertaining thereto, and the Trustee, on
receipt of a Company Order, at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture as to
such series (provided that the Trustee shall not be required to execute any such
instrument until the expiration of ninety days after the date of the deposit
described below and that any such instrument may be made subject to the
condition that such deposit has been made prior to the happening of any event
specified in Section 1602), when

      (1) either

            (a) all Securities of such series theretofore authenticated and
      delivered and all Coupons appertaining thereto (other than (i) Coupons
      appertaining to Bearer Securities of such series surrendered in exchange
      for Registered Securities of such series and maturing after such exchange
      whose surrender is not required or has been waived as provided in Section
      305, (ii) Securities and Coupons of such series which have been destroyed,
      lost or stolen and which have been replaced or paid as provided in Section
      306, (iii) Coupons appertaining to Securities of such series called for
      redemption and maturing after the

                                       33
<PAGE>   41
      relevant Redemption Date whose surrender has been waived as provided in
      Section 1106, and (iv) Securities and Coupons of such series for whose
      payment money has theretofore been deposited in trust or segregated and
      held in trust by the Company and thereafter repaid to the Company or
      discharged from such trust, as provided in Section 1003) have been
      delivered to the Trustee for cancellation; or

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

            (i) have become due and payable, or

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

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

      and the Company, in the case of (i), (ii) or (iii) above, has deposited or
      caused to be deposited with the Trustee as trust funds in trust for such
      purpose, money in the Currency in which such Securities are payable in an
      amount sufficient to pay and discharge the entire indebtedness on such
      Securities and any Coupons appertaining thereto not theretofore delivered
      to the Trustee for cancellation, including the principal of, any premium
      and interest on, and any Additional Amounts with respect to such
      Securities and any Coupons appertaining thereto, to the date of such
      deposit (in the case of Securities which have become due and payable) or
      to the Maturity thereof, as the case may be;

      (2) the Company has paid or caused to be paid all other sums payable
hereunder by the Company with respect to the Outstanding Securities of such
series and any Coupons appertaining thereto; and

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

      In the event there are Securities of two or more series hereunder, the
Trustee shall be required to execute an instrument acknowledging satisfaction
and discharge of this Indenture only if requested to do so with respect to
Securities of such series as to which it is Trustee and if the other conditions
thereto are met.

      Notwithstanding the satisfaction and discharge of this Indenture with
respect to any series of Securities, the obligations of the Company to the
Trustee under Section 606. and, if money shall have been deposited with the
Trustee pursuant to subclause (b) of clause (1) of this Section, the obligations
of the Company and the Trustee with respect to the Securities of such series
under Section 305, Section 306, Section 403, Section 1002 and Section 1003, with
respect to the payment of Additional Amounts, if any, with respect to such
Securities as contemplated by Section 1004 (but only to the extent that the
Additional Amounts payable with respect to such

                                       34
<PAGE>   42
Securities exceed the amount deposited in respect of such Additional Amounts
pursuant to Section 401(1)(b)), and with respect to any rights to convert or
exchange such Securities into Common Stock or other securities, cash or other
property shall survive.

Section 402 Defeasance and Covenant Defeasance

      (1) Unless pursuant to Section 301, either or both of (i) defeasance of
the Securities of or within a series under clause (2) of this Section 402 shall
not be applicable with respect to the Securities of such series or (ii) covenant
defeasance of the Securities of or within a series under clause (3) of this
Section 402 shall not be applicable with respect to the Securities of such
series, then such provisions, together with the other provisions of this Section
402 (with such modifications thereto as may be specified pursuant to Section 301
with respect to any Securities), shall be applicable to such Securities and any
Coupons appertaining thereto, and the Company may at its option by Board
Resolution, at any time, with respect to such Securities and any Coupons
appertaining thereto, elect to have Section 402(2) or Section 402(3) be applied
to such Outstanding Securities and any Coupons appertaining thereto upon
compliance with the conditions set forth below in this Section 402.

      (2) Upon the Company's exercise of the above option applicable to this
Section 402(2) with respect to any Securities of or within a series, the Company
shall be deemed to have been discharged from its obligations with respect to
such Outstanding Securities and any Coupons appertaining thereto on the date the
conditions set forth in clause (4) of this Section 402 are satisfied
(hereinafter, "defeasance"). For this purpose, such defeasance means that the
Company shall be deemed to have paid and discharged the entire Indebtedness
represented by such Outstanding Securities and any Coupons appertaining thereto,
which shall thereafter be deemed to be "Outstanding" only for the purposes of
clause (6) of this Section 402 and the other Sections of this Indenture referred
to in clauses (i) and (ii) below, and to have satisfied all of its other
obligations under such Securities and any Coupons appertaining thereto and this
Indenture insofar as such Securities and any Coupons appertaining thereto are
concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged hereunder: (i) the rights of
Holders of such Outstanding Securities and any Coupons appertaining thereto to
receive, solely from the trust fund described in clause (4) of this Section 402
and as more fully set forth in such Section, payments in respect of the
principal of (and premium, if any) and interest, if any, on, and Additional
Amounts, if any, with respect to, such Securities and any Coupons appertaining
thereto when such payments are due, and any rights of such Holder to convert or
exchange such Securities into Common Stock or other securities, cash or other
property, (ii) the obligations of the Company and the Trustee with respect to
such Securities under Section 305, Section 306, Section 1002 and Section 1003
and with respect to the payment of Additional Amounts, if any, on such
Securities as contemplated by Section 1004 (but only to the extent that the
Additional Amounts payable with respect to such Securities exceed the amount
deposited in respect of such Additional Amounts pursuant to Section 402(4)(a)
below), and with respect to any rights to convert or exchange such Securities
into Common Stock or other securities, cash or other property, (iii) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and (iv) this
Section 402. The Company may exercise its option under this Section 402(2)
notwithstanding the prior exercise of its option under clause (3) of this
Section 402 with respect to such Securities and any Coupons appertaining
thereto.

                                       35
<PAGE>   43
      (3) Upon the Company's exercise of the above option applicable to this
Section 402(3) with respect to any Securities of or within a series, but only to
the extent specified pursuant to Section 301, the Company shall be released from
its obligations under any covenant applicable to such Securities, with respect
to such Outstanding Securities and any Coupons appertaining thereto on and after
the date the conditions set forth in clause (4) of this Section 402 are
satisfied (hereinafter, "covenant defeasance"), and such Securities and any
Coupons appertaining thereto shall thereafter be deemed to be not "Outstanding"
for the purposes of any direction, waiver, consent or declaration or Act of
Holders (and the consequences of any thereof) in connection with any such
covenant, but shall continue to be deemed "Outstanding" for all other purposes
hereunder. For this purpose, such covenant defeasance means that, with respect
to such Outstanding Securities and any Coupons appertaining thereto, the Company
may omit to comply with, and shall have no liability in respect of, any term,
condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of reference in any such covenant to any other provision herein or in
any other document and such omission to comply shall not constitute a default or
an Event of Default under Section 501(5) insofar as it relates to any covenant
specified pursuant to Section 301 and applicable to such Security, Section
501(6) or Section 501(9) or otherwise, as the case may be, but, except as
specified above, the remainder of this Indenture and such Securities and Coupons
appertaining thereto shall be unaffected thereby.

      (4) The following shall be the conditions to application of clause (2) or
(3) of this Section 402 to any Outstanding Securities of or within a series and
any Coupons appertaining thereto:

            (a) The Company shall irrevocably have deposited or caused to be
      deposited with the Trustee (or another trustee satisfying the requirements
      of Section 607 who shall agree to comply with the provisions of this
      Section 402 applicable to it) as trust funds in trust for the purpose of
      making the following payments, specifically pledged as security for, and
      dedicated solely to, the benefit of the Holders of such Securities and any
      Coupons appertaining thereto, (1) an amount in Dollars or in such Foreign
      Currency in which such Securities and any Coupons appertaining thereto are
      then specified as payable at Stated Maturity, or (2) Government
      Obligations applicable to such Securities and Coupons appertaining thereto
      (determined on the basis of the Currency in which such Securities and
      Coupons appertaining thereto are then specified as payable at Stated
      Maturity) which through the scheduled payment of principal and interest in
      respect thereof in accordance with their terms will provide, not later
      than one day before the due date of any payment of principal of (and
      premium, if any) and interest, if any, on such Securities and any Coupons
      appertaining thereto, money in an amount, or (3) a combination thereof, in
      any case, in an amount, sufficient, without consideration of any
      reinvestment of such principal and interest, in the opinion of a
      nationally recognized firm of independent public accountants expressed in
      a written certification thereof delivered to the Trustee, to pay and
      discharge, and which shall be applied by the Trustee (or other qualifying
      trustee) to pay and discharge, (y) the principal of (and premium, if any)
      and interest, if any, on such Outstanding Securities and any Coupons
      appertaining thereto on the Stated Maturity of such principal or
      installment of principal or interest and (z) any mandatory sinking fund
      payments or analogous payments applicable to such Outstanding Securities
      and any Coupons appertaining thereto on the day on which such payments are
      due and payable in

                                       36
<PAGE>   44
      accordance with the terms of this Indenture and of such Securities and any
      Coupons appertaining thereto.

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

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

            (d) In the case of an election under clause (2) of this Section 402,
      the Company shall have delivered to the Trustee an Opinion of Counsel
      stating that

                  (i) the Company has received from the Internal Revenue Service
            a letter ruling, or there has been published by the Internal Revenue
            Service a Revenue Ruling, or

                  (ii) since the date of execution of this Indenture, there has
            been a change in the applicable Federal income tax law,

in either case to the effect that, and based thereon such opinion shall confirm
that, the Holders of such Outstanding Securities and any Coupons appertaining
thereto will not recognize income, gain or loss for Federal income tax purposes
as a result of such defeasance and will be subject to Federal income tax on the
same amounts, in the same manner and at the same times as would have been the
case if such defeasance had not occurred.

            (e) In the case of an election under clause (3) of this Section 402,
      the Company shall have delivered to the Trustee an Opinion of Counsel to
      the effect that the Holders of such Outstanding Securities and any Coupons
      appertaining thereto will not recognize income, gain or loss for Federal
      income tax purposes as a result of such covenant defeasance and will be
      subject to Federal income tax on the same amounts, in the same manner and
      at the same times as would have been the case if such covenant defeasance
      had not occurred.

            (f) The Company shall have delivered to the Trustee an Opinion of
      Counsel to the effect that, after the 91st day after the date of
      establishment of such trust, all money and Government Obligations (or
      other property as may be provided pursuant to Section 301) (including the
      proceeds thereof) deposited or caused to be deposited with the Trustee (or
      other qualifying trustee) pursuant to this clause (4) to be held in trust
      will not be subject to any case or proceeding (whether voluntary or
      involuntary) in respect of the Company under any Federal or State
      bankruptcy, insolvency, reorganization or other similar law, or any decree
      or order for relief in respect of the Company issued in connection
      therewith.

                                       37
<PAGE>   45
            (g) The Company shall have delivered to the Trustee an Officers'
      Certificate and an Opinion of Counsel, each stating that all conditions
      precedent to the defeasance or covenant defeasance under clause (2) or (3)
      of this Section 402 (as the case may be) have been complied with.

            (h) Notwithstanding any other provisions of this Section 402(4),
      such defeasance or covenant defeasance shall be effected in compliance
      with any additional or substitute terms, conditions or limitations which
      may be imposed on the Company in connection therewith pursuant to Section
      301.

      (5) All money and Government Obligations (or other property as may be
provided pursuant to Section 301), including the proceeds thereof, deposited
with the Trustee pursuant to clause (4) of Section 402 in respect of any
Outstanding Securities of any series and any Coupons appertaining thereto shall
be held in trust and applied by the Trustee as set forth in Section 403.

      (6) Unless otherwise specified in or pursuant to this Indenture or any
Security, if, after a deposit referred to in Section 402(4)(a) has been made,
(a) the Holder of a Security in respect of which such deposit was made is
entitled to, and does, elect pursuant to Section 301 or the terms of such
Security to receive payment in a Currency other than that in which the deposit
pursuant to Section 402(4)(a) has been made in respect of such Security, or (b)
a Conversion Event occurs in respect of the Foreign Currency in which the
deposit pursuant to Section 402(4)(a) has been made, the indebtedness
represented by such Security and any Coupons appertaining thereto shall be
deemed to have been, and will be, fully discharged and satisfied through the
payment of the principal of (and premium, if any), and interest, if any, on, and
Additional Amounts, if any, with respect to, such Security as the same becomes
due out of the proceeds yielded by converting (from time to time as specified
below in the case of any such election) the amount or other property deposited
in respect of such Security into the Currency in which such Security becomes
payable as a result of such election or Conversion Event based on (x) in the
case of payments made pursuant to clause (a) above, the applicable market
exchange rate for such Currency in effect on the second Business Day prior to
each payment date, or (y) with respect to a Conversion Event, the applicable
market exchange rate for such Foreign Currency in effect (as nearly as feasible)
at the time of the Conversion Event.

      The Company shall pay and indemnify the Trustee against any tax, fee or
other charge, imposed on or assessed against the Government Obligations
deposited pursuant to this Section 402 or the principal or interest received in
respect thereof other than any such tax, fee or other charge which by law is for
the account of the Holders of such Outstanding Securities and any Coupons
appertaining thereto.

      Anything in this Section 402 to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon Company Request any
money or Government Obligations (or other property and any proceeds therefrom)
held by it as provided in clause (4) of this Section 402 which, in the opinion
of a nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, are in excess of the
amount thereof which would then be required to be deposited to effect a
defeasance or covenant defeasance, as applicable, in accordance with this
Section 402.

                                       38
<PAGE>   46
Section 403 Application of Trust Money

      Subject to the provisions of Section 1607 and the last paragraph of
Section 1003, all money and Government Obligations (or other property as may be
provided pursuant to Section 301), including proceeds thereof, deposited with
the Trustee (or other qualifying trustee, for purpose of this Section 403, the
"Trustee") pursuant to Section 401 or Section 402 in respect of any Outstanding
Securities of any series and any Coupons appertaining thereto shall be held in
trust and applied by the Trustee, in accordance with the provisions of the
Securities, the Coupons appertaining thereto and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as its
own Paying Agent) as the Trustee may determine, to the Holders of such
Securities and any Coupons appertaining thereto of all sums due and to become
due in respect of the principal, premium, if any, interest and any Additional
Amounts thereon; but such money and Government Obligations (or other property)
need not be segregated from other funds except to the extent required by law.

                                  ARTICLE FIVE

                                    REMEDIES

Section 501 Events of Default

      "Event of Default", wherever used herein with respect to Securities of any
series, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body),
unless such event is specifically deleted or modified in or pursuant to the
supplemental indenture, Board Resolution or Officers' Certificate establishing
the terms of such series pursuant to this Indenture:

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

      (2) default in the payment of the principal of or any premium on any
Security of such series, or any Additional Amounts payable with respect thereto,
when the principal or premium becomes or the Additional Amounts with respect
thereto become due and payable at their maturity;

      (3) failure of the Company to comply with any of its obligations described
under Article Eight;

      (4) default in the deposit of any sinking fund payment when and as due by
the terms of any Security of such series;

      (5) default in the performance, or breach, of any covenant or warranty of
the Company in the Indenture or the Securities (other than a covenant or
warranty a default in the performance or the breach of which is elsewhere in
this Section 501 specifically dealt with or which has been expressly included in
this Indenture solely for the benefit of a series of Securities

                                       39
<PAGE>   47
other than such series), and continuance of the default or breach for a period
of 60 days after there has been given, by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders of at
least 25% in principal amount of the Outstanding Securities of such series, a
written notice specifying the default or breach and requiring it to be remedied
and stating that the notice is a "Notice of Default" under Section 602;

      (6) if any event of default as defined in any mortgage, indenture or
instrument under which there may be issued, or by which there may be secured or
evidenced, any Indebtedness of the Company, whether such Indebtedness now exists
or shall hereafter be created, shall happen and shall result in such
Indebtedness in aggregate principal amount (or, if applicable, with an issue
price and accreted original issue discount) in excess of $100 million becoming
or being declared due and payable prior to the date on which it would otherwise
become due and payable, and (i) the acceleration shall not be rescinded or
annulled, (ii) such Indebtedness shall not have been paid or (iii) the Company
shall not have contested such acceleration in good faith by appropriate
proceedings and have obtained and thereafter maintained a stay of all
consequences that would have a material adverse effect on the Company in each
case within a period of 30 days after there shall have been given, by registered
or certified mail, to the Company by the Trustee or to the Company and the
Trustee by the holders of at least 25% in principal amount of the outstanding
Securities of such series then outstanding, a written notice specifying the
default or breaches and requiring it to be remedied and stating that the notice
is a "Notice of Default" or other notice as prescribed under Section 602;
provided, however, that if after the expiration of such period, such event of
default shall be remedied or cured by the Company or be waived by the Holders of
such Indebtedness in any manner authorized by such mortgage, indenture or
instrument, then the Event of Default with respect to such series of Securities
or by reason thereof shall, without further action by the Company, the Trustee
or any holder of Securities of such series, be deemed cured and not continuing;

      (7) the entry by a court having competent jurisdiction of:

            (a) a decree or order for relief in respect of the Company or any
      Material Subsidiary in an involuntary proceeding under any applicable
      bankruptcy, insolvency, reorganization or other similar law and the decree
      or order shall remain unstayed and in effect for a period of 60
      consecutive days;

            (b) a decree or order adjudging the Company or any Material
      Subsidiary to be insolvent, or approving a petition seeking
      reorganization, arrangement, adjustment or composition of the Company or
      any Material Subsidiary and the decree or order shall remain unstayed and
      in effect for a period of 60 consecutive days; or

            (c) a final and non-appealable order appointing a custodian,
      receiver, liquidator, assignee, trustee or other similar official of the
      Company or any Material Subsidiary or of any substantial part of the
      property of the Company or any Material Subsidiary or ordering the winding
      up or liquidation of the affairs of the Company;

      (8) the commencement by the Company or any Material Subsidiary of a
voluntary proceeding under any applicable bankruptcy, insolvency, reorganization
or other similar law or of a voluntary proceeding seeking to be adjudicated
insolvent or the consent by the Company or

                                       40
<PAGE>   48
any Material Subsidiary to the entry of a decree or order for relief in an
involuntary proceeding under any applicable bankruptcy, insolvency,
reorganization or other similar law or to the commencement of any insolvency
proceedings against it, or the filing by the Company or any Material Subsidiary
of a petition or answer or consent seeking reorganization or relief under any
applicable law, or the consent by the Company or any Material Subsidiary to the
filing of the petition or to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee or similar official of the
Company or any Material Subsidiary or any substantial part of the property of
the Company or any Material Subsidiary or the making by the Company or any
Material Subsidiary or an assignment for the benefit of creditors, or the taking
of corporate action by the Company or any Material Subsidiary in furtherance of
any such action; or

      (9) any other Event of Default provided in or pursuant to the Indenture
with respect to Securities of the series.

Section 502 Acceleration of Maturity; Rescission and Annulment

      If an Event of Default with respect to Securities of any series at the
time Outstanding (other than an Event of Default specified in clause (7) or (8)
of Section 501) occurs and is continuing, then the Trustee or the Holders of not
less than 25% in principal amount of the Outstanding Securities of such series
may declare the principal of all the Securities of such series, or such lesser
amount as may be provided for in the Securities of such series, to be due and
payable immediately, by a notice in writing to the Company (and to the Trustee
if given by the Holders), and upon any declaration the principal or such lesser
amount shall become immediately due and payable. If an Event of Default
specified in clause (7) or (8) of Section 501 above occurs, all unpaid principal
of and accrued interest on the Outstanding Securities of that series (or such
lesser amount as may be provided for in the Securities of such series) shall
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Holder of any Security of such series.

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

            (1) the Company has paid or deposited with the Trustee a sum of
      money sufficient to pay all overdue installments of interest on all
      Securities of such series and any Additional Amounts payable with respect
      thereto and any Coupon appertaining thereto, and the principal of and any
      premium on any Securities of the series which have become due otherwise
      than by the declaration of acceleration and interest thereon and any
      Additional Amounts with respect thereto at the rate or rates borne by or
      provided in such Securities; and

            (2) all Events of Default with respect to Securities of such series,
      other than the non-payment of the principal of, any premium and interest
      on, and any additional

                                       41
<PAGE>   49
      amounts with respect to Securities of such series which shall have become
      due solely by the acceleration, shall have been cured or waived as
      provided in Section 513.

Section 503 Collection of Indebtedness and Suits for Enforcement by Trustee

      The Company covenants that if

      (1) default is made in the payment of any installment of interest on any
Security, or any Additional Amounts payable with respect thereto, or any Coupon
appertaining thereto, when such interest or Additional Amounts shall have become
due and payable and such default continues for a period of 30 days, or

      (2) default is made in the payment of any principal of or premium, if any,
on, or any Additional Amounts payable in respect of any principal of or premium,
if any, on any Security at its Maturity.

The Company shall, upon demand of the Trustee, pay to the Trustee, for the
benefit of the Holders of such Securities and any Coupons appertaining thereto,
the whole amount of money then due and payable with respect to such Securities
and any Coupons appertaining thereto, with interest upon the overdue principal,
any premium and, to the extent that payment of such interest shall be legally
enforceable, upon any overdue installments of interest and Additional Amounts at
the rate or rates borne by or provided for in such Securities, and, in addition
thereto, such further amount of money as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel and all other
amounts due to the Trustee under Section 606.

      If the Company fails to pay the money it is required to pay the Trustee
pursuant to the preceding paragraph forthwith upon the demand of the Trustee,
the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the money so due and unpaid, and may
prosecute such proceeding to judgment or final decree, and may enforce the same
against the Company or any other obligor upon such Securities and any Coupons
appertaining thereto and collect the monies adjudged or decreed to be payable in
the manner provided by law out of the property of the Company or any other
obligor upon such Securities and any Coupons appertaining thereto, wherever
situated.

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

Section 504 Trustee May File Proofs of Claim

      In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall

                                       42
<PAGE>   50
then be due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company
for the payment of any overdue principal, premium, interest or Additional
Amounts) shall be entitled and empowered, by intervention in such proceeding or
otherwise,

      (1) to file and prove a claim for the whole amount, or such lesser amount
as may be provided for in the Securities of such series, of the principal and
any premium, interest and Additional Amounts owing and unpaid in respect of the
Securities and any Coupons appertaining thereto and to file such other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents or counsel) and of the
Holders of Securities or any Coupons allowed in such judicial proceeding, and

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder of Securities or any Coupons to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments
directly to the Holders of Securities or any Coupons, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel and any other amounts due to the
Trustee under Section 606.

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

Section 505 Trustee May Enforce Claims without Possession of Securities or
Coupons

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

Section 506 Application of Money Collected

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

                                       43
<PAGE>   51
         FIRST: To the payment of all amounts due to the Trustee and any
predecessor Trustee under Section 606;

         SECOND: To the holders of Senior Debt to the extent required by Article
Sixteen:

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

         FOURTH: The balance, if any, to the Person or Persons entitled thereto.

Section 507 Limitations on Suits

         No Holder of any Security of any series or any Coupons appertaining
thereto shall have any right to institute any proceeding, judicial or otherwise,
with respect to this Indenture, or for the appointment of a receiver or trustee,
or for any other remedy hereunder, unless

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

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

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

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

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

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

Section 508 Unconditional Right of Holders to Receive Principal and any Premium,
Interest and Additional Amounts

         Subject to Article Sixteen and notwithstanding any other provision in
this Indenture, the Holder of any Security or Coupon shall have the right, which
is absolute and unconditional, to receive payment of the principal of, any
premium and (subject to Section 305 and Section 307)

                                       44
<PAGE>   52
interest on, and any Additional Amounts with respect to such Security or payment
of such Coupon, as the case may be, on the respective Stated Maturity or
Maturities therefor specified in such Security or Coupon (or, in the case of
redemption, on the Redemption Date or, in the case of repayment at the option of
such Holder if provided in or pursuant to this Indenture, on the date such
repayment is due) and to institute suit for the enforcement of any such payment,
and such right shall not be impaired without the consent of such Holder.

Section 509 Restoration of Rights and Remedies

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

Section 510 Rights and Remedies Cumulative

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

Section 511 Delay or Omission Not Waiver

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

Section 512 Control by Holders of Securities

         The Holders of a majority in principal amount of the Outstanding
Securities of any series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on the Trustee with respect to the
Securities of such series and any Coupons appertaining thereto, provided that

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

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

                                       45
<PAGE>   53
         (3) such direction is not unduly prejudicial to the rights of the other
Holders of Securities of such series not joining in such action.

Section 513 Waiver of Past Defaults.

         The Holders of not less than a majority in principal amount of the
Outstanding Securities of any series on behalf of the Holders of all the
Securities of such series and any Coupons appertaining thereto may waive any
past default hereunder with respect to such series and its consequences, except
a default

         (1) in the payment of the principal of, any premium or interest on, or
any Additional Amounts with respect to, any Security of such series or any
Coupons appertaining thereto, or

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

         Upon any such waiver, such default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other default or impair any right consequent thereon.

Section 514 Waiver of Stay or Extension Laws

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

Section 515 Undertaking for Costs

         All parties to this Indenture agree, and each Holder of any Security by
his acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken or
omitted by it as Trustee, the filing by any party litigant in such suit of any
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees and
expenses, against any party litigant in such suit having due regard to the
merits and good faith of the claims or defenses made by such party litigant; but
the provisions of this Section 515 shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in
the aggregate more than 10% in principal amount of Outstanding Securities of any
series, or to any suit instituted by any Holder for the enforcement of the
payment of the principal of (or premium, if any) or interest, if any, on or
Additional Amounts, if any, with respect to any Security or any Coupon on or
after the respective Stated Maturities expressed in such Security (or, in the
case of redemption, on or after the Redemption Date, and, in the case of
repayment, on or after the date for

                                       46
<PAGE>   54
repayment) or for the enforcement of the right, if any, to convert or exchange
any Security into Common Stock or other securities, cash or other property in
accordance with its terms.

                                  ARTICLE SIX

                                   THE TRUSTEE

Section 601 Certain Rights of Trustee

         Subject to Sections 315(a) through 315(d) of the Trust Indenture Act:

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

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

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

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

         (5) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by or pursuant to this Indenture at the request or
direction of any of the Holders of Securities of any series or any Coupons
appertaining thereto pursuant to this Indenture, unless such Holders shall have
offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which might be incurred by it in compliance with such
request or direction;

         (6) the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
coupon or other paper or document, but the Trustee, in its discretion, may but
shall not be obligated to make such further inquiry or investigation into such
facts or matters as it may see fit, and, if the Trustee shall determine to make
such further inquiry or investigation, it shall be entitled to examine, during
business hours and upon

                                       47
<PAGE>   55
reasonable notice, the books, records and premises of the Company, personally or
by agent or attorney;

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

         (8) the Trustee shall not be liable for any action taken or error of
judgment made in good faith by a Responsible Officer or Responsible Officers of
the Trustee, unless it shall be proved that the Trustee was negligent, acted in
bad faith or engaged in willful misconduct;

         (9) the Authenticating Agent, Paying Agent, and Security Registrar
shall have the same protections as the Trustee set forth hereunder;

         (10) the Trustee shall not be liable with respect to any action taken,
suffered or omitted to be taken by it in good faith in accordance with an Act of
the Holders hereunder, and, to the extent not so provided herein, with respect
to any act requiring the Trustee to exercise its own discretion, relating to the
time, method and place of conducting any proceeding for any remedy available to
the Trustee, or exercising any trust or power conferred upon the Trustee, under
this Indenture or any Securities, unless it shall be proved that, in connection
with any such action taken, suffered or omitted or any such act, the Trustee was
negligent, acted in bad faith or engaged in willful misconduct;

         (11) no provision of this Indenture shall require the Trustee to expend
or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it; and

         (12) the Trustee shall not be deemed to have notice of any default or
Event of Default unless a Responsible Officer of the Trustee has actual
knowledge thereof or unless written notice of any event which is in fact such a
default or Event of Default is received by the Trustee at the Corporate Trust
Office of the Trustee, and such notice references the Securities and this
Indenture.

Section 602 Notice of Defaults

         Within 90 days after the occurrence of any default hereunder with
respect to the Securities of any series, the Trustee shall transmit by mail to
all Holders of Securities of such series entitled to receive reports pursuant to
Section 703(3), notice of such default hereunder actually known to a Responsible
Officer of the Trustee, unless such default shall have been cured or waived;
provided, however, that, except in the case of a default in the payment of the
principal of (or premium, if any), or interest, if any, on, or Additional
Amounts or any sinking fund or purchase fund installment with respect to, any
Security of such series, the 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 Responsible Officers of the Trustee in good
faith determine that the withholding of such notice is in the best interest of
the Holders of

                                       48
<PAGE>   56
Securities and Coupons of such series; and provided, further, that in the case
of any default of the character specified in Section 501(5) with respect to
Securities of such series, no such notice to Holders shall be given until at
least 30 days after the occurrence thereof. For the purpose of this Section, the
term "default" means any event which is, or after notice or lapse of time or
both would become, an Event of Default with respect to Securities of such
series.

Section 603 Not Responsible for Recitals or Issuance of Securities

         The recitals contained herein and in the Securities, except the
Trustee's certificate of authentication, and in any Coupons shall be taken as
the statements of the Company, and neither the Trustee nor any Authenticating
Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Securities or the Coupons, except that the Trustee represents that it is duly
authorized to execute and deliver this Indenture, authenticate the Securities
and perform its obligations hereunder and that the statements made by it in a
Statement of Eligibility on Form T-1, if necessary, supplied to the Company are
true and accurate, subject to the qualifications set forth therein. Neither the
Trustee nor any Authenticating Agent shall be accountable for the use or
application by the Company of the Securities or the proceeds thereof.

Section 604 May Hold Securities

         The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar or any other Person that may be an agent of the Trustee or the
Company, in its individual or any other capacity, may become the owner or
pledgee of Securities or Coupons and, subject to Sections 310(b) and 311 of the
Trust Indenture Act, may otherwise deal with the Company with the same rights it
would have if it were not the Trustee, Authenticating Agent, Paying Agent,
Security Registrar or such other Person.

Section 605 Money Held in Trust

         Except as provided in Section 403 and Section 1003, money held by the
Trustee in trust hereunder need not be segregated from other funds except to the
extent required by law and shall be held uninvested. The Trustee shall be under
no liability for interest on any money received by it hereunder except as
otherwise agreed in writing with the Company.

Section 606 Compensation and Reimbursement

         The Company agrees:

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

         (2) except as otherwise expressly provided herein, to reimburse the
Trustee upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any provision of this
Indenture arising out of or in connection with the acceptance or administration
of the trust or trusts hereunder (including the reasonable compensation and the
expenses and disbursements of its agents and counsel), except any such

                                       49
<PAGE>   57
expense, disbursement or advance as may be attributable to the Trustee's
negligence or willful misconduct; and

         (3) to indemnify each of the Trustee and any predecessor Trustee and
its agents, officers, directors and employees for, and to hold them harmless
against, any loss, liability, damage, claim or expense, including taxes (other
than taxes based on the income of the Trustee), incurred without negligence or
bad faith on their part, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder, including the costs and
expenses of defending themselves against any claim or liability (whether
asserted by the Company, a Holder of Securities, or any other Person) in
connection with the exercise or performance of any of their powers or duties
hereunder, except to the extent that any such loss, liability or expense was due
to the Trustee's negligence or willful misconduct.

         As security for the performance of the obligations of the Company under
this Section, the Trustee shall have a lien prior to the Securities of any
series upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the payment of principal of, and premium or
interest on or any Additional Amounts with respect to Securities or any Coupons
appertaining thereto.

         To the extent permitted by law any compensation or expense incurred by
the Trustee after a default specified in or pursuant to Section 501 is intended
to constitute an expense of administration under any then applicable bankruptcy
or insolvency law. "Trustee" for purposes of this Section 606 shall include any
predecessor Trustee but the negligence or willful misconduct of any Trustee
shall not affect the rights of any other Trustee under this Section 606.

         The provisions of this Section 606 shall survive the satisfaction and
discharge of this Indenture or the earlier resignation or removal of the Trustee
and shall apply with equal force and effect to the Trustee in its capacity as
Authenticating Agent, Paying Agent or Security Registrar.

Section 607 Corporate Trustee Required; Eligibility

         There shall at all times be a Trustee hereunder that is a Corporation,
organized and doing business under the laws of the United States of America, any
state thereof or the District of Columbia, eligible under Section 310(a)(1) of
the Trust Indenture Act to act as trustee under an indenture qualified under the
Trust Indenture Act and that has a combined capital and surplus (computed in
accordance with Section 310(a)(2) of the Trust Indenture Act) of at least
$50,000,000 subject to supervision or examination by Federal or state authority.
If at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article.

Section 608 Resignation and Removal; Appointment of Successor

         (1) No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee pursuant to Section 609.

         (2) The Trustee may resign at any time with respect to the Securities
of one or more series by giving written notice thereof to the Company. If the
instrument of acceptance by a

                                       50
<PAGE>   58
successor Trustee required by Section 609 shall not have been delivered to the
Trustee within 30 days after the giving of such notice of resignation, the
resigning Trustee may petition, at the expense of the Company, any court of
competent jurisdiction for the appointment of a successor Trustee with respect
to such series.

         (3) The Trustee may be removed at any time with respect to the
Securities of any series by Act of the Holders of a majority in principal amount
of the Outstanding Securities of such series, delivered to the Trustee and the
Company. If the instrument of acceptance by a successor Trustee required by
Section 609 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of removal, the Trustee being removed may petition, at
the expense of the Company, any court of competent jurisdiction for the
appointment of a successor Trustee with respect to such series.

         (4) If at any time:

                  (a) the Trustee shall fail to comply with the obligations
         imposed upon it under Section 310(b) of the Trust Indenture Act with
         respect to Securities of any series after written request therefor by
         the Company or any Holder of a Security of such series who has been a
         bona fide Holder of a Security of such series for at least six months,
         or

                  (b) the Trustee shall cease to be eligible under Section 607
         and shall fail to resign after written request therefor by the Company
         or any such Holder, or

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

         then, in any such case,

                           (i) the Company, by or pursuant to a Board
                  Resolution, may remove the Trustee with respect to all
                  Securities or the Securities of such series, or

                           (ii) subject to Section 315(e) of the Trust Indenture
                  Act, any Holder of a Security who has been a bona fide Holder
                  of a Security of such series for at least six months may, on
                  behalf of himself and all others similarly situated, petition
                  any court of competent jurisdiction for the removal of the
                  Trustee with respect to all Securities of such series and the
                  appointment of a successor Trustee or Trustees.

         (5) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, with
respect to the Securities of one or more series, the Company, by or pursuant to
a Board Resolution, shall promptly appoint a successor Trustee or Trustees with
respect to the Securities of such series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or more
or all of such series and that at any time there shall be only one Trustee with
respect to the Securities of any particular series) and shall comply with the
applicable requirements of Section 609. If, within one year after such
resignation, removal or incapacity, or the occurrence of such vacancy, a
successor Trustee with respect to the Securities of any series shall be
appointed by

                                       51
<PAGE>   59
Act of the Holders of a majority in principal amount of the Outstanding
Securities of such series delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment in accordance with the applicable requirements of Section 609,
become the successor Trustee with respect to the Securities of such series and
to that extent supersede the successor Trustee appointed by the Company. If no
successor Trustee with respect to the Securities of any series shall have been
so appointed by the Company or the Holders of Securities and accepted
appointment in the manner required by Section 609, any Holder of a Security who
has been a bona fide Holder of a Security of such series for at least six months
may, on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities of such series.

         (6) The Company shall give notice of each resignation and each removal
of the Trustee with respect to the Securities of any series and each appointment
of a successor Trustee with respect to the Securities of any series by mailing
written notice of such event by first-class mail, postage prepaid, to the
Holders of Registered Securities, if any, of such series as their names and
addresses appear in the Security Register and, if Securities of such series are
issued as Bearer Securities, by publishing notice of such event once in an
Authorized Newspaper in each Place of Payment located outside the United States.
Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

         (7) In no event shall any retiring Trustee be liable for the acts or
omissions of any successor Trustee hereunder.

Section 609 Acceptance of Appointment by Successor

         (1) Upon the appointment hereunder of any successor Trustee with
respect to all Securities, such successor Trustee so appointed shall execute,
acknowledge and deliver to the Company and the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties hereunder of the retiring Trustee; but, on the request
of the Company or such successor Trustee, such retiring Trustee, upon payment of
its charges, shall execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and,
subject to Section 1003, shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder, subject nevertheless to its claim, if any, provided for in Section
606.

         (2) Upon the appointment hereunder of any successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and such successor Trustee shall execute and deliver an
indenture supplemental hereto wherein each successor Trustee shall accept such
appointment and which (1) shall contain such provisions as shall be necessary or
desirable to transfer and confirm to, and to vest in, such successor Trustee all
the rights, powers, trusts and duties of the retiring Trustee with respect to
the Securities of that or those series to which the appointment of such
successor Trustee relates, (2) if the retiring Trustee is not retiring with
respect to all Securities, shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
as to which the retiring Trustee is not retiring shall continue to be vested in
the retiring Trustee, and (3) shall add to or change any of the provisions of
this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust, that each such Trustee
shall be trustee of a trust or trusts hereunder separate and apart from any
trust or trusts hereunder administered by any other such Trustee and that no
Trustee shall be responsible for any notice given to, or received by, or any act
or failure to act on the part of any other Trustee hereunder, and, upon the
execution and delivery of such supplemental indenture, the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein, such retiring Trustee shall have no further responsibility for the
exercise of rights and powers or for the performance of the duties and
obligations vested in the Trustee under this Indenture with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates other than as hereinafter expressly set forth, and such
successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the

                                       52
<PAGE>   60
retiring Trustee with respect to the Securities of that or those series to which
the appointment of such successor Trustee relates; but, on request of the
Company or such successor Trustee, such retiring Trustee, upon payment of its
charges with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates and subject to Section 1003 shall
duly assign, transfer and deliver to such successor Trustee, to the extent
contemplated by such supplemental indenture, the property and money held by such
retiring Trustee hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates, subject to
its claim, if any, provided for in Section 606.

         (3) Upon request of any Person appointed hereunder as a successor
Trustee, the Company shall execute any and all instruments for more fully and
certainly vesting in and confirming to such successor Trustee all such rights,
powers and trusts referred to in clause (1) or (2) of this Section 609, as the
case may be.

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

Section 610 Merger, Conversion, Consolidation or Succession to Business

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

                                       53
<PAGE>   61
Section 611 Appointment of Authenticating Agent

         The Trustee may appoint one or more Authenticating Agents acceptable to
the Company with respect to one or more series of Securities which shall be
authorized to act on behalf of the Trustee to authenticate Securities of that or
those series issued upon original issue, exchange, registration of transfer,
partial redemption or partial repayment or pursuant to Section 306, and
Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication and delivery on behalf of the Trustee by an Authenticating Agent
and a certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent.

         Each Authenticating Agent must be acceptable to the Company and, except
as provided in or pursuant to this Indenture, shall at all times be a
Corporation that would be permitted by the Trust Indenture Act to act as trustee
under an indenture qualified under the Trust Indenture Act, is authorized under
applicable law and by its charter to act as an Authenticating Agent and has a
combined capital and surplus (computed in accordance with Section 310(a)(2) of
the Trust Indenture Act) of at least $50,000,000. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect specified in this Section.

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

         An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and the Company. The Trustee may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall (i) mail written notice
of such appointment by first-class mail, postage prepaid, to all Holders of
Registered Securities, if any, of the series with respect to which such
Authenticating Agent shall serve, as their names and addresses appear in the
Security Register, and (ii) if Securities of the series are issued as Bearer
Securities, publish notice of such appointment at least once in an Authorized
Newspaper in the place where such successor Authenticating Agent has its
principal office if such office is located outside the United States. Any
successor Authenticating Agent, upon acceptance of its appointment hereunder,
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

                                       54
<PAGE>   62
         The Company agrees to pay each Authenticating Agent from time to time
reasonable compensation for its services under this Section.

         The provisions of Section 308, Section 603 and Section 604 shall be
applicable to each Authenticating Agent.

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

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

                                        THE BANK OF NEW YORK,
                                              As Trustee

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

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

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

                                 ARTICLE SEVEN

                HOLDERS LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 701 Company to Furnish Trustee Names and Addresses of Holders

         In accordance with Section 312(a) of the Trust Indenture Act, the
Company shall furnish or cause to be furnished to the Trustee

         (1) semi-annually with respect to Securities of each series not later
than January 15 and July 15 of the year or upon such other dates as are set
forth in or pursuant to the Board Resolution or indenture supplemental hereto
authorizing such series, a list, in each case in such form as the Trustee may
reasonably require, of the names and addresses of Holders as of the applicable
date, and

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<PAGE>   63
         (2) at such other times as the Trustee may request in writing, within
30 days after the receipt by the Company of any such request, a list of similar
form and content as of a date not more than 15 days prior to the time such list
is furnished,

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

Section 702 Preservation of Information; Communications to Holders

         The Trustee shall comply with the obligations imposed upon it pursuant
to Section 312 of the Trust Indenture Act.

         Every Holder of Securities or Coupons, by receiving and holding the
same, agrees with the Company and the Trustee that neither the Company, the
Trustee, any Paying Agent or any Security Registrar shall be held accountable by
reason of the disclosure of any such information as to the names and addresses
of the Holders of Securities in accordance with Section 312(c) of the Trust
Indenture Act, regardless of the source from which such information was derived,
and that the Trustee shall not be held accountable by reason of mailing any
material pursuant to a request made under Section 312(b) of the Trust Indenture
Act.

Section 703 Reports by Trustee

         (1) Within 60 days after June 15 of each year commencing with the first
June 15 following the first issuance of Securities pursuant to Section 301, if
required by Section 313(a) of the Trust Indenture Act, the Trustee shall
transmit, pursuant to Section 313(c) of the Trust Indenture Act, a brief report
dated as of such June 15 with respect to any of the events specified in said
Section 313(a) which may have occurred since the later of the immediately
preceding June 15 and the date of this Indenture.

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

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

Section 704 Reports by Company; Rule 144A Information

         The Company, pursuant to Section 314(a) of the Trust Indenture Act,
shall:

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

                                       56
<PAGE>   64
periodic information, documents and reports which may be required pursuant to
Section 13 of the Exchange Act in respect of a security listed and registered on
a national securities exchange as may be prescribed from time to time in such
rules and regulations; provided, however, that the Company shall not be required
to file a quarterly report on Form 10-Q (or an analogous form) for any of its
fiscal quarters prior to its fiscal quarter ended September 30, 2001; and
provided further, however, that if the Company files information, documents or
reports by virtue of its being subject to the requirements of Section 12,
Section 13 or Section 15(d) of the Exchange Act and its duty to file such
information, documents or reports is subsequently suspended, then the Company
shall no longer be required to file any such information, documents or reports
pursuant to the provisions of this Section 704 with respect to Securities of any
series that were issued prior to the effectiveness of the suspension of such
duty.

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

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

         (4) Unless the Company furnishes information to the Commission pursuant
to Section 13 or 15(d) of the Exchange Act or this Section, the Company shall
promptly furnish or cause to be furnished such information as is specified
pursuant to Rule 144A(d)(4) under the Securities Act (or any successor provision
thereto) to such Holder or to a prospective purchaser of a Security who is
designated by such Holder and is a qualified institutional buyer (as defined in
Rule 144A under the Securities Act), upon the request of such Holder or
prospective purchaser, in order to permit compliance by such Holder with Rule
144A under the Securities Act.

         Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers' Certificates).

                                 ARTICLE EIGHT

                         CONSOLIDATION, MERGER AND SALES

Section 801 Company May Consolidate, Etc., Only on Certain Terms

         The Company shall not consolidate with or merge into, or sell, assign,
transfer, lease, convey or other dispose of all or substantially all of its
assets and the properties and the assets

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<PAGE>   65
and properties of its Subsidiaries (taken as a whole) to, any entity or entities
(including limited liability companies) unless:

         (1) the successor entity or entities, each of which shall be a
Corporation organized and existing under the laws the United States of America,
any state thereof or the District of Columbia, shall expressly assume, by an
indenture (or indentures, if at such time there is more than one Trustee)
supplemental hereto executed by the successor Person and delivered to the
Trustee, the due and punctual payment of the principal of, any premium and
interest on and any Additional Amounts with respect to all the Securities and
the performance of every obligation in this Indenture and the Outstanding
Securities on the part of the Company to be performed or observed and shall
provide for conversion or exchange rights in accordance with the provisions of
the Securities of any series that are convertible or exchangeable into Common
Stock or other securities, cash or other property;

         (2) immediately after giving effect to such transaction or series of
transactions, no Event of Default or event which, after notice or lapse of time,
or both, would become an Event of Default, shall have occurred and be
continuing; and

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

Section 802 Successor Person Substituted for Company

         Upon any consolidation by the Company with or merger of the Company
into any other Person or Persons or any sale, assignment, transfer, lease,
conveyance or other disposition of all or substantially all of the properties
and assets of the Company and the properties and assets of its Subsidiaries
(taken as a whole) to any Person or Persons in accordance with Section 801, the
successor Person formed by such consolidation or into which the Company is
merged or to which such sale, assignment, transfer, lease, conveyance or other
disposition is made shall succeed to, and be substituted for, and may exercise
every right and power of, the Company under this Indenture with the same effect
as if such successor Person had been named as the Company herein; and
thereafter, except in the case of a lease, the predecessor Person shall be
released from all obligations and covenants under this Indenture, the Securities
and any Coupons.

                                  ARTICLE NINE

                             SUPPLEMENTAL INDENTURES

Section 901 Supplemental Indentures without Consent of Holders

         Without the consent of any Holders of Securities or Coupons, the
Company (when authorized by or pursuant to a Board Resolution) and the Trustee,
at any time and from time to time, may enter into one or more indentures
supplemental hereto, in form satisfactory to the Trustee, for any of the
following purposes:

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<PAGE>   66
         (1) to evidence the succession of another Person to the Company, and
the assumption by any such successor of the covenants of the Company contained
herein and in the Securities; or

         (2) to add to the covenants of the Company for the benefit of the
Holders of all or any series of Securities (as shall be specified in such
supplemental indenture or indentures) or to surrender any right or power herein
conferred upon the Company; or

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

         (4) to establish the form or terms of Securities of any series and any
Coupons appertaining thereto as permitted by Section 201 and Section 301; or

         (5) to evidence and provide for the acceptance of appointment hereunder
by a successor Trustee with respect to the Securities of one or more series and
to add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, pursuant to the requirements of Section 609;
or

         (6) to cure any ambiguity or to correct or supplement any provision
herein which may be defective or inconsistent with any other provision herein,
or to make any other provisions with respect to matters or questions arising
under this Indenture which shall not adversely affect the interests of the
Holders of Securities of any series then Outstanding or any Coupons appertaining
thereto in any material respect; or

         (7) to add to, delete from or revise the conditions, limitations and
restrictions on the authorized amount, terms or purposes of issue,
authentication and delivery of Securities, as herein set forth; or

         (8) to add any additional Events of Default with respect to all or any
series of Securities (as shall be specified in such supplemental indenture); or

         (9) to supplement any of the provisions of this Indenture to such
extent as shall be necessary to permit or facilitate the defeasance and
discharge of any series of Securities pursuant to Article Four, provided that
any such action shall not adversely affect the interests of any Holder of an
Outstanding Security of such series and any Coupons appertaining thereto or any
other Security or Coupon in any material respect; or

         (10) to secure the Securities to the extent specified pursuant to
Section 301; or

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<PAGE>   67
         (11) to make provisions with respect to conversion or exchange rights
of Holders of Securities of any series; or

         (12) to amend or supplement any provision contained herein or in any
supplemental indenture, provided that no such amendment or supplement shall
materially adversely affect the interests of the Holders of any Securities then
Outstanding; or

         (13) to qualify the Indenture under the Trust Indenture Act.

Section 902 Supplemental Indentures With Consent of Holders

         With the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities of each series affected by such
supplemental indenture, by Act of said Holders delivered to the Company and the
Trustee, the Company (when authorized by or pursuant to a Board Resolution) and
the Trustee may enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Indenture or of modifying in any manner the rights
of the Holders of Securities of such series under this Indenture or of the
Securities of such series; provided, however, that no such supplemental
indenture, without the consent of the Holder of each Outstanding Security
affected thereby, shall

         (1) change the Stated Maturity of the principal of, or any premium or
installment of interest on or any Additional Amounts with respect to, any
Security, or reduce the principal amount thereof or the rate (or modify the
calculation of such rate) of interest thereon or any Additional Amounts with
respect thereto, or any premium payable upon the redemption thereof or
otherwise, or change the obligation of the Company to pay Additional Amounts
pursuant to Section 1004 (except as contemplated by Section 801(1) and permitted
by Section 901(1)), or reduce the amount of the principal of an Original Issue
Discount Security that would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 502 or the amount
thereof provable in bankruptcy pursuant to Section 504, change the redemption
provisions or adversely affect the right of repayment at the option of any
Holder as contemplated by Article Thirteen, or change the Place of Payment,
Currency in which the principal of, any premium or interest on, or any
Additional Amounts with respect to any Security is payable, or impair the right
to institute suit for the enforcement of any such payment on or after the Stated
Maturity thereof (or, in the case of redemption, on or after the Redemption Date
or, in the case of repayment at the option of the Holder, on or after the date
for repayment), or

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

         (3) modify any of the provisions of this Section, Section 513 or
Section 1006, except to increase any such percentage or to provide that certain
other provisions of this Indenture cannot be modified or waived without the
consent of the Holder of each Outstanding Security affected thereby, or

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<PAGE>   68
         (4) make any change that adversely affects the right to convert or
exchange any Security into or for Common Stock or other securities, cash or
other property in accordance with the terms of such Security.

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

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

Section 903 Execution of Supplemental Indentures

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

Section 904 Effect of Supplemental Indentures

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

Section 905 Reference in Securities to Supplemental Indentures

         Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and shall
if required by the Trustee, bear a notation in form approved by the Trustee as
to any matter provided for in such supplemental indenture. If the Company shall
so determine, new Securities of any series so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may
be prepared and executed by the Company and authenticated and delivered by the
Trustee in exchange for Outstanding Securities of such series.

Section 906 Conformity with Trust Indenture Act

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

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Section 907 Notice of Supplemental Indenture

         Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to Section 902, the Company shall transmit to
the Holders of Outstanding Securities of any series affected thereby a notice
setting forth the substance of such supplemental indenture.

                                  ARTICLE TEN

                                    COVENANTS

Section 1001 Payment of Principal, any Premium, Interest and Additional Amounts

         The Company covenants and agrees for the benefit of the Holders of the
Securities of each series that it will duly and punctually pay the principal of,
any premium and interest on and any Additional Amounts with respect to the
Securities of such series in accordance with the terms thereof, any Coupons
appertaining thereto and this Indenture. Any interest due on any Bearer Security
on or before the Maturity thereof, and any Additional Amounts payable with
respect to such interest, shall be payable only upon presentation and surrender
of the Coupons appertaining thereto for such interest as they severally mature.

Section 1002 Maintenance of Office or Agency

         The Company shall maintain in each Place of Payment for any series of
Securities an Office or Agency where Securities of such series (but not Bearer
Securities, except as otherwise provided below, unless such Place of Payment is
located outside the United States) may be presented or surrendered for payment,
where Securities of such series may be surrendered for registration of transfer
or exchange, where Securities of such series that are convertible or
exchangeable may be surrendered for conversion or exchange, and where notices
and demands to or upon the Company in respect of the Securities of such series
relating thereto and this Indenture may be served. If Securities of a series are
issuable as Bearer Securities, the Company shall maintain, subject to any laws
or regulations applicable thereto, an Office or Agency in a Place of Payment for
such series which is located outside the United States where Securities of such
series and any Coupons appertaining thereto may be presented and surrendered for
payment; provided, however, that if the Securities of such series are listed on
The Stock Exchange of the United Kingdom and the Republic of Ireland or the
Luxembourg Stock Exchange or any other stock exchange located outside the United
States and such stock exchange shall so require, the Company shall maintain a
Paying Agent in London, Luxembourg or any other required city located outside
the United States, as the case may be, so long as the Securities of such series
are listed on such exchange. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such Office or
Agency. If at any time the Company shall fail to maintain any such required
Office or Agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, except that Bearer Securities of such
series and any Coupons appertaining thereto may be presented and surrendered for
payment at the place specified for the purpose with respect to such Securities
as provided in or pursuant to this Indenture, and the Company hereby appoints
the Trustee as its agent to receive all such presentations, surrenders, notices
and demands.

                                       62
<PAGE>   70
         Except as otherwise provided in or pursuant to this Indenture, no
payment of principal, premium, interest or Additional Amounts with respect to
Bearer Securities shall be made at any Office or Agency in the United States or
by check mailed to any address in the United States or by transfer to an account
maintained with a bank located in the United States; provided, however, if
amounts owing with respect to any Bearer Securities shall be payable in Dollars,
payment of principal of, any premium or interest on and any Additional Amounts
with respect to any such Security may be made at the Corporate Trust Office of
the Trustee or any Office or Agency designated by the Company in the Borough of
Manhattan, The City of New York, if (but only if) payment of the full amount of
such principal, premium, interest or Additional Amounts at all offices outside
the United States maintained for such purpose by the Company in accordance with
this Indenture is illegal or effectively precluded by exchange controls or other
similar restrictions.

         The Company may also from time to time designate one or more other
Offices or Agencies where the Securities of one or more series may be presented
or surrendered for any or all such purposes and may from time to time rescind
such designations; provided, however, that no such designation or rescission
shall in any manner relieve the Company of its obligation to maintain an Office
or Agency in each Place of Payment for Securities of any series for such
purposes. The Company shall give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such
other Office or Agency.

         Unless otherwise provided in or pursuant to this Indenture, the Company
hereby designates as the Place of Payment for each series of Securities the
Borough of Manhattan, The City of New York, and initially appoints the Corporate
Trust Office of the Trustee located at 101 Barclay Street, New York, New York
10286 as the Office or Agency of the Company in the Borough of Manhattan, The
City of New York for such purpose. The Company may subsequently appoint a
different Office or Agency in the Borough of Manhattan, The City of New York for
the Securities of any series.

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

Section 1003 Money for Securities Payments to Be Held in Trust

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

                                       63
<PAGE>   71
         Whenever the Company shall have one or more Paying Agents for any
series of Securities, it shall, on or prior to each due date of the principal
of, any premium or interest on or any Additional Amounts with respect to any
Securities of such series, deposit with any Paying Agent a sum (in the currency
or currencies, currency unit or units or composite currency or currencies
described in the preceding paragraph) sufficient to pay the principal or any
premium, interest or Additional Amounts so becoming due, such sum to be held in
trust for the benefit of the Persons entitled thereto, and (unless such Paying
Agent is the Trustee) the Company will promptly notify the Trustee of its action
or failure so to act.

         The Company shall cause each Paying Agent for any series of Securities
(other than the Trustee) to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions
of this Section, that such Paying Agent shall:

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

         (2) give the Trustee notice of any default by the Company (or any other
obligor upon the Securities of such series) in the making of any payment of
principal, any premium or interest on or any Additional Amounts with respect to
the Securities of such series; and

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

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

         Except as otherwise provided herein or pursuant hereto, any money
deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of, any premium or interest on or any
Additional Amounts with respect to any Security of any series or any Coupon
appertaining thereto and remaining unclaimed for two years after such principal
or any such premium or interest or any such Additional Amounts shall have become
due and payable shall be paid to the Company on Company Request, or (if then
held by the Company) shall be discharged from such trust; and the Holder of such
Security or any Coupon appertaining thereto shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required
to make any such repayment, may at the expense of the Company cause to be
published once, in an Authorized Newspaper in each Place of Payment for such
series or to be mailed to Holders of Registered Securities of such series, or
both, notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such

                                       64
<PAGE>   72
publication or mailing nor shall it be later than two years after such principal
and any premium or interest or Additional Amounts shall have become due and
payable, any unclaimed balance of such money then remaining will be repaid to
the Company.

Section 1004 Additional Amounts

         If any Securities of a series provide for the payment of Additional
Amounts, the Company agrees to pay to the Holder of any such Security or any
Coupon appertaining thereto Additional Amounts as provided in or pursuant to
this Indenture or such Securities. Whenever in this Indenture there is
mentioned, in any context, the payment of the principal of or any premium or
interest on, or in respect of, any Security of any series or any Coupon, such
mention shall be deemed to include mention of the payment of Additional Amounts
provided by the terms of such series established hereby or pursuant hereto to
the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof pursuant to such terms, and express mention of the
payment of Additional Amounts (if applicable) in any provision hereof shall not
be construed as excluding Additional Amounts in those provisions hereof where
such express mention is not made.

         Except as otherwise provided in or pursuant to this Indenture or the
Securities of the applicable series, if the Securities of a series provide for
the payment of Additional Amounts, at least 10 days prior to the first Interest
Payment Date with respect to such series of Securities (or if the Securities of
such series shall not bear interest prior to Maturity, the first day on which a
payment of principal is made), and at least 10 days prior to each date of
payment of principal or interest if there has been any change with respect to
the matters set forth in the below-mentioned Officers' Certificate, the Company
shall furnish to the Trustee and the principal Paying Agent or Paying Agents, if
other than the Trustee, an Officers' Certificate instructing the Trustee and
such Paying Agent or Paying Agents whether such payment of principal of and
premium, if any, or interest on the Securities of such series shall be made to
Holders of Securities of such series or the Coupons appertaining thereto who are
United States Aliens without withholding for or on account of any tax,
assessment or other governmental charge described in the Securities of such
series. If any such withholding shall be required, then such Officers'
Certificate shall specify by country the amount, if any, required to be withheld
on such payments to such Holders of Securities or Coupons, and the Company
agrees to pay to the Trustee or such Paying Agent the Additional Amounts
required by the terms of such Securities. The Company covenants to indemnify the
Trustee and any Paying Agent for, and to hold them harmless against, any loss,
liability or expense reasonably incurred without negligence or bad faith on
their part arising out of or in connection with actions taken or omitted by any
of them in reliance on any Officers' Certificate furnished pursuant to this
Section.

Section 1005 Corporate Existence

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

Section 1006 Waiver of Certain Covenants

         The Company may omit in any particular instance to comply with any
term, provision or condition set forth in Sections 1002 to 1005, inclusive with
respect to the Securities of any series if before the time for such compliance
the Holders of at least a majority in principal amount of

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the Outstanding Securities of such series, by Act of such Holders, either shall
waive such compliance in such instance or generally shall have waived compliance
with such term, provision or condition, but no such waiver shall extend to or
affect such term, provision or condition except to the extent so expressly
waived, and, until such waiver shall become effective, the obligations of the
Company and the duties of the Trustee in respect of any such term, provision or
condition shall remain in full force and effect.

Section 1007 Company Statement as to Compliance; Notice of Certain Defaults

         (1) The Company shall deliver to the Trustee, within 120 days after the
end of each fiscal year, a written statement (which need not be contained in or
accompanied by an Officers' Certificate) signed by the principal executive
officer, the principal financial officer or the principal accounting officer of
the Company, stating that

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

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

         (2) The Company shall deliver to the Trustee, within 10 days after the
occurrence thereof, written notice of any Event of Default or any event which
after notice or lapse of time or both would become an Event of Default pursuant
to clause (5) of Section 501.

         (3) The Trustee shall have no duty to monitor the Company's compliance
with the covenants contained in this Article Ten to other than as specifically
set forth in the this Section 1007.

Section 1008 Calculation of Original Issue Discount

         The Company shall file with the Trustee promptly at the end of each
calendar year (i) a written notice specifying the amount of original issue
discount (including daily rates and accrual periods) accrued on Outstanding
Securities as of the end of such year and (ii) such other specific information
relating to such original issue discount as may then be relevant under the
Internal Revenue Code of 1986, as amended from time to time.

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                                 ARTICLE ELEVEN

                            REDEMPTION OF SECURITIES

Section 1101 Applicability of Article

         Redemption of Securities of any series at the option of the Company as
permitted or required by the terms of such Securities shall be made in
accordance with the terms of such Securities and (except as otherwise provided
herein or pursuant hereto) this Article.

Section 1102 Election to Redeem; Notice to Trustee

         The election of the Company to optionally redeem any Securities shall
be evidenced by or pursuant to a Board Resolution. In case of any redemption at
the election of the Company of (a) less than all of the Securities of any series
or (b) all of the Securities of any series with the same issue date, interest
rate or formula, Stated Maturity and other terms, the Company shall, at least 60
days prior to the Redemption Date fixed by the Company (unless a shorter notice
shall be satisfactory to the Trustee), notify the Trustee of such Redemption
Date and of the principal amount of Securities of such series to be redeemed.

Section 1103 Selection by Trustee of Securities to be Redeemed

         If less than all of the Securities of any series with the same issue
date, interest rate or formula, Stated Maturity and other terms are to be
redeemed, the particular Securities to be redeemed shall be selected not more
than 60 days prior to the Redemption Date by the Trustee from the Outstanding
Securities of such series not previously called for redemption, by such method
as the Trustee shall deem fair and appropriate and which may provide for the
selection for redemption of portions of the principal amount of Registered
Securities of such series; provided, however, that no such partial redemption
shall reduce the portion of the principal amount of a Registered Security of
such series not redeemed to less than the minimum denomination for a Security of
such series established herein or pursuant hereto.

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

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

         Unless otherwise specified in or pursuant to this Indenture or the
Securities of any series, if any Security selected for partial redemption is
converted into or exchanged for Common Stock or other securities, cash or other
property in part before termination of the conversion or exchange right with
respect to the portion of the Security so selected, the converted portion of
such Security shall be deemed (so far as may be) to be the portion selected for
redemption. Securities which have been converted or exchanged during a selection
of Securities to be redeemed shall be treated by the Trustee as Outstanding for
the purpose of such selection.

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Section 1104 Notice of Redemption

         Notice of redemption shall be given in the manner provided in Section
106, not less than 30 nor more than 60 days prior to the Redemption Date, unless
a shorter period is specified in the Securities to be redeemed, to the Holders
of Securities to be redeemed. Failure to give notice by mailing in the manner
herein provided to the Holder of any Registered Securities designated for
redemption as a whole or in part, or any defect in the notice to any such
Holder, shall not affect the validity of the proceedings for the redemption of
any other Securities or portion thereof.

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

         All notices of redemption shall state:

         (1) the Redemption Date,

         (2) the Redemption Price,

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

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

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

         (6) the place or places where such Securities, together (in the case of
Bearer Securities) with all Coupons appertaining thereto, if any, maturing after
the Redemption Date, are to be surrendered for payment of the Redemption Price
and any accrued interest and Additional Amounts pertaining thereto,

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

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

         (9) if Bearer Securities of any series are to be redeemed and any
Registered Securities of such series are not to be redeemed, and if such Bearer
Securities may be exchanged for Registered Securities not subject to redemption
on the Redemption Date pursuant to Section 305

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<PAGE>   76
or otherwise, the last date, as determined by the Company, on which such
exchanges may be made,

         (10) in the case of Securities of any series that are convertible or
exchangeable into Common Stock or other securities, cash or other property, the
conversion or exchange price or rate, the date or dates on which the right to
convert or exchange the principal of the Securities of such series to be
redeemed will commence or terminate and the place or places where such
Securities may be surrendered for conversion or exchange, and

         (11) the CUSIP number or the Euroclear or the Cedelbank reference
numbers of such Securities, if any (or any other numbers used by a Depository to
identify such Securities).

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

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

Section 1105 Deposit of Redemption Price

         At or prior to 10:00 a.m., New York City time, on any Redemption Date,
the Company shall deposit, with respect to the Securities of any series called
for redemption pursuant to Section 1104, with the Trustee or with a Paying Agent
(or, if the Company is acting as its own Paying Agent, segregate and hold in
trust as provided in Section 1003) an amount of money in the applicable Currency
sufficient to pay the Redemption Price of, and (except if the Redemption Date
shall be an Interest Payment Date, unless otherwise specified pursuant to
Section 301 or in the Securities of such series) any accrued interest on and
Additional Amounts with respect thereto, all such Securities or portions thereof
which are to be redeemed on that date.

Section 1106 Securities Payable on Redemption Date

         Notice of redemption having been given as aforesaid, the Securities so
to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest and the Coupons for such
interest appertaining to any Bearer Securities so to be redeemed, except to the
extent provided below, shall be void. Upon surrender of any such Security for
redemption in accordance with said notice, together with all Coupons, if any,
appertaining thereto maturing after the Redemption Date, such Security shall be
paid by the Company at the Redemption Price, together with any accrued interest
and Additional Amounts to the Redemption Date; provided, however, that, except
as otherwise provided in or pursuant to this Indenture or the Bearer Securities
of such series, installments of interest on Bearer Securities whose Stated
Maturity is on or prior to the Redemption Date shall be payable only upon
presentation and surrender of Coupons for such interest (at an Office or Agency
located outside the United States except as otherwise provided in Section 1002),
and provided, further, that, except as otherwise specified in or pursuant to
this Indenture or the Registered Securities of such series, installments of
interest on Registered Securities whose Stated Maturity is on or prior to the
Redemption Date shall be

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<PAGE>   77
payable to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the Regular Record
Dates therefor according to their terms and the provisions of Section 307.

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

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

Section 1107 Securities Redeemed in Part

         Any Registered Security which is to be redeemed only in part shall be
surrendered at any Office or Agency for such Security (with, if the Company or
the Trustee so requires, due endorsement by, or a written instrument of transfer
in form satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or his attorney duly authorized in writing) and the Company shall
execute and the Trustee shall authenticate and deliver to the Holder of such
Security without service charge, a new Registered Security or Securities of the
same series, containing identical terms and provisions, of any authorized
denomination as requested by such Holder in aggregate principal amount equal to
and in exchange for the unredeemed portion of the principal of the Security so
surrendered. If a Security in global form is so surrendered, the Company shall
execute, and the Trustee shall authenticate and deliver to the U.S. Depository
or other Depository for such Security in global form as shall be specified in
the Company Order with respect thereto to the Trustee, without service charge, a
new Security in global form in a denomination equal to and in exchange for the
unredeemed portion of the principal of the Security in global form so
surrendered.

                                 ARTICLE TWELVE

                                  SINKING FUNDS

Section 1201 Applicability of Article

         The provisions of this Article shall be applicable to any sinking fund
for the retirement of Securities of a series, except as otherwise permitted or
required in or pursuant to this Indenture or any Security of such series issued
pursuant to this Indenture.

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<PAGE>   78
         The minimum amount of any sinking fund payment provided for by the
terms of Securities of any series is herein referred to as a "mandatory sinking
fund payment", and any payment in excess of such minimum amount provided for by
the terms of Securities of such series is herein referred to as an "optional
sinking fund payment". If provided for by the terms of Securities of any series,
the cash amount of any sinking fund payment may be subject to reduction as
provided in Section 1202. Each sinking fund payment shall be applied to the
redemption of Securities of any series as provided for by the terms of
Securities of such series and this Indenture.

Section 1202 Satisfaction of Sinking Fund Payments with Securities

         The Company may, in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of any series to be made pursuant to the
terms of such Securities (1) deliver Outstanding Securities of such series
(other than any of such Securities previously called for redemption or any of
such Securities in respect of which cash shall have been released to the
Company), together in the case of any Bearer Securities of such series with all
unmatured Coupons appertaining thereto, and (2) apply as a credit Securities of
such series which have been redeemed either at the election of the Company
pursuant to the terms of such series of Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, provided that such Securities have not been previously so credited.
Such Securities shall be received and credited for such purpose by the Trustee
at the Redemption Price specified in such Securities for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly. If as a result of the delivery or credit of Securities
of any series in lieu of cash payments pursuant to this Section 1202, the
principal amount of Securities of such series to be redeemed in order to satisfy
the remaining sinking fund payment shall be less than $100,000, the Trustee need
not call Securities of such series for redemption, except upon Company Request,
and such cash payment shall be held by the Trustee or a Paying Agent and applied
to the next succeeding sinking fund payment, provided, however, that the Trustee
or such Paying Agent shall at the request of the Company from time to time pay
over and deliver to the Company any cash payment so being held by the Trustee or
such Paying Agent upon delivery by the Company to the Trustee of Securities of
that series purchased by the Company having an unpaid principal amount equal to
the cash payment requested to be released to the Company.

Section 1203 Redemption of Securities for Sinking Fund

         Not less than 75 days prior to each sinking fund payment date for any
series of Securities, the Company shall deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing mandatory sinking fund
payment for that series pursuant to the terms of that series, the portion
thereof, if any, which is to be satisfied by payment of cash and the portion
thereof, if any, which is to be satisfied by delivering and crediting of
Securities of that series pursuant to Section 1202, and the optional amount, if
any, to be added in cash to the next ensuing mandatory sinking fund payment, and
will also deliver to the Trustee any Securities to be so credited and not
theretofore delivered. If such Officers' Certificate shall specify an optional
amount to be added in cash to the next ensuing mandatory sinking fund payment,
the Company shall thereupon be obligated to pay the amount therein specified.
Not less than 60 days before each such sinking fund payment date the Trustee
shall select the Securities to be redeemed upon such sinking fund payment date
in the manner specified in Section 1103 and cause notice of the

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<PAGE>   79
redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 1104. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Section 1106 and Section 1107.

                                ARTICLE THIRTEEN

                       REPAYMENT AT THE OPTION OF HOLDERS

Section 1301 Applicability of Article

         Securities of any series which are repayable at the option of the
Holders thereof before their Stated Maturity shall be repaid in accordance with
the terms of the Securities of such series. The repayment of any principal
amount of Securities pursuant to such option of the Holder to require repayment
of Securities before their Stated Maturity, for purposes of Section 309, shall
not operate as a payment, redemption or satisfaction of the Indebtedness
represented by such Securities unless and until the Company, at its option,
shall deliver or surrender the same to the Trustee with a directive that such
Securities be cancelled. Notwithstanding anything to the contrary contained in
this Section 1301, in connection with any repayment of Securities, the Company
may arrange for the purchase of any Securities by an agreement with one or more
investment bankers or other purchasers to purchase such Securities by paying to
the Holders of such Securities on or before the close of business on the
repayment date an amount not less than the repayment price payable by the
Company on repayment of such Securities, and the obligation of the Company to
pay the repayment price of such Securities shall be satisfied and discharged to
the extent such payment is so paid by such purchasers.

                                ARTICLE FOURTEEN

                        SECURITIES IN FOREIGN CURRENCIES

Section 1401 Applicability of Article

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

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                                ARTICLE FIFTEEN

                        MEETINGS OF HOLDERS OF SECURITIES

Section 1501 Purposes for Which Meetings May Be Called

         A meeting of Holders of Securities of any series may be called at any
time and from time to time pursuant to this Article to make, give or take any
request, demand, authorization, direction, notice, consent, waiver or other Act
provided by this Indenture to be made, given or taken by Holders of Securities
of such series.

Section 1502 Call, Notice and Place of Meetings

         (1) The Trustee may at any time call a meeting of Holders of Securities
of any series for any purpose specified in Section 1501, to be held at such time
and at such place in the Borough of Manhattan, The City of New York, or, if
Securities of such series have been issued in whole or in part as Bearer
Securities, in London or in such place outside the United States as the Trustee
shall determine. Notice of every meeting of Holders of Securities of any series,
setting forth the time and the place of such meeting and in general terms the
action proposed to be taken at such meeting, shall be given, in the manner
provided in Section 106, not less than 21 nor more than 180 days prior to the
date fixed for the meeting.

         (2) In case at any time the Company (by or pursuant to a Board
Resolution) or the Holders of at least 10% in principal amount of the
Outstanding Securities of any series shall have requested the Trustee to call a
meeting of the Holders of Securities of such series for any purpose specified in
Section 1501, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and the Trustee shall not have mailed
notice of or made the first publication of the notice of such meeting within 21
days after receipt of such request (whichever shall be required pursuant to
Section 106) or shall not thereafter proceed to cause the meeting to be held as
provided herein, then the Company or the Holders of Securities of such series in
the amount above specified, as the case may be, may determine the time and the
place in the Borough of Manhattan, The City of New York, or, if Securities of
such series have been issued in whole or in part as Bearer Securities, in London
for such meeting and may call such meeting for such purposes by giving notice
thereof as provided in clause (1) of this Section.

Section 1503 Persons Entitled to Vote at Meetings

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

Section 1504 Quorum; Action

         The Persons entitled to vote a majority in principal amount of the
Outstanding Securities of a series shall constitute a quorum for a meeting of
Holders of Securities of such series;

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<PAGE>   81
provided, however, that if any action is to be taken at such meeting with
respect to a consent or waiver which this Indenture expressly provides may be
given by the Holders of at least 66-2/3% in principal amount of the Outstanding
Securities of a series, the Persons entitled to vote 66-2/3% in principal amount
of the Outstanding Securities of such series shall constitute a quorum. In the
absence of a quorum within 30 minutes after the time appointed for any such
meeting, the meeting shall, if convened at the request of Holders of Securities
of such series, be dissolved. In any other case the meeting may be adjourned for
a period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such meeting. In the absence of a quorum at any such
adjourned meeting, such adjourned meeting may be further adjourned for a period
of not less than 10 days as determined by the chairman of the meeting prior to
the adjournment of such adjourned meeting. Notice of the reconvening of any
adjourned meeting shall be given as provided in Section 1502(1), except that
such notice need be given only once not less than five days prior to the date on
which the meeting is scheduled to be reconvened. Notice of the reconvening of an
adjourned meeting shall state expressly the percentage, as provided above, of
the principal amount of the Outstanding Securities of such series which shall
constitute a quorum.

         Except as limited by the proviso to Section 902, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum is
present as aforesaid may be adopted only by the affirmative vote of the Holders
of a majority in principal amount of the Outstanding Securities of that series;
provided, however, that, except as limited by the proviso to Section 902, any
resolution with respect to any consent or waiver which this Indenture expressly
provides may be given by the Holders of at least 66-2/3% in principal amount of
the Outstanding Securities of a series may be adopted at a meeting or an
adjourned meeting duly convened and at which a quorum is present as aforesaid
only by the affirmative vote of the Holders of 66-2/3% in principal amount of
the Outstanding Securities of that series; and provided, further, that, except
as limited by the proviso to Section 902, any resolution with respect to any
request, demand, authorization, direction, notice, consent, waiver or other Act
which this Indenture expressly provides may be made, given or taken by the
Holders of a specified percentage, which is less than a majority, in principal
amount of the Outstanding Securities of a series may be adopted at a meeting or
an adjourned meeting duly reconvened and at which a quorum is present as
aforesaid by the affirmative vote of the Holders of such specified percentage in
principal amount of the Outstanding Securities of such series.

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

Section 1505 Determination of Voting Rights; Conduct and Adjournment of Meetings

         (1) Notwithstanding any other provisions of this Indenture, the Trustee
may make such reasonable regulations as it may deem advisable for any meeting of
Holders of Securities of such series in regard to proof of the holding of
Securities of such series and of the appointment of proxies and in regard to the
appointment and duties of inspectors of votes, the submission and examination of
proxies, certificates and other evidence of the right to vote, and such other
matters concerning the conduct of the meeting as it shall deem appropriate.
Except as otherwise

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<PAGE>   82
permitted or required by any such regulations, the holding of Securities shall
be proved in the manner specified in Section 104 and the appointment of any
proxy shall be proved in the manner specified in Section 104 or by having the
signature of the Person executing the proxy witnessed or guaranteed by any trust
company, bank or banker authorized by Section 104 to certify to the holding of
Bearer Securities. Such regulations may provide that written instruments
appointing proxies, regular on their face, may be presumed valid and genuine
without the proof specified in Section 104 or other proof.

         (2) The Trustee shall, by an instrument in writing, appoint a temporary
chairman of the meeting, unless the meeting shall have been called by the
Company or by Holders of Securities as provided in Section 1502(2), in which
case the Company or the Holders of Securities of the series calling the meeting,
as the case may be, shall in like manner appoint a temporary chairman. A
permanent chairman and a permanent secretary of the meeting shall be elected by
vote of the Persons entitled to vote a majority in principal amount of the
Outstanding Securities of such series represented at the meeting.

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

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

Section 1506 Counting Votes and Recording Action of Meetings

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

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                                ARTICLE SIXTEEN

                                  SUBORDINATION

Section 1601 Securities Subordinated to Senior Debt

         The Company agrees, and each Holder of the Securities by his acceptance
thereof likewise agrees, that the payment of the principal of, and any premium,
interest or any Additional Amounts on the Securities is subordinated, to the
extent and in the manner provided in this Article, to the prior payment in full
of all Senior Debt.

         "Senior Debt" means the principal of, and any premium, interest or any
additional amounts on Indebtedness of the Company outstanding at any time other
than (i) the Securities, and (ii) Indebtedness which by its terms is not
superior in right of payment to the Securities.

         This Article shall constitute a continuing offer to all Persons who, in
reliance upon such provisions, become holders of, or continue to hold, Senior
Debt, and such provisions are made for the benefit of the holders of Senior
Debt, and such holders are made obligees hereunder and they and/or each of them
may enforce such provisions.

Section 1602 Company Not to Make Payments with Respect to Securities in Certain
Circumstances

                  (a) Upon the maturity of any Senior Debt by lapse of time,
         acceleration or otherwise, all principal thereof and interest, any
         premium or any additional amounts thereon shall first be paid in full,
         or such payment duly provided for in cash or in a manner satisfactory
         to the holders of such Senior Debt, before any payment is made on
         account of the principal of, any premium or interest on or any
         Additional Amounts with respect to the Securities or to acquire any of
         the Securities or on account of any sinking fund provisions of the
         Securities (except payments made in capital stock of the Company or in
         warrants, rights or options to purchase or acquire capital stock of the
         Company, sinking fund payments made in Securities acquired by the
         Company before the maturity of such Senior Debt, and payments made
         through the exchange of other debt obligations of the Company for such
         Securities in accordance with the terms of such Securities, provided
         that such debt obligations are subordinated to Senior Debt at least to
         the extent that the Securities for which they are exchanged are so
         subordinated pursuant to this Article Sixteen).

                  (b) Upon the happening of any default in payment of the
         principal of or interest, any premium or any additional amounts on any
         Senior Debt when the same become due and payable, then, unless and
         until such default shall have been cured or waived or shall have ceased
         to exist, no payment shall be made by the Company with respect to the
         principal of, any premium or interest on or any Additional Amounts with
         respect to the Securities or to acquire any of the Securities or on
         account of any sinking fund provisions of the Securities (except
         payments made in capital stock of the Company or in warrants, rights or
         options to purchase or acquire capital stock of the Company, sinking
         fund payments made in Securities acquired by the Company before such
         default and notice thereof, and payments made through the exchange of
         other debt obligations of the

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<PAGE>   84
         Company for such Securities in accordance with the terms of such
         Securities, provided that such debt obligations are subordinated to
         Senior Debt at least to the extent that the Securities for which they
         are exchanged are so subordinated pursuant to this Article Sixteen).

                  (c) In the event that notwithstanding the provisions of this
         Section 1602 the Company shall make any payment to the Trustee on
         account of the principal of, any premium or interest on or any
         Additional Amounts with respect to the Securities, or on account of any
         sinking fund provisions of the Securities, after the maturity of any
         Senior Debt as described in Section 1602(a) above or after the
         happening of a default in payment of the principal of, or any premium,
         interest or any additional amounts on any Senior Debt as described in
         Section 1602(b) above, then, unless and until all Senior Debt which
         shall have matured, and all interest, any premium or additional amounts
         thereon, shall have been paid in full (or the declaration of
         acceleration thereof shall have been rescinded or annulled), or such
         default shall have been cured or waived or shall have ceased to exist,
         such payment (subject to the provisions of Sections 1606 and 1607)
         shall be held by the Trustee, in trust for the benefit of, and shall be
         paid forthwith over and delivered to, the holders of such Senior Debt
         (pro rata as to each of such holders on the basis of the respective
         amounts of Senior Debt held by them) or their representative or the
         trustee under the indenture or other agreement (if any) pursuant to
         which such Senior Debt may have been issued, as their respective
         interests may appear, for application to the payment of all such Senior
         Debt remaining unpaid to the extent necessary to pay the same in full
         in accordance with its terms, after giving effect to any concurrent
         payment or distribution to or for the holders of Senior Debt. The
         Company shall give prompt written notice to the Trustee of any default
         in the payment of principal of or interest, any premium or any
         additional amounts on any Senior Debt.

Section 1603 Securities Subordinated to Prior Payment of All Senior Debt on
Dissolution, Liquidation or Reorganization of Company

         Upon any distribution of assets of the Company in any dissolution,
winding up, liquidation or reorganization of the Company (whether in bankruptcy,
insolvency or receivership proceedings or upon an assignment for the benefit of
creditors or otherwise):

                  (a) the holders of all Senior Debt shall first be entitled to
         receive payments in full of the principal thereof and interest, any
         premium or any additional amounts due thereon before the Holders of the
         Securities are entitled to receive any payment on account of the
         principal of, any premium or interest on or any Additional Amounts with
         respect to the Securities;

                  (b) any payment or distribution of assets of the Company of
         any kind or character, whether in cash, property or securities (other
         than securities of the Company as reorganized or readjusted or
         securities of the Company or any other Corporation provided for by a
         plan of reorganization or readjustment the payment of which is
         subordinate, at least to the extent provided in this Article Sixteen
         with respect to the Securities, to the payment in full without
         diminution or modification by such plan of all Senior Debt), to which
         the Holders of the Securities or the Trustee on behalf of the Holders
         of the Securities would be entitled except for the provisions of this
         Article Sixteen, shall be paid

                                       77
<PAGE>   85
         by the liquidating trustee or agent or other Person making such payment
         or distribution directly to the holders of Senior Debt or their
         representative, or to the trustee under any indenture under which
         Senior Debt may have been issued (pro rata as to each such holder,
         representative or trustee on the basis of the respective amounts of
         unpaid Senior Debt held or represented by each), to the extent
         necessary to make payment in full of all Senior Debt remaining unpaid,
         after giving effect to any concurrent payment or distribution or
         provision therefor to the holders of such Senior Debt; and

                  (c) in the event that notwithstanding the foregoing provisions
         of this Section 1603, any payment or distribution of assets of the
         Company of any kind or character, whether in cash, property or
         securities (other than securities of the Company as reorganized or
         readjusted or securities of the Company or any other Corporation
         provided for by a plan of reorganization or readjustment the payment of
         which is subordinate, at least to the extent provided in this Article
         Sixteen with respect to the Securities, to the payment in full without
         diminution or modification by such plan of all Senior Debt), shall be
         received by the Trustee or the Holders of the Securities on account of
         principal of, any premium or interest on or any Additional Amounts with
         respect to the Securities before all Senior Debt is paid in full, or
         effective provision made for its payment, such payment or distribution
         (subject to the provisions of Sections 1606 and 1607) shall be received
         and held in trust for and shall be paid over to the holders of the
         Senior Debt remaining unpaid or unprovided for or their representative,
         or to the trustee under any indenture under which such Senior Debt may
         have been issued (pro rata as provided in subsection (b) above), for
         application to the payment of such Senior Debt until all such Senior
         Debt shall have been paid in full, after giving effect to any
         concurrent payment or distribution or provision therefor to the holders
         of such Senior Debt.

         The Company shall give prompt written notice to the Trustee of any
dissolution, winding up, liquidation or reorganization of the Company.

Section 1604 Holders of Securities to be Subrogated to Right of Holders of
Senior Debt

         Subject to the payment in full of all Senior Debt, the Holders of the
Securities shall be subrogated equally and ratably to the rights of the holders
of Senior Debt to receive payments or distributions of assets of the Company
applicable to the Senior Debt until all amounts owing on the Securities shall be
paid in full, and for the purpose of such subrogation no payments or
distributions to the holders of the Senior Debt by or on behalf of the Company
or by or on behalf of the Holders of the Securities by virtue of this Article
Sixteen which otherwise would have been made to the Holders of the Securities
shall, as between the Company, its creditors other than holders of Senior Debt
and the Holders of the Securities, be deemed to be payment by the Company to or
on account of the Senior Debt, it being understood that the provisions of this
Article Sixteen are and are intended solely for the purpose of defining the
relative rights of the Holders of the Securities, on the one hand, and the
holders of the Senior Debt, on the other hand.

Section 1605 Obligation of the Company Unconditional

         Nothing contained in this Article Sixteen or elsewhere in this
Indenture or in any Security is intended to or shall impair, as between the
Company, its creditors other than holders of Senior Debt and the Holders of the
Securities, the obligation of the Company, which is absolute and

                                       78
<PAGE>   86
unconditional, to pay to the Holders of the Securities the principal of and any
premium or interest on or any Additional Amounts with respect to the Securities
as and when the same shall become due and payable in accordance with their
terms, or is intended to or shall affect the relative rights of the Holders of
the Securities and creditors of the Company other than the holders of the Senior
Debt, nor shall anything herein or therein prevent the Trustee or the Holder of
any Security from exercising all remedies otherwise permitted by applicable law
upon default under this Indenture, subject to the rights, if any, under this
Article Sixteen of the holders of Senior Debt in respect of cash, property or
securities of the Company received upon the exercise of any such remedy. Upon
any payment or distribution of assets of the Company referred to in this Article
Sixteen, the Trustee and the Holders of the Securities shall be entitled to rely
upon any order or decree made by any court of competent jurisdiction in which
such dissolution, winding up, liquidation or reorganization proceedings are
pending, or, subject to the provisions of Section 601, a certificate of the
receiver, trustee in bankruptcy, liquidating trustee or agent or other Person
making such payment or distribution to the Trustee or the Holders of the
Securities, for the purpose of ascertaining the Persons entitled to participate
in such distribution, the holders of the Senior Debt and other indebtedness of
the Company, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto or to this Article
Sixteen.

         Nothing contained in this Article Sixteen or elsewhere in this
Indenture or in any Security is intended to or shall affect the obligation of
the Company to make, or prevent the Company from making, at any time except
during the pendency of any dissolution, winding up, liquidation or
reorganization proceeding, and except as provided in subsections (a) and (b) of
Section 1602, payments at any time of the principal of or any premium or
interest on or any Additional Amounts with respect to the Securities.

Section 1606 Trustee Entitled to Assume Payments Not Prohibited in Absence of
Notice

         The Trustee shall not at any time be charged with knowledge of the
existence of any facts which would prohibit the making of any payment to or by
the Trustee, unless at least two Business Days prior to the making of any such
payment, the Trustee shall have received written notice thereof from the Company
or from one or more holders of Senior Debt or from any representative thereof or
from any trustee therefor, together with proof satisfactory to the Trustee of
such holding of Senior Debt or of the authority of such representative or
trustee; and, prior to the receipt of any such written notice, the Trustee,
subject to the provisions of Section 601 shall be entitled to assume
conclusively that no such facts exist. The Trustee shall be entitled to rely on
the delivery to it of a written notice by a Person representing himself to be a
holder of Senior Debt (or a representative or trustee on behalf of such holder)
to establish that such notice has been given by a holder of Senior Debt or a
representative of or trustee on behalf of any such holder. In the event that the
Trustee determines, in good faith, that further evidence is required with
respect to the right of any Person as a holder of Senior Debt to participate in
any payments or distribution pursuant to this Article Sixteen, the Trustee may
request such Person to furnish evidence to the reasonable satisfaction of the
Trustee as to the amount of Senior Debt held by such Person, as to the extent to
which such Person is entitled to participate in such payment or distribution,
and as to other facts pertinent to the rights of such Person under this Article
Sixteen, and if such evidence is not furnished, the Trustee may defer any
payment to such Person pending judicial determination as to the right of such
Person to receive such payment. The Trustee,

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<PAGE>   87
however, shall not be deemed to owe any fiduciary duty to the holders of Senior
Debt and nothing in this Article Sixteen shall apply to claims of, or payments
to, the Trustee under or pursuant to Section 606.

Section 1607 Application by Trustee of Monies or Government Obligations
Deposited with It

         Money or Government Obligations (or other property as may be provided
pursuant to Section 301) deposited in trust with the Trustee pursuant to and in
accordance with Section 401 or Section 402 shall be for the sole benefit of
Holders of Securities and, to the extent allocated for the payment of
Securities, shall not be subject to the subordination provisions of this Article
Sixteen, if the same are deposited in trust prior to the happening of any event
specified in Section 1602. Otherwise, any deposit of monies or Government
Obligations (or other property) by the Company with the Trustee or any Paying
Agent (whether or not in trust) for the payment of the principal of or any
premium or interest on or any Additional Amounts with respect to any Securities
shall be subject to the provisions of Sections 1601, 1602 and 1603 except that,
if prior to the date on which by the terms of this Indenture any such monies may
become payable for any purpose (including, without limitation, the payment of
the principal of or any premium or interest on or any Additional Amounts with
respect to any Security) the Trustee shall not have received with respect to
such monies the notice provided for in Section 1606, then the Trustee or the
Paying Agent shall have full power and authority to receive such monies and
Government Obligations (or other property) and to apply the same to the purpose
for which they were received, and shall not be affected by any notice to the
contrary which may be received by it on or after such date. This Section 1607
shall be construed solely for the benefit of the Trustee and Paying Agent and,
as to the first sentence hereof, the Holders of Securities, and shall not
otherwise affect the rights of holders of Senior Debt.

Section 1608 Subordination Rights Not Impaired by Acts or Omissions of Company
or Holders of Senior Debt

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

Section 1609 Holders of Securities Authorize Trustee to Effectuate Subordination
of Securities

         Each Holder of the Securities by his acceptance thereof authorizes and
expressly directs the Trustee on his behalf to take such action as may be
necessary or appropriate to effectuate the subordination provided in this
Article Sixteen and appoints the Trustee his attorney-in-fact for such purpose,
including, in the event of any dissolution, winding up, liquidation or
reorganization of the Company (whether in bankruptcy, insolvency or receivership
proceedings or upon an assignment for the benefit of creditors or otherwise)
tending towards liquidation of the business and assets of the Company, the
immediate filing of a claim for the unpaid balance of his Securities in the form
required in said proceedings and causing said claim to be approved. If the
Trustee does not file a proper claim or proof of debt in the form required in
such proceeding prior to 30 days before the expiration of the time to file such
claim or claims, then the holders of Senior Debt have the right to file and are
hereby authorized to file an appropriate claim for and on behalf of the Holders
of said Securities.

                                       80
<PAGE>   88
Section 1610 Right of Trustee to Hold Senior Debt

         The Trustee shall be entitled to all of the rights set forth in this
Article Sixteen in respect of any Senior Debt at any time held by it to the same
extent as any other holder of Senior Debt, and nothing in this Indenture shall
be construed to deprive the Trustee of any of its rights as such holder.

Section 1611 Article Sixteen Not to Prevent Events of Default

         The failure to make a payment on account of principal or any premium or
interest or any Additional Amounts by reason of any provision in this Article
Sixteen shall not be construed as preventing the occurrence of an Event of
Default under Section 501.

                                       81
<PAGE>   89
                               * * * * * * * * * *

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

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

                                        LIBERTY MEDIA CORPORATION

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

                                        THE BANK OF NEW YORK, as Trustee

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

                                       82

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